Financing Receivables and Operating Leases (Tables)

9 Months Ended

Jul. 31, 2015

Financing Receivables and Operating Leases

Components of financing receivables

	As of
	July 31, 2015			October 31, 2014
	In millions
Minimum lease payments receivable	$	6,751		$	6,982
Unguaranteed residual value		220			235
Unearned income		(529	)		(547	)
Financing receivables, gross		6,442			6,670
Allowance for doubtful accounts		(96	)		(111	)
Financing receivables, net		6,346			6,559
Less: current portion(1)		(2,804	)		(2,946	)
Amounts due after one year, net(1)	$	3,542		$	3,613

(1) HP 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 Condensed Balance Sheets.

Credit risk profile of gross financing receivables

	As of
	July 31, 2015		October 31, 2014
	In millions
Risk Rating:
Low	$	3,333	$	3,536
Moderate		3,036		3,022
High		73		112
Total	$	6,442	$	6,670

Schedule of changes in allowance for doubtful accounts related to financing receivables

	Nine months ended July 31, 2015
	In millions
Balance at beginning of period	$	111
Provision for doubtful accounts		15
Deductions		(30	)
Balance at end of period	$	96

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

	As of
	July 31, 2015		October 31, 2014
	In millions
Gross financing receivables collectively evaluated for loss	$	6,189	$	6,378
Gross financing receivables individually evaluated for loss		253		292
Total	$	6,442	$	6,670
Allowance for financing receivables collectively evaluated for loss	$	79	$	92
Allowance for financing receivables individually evaluated for loss		17		19
Total	$	96	$	111

Summary of the aging and non-accrual status of gross financing receivables

	As of
	July 31, 2015		October 31, 2014
	In millions
Billed(1):
Current 1-30 days	$	295	$	243
Past due 31-60 days		51		46
Past due 61-90 days		17		12
Past due >90 days		54		49
Unbilled sales-type and direct-financing lease receivables		6,025		6,320
Total gross financing receivables	$	6,442	$	6,670
Gross financing receivables on non-accrual status(2)	$	174	$	130
Gross financing receivables 90 days past due and still accruing interest(2)	$	79	$	162

(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

	As of
	July 31, 2015			October 31, 2014
	In millions
Equipment leased to customers	$	4,016		$	3,977
Accumulated depreciation		(1,378	)		(1,382	)
	$	2,638		$	2,595