Accounts Receivable and Finance Receivables (Tables)

6 Months Ended

Jun. 30, 2018

Accounts Receivable and Finance Receivables

Accounts receivable

(In millions)		June 30, 2018		December 30, 2017
Commercial	$	931	$	1,007
U.S. Government contracts, including foreign military sales		215		383
		1,146		1,390
Allowance for doubtful accounts		(25)		(27)
Total	$	1,121	$	1,363

Finance receivables

(In millions)		June 30, 2018		December 30, 2017
Finance receivables	$	792	$	850
Allowance for losses		(29)		(31)
Total finance receivables, net	$	763	$	819

Finance receivables by credit quality indicator and by delinquency aging category

(Dollars in millions)		June 30, 2018		December 30, 2017
Performing	$	688	$	733
Watchlist		50		56
Nonaccrual		54		61
Nonaccrual as a percentage of finance receivables		6.82%		7.18%
Less than 31 days past due	$	705	$	791
31-60 days past due		35		25
61-90 days past due		40		14
Over 90 days past due		12		20
60 + days contractual delinquency as a percentage of finance receivables		6.57%		4.00%

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

(In millions)		June 30, 2018		December 30, 2017
Recorded investment:
Impaired loans with related allowance for losses	$	19	$	24
Impaired loans with no related allowance for losses		35		70
Total	$	54	$	94
Unpaid principal balance	$	63	$	106
Allowance for losses on impaired loans		5		6
Average recorded investment		68		92

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

(In millions)		June 30, 2018		December 30, 2017
Allowance based on collective evaluation	$	24	$	25
Allowance based on individual evaluation		5		6
Finance receivables evaluated collectively		639		658
Finance receivables evaluated individually		54		94