XML 70 R44.htm IDEA: XBRL DOCUMENT v3.22.0.1
Financing Receivables (Tables)
12 Months Ended
Dec. 31, 2021
Financing Receivables  
Summary of the components of financing receivables

($ in millions)

    

    

    

    

    

    

Client Financing Receivables

Commercial Financing Receivables

Client Loan and

Investment in

Installment Payment

Sales-Type and

Receivables/

Direct Financing

Held for

Held for

At December 31, 2021:

(Loans)

Leases

Investment

Sale

*

Total

Financing receivables, gross

$

9,303

$

3,336

$

450

$

793

$

13,881

Unearned income

 

(353)

 

(223)

 

 

 

(576)

Residual value**

 

 

335

 

 

 

335

Amortized cost

$

8,949

$

3,448

$

450

$

793

$

13,640

Allowance for credit losses

 

(131)

 

(64)

 

(6)

 

 

(201)

Total financing receivables, net

$

8,818

$

3,384

$

444

$

793

$

13,439

Current portion

$

5,371

$

1,406

$

444

$

793

$

8,014

Noncurrent portion

$

3,447

$

1,978

$

$

$

5,425

($ in millions)

    

    

    

    

    

    

Client Financing Receivables

Commercial Financing ReceivablesÈ

Client Loan and

Investment in

Installment Payment

Sales-Type and

Receivables/

Direct Financing

Held for

Held for

At December 31, 2020:

(Loans)

Leases

Investment

Sale

*

Total

Financing receivables, gross

$

12,159

$

4,001

$

2,036

$

383

$

18,580

Unearned income

(488)

(335)

0

(823)

Residual value**

 

 

485

 

 

 

485

Amortized cost

$

11,671

$

4,151

$

2,036

$

383

$

18,242

Allowance for credit losses

 

(173)

 

(82)

 

(8)

 

 

(263)

Total financing receivables, net

$

11,498

$

4,069

$

2,028

$

383

$

17,979

Current portion

$

6,955

$

1,525

$

2,028

$

383

$

10,892

Noncurrent portion

$

4,542

$

2,544

$

$

$

7,086

*

The carrying value of the receivables classified as held for sale approximates fair value.

**

Includes guaranteed and unguaranteed residual value.

È

Recast to conform to 2021 presentation.

Schedule of transfer of client and commercial financing assets

($ in millions)

    

    

    

2021

2020

Client financing receivables for the year ended December 31

Lease receivables

$

819

$

1,152

Loan receivables

 

2,224

 

1,410

Total client financing receivables transferred*

$

3,043

$

2,562

Commercial financing receivables

Receivables transferred for the year ended December 31

$

7,359

$

515

Receivables transferred and uncollected as of December 31**

1,653

510

*   More than half of the client financing receivables sold were classified as current assets at the time of sale.

**

Of the total amount of commercial financing receivables sold and derecognized from the Consolidated Balance Sheet, the amounts presented remained uncollected from business partners as of December 31, 2021 and 2020.

Schedule of financing receivables and allowance for credit losses by class

($ in millions)

At December 31, 2021:

Americas

EMEA

Asia Pacific

Total

Amortized cost

$

6,573

$

3,793

$

2,031

$

12,397

Allowance for credit losses

Beginning balance at January 1, 2021

$

141

$

77

$

37

$

255

Write-offs

(8)

(2)

(7)

(17)

Recoveries

 

0

 

0

 

1

 

1

Additions/(releases)

 

(19)

 

(11)

 

(7)

 

(38)

Other*

 

(3)

 

(3)

 

0

 

(7)

Ending balance at December 31, 2021

$

111

$

61

$

23

$

195

* Primarily represents translation adjustments.

($ in millions)

At December 31, 2020:

Americas

EMEA

Asia Pacific

Total

Amortized cost

$

7,758

$

5,023

$

3,042

$

15,822

Allowance for credit losses

 

 

 

 

Beginning balance at January 1, 2020

 

142

 

69

 

41

 

252

Write-offs

(28)

(3)

(3)

(34)

Recoveries

 

0

 

0

 

2

 

3

Additions/(releases)

 

33

 

5

 

(4)

 

34

Other*

 

(6)

 

6

 

1

 

1

Ending balance at December 31, 2020

$

141

$

77

$

37

$

255

* Primarily represents translation adjustments.

Schedule of past due financing receivables

($ in millions)

    

    

    

    

    

    

    

 

Amortized

Billed

Amortized

Total

Amortized

Cost

Invoices

Cost

 

Amortized

Cost

> 90 Days and

> 90 Days and

Not

 

At December 31, 2021:

Cost

> 90 Days

(1)

Accruing

(1)

Accruing

Accruing

(2)

Americas

$

6,573

$

188

$

100

$

6

$

90

EMEA

 

3,793

 

99

 

7

 

2

 

95

Asia Pacific

 

2,031

 

25

 

5

 

2

 

20

Total client financing receivables

$

12,397

$

312

$

112

$

10

$

205

($ in millions)

    

    

    

    

    

    

    

 

Amortized

Billed

Amortized

Total

Amortized

Cost

Invoices

Cost

 

Amortized

Cost

> 90 Days and

> 90 Days and

Not

 

At December 31, 2020:

Cost

> 90 Days

(1)

Accruing

(1)

Accruing

Accruing

(2)

Americas

$

7,758

$

295

$

200

$

12

$

96

EMEA

 

5,023

 

119

 

28

 

5

 

95

Asia Pacific

 

3,042

 

42

 

12

 

4

 

32

Total client financing receivables

$

15,822

$

456

$

241

$

20

$

223

(1)At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days.
(2)Of the amortized cost not accruing, there was a related allowance of $153 million and $178 million at December 31, 2021 and 2020, respectively. Financing income recognized on these receivables was immaterial for the years ended December 31, 2021 and 2020, respectively.
Schedule of amortized cost by credit quality indicator

($ in millions)

Americas

EMEA

Asia Pacific

At December 31, 2021:

    

Aaa - Baa3

    

Ba1 - D

    

Aaa - Baa3

    

Ba1 - D

    

Aaa - Baa3

    

Ba1 - D

Vintage year

 

  

 

  

 

  

 

  

 

  

 

  

2021

$

2,556

$

1,147

$

1,181

$

778

$

565

$

226

2020

1,013

392

506

342

381

86

2019

544

236

287

291

297

51

2018

338

117

189

85

211

64

2017

108

50

15

52

74

17

2016 and prior

20

53

21

46

38

20

Total

$

4,579

$

1,994

$

2,198

$

1,595

$

1,567

$

464

($ in millions)

Americas

EMEA

Asia Pacific

At December 31, 2020:

    

Aaa - Baa3

    

Ba1 - D

    

Aaa - Baa3

    

Ba1 - D

    

Aaa - Baa3

    

Ba1 - D

Vintage year

 

  

 

  

 

  

 

  

 

  

 

  

2020

$

2,818

$

1,449

$

1,513

$

1,427

$

958

$

351

2019

988

623

668

519

564

123

2018

829

360

329

245

419

167

2017

285

154

70

128

205

52

2016

90

52

33

46

114

33

2015 and prior

28

81

22

22

38

18

Total

$

5,038

$

2,720

$

2,635

$

2,387

$

2,298

$

743