Accounts Receivable and Finance Receivables (Tables)

6 Months Ended

Jun. 29, 2019

Accounts receivable

	June 29,		December 29,
(In millions)	2019		2018
Commercial	$	874	$	885
U.S. Government contracts		142		166
		1,016		1,051
Allowance for doubtful accounts		(27)		(27)
Total accounts receivable, net	$	989	$	1,024

Finance receivables

	June 29,		December 29,
(In millions)	2019		2018
Finance receivables	$	802	$	789
Allowance for losses		(26)		(29)
Total finance receivables, net	$	776	$	760

Finance receivables by credit quality indicator and by delinquency aging category

	June 29,			December 29,
(Dollars in millions)	2019			2018
Performing	$	732		$	704
Watchlist		39			45
Nonaccrual		31			40
Nonaccrual as a percentage of finance receivables		3.87	%		5.07	%
Less than 31 days past due	$	726		$	719
31-60 days past due		64			56
61-90 days past due		3			5
Over 90 days past due		9			9
60+ days contractual delinquency as a percentage of finance receivables		1.50	%		1.77	%

Summary of finance receivables and allowance for loan losses based on impairment evaluation, excluding leveraged leases

	June 29,		December 29,
(In millions)	2019		2018
Finance receivables evaluated collectively	$	669	$	630
Finance receivables evaluated individually		31		58
Allowance for losses based on collective evaluation		24		24
Allowance for losses based on individual evaluation		2		5
Impaired finance receivables with no related allowance for losses	$	23	$	43
Impaired finance receivables with related allowance for losses		8		15
Unpaid principal balance of impaired finance receivables		41		67
Average recorded investment of impaired finance receivables		40		61