Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2011

Accounts receivable, net were as follows:



	December 31,
	2011			2010
Amounts billed or billable	$	2,307		$	2,491
Unbilled amounts	395			447
Allowance for doubtful accounts	(102		)	(112		)
Accounts Receivable, net	$	2,600		$	2,826

Schedule of Accounts Receivables Sales

The amounts associated with the servicing liability were not material. Accounts receivable sales were as follows:



	Year Ended December 31,
	2011		2010		2009
Accounts receivable sales	$	3,218	$	2,374	$	1,566
Deferred proceeds	386		307		—
Fees associated with sales	20		15		13
Estimated increase to operating cash flows⁽¹⁾	133		106		309

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(1)	Represents the difference between current and prior year-end receivable sales adjusted for the effects of: (i) the deferred proceeds, (ii) collections prior to the end of the year and (iii) currency.

Finance Receivables

Finance receivables, net were as follows:



	December 31,
	2011			2010
Gross receivables	$	7,583		$	7,914
Unearned income	(1,027		)	(1,093		)
Subtotal	6,556			6,821
Residual values	7			11
Allowance for doubtful accounts	(201		)	(212		)
Finance receivables, net	6,362			6,620
Less: Billed portion of finance receivables, net	166			198
Less: Current portion of finance receivables not billed, net	2,165			2,287
Finance Receivables Due After One Year, net	$	4,031		$	4,135

Schedule of Financing Receivables, Minimum Payments

Contractual maturities of our gross finance receivables as of December 31, 2011 were as follows (including those already billed of $166):



2012		2013		2014		2015		2016		Thereafter		Total
$	2,832	$	2,073	$	1,469	$	859	$	315	$	35	$	7,583

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:



	United States			Canada			Europe			Other⁽³⁾			Total
Allowance for Credit Losses:
Balance at December 31, 2009	$	99		$	33		$	87		$	3		$	222
Provision	47			22			59			—			128
Charge-offs	(58		)	(23		)	(59		)	—			(140		)
Recoveries and other⁽¹⁾	3			5			(6		)	—			2
Balance at December 31, 2010	91			37			81			3			212
Provision	15			11			74			—			100
Charge-offs	(31		)	(17		)	(59		)	(1		)	(108		)
Recoveries and other⁽¹⁾	—			2			(5		)	—			(3		)
Balance December 31, 2011	$	75		$	33		$	91		$	2		$	201
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2010⁽²⁾	$	3,177		$	872		$	2,706		$	66		$	6,821
December 31, 2011⁽²⁾	$	2,993		$	825		$	2,630		$	108		$	6,556

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(1)	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.


(2)	Total Finance receivables exclude residual values of $7 and $11, and the allowance for credit losses of $201 and $212 at December 31, 2011 and 2010, respectively.


(3)	Includes developing market countries and smaller units.

Credit Quality Indicators for Finance Receivables

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



	December 31, 2011
	Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables
Finance and Other Services	$	349	$	380	$	160	$	889
Government and Education	821		20		4		845
Graphic Arts	126		200		172		498
Industrial	180		83		32		295
Healthcare	130		42		28		200
Other	97		93		76		266
Total United States	1,703		818		472		2,993
Finance and Other Services	153		118		51		322
Government and Education	121		9		4		134
Graphic Arts	36		39		35		110
Industrial	56		41		34		131
Other	74		42		12		128
Total Canada	440		249		136		825
France	246		354		92		692
U.K./Ireland	201		162		54		417
Central⁽¹⁾	330		494		57		881
Southern⁽²⁾	219		256		63		538



Nordics⁽³⁾	60		39		3		102
Total Europe	1,056		1,305		269		2,630
Other	75		26		7		108
Total	$	3,274	$	2,398	$	884	$	6,556

	December 31, 2010
	Investment Grade		Non-investment Grade		Substandard		Total Finance Receivables
Finance and Other Services	$	360	$	401	$	190	$	951
Government and Education	849		21		7		877
Graphic Arts	147		217		156		520
Industrial	206		91		38		335
Healthcare	134		48		32		214
Other	102		109		69		280
Total United States	1,798		887		492		3,177
Finance and Other Services	150		127		56		333
Government and Education	127		12		3		142
Graphic Arts	32		35		48		115
Industrial	57		47		30		134
Other	88		47		13		148
Total Canada	454		268		150		872
France	219		374		82		675
U.K./Ireland	206		164		51		421
Central⁽¹⁾	297		551		65		913
Southern⁽²⁾	263		237		81		581
Nordics⁽³⁾	50		63		3		116
Total Europe	1,035		1,389		282		2,706
Other	33		33		—		66
Total	$	3,320	$	2,577	$	924	$	6,821

_____________________________


(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 receivables portfolio is based upon the number of days an invoice is past due. Receivables that were more than 90 days past due are considered delinquent. Receivable losses are charged against the allowance when management believes the uncollectibility of the receivable is confirmed and is generally based on individual credit evaluations, results of collection efforts and specific circumstances of the customer. Subsequent recoveries, if any, are credited to the allowance.

We generally continue to maintain equipment on lease and provide services to customers that have invoices for finance receivables that are 90 days or more past due and, as a result of the bundled nature of billings, we also continue to accrue interest on those receivables. However, interest revenue for such billings is only recognized if collectability is deemed reasonably assured. The aging our our billed finance receivables is as follows:



	December 31, 2011
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed Finance Receivables		Unbilled Finance Receivables		Total Finance Receivables		Finance Receivables >90 Days and Accruing
Finance and Other Services	$	18	$	4	$	1	$	23	$	866	$	889	$	15
Government and Education	21		5		2		28		817		845		29
Graphic Arts	16		2		1		19		479		498		7
Industrial	7		2		1		10		285		295		6
Healthcare	5		2		—		7		193		200		5
Other	8		1		—		9		257		266		4
Total United States	75		16		5		96		2,897		2,993		66
Canada	3		2		1		6		819		825		27
France	1		1		1		3		689		692		16
U.K./Ireland	3		2		3		8		409		417		4
Central⁽¹⁾	7		2		3		12		869		881		46
Southern⁽²⁾	31		4		13		48		490		538		82
Nordics⁽³⁾	1		—		—		1		101		102		—
Total Europe	43		9		20		72		2,558		2,630		148
Other	2		1		—		3		105		108		—
Total	$	123	$	28	$	26	$	177	$	6,379	$	6,556	$	241

	December 31, 2010
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed Finance Receivables		Unbilled Finance Receivables		Total Finance Receivables		Finance Receivables >90 Days and Accruing
Finance and Other Services	$	23	$	5	$	2	$	30	$	921	$	951	$	23
Government and Education	26		6		3		35		842		877		40
Graphic Arts	21		3		1		25		495		520		16
Industrial	11		2		1		14		321		335		10
Healthcare	6		2		1		9		205		214		9
Other	8		2		—		10		270		280		8
Total United States	95		20		8		123		3,054		3,177		106
Canada	3		3		1		7		865		872		28
France	1		1		—		2		673		675		5
U.K./Ireland	4		1		1		6		415		421		7
Central⁽¹⁾	9		2		4		15		898		913		39
Southern⁽²⁾	32		10		15		57		524		581		99
Nordics⁽³⁾	1		—		—		1		115		116		2
Total Europe	47		14		20		81		2,625		2,706		152
Other	2		—		—		2		64		66		—
Total	$	147	$	37	$	29	$	213	$	6,608	$	6,821	$	286

_____________________________


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


(2)	Italy, Greece, Spain and Portugal.


(3)	Sweden, Norway, Denmark and Finland.