Financing Receivables and Operating Leases (Tables)

3 Months Ended

Jan. 31, 2019

The components of financing receivables were as follows:



	As of
	January 31, 2019			October 31, 2018
	In millions
Minimum lease payments receivable	$	8,868		$	8,691
Unguaranteed residual value	309			297
Unearned income	(766		)	(732		)
Financing receivables, gross	8,411			8,256
Allowance for doubtful accounts	(127		)	(120		)
Financing receivables, net	8,284			8,136
Less: current portion⁽¹⁾	(3,487		)	(3,396		)
Amounts due after one year, net⁽¹⁾	$	4,797		$	4,740


(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
	January 31, 2019		October 31, 2018
	In millions
Risk Rating:
Low	$	4,268	$	4,238
Moderate	3,920		3,805
High	223		213
Total	$	8,411	$	8,256

Allowance for Doubtful Accounts for Financing Receivables

The allowance for doubtful accounts for financing receivables as of January 31, 2019 and October 31, 2018 and the respective changes during the three and twelve months then ended were as follows:



	As of
	January 31, 2019			October 31, 2018
	In millions
Balance at beginning of period	$	120		$	86
Provision for doubtful accounts	8			49
Write-offs	(1		)	(15		)
Balance at end of period	$	127		$	120

Gross Financing Receivables and Related Allowance Evaluated for Loss

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



	As of
	January 31, 2019		October 31, 2018
	In millions
Gross financing receivables collectively evaluated for loss	$	8,026	$	7,917
Gross financing receivables individually evaluated for loss	385		339
Total	$	8,411	$	8,256
Allowance for financing receivables collectively evaluated for loss	$	81	$	78
Allowance for financing receivables individually evaluated for loss	46		42
Total	$	127	$	120

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
	January 31, 2019		October 31, 2018
	In millions
Billed:⁽¹⁾
Current 1-30 days	$	300	$	275
Past due 31-60 days	45		42
Past due 61-90 days	25		13
Past due > 90 days	87		74
Unbilled sales-type and direct-financing lease receivables	7,954		7,852
Total gross financing receivables	$	8,411	$	8,256
Gross financing receivables on non-accrual status⁽²⁾	$	261	$	226
Gross financing receivables 90 days past due and still accruing interest⁽²⁾	$	124	$	113


(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
	January 31, 2019			October 31, 2018
	In millions
Equipment leased to customers	$	7,167		$	7,290
Accumulated depreciation	(3,000		)	(3,078		)
Total	$	4,167		$	4,212