Finance Receivables, Net (Tables)

9 Months Ended

Sep. 30, 2021

Finance receivables, net were as follows:


	September 30, 2021		December 31, 2020
Gross receivables	$	3,585	$	3,691
Unearned income	(383)		(393)
Subtotal	3,202		3,298
Residual values	—		—
Allowance for doubtful accounts	(127)		(133)
Finance receivables, net	3,075		3,165
Less: Billed portion of finance receivables, net	100		99
Less: Current portion of finance receivables not billed, net	1,039		1,082
Finance receivables due after one year, net	$	1,936	$	1,984

Schedule of 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
Provision	6		(1)		(3)		2
Charge-offs	(3)		(1)		(1)		(5)
Recoveries and other(2)	—		1		—		1
Balance at June 30, 2021	$	81	$	15	$	37	$	133
Provision	—		(3)		(1)		(4)
Charge-offs	(1)		(1)		—		(2)
Recoveries and other(2)	—		—		—		—

Balance at September 30, 2021	$	80	$	11	$	36	$	127
Finance receivables as of September 30, 2021 collectively evaluated for impairment (3)	$	1,866	$	262	$	1,074	$	3,202

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
Provision	3		1		—		4
Charge-offs	(5)		(1)		(2)		(8)
Recoveries and other(2)	—		1		—		1
Balance at June 30, 2020	$	89	$	16	$	38	$	143
Provision	6		—		3		9
Charge-offs	(6)		(2)		(5)		(13)
Recoveries and other(2)	—		1		2		3

Balance at September 30, 2020	$	89	$	15	$	38	$	142
Finance receivables as of September 30, 2020 collectively evaluated for impairment(3)	$	1,819	$	284	$	1,115	$	3,218

_____________

(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 $127 and $142 at September 30, 2021 and 2020, respectively.

Schedule of Credit Quality Indicators for Financing Receivables

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


	September 30, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	125	$	130	$	112	$	81	$	31	$	6	$	485
Average Credit Risk	53		44		66		30		12		3		208
High Credit Risk	65		75		33		16		7		2		198
Total	$	243	$	249	$	211	$	127	$	50	$	11	$	891

United States (Indirect)
Low Credit Risk	$	182	$	155	$	108	$	47	$	14	$	1	$	507
Average Credit Risk	158		108		83		43		15		1		408
High Credit Risk	28		16		9		5		2		—		60
Total	$	368	$	279	$	200	$	95	$	31	$	2	$	975

Canada
Low Credit Risk	$	26	$	29	$	24	$	16	$	5	$	1	$	101
Average Credit Risk	28		37		30		17		9		1		122
High Credit Risk	6		14		8		6		4		1		39
Total	$	60	$	80	$	62	$	39	$	18	$	3	$	262

EMEA(1)
Low Credit Risk	$	166	$	154	$	128	$	85	$	30	$	9	$	572
Average Credit Risk	125		123		109		62		22		4		445
High Credit Risk	13		17		14		8		4		1		57
Total	$	304	$	294	$	251	$	155	$	56	$	14	$	1,074







Total Finance Receivables
Low Credit Risk	$	499	$	468	$	372	$	229	$	80	$	17	$	1,665
Average Credit Risk	364		312		288		152		58		9		1,183
High Credit Risk	112		122		64		35		17		4		354
Total	$	975	$	902	$	724	$	416	$	155	$	30	$	3,202


	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.

Schedule of Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:


	September 30, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	32	$	6	$	7	$	45	$	846	$	891	$	54
Indirect	25		6		4		35		940		975		—






Total United States	57		12		11		80		1,786		1,866		54
Canada	6		2		1		9		253		262		11





EMEA(1)	11		2		2		15		1,059		1,074		17

Total	$	74	$	16	$	14	$	104	$	3,098	$	3,202	$	82

	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