Accounts Receivable and Finance Receivables (Tables)

9 Months Ended

Sep. 29, 2018

Accounts Receivable and Finance Receivables

Accounts receivable

(In millions)		September 29, 2018		December 30, 2017
Commercial	$	895	$	1,007
U.S. Government contracts, including foreign military sales		156		383
		1,051		1,390
Allowance for doubtful accounts		(25)		(27)
Total	$	1,026	$	1,363

Finance receivables

(In millions)		September 29, 2018		December 30, 2017
Finance receivables	$	815	$	850
Allowance for losses		(29)		(31)
Total finance receivables, net	$	786	$	819

Finance receivables by credit quality indicator and by delinquency aging category

(Dollars in millions)		September 29, 2018		December 30, 2017
Performing	$	723	$	733
Watchlist		48		56
Nonaccrual		44		61
Nonaccrual as a percentage of finance receivables		5.40%		7.18%
Less than 31 days past due	$	752	$	791
31-60 days past due		22		25
61-90 days past due		32		14
Over 90 days past due		9		20
60 + days contractual delinquency as a percentage of finance receivables		5.03%		4.00%

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

(In millions)		September 29, 2018		December 30, 2017
Recorded investment:
Impaired loans with related allowance for losses	$	14	$	24
Impaired loans with no related allowance for losses		30		70
Total	$	44	$	94
Unpaid principal balance	$	54	$	106
Allowance for losses on impaired loans		4		6
Average recorded investment		62		92

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

(In millions)		September 29, 2018		December 30, 2017
Allowance based on collective evaluation	$	25	$	25
Allowance based on individual evaluation		4		6
Finance receivables evaluated collectively		671		658
Finance receivables evaluated individually		44		94