Accounts Receivable and Finance Receivables (Tables)

3 Months Ended

Apr. 04, 2015

Accounts Receivable and Finance Receivables

Accounts Receivable

(In millions)	April 4, 2015		January 3, 2015
Commercial	$	861	$	765
U.S. Government contracts	303		300
	1,164		1,065
Allowance for doubtful accounts	(31)		(30)
Total	$	1,133	$	1,035

Finance Receivables

(In millions)	April 4, 2015		January 3, 2015
Finance receivables *	$	1,256	$	1,289
Allowance for losses	(53)		(51)
Total finance receivables, net	$	1,203	$	1,238

* Includes finance receivables held for sale of $35 million for both periods.

Finance receivables categorized based on credit quality indicators

(In millions)	April 4, 2015		January 3, 2015
Performing	$	1,037	$	1,062
Watchlist	92		111
Nonaccrual	92		81
Total	$	1,221	$	1,254
Nonaccrual as a percentage of finance receivables	7.53%		6.46%

Finance receivables by delinquency aging

(In millions)	April 4, 2015		January 3, 2015
Less than 31 days past due	$	1,075	$	1,080
31-60 days past due	63		117
61-90 days past due	43		28
Over 90 days past due	40		29
Total	$	1,221	$		1,254
60 + days contractual delinquency as a percentage of finance receivables	6.80%		4.55%

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

(In millions)	April 4, 2015		January 3, 2015
Recorded investment:
Impaired loans with related allowance for losses	$	74	$	68
Impaired loans with no related allowance for losses		22		42
Total	$	96	$	110
Unpaid principal balance	$	101	$	115
Allowance for losses on impaired loans	22		20
Average recorded investment	103		115

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

(In millions)	April 4, 2015		January 3, 2015
Allowance based on collective evaluation	$	31	$	31
Allowance based on individual evaluation	22		20
Finance receivables evaluated collectively	$	1,006	$	1,023
Finance receivables evaluated individually	96		110

Allowance for Losses

	Three Months Ended
(In millions)	April 4, 2015		March 29, 2014
Balance at the beginning of period	$	51	$	55
Provision for losses	1		4
Charge-offs	—		(6)
Recoveries	1		1
Balance at the end of period	$	53	$	54