Finance Receivables, Net (Tables)
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12 Months Ended |
Dec. 31, 2019 |
Receivables [Abstract] |
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Finance receivables |
Finance receivables, net were as follows: | | | | | | | | | | | | December 31, | | | 2019 | | 2018 | Gross receivables | | $ | 3,865 |
| | $ | 4,003 |
| Unearned income | | (425 | ) | | (439 | ) | Subtotal | | 3,440 |
| | 3,564 |
| Residual values | | — |
| | — |
| Allowance for doubtful accounts | | (89 | ) | | (92 | ) | Finance Receivables, Net | | 3,351 |
| | 3,472 |
| Less: Billed portion of finance receivables, net | | 111 |
| | 105 |
| Less: Current portion of finance receivables not billed, net | | 1,158 |
| | 1,218 |
| Finance Receivables Due After One Year, Net | | $ | 2,082 |
| | $ | 2,149 |
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Schedule of financing receivables, minimum payments |
A summary of our gross finance receivables' future contractual maturities, including those previously billed, is as follows: | | | | | | | | | | | | December 31, | | | 2019 | | 2018 | 12 Months(1) | | $ | 1,490 |
| | $ | 1,543 |
| 24 Months | | 1,052 |
| | 1,108 |
| 36 Months | | 728 |
| | 755 |
| 48 Months | | 422 |
| | 425 |
| 60 Months | | 158 |
| | 158 |
| Thereafter | | 15 |
| | 14 |
| Total | | $ | 3,865 |
| | $ | 4,003 |
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_____________ (1) Includes amounts previously billed of $115 and $107 as of December 31, 2019 and 2018, respectively.
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Allowance for credit losses, financing receivables |
The following table is a rollforward of the allowance for doubtful finance receivables as well as the related investment in finance receivables: | | | | | | | | | | | | | | | | | | | | | | Allowance for Credit Losses: | | United States | | Canada | | Europe | | Other(1) | | Total | Balance at December 31, 2017 | | $ | 56 |
| | $ | 15 |
| | $ | 35 |
| | $ | 2 |
| | $ | 108 |
| Provision | | 12 |
| | 3 |
| | 9 |
| | — |
| | 24 |
| Charge-offs | | (17 | ) | | (6 | ) | | (18 | ) | | — |
| | (41 | ) | Recoveries and other(2) | | 2 |
| | — |
| | (1 | ) | | — |
| | 1 |
| Balance at December 31, 2018 | | $ | 53 |
| | $ | 12 |
| | $ | 25 |
| | $ | 2 |
| | $ | 92 |
| Provision | | 20 |
| | 1 |
| | 7 |
| | — |
| | 28 |
| Charge-offs | | (15 | ) | | (5 | ) | | (14 | ) | | — |
| | (34 | ) | Recoveries and other(2) | | 1 |
| | 2 |
| | — |
| | — |
| | 3 |
| Balance at December 31, 2019 | | $ | 59 |
| | $ | 10 |
| | $ | 18 |
| | $ | 2 |
| | $ | 89 |
| Finance Receivables Collectively Evaluated for Impairment: | | | | | | | | | | | December 31, 2018(3)(4) | | $ | 1,946 |
| | $ | 335 |
| | $ | 1,239 |
| | $ | 44 |
| | $ | 3,564 |
| December 31, 2019(3) | | $ | 1,922 |
| | $ | 320 |
| | $ | 1,155 |
| | $ | 43 |
| | $ | 3,440 |
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_____________ | | (1) | Includes developing market countries and smaller units. |
| | (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 $89 and $92 at December 31, 2019 and 2018, respectively. |
(4) As a result of an internal reorganization, XBS amounts, previously classified as Other, were reclassified to the U.S. in first quarter 2019. Prior year amounts have also been reclassified to conform to the current year presentation.
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Credit quality indicators for financing receivables |
Details about our finance receivables portfolio based on geography and credit quality indicators are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | December 31, 2018 | | Investment Grade | | Non-investment Grade | | Sub-standard | | Total Finance Receivables | | Investment Grade | | Non-investment Grade | | Sub-standard | | Total Finance Receivables | Direct | $ | 640 |
| | $ | 331 |
| | $ | 132 |
| | $ | 1,103 |
| | $ | 785 |
| | $ | 348 |
| | $ | 104 |
| | $ | 1,237 |
| Indirect | 258 |
| | 445 |
| | 116 |
| | 819 |
| | 162 |
| | 400 |
| | 147 |
| | 709 |
| Total United States(1) | 898 |
| | 776 |
| | 248 |
| | 1,922 |
| | 947 |
| | 748 |
| | 251 |
| | 1,946 |
| Total Canada | 163 |
| | 91 |
| | 66 |
| | 320 |
| | 162 |
| | 99 |
| | 74 |
| | 335 |
| France | 206 |
| | 137 |
| | 24 |
| | 367 |
| | 232 |
| | 157 |
| | 29 |
| | 418 |
| U.K/Ireland | 154 |
| | 79 |
| | 8 |
| | 241 |
| | 150 |
| | 87 |
| | 7 |
| | 244 |
| Central(2) | 176 |
| | 113 |
| | 9 |
| | 298 |
| | 196 |
| | 123 |
| | 8 |
| | 327 |
| Southern(3) | 65 |
| | 125 |
| | 15 |
| | 205 |
| | 52 |
| | 136 |
| | 17 |
| | 205 |
| Nordic(4) | 23 |
| | 19 |
| | 2 |
| | 44 |
| | 28 |
| | 15 |
| | 2 |
| | 45 |
| Total Europe(5) | 624 |
| | 473 |
| | 58 |
| | 1,155 |
| | 658 |
| | 518 |
| | 63 |
| | 1,239 |
| Other | 31 |
| | 12 |
| | — |
| | 43 |
| | 31 |
| | 13 |
| | — |
| | 44 |
| Total | $ | 1,716 |
| | $ | 1,352 |
| | $ | 372 |
| | $ | 3,440 |
| | $ | 1,798 |
| | $ | 1,378 |
| | $ | 388 |
| | $ | 3,564 |
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_____________ | | (1) | As a result of an internal reorganization, XBS amounts, previously classified as Other, were reclassified to the U.S. in first quarter 2019. Prior year amounts have also been reclassified to conform to the current year presentation. |
| | (2) | Switzerland, Germany, Austria, Belgium and Holland. |
| | (3) | Italy, Greece, Spain and Portugal. |
| | (4) | Sweden, Norway, Denmark and Finland. |
(5) Prior year amounts have been recasted to conform to the current year presentation.
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Aging of billed finance receivables |
The aging of our billed finance receivables is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2019 | | Current | | 31-90 Days Past Due | | >90 Days Past Due | | Total Billed | | Unbilled | | Total Finance Receivables | | >90 Days and Accruing | Direct | $ | 37 |
| | $ | 11 |
| | $ | 8 |
| | $ | 56 |
| | $ | 1,047 |
| | $ | 1,103 |
| | $ | 57 |
| Indirect | 25 |
| | 5 |
| | 3 |
| | 33 |
| | 786 |
| | 819 |
| | — |
| Total United States | 62 |
| | 16 |
| | 11 |
| | 89 |
| | 1,833 |
| | 1,922 |
| | 57 |
| Canada | 8 |
| | 1 |
| | 1 |
| | 10 |
| | 310 |
| | 320 |
| | 17 |
| France | 3 |
| | — |
| | — |
| | 3 |
| | 364 |
| | 367 |
| | 15 |
| U.K./Ireland | 2 |
| | — |
| | — |
| | 2 |
| | 239 |
| | 241 |
| | — |
| Central(1) | 2 |
| | — |
| | 1 |
| | 3 |
| | 295 |
| | 298 |
| | 13 |
| Southern(2) | 3 |
| | 1 |
| | 1 |
| | 5 |
| | 200 |
| | 205 |
| | 4 |
| Nordic(3) | — |
| | — |
| | — |
| | — |
| | 44 |
| | 44 |
| | — |
| Total Europe | 10 |
| | 1 |
| | 2 |
| | 13 |
| | 1,142 |
| | 1,155 |
| | 32 |
| Other | 2 |
| | 1 |
| | — |
| | 3 |
| | 40 |
| | 43 |
| | — |
| Total | $ | 82 |
| | $ | 19 |
| | $ | 14 |
| | $ | 115 |
| | $ | 3,325 |
| | $ | 3,440 |
| | $ | 106 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | December 31, 2018 | | Current | | 31-90 Days Past Due | | >90 Days Past Due | | Total Billed | | Unbilled | | Total Finance Receivables | | >90 Days and Accruing | Direct | $ | 38 |
| | $ | 11 |
| | $ | 7 |
| | $ | 56 |
| | $ | 1,181 |
| | $ | 1,237 |
| | $ | 54 |
| Indirect | 18 |
| | 4 |
| | 2 |
| | 24 |
| | 685 |
| | 709 |
| | — |
| Total United States | 56 |
| | 15 |
| | 9 |
| | 80 |
| | 1,866 |
| | 1,946 |
| | 54 |
| Canada | 7 |
| | 2 |
| | 1 |
| | 10 |
| | 325 |
| | 335 |
| | 22 |
| France | 5 |
| | — |
| | — |
| | 5 |
| | 413 |
| | 418 |
| | 14 |
| U.K./Ireland | 2 |
| | — |
| | — |
| | 2 |
| | 242 |
| | 244 |
| | — |
| Central(1) | 1 |
| | 1 |
| | 1 |
| | 3 |
| | 324 |
| | 327 |
| | 6 |
| Southern(2) | 3 |
| | 1 |
| | 1 |
| | 5 |
| | 200 |
| | 205 |
| | 6 |
| Nordic(3) | — |
| | — |
| | — |
| | — |
| | 45 |
| | 45 |
| | — |
| Total Europe | 11 |
| | 2 |
| | 2 |
| | 15 |
| | 1,224 |
| | 1,239 |
| | 26 |
| Other | 2 |
| | — |
| | — |
| | 2 |
| | 42 |
| | 44 |
| | — |
| Total | $ | 76 |
| | $ | 19 |
| | $ | 12 |
| | $ | 107 |
| | $ | 3,457 |
| | $ | 3,564 |
| | $ | 102 |
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_____________ | | (1) | As a result of an internal reorganization, XBS amounts, previously classified as Other, were reclassified to the U.S. in first quarter 2019. Prior year amounts have also been reclassified to conform to the current year presentation. |
| | (2) | Switzerland, Germany, Austria, Belgium and Holland. |
| | (3) | Italy, Greece, Spain and Portugal. |
(4) Sweden, Norway, Denmark and Finland.
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