Finance Receivables, Net (Tables)

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

Schedule of Finance Receivables

Finance receivables, net were as follows:

	June 30, 2024		December 31, 2023
Gross receivables	$	2,370	$	2,899
Unearned income	(231)		(297)
Subtotal	2,139		2,602
Residual values	—		—
Allowance for doubtful accounts	(79)		(92)
Finance receivables, net	2,060		2,510
Less: Billed portion of finance receivables, net	70		71
Less: Current portion of finance receivables not billed, net	713		842
Finance receivables due after one year, net	$	1,277	$	1,597

Schedule of Allowance for Credit Losses, Financing Receivables

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

	United States		Canada		EMEA		Total
Balance at December 31, 2023	$	58	$	7	$	27	$	92
Provision	(3)		5		6		8
Charge-offs	(7)		(1)		(4)		(12)
Recoveries and other(1)	1		—		(1)		—
Balance at March 31, 2024	$	49	$	11	$	28	$	88
Provision	—		1		4		5
Charge-offs	(6)		(5)		(3)		(14)
Recoveries and other(2)	—		—		—		—
Balance at June 30, 2024	$	43	$	7	$	29	$	79
Balance at December 31, 2022	$	83	$	7	$	27	$	117
Provision	(15)		—		3		(12)
Charge-offs	(5)		—		(2)		(7)
Recoveries and other(1)	2		—		1		3
Balance at March 31, 2023	$	65	$	7	$	29	$	101
Provision	5		1		3		9
Charge-offs	(4)		(1)		(4)		(9)
Recoveries and other(2)	—		1		1		2
Balance at June 30, 2023	$	66	$	8	$	29	$	103
Finance receivables collectively evaluated for impairment
June 30, 2024(2)	$	898	$	233	$	1,008	$	2,139
June 30, 2023(2)	$	1,444	$	244	$	1,122	$	2,810

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(1)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.

(2)Total Finance receivables exclude the allowance for credit losses of $79 and $103 at June 30, 2024 and 2023, 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, 2024
	2024		2023		2022		2021		2020		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	60	$	79	$	43	$	45	$	26	$	6	$	259
Average Credit Risk	28		65		25		35		14		5		172
High Credit Risk	13		26		27		17		12		5		100
Total	$	101	$	170	$	95	$	97	$	52	$	16	$	531
Charge-offs	$	—	$	—	$	1	$	1	$	1	$	1	$	4
United States (Indirect)
Low Credit Risk	$	30	$	81	$	43	$	24	$	9	$	2	$	189
Average Credit Risk	24		67		39		22		7		1		160
High Credit Risk	1		8		5		3		1		—		18
Total	$	55	$	156	$	87	$	49	$	17	$	3	$	367
Charge-offs	$	—	$	1	$	2	$	4	$	1	$	1	$	9
Canada
Low Credit Risk	$	17	$	38	$	19	$	11	$	5	$	1	$	91
Average Credit Risk	19		51		30		14		7		2		123
High Credit Risk	3		5		4		3		3		1		19
Total	$	39	$	94	$	53	$	28	$	15	$	4	$	233
Charge-offs	$	—	$	5	$	1	$	—	$	—	$	—	$	6
EMEA
Low Credit Risk	$	69	$	208	$	145	$	77	$	30	$	8	$	537
Average Credit Risk	49		168		119		52		22		9		419
High Credit Risk	5		18		15		9		3		2		52
Total	$	123	$	394	$	279	$	138	$	55	$	19	$	1,008
Charge-offs	$	—	$	3	$	3	$	1	$	—	$	—	$	7
Total Finance Receivables
Low Credit Risk	$	176	$	406	$	250	$	157	$	70	$	17	$	1,076
Average Credit Risk	120		351		213		123		50		17		874
High Credit Risk	22		57		51		32		19		8		189
Total	$	318	$	814	$	514	$	312	$	139	$	42	$	2,139
Total Charge-offs	$	—	$	9	$	7	$	6	$	2	$	2	$	26

	December 31, 2023
	2023		2022		2021		2020		2019		Prior		Total Finance Receivables
United States (Direct)
Low Credit Risk	$	122	$	51	$	61	$	43	$	17	$	3	$	297
Average Credit Risk	104		35		49		23		9		2		222
High Credit Risk	34		36		25		22		6		3		126
Total	$	260	$	122	$	135	$	88	$	32	$	8	$	645
Charge-offs	$	1	$	1	$	1	$	1	$	1	$	2	$	7
United States (Indirect)
Low Credit Risk	$	136	$	77	$	48	$	22	$	6	$	—	$	289
Average Credit Risk	111		69		41		15		6		—		242
High Credit Risk	12		8		6		2		1		—		29
Total	$	259	$	154	$	95	$	39	$	13	$	—	$	560
Charge-offs	$	4	$	3	$	3	$	2	$	2	$	3	$	17
Canada
Low Credit Risk	$	45	$	24	$	16	$	9	$	4	$	—	$	98
Average Credit Risk	63		36		18		12		6		—		135
High Credit Risk	6		5		4		5		1		1		22
Total	$	114	$	65	$	38	$	26	$	11	$	1	$	255
Charge-offs	$	—	$	—	$	—	$	2	$	—	$	1	$	3
EMEA
Low Credit Risk	$	251	$	182	$	110	$	48	$	19	$	6	$	616
Average Credit Risk	192		148		73		36		17		3		469
High Credit Risk	19		16		11		7		4		—		57
Total	$	462	$	346	$	194	$	91	$	40	$	9	$	1,142
Charge-offs	$	3	$	8	$	4	$	2	$	—	$	—	$	17
Total Finance Receivables
Low Credit Risk	$	554	$	334	$	235	$	122	$	46	$	9	$	1,300
Average Credit Risk	470		288		181		86		38		5		1,068
High Credit Risk	71		65		46		36		12		4		234
Total	$	1,095	$	687	$	462	$	244	$	96	$	18	$	2,602
Total Charge-offs	$	8	$	12	$	8	$	7	$	3	$	6	$	44

Schedule of Aging of Billed Finance Receivables

The aging of our billed finance receivables is as follows:

	June 30, 2024
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	22	$	5	$	5	$	32	$	499	$	531	$	39
Indirect	14		4		2		20		347		367		—
Total United States	36		9		7		52		846		898		39
Canada	6		2		1		9		224		233		12
EMEA	9		2		2		13		995		1,008		13
Total	$	51	$	13	$	10	$	74	$	2,065	$	2,139	$	64
	December 31, 2023
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	24	$	6	$	5	$	35	$	610	$	645	$	41
Indirect	16		3		3		22		538		560		—
Total United States	40		9		8		57		1,148		1,205		41
Canada	6		1		1		8		247		255		10
EMEA	7		2		1		10		1,132		1,142		10
Total	$	53	$	12	$	10	$	75	$	2,527	$	2,602	$	61

Schedule of Financing Receivable Sale Activity

Finance receivable sales activity was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Finance receivable sales - net proceeds(1)	$	192	$	381	$	377	$	642
Gain on sale/Commissions(2)	8		9		14		11
Servicing revenue(2)	$	5	$	2	$	7	$	3

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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. Amounts include revenues associated with the sale of the underlying leased equipment.