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Finance Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2019

Finance receivables, net were as follows:



	December 31,
	2019			2018
Gross receivables	$	3,865		$	4,003
Unearned income	(425		)	(439		)
Subtotal	3,440			3,564
Residual values	—			—
Allowance for doubtful accounts	(89		)	(92		)
Finance Receivables, Net	3,351			3,472
Less: Billed portion of finance receivables, net	111			105
Less: Current portion of finance receivables not billed, net	1,158			1,218
Finance Receivables Due After One Year, Net	$	2,082		$	2,149

Schedule of financing receivables, minimum payments

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



	December 31,
	2019		2018
12 Months⁽¹⁾	$	1,490	$	1,543
24 Months	1,052		1,108
36 Months	728		755
48 Months	422		425
60 Months	158		158
Thereafter	15		14
Total	$	3,865	$	4,003

_____________

(1)

Includes amounts previously billed of $115 and $107 as of December 31, 2019 and 2018, respectively.

Allowance for credit losses, financing 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⁽¹⁾		Total
Balance at December 31, 2017	$	56		$	15		$	35		$	2	$	108
Provision	12			3			9			—		24
Charge-offs	(17		)	(6		)	(18		)	—		(41		)
Recoveries and other⁽²⁾	2			—			(1		)	—		1
Balance at December 31, 2018	$	53		$	12		$	25		$	2	$	92
Provision	20			1			7			—		28
Charge-offs	(15		)	(5		)	(14		)	—		(34		)
Recoveries and other⁽²⁾	1			2			—			—		3
Balance at December 31, 2019	$	59		$	10		$	18		$	2	$	89
Finance Receivables Collectively Evaluated for Impairment:
December 31, 2018⁽³⁾⁽⁴⁾	$	1,946		$	335		$	1,239		$	44	$	3,564
December 31, 2019⁽³⁾	$	1,922		$	320		$	1,155		$	43	$	3,440

_____________


(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 $89 and $92 at December 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.

Credit quality indicators for financing receivables

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



	December 31, 2019								December 31, 2018
	Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables		Investment Grade		Non-investment Grade		Sub-standard		Total Finance Receivables
Direct	$	640	$	331	$	132	$	1,103	$	785	$	348	$	104	$	1,237
Indirect	258		445		116		819		162		400		147		709
Total United States⁽¹⁾	898		776		248		1,922		947		748		251		1,946
Total Canada	163		91		66		320		162		99		74		335
France	206		137		24		367		232		157		29		418
U.K/Ireland	154		79		8		241		150		87		7		244
Central⁽²⁾	176		113		9		298		196		123		8		327
Southern⁽³⁾	65		125		15		205		52		136		17		205
Nordic⁽⁴⁾	23		19		2		44		28		15		2		45
Total Europe⁽⁵⁾	624		473		58		1,155		658		518		63		1,239
Other	31		12		—		43		31		13		—		44
Total	$	1,716	$	1,352	$	372	$	3,440	$	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.

Aging of billed finance receivables

The aging of our billed finance receivables is as follows:



	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—
Total United States	62		16		11		89		1,833		1,922		57
Canada	8		1		1		10		310		320		17
France	3		—		—		3		364		367		15
U.K./Ireland	2		—		—		2		239		241		—
Central⁽¹⁾	2		—		1		3		295		298		13
Southern⁽²⁾	3		1		1		5		200		205		4
Nordic⁽³⁾	—		—		—		—		44		44		—
Total Europe	10		1		2		13		1,142		1,155		32
Other	2		1		—		3		40		43		—
Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106



	December 31, 2018
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	38	$	11	$	7	$	56	$	1,181	$	1,237	$	54
Indirect	18		4		2		24		685		709		—
Total United States	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⁽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		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.