Finance Receivables, Net (Tables)

3 Months Ended

Mar. 31, 2020

Receivables [Abstract]

Finance Receivables

Finance receivables, net were as follows:

	March 31, 2020		December 31, 2019
Gross receivables	$	3,690	$	3,865
Unearned income	(403)		(425)
Subtotal	3,287		3,440
Residual values	—		—
Allowance for doubtful accounts	(146)		(89)
Finance receivables, net	3,141		3,351
Less: Billed portion of finance receivables, net	108		111
Less: Current portion of finance receivables not billed, net	1,104		1,158
Finance receivables due after one year, net	$	1,929	$	2,082

Allowance for Credit Losses on Financing Receivables

The allowance for doubtful accounts as well as the related investment in finance receivables were as follows:

	United States		Canada(1)		EMEA(1)(2)		Total
Balance at December 31, 2019	$	59	$	11	$	19	$	89
Provision	35		6		25		66
Charge-offs	(3)		(1)		(4)		(8)
Recoveries and other(3)	—		(1)		—		(1)
Balance at March 31, 2020	$	91	$	15	$	40	$	146
Finance receivables as of March 31, 2020 collectively evaluated for impairment (4)	$	1,866	$	289	$	1,132	$	3,287
Balance at December 31, 2018	$	53	$	12	$	27	$	92
Provision	4		1		4		9
Charge-offs	(4)		(1)		(3)		(8)
Recoveries and other(3)	—		—		—		—
Balance at March 31, 2019	$	53	$	12	$	28	$	93
Finance receivables as of March 31, 2019 collectively evaluated for impairment(4)	$	1,895	$	336	$	1,235	$	3,466

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

(3)Includes the impacts of foreign currency translation and adjustments to reserves necessary to reflect events of non-payment such as customer accommodations and contract terminations.

(4)Total Finance receivables exclude the allowance for credit losses of $146 and $93 at March 31, 2020 and 2019, respectively.

Financing Receivable Credit Quality Indicators

Details about our finance receivables portfolio based on geography, origination year and credit quality indicators are as follows:

	March 31, 2020														December 31, 2019
	2020		2019		2018		2017		2016		Prior		Total Finance Receivables		Total Finance Receivables
United States (Direct):
Low Credit Risk	$	46	$	197	$	189	$	130	$	88	$	27	$	677	$	640
Average Credit Risk	19		108		66		38		19		5		255		331
High Credit Risk	13		40		24		14		10		5		106		132
Total	$	78	$	345	$	279	$	182	$	117	$	37	$	1,038	$	1,103
United States (Indirect):
Low Credit Risk	$	51	$	140	$	58	$	23	$	9	$	2	$	283	$	258
Average Credit Risk	40		179		121		67		26		5		438		445
High Credit Risk	6		20		46		25		8		2		107		116
Total	$	97	$	339	$	225	$	115	$	43	$	9	$	828	$	819
Canada(1)
Low Credit Risk	$	10	$	37	$	30	$	14	$	13	$	5	$	109	$	163
Average Credit Risk	13		43		34		25		12		3		130		97
High Credit Risk	4		13		13		15		5		—		50		66
Total	$	27	$	93	$	77	$	54	$	30	$	8	$	289	$	326
EMEA(1)(2)
Low Credit Risk	$	50	$	214	$	180	$	98	$	46	$	15	$	603	$	655
Average Credit Risk	46		176		132		77		36		10		477		479
High Credit Risk	3		18		13		11		5		2		52		58
Total	$	99	$	408	$	325	$	186	$	87	$	27	$	1,132	$	1,192
Total Finance Receivables
Low Credit Risk	$	157	$	588	$	457	$	265	$	156	$	49	$	1,672	$	1,716
Average Credit Risk	118		506		353		207		93		23		1,300		1,352
High Credit Risk	26		91		96		65		28		9		315		372
Total	$	301	$	1,185	$	906	$	537	$	277	$	81	$	3,287	$	3,440

_____________

(1)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.

(2)Includes developing market countries.

Finance Receivables Aging

	March 31, 2020
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	35	$	7	$	11	$	53	$	985	$	1,038	$	71
Indirect	23		5		3		31		797		828		—
Total United States	58		12		14		84		1,782		1,866		71
Canada(1)	7		2		—		9		280		289		15
EMEA(1)	13		3		2		18		1,114		1,132		25
Total	$	78	$	17	$	16	$	111	$	3,176	$	3,287	$	111
	December 31, 2019
	Current		31-90 Days Past Due		>90 Days Past Due		Total Billed		Unbilled		Total Finance Receivables		>90 Days and Accruing
Direct	$	37	$	11	$	8	$	56	$	1,047	$	1,103	$	57
Indirect	25		5		3		33		786		819		—
Total United States	62		16		11		89		1,833		1,922		57
Canada(1)	8		2		1		11		315		326		17
EMEA(1)(2)	12		1		2		15		1,177		1,192		32
Total	$	82	$	19	$	14	$	115	$	3,325	$	3,440	$	106

_____________

(1)Includes developing market countries.

(2)Prior year amounts have been recasted to include the Other geographic region, which was previously disclosed as a separate grouping, conforming to the current year's presentation.