Finance Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2023

Finance receivables, net were as follows:


	March 31, 2023		December 31, 2022
Gross receivables	$	3,438	$	3,593
Unearned income	(357)		(374)
Subtotal	3,081		3,219
Residual values	—		—
Allowance for doubtful accounts	(101)		(117)
Finance receivables, net	2,980		3,102
Less: Billed portion of finance receivables, net	94		93
Less: Current portion of finance receivables not billed, net	1,022		1,061
Finance receivables due after one year, net	$	1,864	$	1,948

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, 2022	$	83	$	7	$	27	$	117
Provision	(15)		—		3		(12)
Charge-offs	(5)		—		(2)		(7)
Recoveries and other(2)	2		—		1		3
Balance at March 31, 2023	$	65	$	7	$	29	$	101










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










Finance receivables collectively evaluated for impairment (3)
March 31, 2023(3)	$	1,756	$	233	$	1,092	$	3,081
March 31, 2022(3)	$	1,863	$	246	$	1,016	$	3,125

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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 $101 and $120 at March 31, 2023 and 2022, 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:


	March 31, 2023
	2023		2022		2021		2020		2019		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	59	$	69	$	85	$	69	$	44	$	16	$	342
Average Credit Risk	32		50		70		36		26		7		221
High Credit Risk	12		41		30		32		12		6		133
Total	$	103	$	160	$	185	$	137	$	82	$	29	$	696
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	1	$	1

United States (Indirect)
Low Credit Risk	$	100	$	211	$	141	$	73	$	38	$	8	$	571
Average Credit Risk	61		170		119		52		27		5		434
High Credit Risk	8		20		16		7		3		1		55
Total	$	169	$	401	$	276	$	132	$	68	$	14	$	1,060
Charge-offs	$	—	$	—	$	1	$	—	$	1	$	2	$	4

Canada
Low Credit Risk	$	13	$	30	$	20	$	14	$	9	$	3	$	89
Average Credit Risk	18		43		23		19		13		3		119
High Credit Risk	2		6		5		7		3		2		25
Total	$	33	$	79	$	48	$	40	$	25	$	8	$	233
Charge-offs	$	—	$	—	$	—	$	—	$	—	$	—	$	—

EMEA(1)
Low Credit Risk	$	84	$	258	$	155	$	80	$	48	$	18	$	643
Average Credit Risk	47		148		98		58		37		12		400
High Credit Risk	5		17		12		8		6		1		49
Total	$	136	$	423	$	265	$	146	$	91	$	31	$	1,092
Charge-offs	$	—	$	1	$	—	$	—	$	—	$	1	$	2







Total Finance Receivables
Low Credit Risk	$	256	$	568	$	401	$	236	$	139	$	45	$	1,645
Average Credit Risk	158		411		310		165		103		27		1,174
High Credit Risk	27		84		63		54		24		10		262
Total	$	441	$	1,063	$	774	$	455	$	266	$	82	$	3,081
Total Charge-offs	$	—	$	1	$	1	$	—	$	1	$	4	$	7


	December 31, 2022
	2022		2021		2020		2019		2018		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	173	$	104	$	80	$	53	$	23	$	2	$	435
Average Credit Risk	83		36		26		28		7		2		182
High Credit Risk	71		70		49		18		6		2		216
Total	$	327	$	210	$	155	$	99	$	36	$	6	$	833

United States (Indirect)
Low Credit Risk	$	249	$	165	$	91	$	49	$	12	$	1	$	567
Average Credit Risk	210		156		73		40		11		—		490
High Credit Risk	22		20		9		5		2		—		58
Total	$	481	$	341	$	173	$	94	$	25	$	1	$	1,115

Canada
Low Credit Risk	$	31	$	22	$	17	$	12	$	5	$	—	$	87
Average Credit Risk	46		25		22		16		5		—		114
High Credit Risk	6		6		8		4		2		1		27
Total	$	83	$	53	$	47	$	32	$	12	$	1	$	228

EMEA(1)
Low Credit Risk	$	269	$	167	$	90	$	59	$	24	$	5	$	614
Average Credit Risk	152		105		63		43		15		3		381
High Credit Risk	17		13		9		7		2		—		48
Total	$	438	$	285	$	162	$	109	$	41	$	8	$	1,043







Total Finance Receivables
Low Credit Risk	$	722	$	458	$	278	$	173	$	64	$	8	$	1,703
Average Credit Risk	491		322		184		127		38		5		1,167
High Credit Risk	116		109		75		34		12		3		349
Total	$	1,329	$	889	$	537	$	334	$	114	$	16	$	3,219

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(1)Includes developing market countries.

Schedule of Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:


	March 31, 2023
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	28	$	6	$	5	$	39	$	657	$	696	$	40
Indirect	31		7		4		42		1,018		1,060		—






Total United States	59		13		9		81		1,675		1,756		40
Canada	5		1		—		6		227		233		8





EMEA(1)	8		2		1		11		1,081		1,092		11

Total	$	72	$	16	$	10	$	98	$	2,983	$	3,081	$	59

	December 31, 2022
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	30	$	6	$	6	$	42	$	791	$	833	$	47
Indirect	27		6		4		37		1,078		1,115		—






Total United States	57		12		10		79		1,869		1,948		47
Canada	5		1		—		6		222		228		6





EMEA(1)	9		2		1		12		1,031		1,043		12

Total	$	71	$	15	$	11	$	97	$	3,122	$	3,219	$	65

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(1)Includes developing market countries

Schedule Of Financing Receivable Sale Activity

Finance receivable sales activity was as follows:


	March 31, 2023		December 31, 2022
Finance receivable sales - net proceeds(1)	$	261	$	61
Gain on sale/Commissions(2)	2		2

Servicing revenue(2)	$	1	$	—

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(1)Cash proceeds were reported in Net cash provided by operating activities.

(2)Recorded in Services, maintenance and rentals as Other Revenue.