Finance Receivables, Net (Tables)

6 Months Ended

Jun. 30, 2022

Finance receivables, net were as follows:


	June 30, 2022		December 31, 2021
Gross receivables	$	3,418	$	3,568
Unearned income	(355)		(380)
Subtotal	3,063		3,188
Residual values	—		—
Allowance for doubtful accounts	(116)		(118)
Finance receivables, net	2,947		3,070
Less: Billed portion of finance receivables, net	83		94
Less: Current portion of finance receivables not billed, net	1,019		1,042
Finance receivables due after one year, net	$	1,845	$	1,934

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, 2021	$	77	$	11	$	30	$	118
Provision	3		—		3		6
Charge-offs	(2)		(1)		(1)		(4)
Recoveries and other(2)	—		1		(1)		—
Balance at March 31, 2022	78		11		31		120
Provision	—		1		3		4
Charge-offs	(3)		(1)		(2)		(6)
Recoveries and other(2)	—		—		(2)		(2)
Balance at June 30, 2022	$	75	$	11	$	30	$	116





Finance receivables as of June 30, 2022 collectively evaluated for impairment (3)	$	1,861	$	230	$	972	$	3,063

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





Finance receivables as of June 30, 2021 collectively evaluated for impairment(3)	$	1,845	$	283	$	1,122	$	3,250

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(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 $116 and $133 at June 30, 2022 and 2021, 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:


	June 30, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	80	$	124	$	104	$	74	$	44	$	9	$	435
Average Credit Risk	40		40		33		43		15		4		175
High Credit Risk	28		82		60		24		9		4		207
Total	$	148	$	246	$	197	$	141	$	68	$	17	$	817

United States (Indirect)
Low Credit Risk	$	111	$	189	$	108	$	67	$	24	$	3	$	502
Average Credit Risk	112		189		95		61		24		4		485
High Credit Risk	11		23		14		6		3		—		57
Total	$	234	$	401	$	217	$	134	$	51	$	7	$	1,044

Canada
Low Credit Risk	$	11	$	27	$	23	$	18	$	8	$	2	$	89
Average Credit Risk	18		29		28		22		10		3		110
High Credit Risk	4		7		10		5		4		1		31
Total	$	33	$	63	$	61	$	45	$	22	$	6	$	230

EMEA(1)
Low Credit Risk	$	124	$	190	$	108	$	80	$	42	$	9	$	553
Average Credit Risk	73		120		80		62		26		7		368
High Credit Risk	9		14		12		10		5		1		51
Total	$	206	$	324	$	200	$	152	$	73	$	17	$	972







Total Finance Receivables
Low Credit Risk	$	326	$	530	$	343	$	239	$	118	$	23	$	1,579
Average Credit Risk	243		378		236		188		75		18		1,138
High Credit Risk	52		126		96		45		21		6		346
Total	$	621	$	1,034	$	675	$	472	$	214	$	47	$	3,063


	December 31, 2021
	2021		2020		2019		2018		2017		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	148	$	121	$	98	$	68	$	21	$	3	$	459
Average Credit Risk	60		40		57		23		8		2		190
High Credit Risk	91		73		31		16		6		1		218
Total	$	299	$	234	$	186	$	107	$	35	$	6	$	867

United States (Indirect)
Low Credit Risk	$	235	$	145	$	100	$	43	$	11	$	—	$	534
Average Credit Risk	201		103		74		35		10		—		423
High Credit Risk	24		15		8		4		1		—		52
Total	$	460	$	263	$	182	$	82	$	22	$	—	$	1,009

Canada
Low Credit Risk	$	32	$	27	$	22	$	13	$	3	$	1	$	98
Average Credit Risk	34		34		27		15		6		1		117
High Credit Risk	8		12		7		5		4		—		36
Total	$	74	$	73	$	56	$	33	$	13	$	2	$	251

EMEA(1)
Low Credit Risk	$	229	$	143	$	121	$	71	$	22	$	6	$	592
Average Credit Risk	156		109		84		45		15		3		412
High Credit Risk	18		15		13		8		3		—		57
Total	$	403	$	267	$	218	$	124	$	40	$	9	$	1,061







Total Finance Receivables
Low Credit Risk	$	644	$	436	$	341	$	195	$	57	$	10	$	1,683
Average Credit Risk	451		286		242		118		39		6		1,142
High Credit Risk	141		115		59		33		14		1		363
Total	$	1,236	$	837	$	642	$	346	$	110	$	17	$	3,188

_____________

(1)Includes developing market countries.

Schedule of Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:


	June 30, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	26	$	5	$	6	$	37	$	780	$	817	$	57
Indirect	23		5		5		33		1,011		1,044		—






Total United States	49		10		11		70		1,791		1,861		57
Canada	5		1		—		6		224		230		9





EMEA(1)	8		2		—		10		962		972		8

Total	$	62	$	13	$	11	$	86	$	2,977	$	3,063	$	74

	December 31, 2021
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	28	$	7	$	7	$	42	$	825	$	867	$	61
Indirect	28		5		4		37		972		1,009		—






Total United States	56		12		11		79		1,797		1,876		61
Canada	6		1		—		7		244		251		9





EMEA(1)	9		2		1		12		1,049		1,061		13

Total	$	71	$	15	$	12	$	98	$	3,090	$	3,188	$	83

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(1)Includes developing market countries