Finance Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2021

Finance receivables, net were as follows:


	March 31, 2021		December 31, 2020
Gross receivables	$	3,596	$	3,691
Unearned income	(384)		(393)
Subtotal	3,212		3,298
Residual values	—		—
Allowance for doubtful accounts	(135)		(133)
Finance receivables, net	3,077		3,165
Less: Billed portion of finance receivables, net	92		99
Less: Current portion of finance receivables not billed, net	1,065		1,082
Finance receivables due after one year, net	$	1,920	$	1,984

Allowance for credit losses, financing receivables

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


	United States		Canada		EMEA(1)		Total
Balance at December 31, 2020	$	77	$	15	$	41	$	133
Provision	2		1		3		6
Charge-offs	(2)		—		(1)		(3)
Recoveries and other(2)	1		—		(2)		(1)
Balance at March 31, 2021	$	78	$	16	$	41	$	135









Finance receivables as of March 31, 2021 collectively evaluated for impairment (3)	$	1,806	$	288	$	1,118	$	3,212

Balance at December 31, 2019	$	59	$	10	$	20	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(2)	—		—		(1)		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146









Finance receivables as of March 31, 2020 collectively evaluated for impairment(3)	$	1,866	$	289	$	1,132	$	3,287

_____________

(1)Includes developing market countries.

(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 $135 and $146 at March 31, 2021 and 2020, respectively.

Credit quality indicators for financing receivables

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


	March 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	154	$	134	$	111	$	56	$	21	$	522
Average Credit Risk	17		53		89		43		20		6		228
High Credit Risk	18		87		39		24		12		5		185
Total	$	81	$	294	$	262	$	178	$	88	$	32	$	935

United States (Indirect):
Low Credit Risk	$	57	$	194	$	140	$	69	$	26	$	4	$	490
Average Credit Risk	42		110		99		56		24		5		336
High Credit Risk	9		16		8		8		3		1		45
Total	$	108	$	320	$	247	$	133	$	53	$	10	$	871

Canada
Low Credit Risk	$	11	$	36	$	31	$	21	$	7	$	3	$	109
Average Credit Risk	10		44		36		23		15		4		132
High Credit Risk	3		16		10		9		7		2		47
Total	$	24	$	96	$	77	$	53	$	29	$	9	$	288

EMEA(1)
Low Credit Risk	$	65	$	176	$	156	$	109	$	46	$	14	$	566
Average Credit Risk	52		153		138		89		38		12		482
High Credit Risk	7		19		21		12		8		3		70
Total	$	124	$	348	$	315	$	210	$	92	$	29	$	1,118







Total Finance Receivables
Low Credit Risk	$	179	$	560	$	461	$	310	$	135	$	42	$	1,687
Average Credit Risk	121		360		362		211		97		27		1,178
High Credit Risk	37		138		78		53		30		11		347
Total	$	337	$	1,058	$	901	$	574	$	262	$	80	$	3,212


	December 31, 2020
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	164	$	151	$	128	$	71	$	32	$	4	$	550
Average Credit Risk	54		95		52		26		8		2		237
High Credit Risk	90		42		27		13		5		3		180
Total	$	308	$	288	$	207	$	110	$	45	$	9	$	967

United States (Indirect):
Low Credit Risk	$	193	$	140	$	79	$	33	$	7	$	—	$	452
Average Credit Risk	129		124		71		31		8		—		363
High Credit Risk	19		9		9		3		1		—		41
Total	$	341	$	273	$	159	$	67	$	16	$	—	$	856

Canada
Low Credit Risk	$	37	$	34	$	24	$	10	$	5	$	1	$	111
Average Credit Risk	46		39		26		17		6		1		135
High Credit Risk	18		10		10		10		3		—		51
Total	$	101	$	83	$	60	$	37	$	14	$	2	$	297

EMEA(1)
Low Credit Risk	$	197	$	177	$	131	$	62	$	20	$	4	$	591
Average Credit Risk	170		160		108		51		17		4		510
High Credit Risk	23		24		15		10		4		1		77
Total	$	390	$	361	$	254	$	123	$	41	$	9	$	1,178







Total Finance Receivables
Low Credit Risk	$	591	$	502	$	362	$	176	$	64	$	9	$	1,704
Average Credit Risk	399		418		257		125		39		7		1,245
High Credit Risk	150		85		61		36		13		4		349
Total	$	1,140	$	1,005	$	680	$	337	$	116	$	20	$	3,298

_____________

(1)Includes developing market countries.

Aging of billed finance receivables

The aging of our billed finance receivables is as follows:


	March 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	30	$	7	$	8	$	45	$	890	$	935	$	70
Indirect	18		4		3		25		846		871		—






Total United States	48		11		11		70		1,736		1,806		70
Canada	6		2		1		9		279		288		13





EMEA(1)	12		3		2		17		1,101		1,118		17

Total	$	66	$	16	$	14	$	96	$	3,116	$	3,212	$	100

	December 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	33	$	6	$	9	$	48	$	919	$	967	$	74
Indirect	21		4		3		28		828		856		—






Total United States	54		10		12		76		1,747		1,823		74
Canada	8		2		—		10		287		297		12





EMEA(1)	12		3		2		17		1,161		1,178		23

Total	$	74	$	15	$	14	$	103	$	3,195	$	3,298	$	109

_____________

(1)Includes developing market countries