Accounts Receivable and Finance Receivables (Tables)

3 Months Ended

Mar. 30, 2024

Receivables [Abstract]

Accounts Receivable

Accounts receivable is composed of the following:

(In millions)	March 30, 2024		December 30, 2023
Commercial	$	816	$	831
U.S. Government contracts	102		63
	918		894
Allowance for credit losses	(24)		(26)
Total accounts receivable, net	$	894	$	868

Finance Receivables

Finance receivables are presented in the following table:

(In millions)	March 30, 2024		December 30, 2023
Finance receivables	$	603	$	609
Allowance for credit losses	(21)		(24)
Total finance receivables, net	$	582	$	585

Finance Receivables Categorized Based On Credit Quality Indicators

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:

(Dollars in millions)	March 30, 2024		December 30, 2023
Performing	$	568	$	571
Watchlist	22		23
Nonaccrual	13		15
Nonaccrual as a percentage of finance receivables	2.16%		2.46%
Current and less than 31 days past due	$	582	$	589
31-60 days past due	18		16
61-90 days past due	—		—
Over 90 days past due	3		4
60+ days contractual delinquency as a percentage of finance receivables	0.50%		0.66%

Finance Receivables By Delinquency Aging Category

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:

(Dollars in millions)	March 30, 2024		December 30, 2023
Performing	$	568	$	571
Watchlist	22		23
Nonaccrual	13		15
Nonaccrual as a percentage of finance receivables	2.16%		2.46%
Current and less than 31 days past due	$	582	$	589
31-60 days past due	18		16
61-90 days past due	—		—
Over 90 days past due	3		4
60+ days contractual delinquency as a percentage of finance receivables	0.50%		0.66%

Finance Receivables and Allowance For Credit Losses Based on Impairment Evaluation

A summary of finance receivables and the allowance for credit losses, based on the results of our impairment evaluation, is provided below. The finance receivables included in this table specifically exclude leveraged leases in accordance with U.S. generally accepted accounting principles.

(In millions)	March 30, 2024		December 30, 2023
Finance receivables evaluated collectively	$	505	$	508
Finance receivables evaluated individually	13		15
Allowance for credit losses based on collective evaluation	18		21
Allowance for credit losses based on individual evaluation	3		3
Impaired finance receivables with specific allowance for credit losses	$	9	$	11
Impaired finance receivables with no specific allowance for credit losses	4		4
Unpaid principal balance of impaired finance receivables	20		25
Allowance for credit losses on impaired finance receivables	3		3
Average recorded investment of impaired finance receivables	14		27