Finance Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

Finance Receivables

Finance receivables, net were as follows:

	December 31,
	2018			2017
Gross receivables	$	4,003		$	4,354
Unearned income	(439		)	(494		)
Subtotal	3,564			3,860
Residual values	—			—
Allowance for doubtful accounts	(92		)	(108		)
Finance Receivables, Net	3,472			3,752
Less: Billed portion of finance receivables, net	105			112
Less: Current portion of finance receivables not billed, net	1,218			1,317
Finance Receivables Due After One Year, Net	$	2,149		$	2,323

Schedule of Financing Receivables, Minimum Payments

Contractual maturities of our gross finance receivables as of December 31, 2018 were as follows (including those already billed of $107):

2019		2020		2021		2022		2023		Thereafter		Total
$	1,543	$	1,108	$	755	$	425	$	158	$	14	$	4,003

Allowance for Credit Losses Rollforward, and the Investment in Finance Receivables

The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables:

Allowance for Credit Losses:	United States			Canada			Europe			Other(2)		Total
Balance at December 31, 2016(1)	$	55		$	16		$	37		$	2	$	110
Provision	11			2			4			—		17
Charge-offs	(12		)	(5		)	(11		)	—		(28		)
Recoveries and other(3)	2			2			5			—		9
Balance at December 31, 2017	$	56		$	15		$	35		$	2	$	108
Provision	12			3			9			—		24
Charge-offs	(17		)	(6		)	(18		)	—		(41		)
Recoveries and other(3)	2			—			(1		)	—		1
Balance at December 31, 2018	$	53		$	12		$	25		$	2	$	92
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2017(4)	$	2,029		$	397		$	1,362		$	72	$	3,860
December 31, 2018(4)	$	1,932		$	335		$	1,239		$	58	$	3,564

_____________

(1) In the first quarter 2016, as a result of an internal reorganization, a U.S. leasing unit previously classified as Other was reclassified to the U.S. Prior year amounts have been reclassified to conform to current year presentation.

(2) Includes developing market countries and smaller units.

(3) Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(4) Total Finance receivables exclude the allowance for credit losses of $92 and $108 at December 31, 2018 and 2017, respectively.

Credit Quality Indicators for Finance Receivables

Details about our finance receivables portfolio based on industry and credit quality indicators are as follows:

	December 31, 2018								December 31, 2017
	Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables		Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables
Finance and other services	$	177	$	330	$	87	$	594	$	199	$	345	$	75	$	619
Government and education	451		62		9		522		490		61		6		557
Graphic arts	82		131		86		299		84		97		141		322
Industrial	85		81		16		182		82		84		14		180
Healthcare	86		47		9		142		88		48		9		145
Other	63		89		41		193		68		98		40		206
Total United States	944		740		248		1,932		1,011		733		285		2,029
Finance and other services	52		33		20		105		54		42		27		123
Government and education	38		3		4		45		48		5		5		58
Graphic arts	22		30		26		78		34		35		27		96
Industrial	16		12		9		37		20		12		11		43
Other	34		21		15		70		36		25		16		77
Total Canada	162		99		74		335		192		119		86		397
France	221		180		17		418		234		226		22		482
U.K/Ireland	132		105		7		244		106		150		10		266
Central(1)	179		136		12		327		189		149		16		354
Southern(2)	46		148		11		205		52		144		13		209
Nordic(3)	28		17		—		45		29		21		1		51
Total Europe	606		586		47		1,239		610		690		62		1,362
Other	34		21		3		58		38		28		6		72
Total	$	1,746	$	1,446	$	372	$	3,564	$	1,851	$	1,570	$	439	$	3,860

_____________

(1) Switzerland, Germany, Austria, Belgium and Holland.

(2) Italy, Greece, Spain and Portugal.

(3) Sweden, Norway, Denmark and Finland.

Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:

	December 31, 2018
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	15	$	4	$	2	$	21	$	573	$	594	$	11
Government and education	17		4		3		24		498		522		24
Graphic arts	10		1		1		12		287		299		5
Industrial	5		2		1		8		174		182		5
Healthcare	4		2		1		7		135		142		5
Other	5		2		1		8		185		193		4
Total United States	56		15		9		80		1,852		1,932		54
Canada	7		2		1		10		325		335		22
France	5		—		—		5		413		418		14
U.K./Ireland	2		—		—		2		242		244		—
Central(1)	1		1		1		3		324		327		6
Southern(2)	3		1		1		5		200		205		6
Nordic(3)	—		—		—		—		45		45		—
Total Europe	11		2		2		15		1,224		1,239		26
Other	2		—		—		2		56		58		—
Total	$	76	$	19	$	12	$	107	$	3,457	$	3,564	$	102

	December 31, 2017
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Finance and other services	$	18	$	3	$	1	$	22	$	597	$	619	$	12
Government and education	18		3		3		24		533		557		21
Graphic arts	12		1		—		13		309		322		6
Industrial	6		1		1		8		172		180		4
Healthcare	5		1		1		7		138		145		5
Other	7		1		1		9		197		206		3
Total United States	66		10		7		83		1,946		2,029		51
Canada	8		2		1		11		386		397		17
France	6		—		—		6		476		482		22
U.K./Ireland	3		—		—		3		263		266		—
Central(1)	1		2		—		3		351		354		6
Southern(2)	4		1		1		6		203		209		6
Nordic(3)	—		—		—		—		51		51		—
Total Europe	14		3		1		18		1,344		1,362		34
Other	3		—		—		3		69		72		—
Total	$	91	$	15	$	9	$	115	$	3,745	$	3,860	$	102

_____________

(1) Switzerland, Germany, Austria, Belgium and Holland.

(2) Italy, Greece, Spain and Portugal.

(3) Sweden, Norway, Denmark and Finland.