Financing Receivables (Tables)

12 Months Ended

Dec. 31, 2019

Financing Receivables

Summary of the components of financing receivables

	Investment in				Client Loan and
	Sales-Type and		Commercial		Installment Payment
($ in millions)	Direct Financing		Financing		Receivables/
At December 31, 2019:	Leases		Receivables		(Loans)		Total
Financing receivables, gross	$	6,077	$	3,836	$	13,592	$	23,504
Unearned income		(509)		(4)		(570)		(1,083)
Recorded investment	$	5,567	$	3,831	$	13,022	$	22,421
Allowance for credit losses		(72)		(11)		(138)		(221)
Unguaranteed residual value		652		—		—		652
Guaranteed residual value		53		—		—		53
Total financing receivables, net	$	6,199	$	3,820	$	12,884	$	22,904
Current portion	$	2,334	$	3,820	$	8,037	$	14,192
Noncurrent portion	$	3,865	$	—	$	4,847	$	8,712

	Investment in				Client Loan and
	Sales-Type and		Commercial		Installment Payment
($ in millions)	Direct Financing		Financing		Receivables/
At December 31, 2018:	Leases		Receivables		(Loans)		Total
Financing receivables, gross	$	6,846	$	11,889	$	13,614	$	32,348
Unearned income		(526)		(37)		(632)		(1,195)
Recorded investment	$	6,320	$	11,852	$	12,981	$	31,153
Allowance for credit losses		(99)		(13)		(179)		(292)
Unguaranteed residual value		589		—		—		589
Guaranteed residual value		85		—		—		85
Total financing receivables, net	$	6,895	$	11,838	$	12,802	$	31,536
Current portion	$	2,834	$	11,838	$	7,716	$	22,388
Noncurrent portion	$	4,061	$	—	$	5,086	$	9,148

Schedule of financing receivables and allowance for credit losses by portfolio segment

($ in millions)($ in millions)

Schedule of past due financing receivables

					Recorded		Billed		Recorded
	Total		Recorded		Investment		Invoices		Investment
($ in millions)	Recorded		Investment		>90 Days and		>90 Days and		Not
At December 31, 2019:	Investment		>90 Days (1)		Accruing (1)		Accruing		Accruing (2)
Americas	$	3,419	$	187	$	147	$	11	$	41
EMEA		1,186		28		13		2		17
Asia Pacific		963		19		7		1		11
Total lease receivables	$	5,567	$	234	$	168	$	14	$	69
Americas	$	6,726	$	127	$	71	$	11	$	72
EMEA		3,901		77		8		3		72
Asia Pacific		2,395		26		6		2		21
Total loan receivables	$	13,022	$	231	$	85	$	15	$	166
Total	$	18,590	$	465	$	253	$	29	$	235

					Recorded		Billed		Recorded
	Total		Recorded		Investment		Invoices		Investment
($ in millions)	Recorded		Investment		>90 Days and		>90 Days and		Not
At December 31, 2018:	Investment		>90 Days (1)		Accruing (1)		Accruing		Accruing (3)
Americas	$	3,827	$	310	$	256	$	19	$	57
EMEA		1,341		25		9		1		16
Asia Pacific		1,152		49		27		3		24
Total lease receivables	$	6,320	$	385	$	292	$	24	$	97
Americas	$	6,817	$	259	$	166	$	24	$	99
EMEA		3,675		98		25		3		73
Asia Pacific		2,489		40		11		1		31
Total loan receivables	$	12,981	$	397	$	202	$	29	$	203
Total	$	19,301	$	782	$	494	$	52	$	300

(1) At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.

(2) Of the recorded investment not accruing, $191 million is individually evaluated for impairment with a related allowance of $171 million.

(3) Of the recorded investment not accruing, $249 million is individually evaluated for impairment with a related allowance of $219 million.

Schedule of net recorded investment by credit quality indicator

($ in millions)	Lease Receivables						Loan Receivables
At December 31, 2019:	Americas		EMEA		Asia Pacific		Americas		EMEA		Asia Pacific
Credit rating
Aaa—Aa3	$	465	$	54	$	43	$	1,028	$	193	$	189
A1—A3		750		181		454		1,186		395		892
Baa1—Baa3		955		409		147		1,882		1,527		619
Ba1—Ba2		746		326		154		1,513		921		388
Ba3—B1		215		140		101		471		564		205
B2—B3		242		50		47		522		253		72
Caa—D		13		2		2		36		18		10
Total	$	3,385	$	1,162	$	947	$	6,638	$	3,871	$	2,376

($ in millions)	Lease Receivables						Loan Receivables
At December 31, 2018:	Americas		EMEA		Asia Pacific		Americas		EMEA		Asia Pacific
Credit rating
Aaa—Aa3	$	593	$	45	$	85	$	1,055	$	125	$	185
A1—A3		678		158		413		1,206		436		901
Baa1—Baa3		892		417		297		1,587		1,148		648
Ba1—Ba2		852		426		191		1,516		1,175		417
Ba3—B1		433		171		84		770		472		184
B2—B3		299		90		50		531		249		109
Caa—D		26		10		7		47		28		15
Total	$	3,774	$	1,319	$	1,128	$	6,712	$	3,633	$	2,457