Accounts Receivable and Finance Receivables (Tables)

9 Months Ended

Oct. 01, 2016

Accounts Receivable and Finance Receivables

Accounts receivable

(In millions)		October 1, 2016		January 2, 2016
Commercial	$	915	$	841
U.S. Government contracts		255		239
		1,170		1,080
Allowance for doubtful accounts		(31)		(33)
Total	$	1,139	$	1,047

Finance receivables

(In millions)		October 1, 2016		January 2, 2016
Finance receivables*	$	1,013	$	1,135
Allowance for losses		(44)		(48)
Total finance receivables, net	$	969	$	1,087

* Includes finance receivables held for sale of $30 million at both October 1, 2016 and January 2, 2016.

Finance receivables by credit quality indicator and by delinquency aging category

(In millions)		October 1, 2016		January 2, 2016
Performing	$	807	$	891
Watchlist		86		130
Nonaccrual		90		84
Nonaccrual as a percentage of finance receivables		9.16%		7.60%
Less than 31 days past due	$	817	$	950
31-60 days past due		81		86
61-90 days past due		45		42
Over 90 days past due		40		27
60 + days contractual delinquency as a percentage of finance receivables		8.65%		6.24%

Summary of impaired finance receivables, excluding leveraged leases, and the average recorded investment

(In millions)		October 1, 2016		January 2, 2016
Recorded investment:
Impaired loans with related allowance for losses	$	54	$	62
Impaired loans with no related allowance for losses		45		42
Total	$	99	$	104
Unpaid principal balance	$	104	$	113
Allowance for losses on impaired loans		13		17
Average recorded investment		96		102

Allowance for losses on finance receivables on an individual and on a collective basis

(In millions)		October 1, 2016		January 2, 2016
Allowance based on collective evaluation	$	31	$	31
Allowance based on individual evaluation		13		17
Finance receivables evaluated collectively	$	786	$	883
Finance receivables evaluated individually		99		104

Rollforward of the allowance for losses on finance receivables

	Nine Months Ended
(In millions)		October 1, 2016		October 3, 2015
Beginning of period	$	48	$	51
Provision for losses		(1)		(4)
Charge-offs		(11)		(8)
Recoveries		8		10
End of period	$	44	$	49