Accounts Receivable and Finance Receivables (Tables)

3 Months Ended

Apr. 01, 2017

Accounts Receivable and Finance Receivables

Accounts receivable

(In millions)		April 1, 2017		December 31, 2016
Commercial	$	941	$	797
U.S. Government contracts		285		294
		1,226		1,091
Allowance for doubtful accounts		(28)		(27)
Total	$	1,198	$	1,064

Finance receivables

(In millions)		April 1, 2017		December 31, 2016
Finance receivables*	$	940	$	976
Allowance for losses		(40)		(41)
Total finance receivables, net	$	900	$	935

* Includes finance receivables held for sale of $30 million at both April 1, 2017 and December 31, 2016.

Finance receivables by credit quality indicator and by delinquency aging category

(Dollars in millions)		April 1, 2017		December 31, 2016
Performing	$	723	$	758
Watchlist		103		101
Nonaccrual		84		87
Nonaccrual as a percentage of finance receivables		9.23%		9.20%
Less than 31 days past due	$	828	$	857
31-60 days past due		25		49
61-90 days past due		21		18
Over 90 days past due		36		22
60+ days contractual delinquency as a percentage of finance receivables		6.26%		4.23%

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

(In millions)		April 1, 2017		December 31, 2016
Recorded investment:
Impaired loans with related allowance for losses	$	49	$	55
Impaired loans with no related allowance for losses		45		65
Total	$	94	$	120
Unpaid principal balance	$	101	$	125
Allowance for losses on impaired loans		10		11
Average recorded investment		107		101

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

(In millions)		April 1, 2017		December 31, 2016
Allowance based on collective evaluation	$	30	$	30
Allowance based on individual evaluation		10		11
Finance receivables evaluated collectively		719		727
Finance receivables evaluated individually		94		120