Financing Receivables and Operating Leases (Tables)

6 Months Ended

Apr. 30, 2014

Financing Receivables and Operating Leases

Components of financing receivables

	As of
	April 30, 2014			October 31, 2013
	In millions
Minimum lease payments receivable	$	7,228		$	7,505
Unguaranteed residual value		245			252
Unearned income		(583	)		(604	)
Financing receivables, gross		6,890			7,153
Allowance for doubtful accounts		(137	)		(131	)
Financing receivables, net		6,753			7,022
Less: current portion		(3,112	)		(3,144	)
Amounts due after one year, net	$	3,641		$	3,878

Credit risk profile of gross financing receivables

	As of
	April 30, 2014		October 31, 2013
	In millions
Risk Rating
Low	$	3,740	$	3,948
Moderate		3,024		3,084
High		126		121
Total	$	6,890	$	7,153

Schedule of changes in allowance for doubtful accounts for financing receivables

	Six months ended April 30, 2014
	In millions
Balance at beginning of period	$	131
Provision for doubtful accounts		17
Deductions, net of recoveries		(11	)
Balance at end of period	$	137

Schedule of gross financing receivables and related allowance collectively and individually evaluated for loss

	As of
	April 30, 2014		October 31, 2013
	In millions
Gross financing receivables collectively evaluated for loss	$	6,601	$	6,773
Gross financing receivables individually evaluated for loss		289		380
Total	$	6,890	$	7,153
Allowance for financing receivables collectively evaluated for loss	$	94	$	95
Allowance for financing receivables individually evaluated for loss		43		36
Total	$	137	$	131

Summary of the aging and non-accrual status of gross financing receivables

	As of
	April 30, 2014		October 31, 2013
	In millions
Billed(1):
Current 1-30 days	$	296	$	217
Past due 31-60 days		28		50
Past due 61-90 days		25		15
Past due >90 days		54		46
Unbilled sales-type and direct-financing lease receivables		6,487		6,825
Total gross financing receivables	$	6,890	$	7,153
Gross financing receivables on non-accrual status(2)	$	160	$	199
Gross financing receivables 90 days past due and still accruing interest(2)	$	129	$	181

⁽¹⁾

Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables.

⁽²⁾

Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables.

Schedule of operating lease assets included in machinery and equipment

	As of
	April 30, 2014			October 31, 2013
	In millions
Equipment leased to customers	$	3,950		$	3,822
Accumulated depreciation		(1,476	)		(1,452	)
	$	2,474		$	2,370