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Accounts Receivable and Finance Receivables (Tables)
 6 Months Ended
Jul. 02, 2016
Accounts Receivable and Finance Receivables  
Accounts receivable

 

                                                                                                                                                                                          

(In millions)

July 2,
2016

January 2,
2016

Commercial

   $
902

   $
841

U.S. Government contracts
274
239

 

 

 

 
1,176
1,080

Allowance for doubtful accounts
(32)
(33)

 

 

 

Total

   $
1,144

   $
1,047

 

 

 

 

 

 

Finance receivables

 

                                                                                                                                                                                          

(In millions)

July 2,
2016

January 2,
2016

Finance receivables*

   $
1,027

   $
1,135

Allowance for losses
(42)
(48)

 

 

 

Total finance receivables, net

   $
985

   $
1,087

 

 

 

 

 

* Includes finance receivables held for sale of $30 million at both July 2, 2016 and January 2, 2016.

Finance receivables by credit quality indicator and by delinquency aging category

 

                                                                                                                                                                                          

(In millions)

July 2,
2016

January 2,
2016

Performing

   $
792

   $
891

Watchlist
106
130

Nonaccrual
99
84

 

 

 

Nonaccrual as a percentage of finance receivables
9.93%
7.60%

 

 

 

Less than 31 days past due

   $
889

   $
950

31-60 days past due
51
86

61-90 days past due
23
42

Over 90 days past due
34
27

 

 

 

60 + days contractual delinquency as a percentage of finance receivables
5.72%
6.24%

 

 

 

 

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

 

                                                                                                                                                                                          

(In millions)

July 2,
2016

January 2,
2016

Recorded investment:

 

 

Impaired loans with related allowance for losses

   $
62

   $
62

Impaired loans with no related allowance for losses
40
42

 

 

 

Total

   $
102

   $
104

 

 

 

 

 

Unpaid principal balance

   $
106

   $
113

Allowance for losses on impaired loans
11
17

Average recorded investment
95
102

 

 

 

 

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

 

                                                                                                                                                                                          

(In millions)

July 2,
2016

January 2,
2016

Allowance based on collective evaluation

   $
31

   $
31

Allowance based on individual evaluation
11
17

 

 

 

Finance receivables evaluated collectively

   $
797

   $
883

Finance receivables evaluated individually
102
104

 

 

 

 

Rollforward of the allowance for losses on finance receivables

 

                                                                                                                                                                                          

 

Six Months Ended

(In millions)

July 2,
2016

July 4,
2015

Beginning of period

   $
48

   $
51

Provision for losses
(1)
(1)

Charge-offs
(10)
(2)

Recoveries
5
6

 

 

 

End of period

   $
42

   $
54