Long-term Customer Financing and Sales of Receivables

Long-term Customer Financing

Long-term receivables consist of trade 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:



	March 30, 2013			December 31, 2012
Long-term receivables	$	69		$	101
Less current portion	(39		)	(41		)
Non-current long-term receivables, net	$	30		$	60

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.

Certain purchasers of the Company’s products and services may request that the Company provide long-term financing (defined as financing with a term of greater than one year) in connection with the sale of products and services. These requests may include all or a portion of the purchase price of the products and services. The Company’s obligation to provide long-term financing may be conditioned on the issuance of a letter of credit in favor of the Company by a reputable bank to support the purchaser’s credit or a pre-existing commitment from a reputable bank to purchase the long-term receivables from the Company. The Company had outstanding commitments to provide long-term financing to third parties totaling $73 million at March 30, 2013, compared to $84 million at December 31, 2012.

As of March 30, 2013, $30 million of net receivables are classified as long-term. The remainder of the receivables are current and included in Accounts receivable, net.

Sales of Receivables

The Company had no committed facilities for the sale of accounts receivable or long-term receivables at March 30, 2013 or at December 31, 2012.

The following table summarizes the proceeds received from non-recourse sales of accounts receivable and long-term receivables for the three months ended March 30, 2013 and March 31, 2012:



	Three Months Ended
	March 30, 2013		March 31, 2012
Cumulative quarterly proceeds received from one-time sales:
Accounts receivable sales proceeds	$	1	$	5
Long-term receivable sales proceeds	28		67
Total proceeds from one-time sales of accounts receivable	$	29	$	72

At March 30, 2013, the Company had retained servicing obligations for $379 million of long-term receivables, compared to $375 million of long-term receivables at December 31, 2012. Servicing obligations are limited to collection activities related to the non-recourse sales of accounts receivables and long-term receivables.

Credit Quality of Customer Financing Receivables and Allowance for Credit Losses

An aging analysis of financing receivables at March 30, 2013 and December 31, 2012 is as follows:



March 30, 2013	Total Long-term Receivable		Current Billed Due		Past Due Under 90 Days		Past Due Over 90 Days
Municipal leases secured tax exempt	$	8	$	—	$	—	$	—
Commercial loans and leases secured	61		4		—		7
Total gross long-term receivables, including current portion	$	69	$	4	$	—	$	7



December 31, 2012	Total Long-term Receivable		Current Billed Due		Past Due Under 90 Days		Past Due Over 90 Days
Municipal leases secured tax exempt	$	23	$	—	$	—	$	—
Commercial loans and leases secured	78		1		2		4
Total gross long-term receivables, including current portion	$	101	$	1	$	2	$	4

The Company had a total of $7 million of financing receivables past due over 90 days as of March 30, 2013 in relation to two loans, one of which had a balance of $13 million. The Company ceased accruing interest on this loan as of December 31, 2011.