Financing Receivables and Operating Leases (Tables)

12 Months Ended

Oct. 31, 2018

Leases [Abstract]

Components of financing receivables

The components of financing receivables were as follows:

	As of October 31,
	2018			2017
	In millions
Minimum lease payments receivable	$	8,691		$	8,226
Unguaranteed residual value	297			272
Unearned income	(732		)	(654		)
Financing receivables, gross	8,256			7,844
Allowance for doubtful accounts	(120		)	(86		)
Financing receivables, net	8,136			7,758
Less: current portion(1)	(3,396		)	(3,378		)
Amounts due after one year, net(1)	$	4,740		$	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 Consolidated Balance Sheets.

Scheduled maturities of minimum lease payments receivable

As of October 31, 2018, scheduled maturities of the Company's minimum lease payments receivable were as follows:

	2019		2020		2021		2022		2023		Thereafter		Total
	In millions
Scheduled maturities of minimum lease payments receivable	$	3,746	$	2,331	$	1,468	$	763	$	303	$	80	$	8,691

Credit risk profile of gross financing receivables

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

	As of October 31,
	2018		2017
	In millions
Risk Rating:
Low	$	4,238	$	4,156
Moderate	3,805		3,556
High	213		132
Total	$	8,256	$	7,844

Schedule of allowance for doubtful accounts for financing receivables

The allowance for doubtful accounts related to financing receivables and changes therein were as follows:

	As of October 31,
	2018			2017			2016
	In millions
Balance at beginning of year	$	86		$	89		$	95
Provision for doubtful accounts	49			23			11
Write-offs	(15		)	(26		)	(17		)
Balance at end of year	$	120		$	86		$	89

Gross financing receivables and related allowance collectively and individually evaluated for loss

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

	As of October 31,
	2018		2017
	In millions
Gross financing receivables collectively evaluated for loss	$	7,917	$	7,523
Gross financing receivables individually evaluated for loss	339		321
Total	$	8,256	$	7,844
Allowance for financing receivables collectively evaluated for loss	$	78	$	67
Allowance for financing receivables individually evaluated for loss	42		19
Total	$	120	$	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 October 31,
	2018		2017
	In millions
Billed:(1)
Current 1-30 days	$	275	$	257
Past due 31-60 days	42		52
Past due 61-90 days	13		15
Past due >90 days	74		58
Unbilled sales-type and direct-financing lease receivables	7,852		7,462
Total gross financing receivables	$	8,256	$	7,844
Gross financing receivables on non-accrual status(2)	$	226	$	188
Gross financing receivables 90 days past due and still accruing interest(2)	$	113	$	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.

Schedule of operating lease assets included in machinery and equipment

Operating lease assets included in Property, plant and equipment in the Consolidated Balance Sheets were as follows:

	As of October 31,
	2018			2017
	In millions
Equipment leased to customers	$	7,290		$	7,356
Accumulated depreciation	(3,078		)	(2,943		)
Total	$	4,212		$	4,413

Minimum future rentals on non-cancelable operating leases

As of October 31, 2018, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows:

	2019		2020		2021		2022		2023		Thereafter		Total
	In millions
Minimum future rentals on non-cancelable operating leases	$	1,901	$	1,156	$	477	$	69	$	9	$	1	$	3,613