Finance Receivables

Finance receivables are receivables of our Financial Services operations. Finance receivables generally consist of wholesale notes and accounts, as well as retail notes, finance leases and accounts. Total finance receivables reported on the Consolidated Balance Sheets are net of an allowance for doubtful accounts. Total assets of our Financial Services operations net of intercompany balances are $2.2 billion and $2.1 billion as of October 31, 2017 and 2016, respectively. Included in total assets of our Financial Services operations are finance receivables of $1.8 billion and $1.7 billion as of October 31, 2017 and 2016, respectively. We have two portfolio segments of finance receivables that we distinguish based on the type of customer and nature of the financing inherent to each portfolio. The retail portfolio segment represents loans or leases to end-users for the purchase or lease of vehicles. The wholesale portfolio segment represents loans to dealers to finance their inventory.

Our Finance receivables, net in our Consolidated Balance Sheets consist of the following:



	As of October 31,
(in millions)	2017		2016
Retail portfolio	$	559	$	499
Wholesale portfolio	1,246		1,199
Total finance receivables	1,805		1,698
Less: Allowance for doubtful accounts	20		21
Total finance receivables, net	1,785		1,677
Less: Current portion, net^(A)	1,565		1,457
Noncurrent portion, net	$	220	$	220

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(A)	The current portion of finance receivables is computed based on contractual maturities. Actual cash collections typically vary from the contractual cash flows because of prepayments, extensions, delinquencies, credit losses, and renewals.

As of October 31, 2017, contractual maturities of our finance receivables are as follows:



(in millions)	Retail Portfolio		Wholesale Portfolio		Total
Due in:
2018	$	347	$	1,246	$	1,593
2019	114		—		114
2020	80		—		80
2021	43		—		43
2022	18		—		18
Thereafter	1		—		1
Gross finance receivables	603		1,246		1,849
Less: Unearned finance income	44		—		44
Total finance receivables	$	559	$	1,246	$	1,805

Securitizations

Our Financial Services operations transfer wholesale notes, retail accounts receivable, finance leases, and operating leases to special purpose entities ("SPEs"), which generally are only permitted to purchase these assets, issue asset-backed securities, and make payments on the securities issued. In addition to servicing receivables, our continued involvement in the SPEs may include an economic interest in the transferred receivables and, in some cases, managing exposure to interest rate changes on the securities using interest rate swaps or interest rate caps. There were no transfers of finance receivables that qualified for sale accounting treatment as of October 31, 2017 and 2016, and as a result, the transferred finance receivables are included in our Consolidated Balance Sheets and the related interest earned is included in Finance revenues.

We transfer eligible wholesale finance receivables into the wholesale note owner trusts in order to issue asset-backed securities. These trusts are VIEs of which we are determined to be the primary beneficiary and, therefore, the assets and liabilities of the trusts are included in our Consolidated Balance Sheets. The outstanding balance of finance receivables transferred into these VIEs was $797 million and $829 million as of October 31, 2017 and 2016, respectively.

Other finance receivables related to secured transactions that do not qualify for sale accounting treatment were $163 million and $108 million as of October 31, 2017 and 2016, respectively. For more information on assets and liabilities of consolidated VIEs and other securitizations accounted for as secured borrowings by our Financial Services segment, see Note 1, Summary of Significant Accounting Policies.

Finance Revenues

The following table presents the components of our Finance revenues in our Consolidated Statements of Operations:



	As of October 31,
(in millions)	2017		2016		2015
Retail notes and finance leases revenue	$	41	$	38	$	48
Wholesale notes interest	102		107		97
Operating lease revenue	68		66		63
Retail and wholesale accounts interest	24		24		33
Gross finance revenues	235		235		241
Less: Intercompany revenues	93		100		96
Finance revenues	$	142	$	135	$	145