Financing Receivables and Operating Leases (Tables)

9 Months Ended

Jul. 31, 2017

The components of financing receivables were as follows:



	As of
	July 31, 2017			October 31, 2016
	In millions
Minimum lease payments receivable	$	7,873		$	8,480
Unguaranteed residual value	254			231
Unearned income	(619		)	(678		)
Financing receivables, gross	7,508			8,033
Allowance for doubtful accounts	(90		)	(89		)
Financing receivables, net	7,418			7,944
Less: current portion⁽¹⁾	(3,295		)	(3,360		)
Amounts due after one year, net⁽¹⁾	$	4,123		$	4,584


(1)	The Company includes the current portion in Financing receivables, and amounts due after one year, net in Long-term financing receivables and other assets, in the accompanying Condensed Consolidated Balance Sheets.

Credit Risk Profile of Gross Financing Receivables

The credit risk profile of gross financing receivables, based upon internal risk ratings, was as follows:



	As of
	July 31, 2017		October 31, 2016
	In millions
Risk Rating:
Low	$	4,031	$	4,027
Moderate	3,355		3,909
High	122		97
Total	$	7,508	$	8,033

Allowance for Doubtful Accounts for Financing Receivables

The allowance for doubtful accounts for financing receivables as of July 31, 2017 and October 31, 2016 and the respective changes during the nine and twelve months then ended were as follows:



	As of
	July 31, 2017			October 31, 2016
	In millions
Balance at beginning of period	$	89		$	95
Provision for doubtful accounts	17			11
Write-offs	(16		)	(17		)
Balance at end of period	$	90		$	89

Gross Financing Receivables and Related Allowance Evaluated for Loss

The gross financing receivables and related allowance evaluated for loss were as follows:



	As of
	July 31, 2017		October 31, 2016
	In millions
Gross financing receivables collectively evaluated for loss	$	7,206	$	7,750
Gross financing receivables individually evaluated for loss	302		283
Total	$	7,508	$	8,033
Allowance for financing receivables collectively evaluated for loss	$	71	$	73
Allowance for financing receivables individually evaluated for loss	19		16
Total	$	90	$	89

Summary of the Aging and Non-accrual Status of Gross Financing Receivables

The following table summarizes the aging and non-accrual status of gross financing receivables:



	As of
	July 31, 2017		October 31, 2016
	In millions
Billed:⁽¹⁾
Current 1-30 days	$	325	$	389
Past due 31-60 days	64		54
Past due 61-90 days	13		14
Past due > 90 days	69		68
Unbilled sales-type and direct-financing lease receivables	7,037		7,508
Total gross financing receivables	$	7,508	$	8,033
Gross financing receivables on non-accrual status⁽²⁾	$	187	$	163
Gross financing receivables 90 days past due and still accruing interest⁽²⁾	$	115	$	120


(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.

Operating Lease Assets Included in Machinery and Equipment

Operating lease assets included in machinery and equipment in the Condensed Consolidated Balance Sheets were as follows:



	As of
	July 31, 2017			October 31, 2016
	In millions
Equipment leased to customers	$	7,745		$	5,467
Accumulated depreciation	(3,058		)	(2,134		)
Total	$	4,687		$	3,333