Finance Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2019

Financing Receivable, Net [Abstract]

Finance Receivables

Finance receivables, net were as follows:

	March 31, 2019			December 31, 2018
Gross receivables	$	3,888		$	4,003
Unearned income	(422		)	(439		)
Subtotal	3,466			3,564
Residual values	—			—
Allowance for doubtful accounts	(93		)	(92		)
Finance Receivables, Net	3,373			3,472
Less: Billed portion of finance receivables, net	102			105
Less: Current portion of finance receivables not billed, net	1,191			1,218
Finance Receivables Due After One Year, Net	$	2,080		$	2,149

Schedule of Financing Receivables, Minimum Payments

A summary of future contractual maturities of our gross finance receivables, including those previously billed is as follows:

	March 31, 2019		December 31, 2018
12 Months(1)	$	1,519	$	1,543
24 Months	1,072		1,108
36 Months	724		755
48 Months	407		425
60 Months	148		158
Thereafter	18		14
Total	$	3,888	$	4,003

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(1) Includes amounts previously billed of $105 and $107 as of March 31, 2019 and December 31, 2018, respectively.

Allowance for Credit Losses on Financing Receivables

The allowance for doubtful finance receivables as well as the related investment in finance receivables were as follows:

Allowance for Credit Losses:	United States			Canada			Europe			Other(1)		Total
Balance at December 31, 2018	$	53		$	12		$	25		$	2	$	92
Provision	4			1			4			—		9
Charge-offs	(4		)	(1		)	(3		)	—		(8		)
Recoveries and other(2)	—			—			—			—		—
Balance at March 31, 2019	$	53		$	12		$	26		$	2	$	93
Finance receivables as of March 31, 2019 collectively evaluated for impairment (3)	$	1,895		$	329		$	1,200		$	42	$	3,466
Balance at December 31, 2017	$	56		$	15		$	35		$	2	$	108
Provision	5			—			4			—		9
Charge-offs	(5		)	(1		)	(4		)	—		(10		)
Recoveries and other(2)	—			—			1			—		1
Balance at March 31, 2018	$	56		$	14		$	36		$	2	$	108
Finance receivables as of March 31, 2018 collectively evaluated for impairment(3)(4)	$	2,006		$	373		$	1,364		$	50	$	3,793

__________________

(1) Includes developing market countries and smaller units.

(2) 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.

(3) Total Finance receivables exclude the allowance for credit losses of $93 and $108 at March 31, 2019 and 2018, respectively.

(4) As a result of an internal reorganization, XBS amounts, previously classified as Other, were reclassified to the U.S. in first quarter 2019. Prior year amounts have also been reclassified to conform to the current year presentation.

Financing Receivable Credit Quality Indicators

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

	March 31, 2019								December 31, 2018
	Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables		Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables
Finance and other services	$	172	$	332	$	88	$	592	$	177	$	334	$	88	$	599
Government and education	439		60		9		508		453		63		9		525
Graphic arts	76		126		83		285		82		131		87		300
Industrial	86		80		15		181		86		82		16		184
Healthcare	83		45		11		139		86		48		9		143
Other	61		97		32		190		63		90		42		195
Total United States(1)	917		740		238		1,895		947		748		251		1,946
Finance and other services	54		32		19		105		52		33		20		105
Government and education	37		3		4		44		38		3		4		45
Graphic arts	20		28		26		74		22		30		26		78
Industrial	18		12		11		41		16		12		9		37
Other	31		20		14		65		34		21		15		70
Total Canada	160		95		74		329		162		99		74		335
France	217		150		27		394		232		157		29		418
U.K./Ireland	152		83		8		243		150		87		7		244
Central(2)	186		121		8		315		196		123		8		327
Southern(3)	54		132		15		201		52		136		17		205
Nordics(4)	29		17		1		47		28		15		2		45
Total Europe(5)	638		503		59		1,200		658		518		63		1,239
Other(1)	30		11		1		42		31		13		—		44
Total	$	1,745	$	1,349	$	372	$	3,466	$	1,798	$	1,378	$	388	$	3,564

_____________________________

(1) As a result of an internal reorganization, XBS amounts, previously classified as Other, were reclassified to the U.S. in first quarter 2019. Prior year amounts have also been reclassified to conform to the current year presentation.

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

(3) Italy, Greece, Spain and Portugal.

(4) Sweden, Norway, Denmark and Finland.

(5) Prior year amounts have been recasted to conform to the current year presentation.

Finance Receivables Aging

The aging of our billed finance receivables is based upon the number of days an invoice is past due and is as follows:

	March 31, 2019
	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	$	3	$	2	$	20	$	572	$	592	$	10
Government and education	16		3		3		22		486		508		21
Graphic arts	12		1		1		14		271		285		5
Industrial	6		1		1		8		173		181		5
Healthcare	4		1		1		6		133		139		4
Other	5		1		1		7		183		190		3
Total United States	58		10		9		77		1,818		1,895		48
Canada	8		1		1		10		319		329		22
France	5		—		—		5		389		394		12
U.K./Ireland	2		—		—		2		241		243		—
Central(2)	2		1		1		4		311		315		5
Southern(3)	3		1		1		5		196		201		5
Nordics(4)	1		—		—		1		46		47		—
Total Europe	13		2		2		17		1,183		1,200		22
Other	1		1		—		2		40		42		—
Total	$	80	$	14	$	12	$	106	$	3,360	$	3,466	$	92
	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	$	578	$	599	$	11
Government and education	17		4		3		24		501		525		24
Graphic arts	10		1		1		12		288		300		5
Industrial	5		2		1		8		176		184		5
Healthcare	4		2		1		7		136		143		5
Other	5		2		1		8		187		195		4
Total United States(1)	56		15		9		80		1,866		1,946		54
Canada	7		2		1		10		325		335		22
France	5		—		—		5		413		418		14
U.K./Ireland	2		—		—		2		242		244		—
Central(2)	1		1		1		3		324		327		6
Southern(3)	3		1		1		5		200		205		6
Nordics(4)	—		—		—		—		45		45		—
Total Europe	11		2		2		15		1,224		1,239		26
Other(1)	2		—		—		2		42		44		—
Total	$	76	$	19	$	12	$	107	$	3,457	$	3,564	$	102

 _____________________________

(1) As a result of an internal reorganization, XBS amounts, previously classified as Other, were reclassified to the U.S. in first quarter 2019. Prior year amounts have also been reclassified to conform to the current year presentation.

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

(3)Italy, Greece, Spain and Portugal.

(4)Sweden, Norway, Denmark and Finland.