Accounts Receivable and Finance Receivables (Tables)

3 Months Ended

Apr. 04, 2020

Accounts Receivable and Finance Receivables

Accounts receivable

	April 4,		January 4,
(In millions)	2020		2020
Commercial	$	720	$	835
U.S. Government contracts		189		115
		909		950
Allowance for credit losses		(39)		(29)
Total accounts receivable, net	$	870	$	921

Finance receivables

	April 4,		January 4,
(In millions)	2020		2020
Finance receivables	$	706	$	707
Allowance for credit losses		(25)		(25)
Total finance receivables, net	$	681	$	682

Finance receivables by credit quality indicator and by delinquency aging category

	April 4,			January 4,
(Dollars in millions)	2020			2020
Performing	$	554		$	664
Watchlist		115			4
Nonaccrual		37			39
Nonaccrual as a percentage of finance receivables		5.24	%		5.52	%
Current and less than 31 days past due	$	622		$	637
31-60 days past due		29			53
61-90 days past due		35			7
Over 90 days past due		20			10
60+ days contractual delinquency as a percentage of finance receivables		7.79	%		2.40	%

Summary of finance receivables and allowance for loan losses based on impairment evaluation, excluding leveraged leases

	April 4,		January 4,
(In millions)	2020		2020
Finance receivables evaluated collectively	$	489	$	564
Finance receivables evaluated individually		113		39
Allowance for credit losses based on collective evaluation		22		22
Allowance for credit losses based on individual evaluation		3		3
Impaired finance receivables with no related allowance for credit losses	$	96	$	22
Impaired finance receivables with related allowance for credit losses		17		17
Unpaid principal balance of impaired finance receivables		124		50
Allowance for credit losses on impaired loans		3		3
Average recorded investment of impaired finance receivables		76		40