Accounts Receivable and Finance Receivables (Tables)

9 Months Ended

Sep. 27, 2014

Accounts Receivable and Finance Receivables

Accounts Receivable

(In millions)	September 27, 2014		December 28, 2013
Commercial	$	849	$	654
U.S. Government contracts	329		347
	1,178		1,001
Allowance for doubtful accounts	(28)		(22		)
Total	$	1,150	$	979

Finance Receivables

(In millions)	September 27, 2014		December 28, 2013
Finance receivables held for investment	$	1,329	$	1,483
Allowance for losses	(56)		(55		)
Total finance receivables held for investment, net	1,273		1,428
Finance receivables held for sale	35		65
Total finance receivables, net	$	1,308	$	1,493

Finance receivables categorized based on the internally assigned credit quality

(In millions)	September 27, 2014		December 28,  2013
Performing	$	1,111	$	1,285
Watchlist	117		93
Nonaccrual	101		105
Total	$	1,329	$	1,483
Nonaccrual as a percentage of total finance receivables	7.60%		7.08%

Finance receivables by delinquency aging

(In millions)	September 27, 2014		December 28, 2013
Less than 31 days past due	$	1,165	$	1,295
31-60 days past due	94		108
61-90 days past due	41		37
Over 90 days past due	29		43
Total	$	1,329	$	1,483

Summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment

(In millions)	September 27, 2014		December 28, 2013
Recorded investment:
Impaired loans with related allowance for losses	$	78	$	59
Impaired loans with no related allowance for losses	53		78
Total	$	131	$	137
Unpaid principal balance	$	135	$	141
Allowance for losses on impaired loans	23		14
Average recorded investment	116		155

Allowance for losses on finance receivables on an individual and on a collective basis

(In millions)	September 27, 2014		December 28, 2013
Allowance based on collective evaluation	$	33	$	41
Allowance based on individual evaluation	23		14
Finance receivables evaluated collectively	$	1,077	$	1,226
Finance receivables evaluated individually	131		137

Allowance for Losses

	Nine Months Ended
(In millions)	September 27, 2014		September 28, 2013
Balance at the beginning of period	$	55	$	84
Provision for losses	7		(23		)
Charge-offs	(11)		(9		)
Recoveries	5		11
Transfers	—		(1		)
Balance at the end of period	$	56	$	62