Financing Receivables and Operating Leases (Tables)

9 Months Ended

Jul. 31, 2018

The components of financing receivables were as follows:



	As of
	July 31, 2018			October 31, 2017
	In millions
Minimum lease payments receivable	$	8,530		$	8,226
Unguaranteed residual value	290			272
Unearned income	(705		)	(654		)
Financing receivables, gross	8,115			7,844
Allowance for doubtful accounts	(103		)	(86		)
Financing receivables, net	8,012			7,758
Less: current portion⁽¹⁾	(3,435		)	(3,378		)
Amounts due after one year, net⁽¹⁾	$	4,577		$	4,380


(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, 2018		October 31, 2017
	In millions
Risk Rating:
Low	$	4,236	$	4,156
Moderate	3,697		3,556
High	182		132
Total	$	8,115	$	7,844

Allowance for Doubtful Accounts for Financing Receivables

The allowance for doubtful accounts for financing receivables as of July 31, 2018 and October 31, 2017 and the respective changes during the nine and twelve months then ended were as follows:



	As of
	July 31, 2018			October 31, 2017
	In millions
Balance at beginning of period	$	86		$	89
Provision for doubtful accounts	27			23
Write-offs, net of recoveries	(10		)	(26		)
Balance at end of period	$	103		$	86

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, 2018		October 31, 2017
	In millions
Gross financing receivables collectively evaluated for loss	$	7,708	$	7,523
Gross financing receivables individually evaluated for loss	407		321
Total	$	8,115	$	7,844
Allowance for financing receivables collectively evaluated for loss	$	75	$	67
Allowance for financing receivables individually evaluated for loss	28		19
Total	$	103	$	86

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, 2018		October 31, 2017
	In millions
Billed:⁽¹⁾
Current 1-30 days	$	274	$	257
Past due 31-60 days	59		52
Past due 61-90 days	15		15
Past due > 90 days	84		58
Unbilled sales-type and direct-financing lease receivables	7,683		7,462
Total gross financing receivables	$	8,115	$	7,844
Gross financing receivables on non-accrual status⁽²⁾	$	246	$	188
Gross financing receivables 90 days past due and still accruing interest⁽²⁾	$	161	$	133


(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 Property, plant and equipment in the Condensed Consolidated Balance Sheets were as follows:



	As of
	July 31, 2018			October 31, 2017
	In millions
Equipment leased to customers	$	7,486		$	7,356
Accumulated depreciation	(3,175		)	(2,943		)
Total	$	4,311		$	4,413