Long-term Financing and Sales of Receivables

Long-term Financing

Long-term receivables consist of receivables with payment terms greater than twelve months, long-term loans and lease receivables under sales-type leases. Long-term receivables consist of the following:



	April 2, 2016			December 31, 2015
Long-term receivables	$	42		$	60
Less current portion	(13		)	(13		)
Gross non-current long-term receivables	$	29		$	47

The current portion of long-term receivables is included in Accounts receivable, net and the non-current portion of long-term receivables is included in Other assets in the Company’s condensed consolidated balance sheets. The Company had outstanding commitments to provide long-term financing to third parties totaling $91 million at April 2, 2016, compared to $112 million at December 31, 2015.

Sales of Receivables

The following table summarizes the proceeds received from sales of accounts receivable and long-term receivables for the three months ended April 2, 2016 and April 4, 2015:



	Three Months Ended
	April 2, 2016		April 4, 2015
Accounts receivable sales proceeds	$	2	$	6
Long-term receivables sales proceeds	42		65
Total proceeds from receivable sales	$	44	$	71

At both April 2, 2016 and December 31, 2015, the Company had retained servicing obligations for $668 million of long-term receivables. Servicing obligations are limited to collection activities related to the sales of accounts receivables and long-term receivables.

Credit Quality of Financing Receivables and Allowance for Credit Losses

An aging analysis of financing receivables at April 2, 2016 and December 31, 2015 is as follows:



April 2, 2016	Total Long-term Receivable		Current Billed Due		Past Due Under 90 Days		Past Due Over 90 Days
Municipal leases secured tax exempt	$	4	$	—	$	—	$	—
Commercial loans and leases secured	38		4		—		1
Total gross long-term receivables, including current portion	$	42	$	4	$	—	$	1



December 31, 2015	Total Long-term Receivable		Current Billed Due		Past Due Under 90 Days		Past Due Over 90 Days
Municipal leases secured tax exempt	$	35	$	—	$	—	$	—
Commercial loans and leases secured	25		1		1		1
Total gross long-term receivables, including current portion	$	60	$	1	$	1	$	1