XML 134 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Allowance for Doubtful Accounts
 12 Months Ended
Oct. 31, 2019
Allowance for Doubtful Accounts [Abstract]  
Allowance for Doubtful Accounts Allowance for Doubtful Accounts
Our two finance receivables portfolio segments, retail and wholesale, each consist of one class of receivable based on: (i) initial measurement attributes of the receivables, and (ii) the assessment and monitoring of risk and performance of the receivables. For more information, see Note 4, Finance Receivables.
The following tables present the activity related to our allowance for doubtful accounts for our retail portfolio segment, wholesale portfolio segment, and trade and other receivables:
 
For the Year Ended October 31, 2019
(in millions)
Retail
Portfolio
 
Wholesale
Portfolio
 
Trade and
Other
Receivables
 
Total
Allowance for doubtful accounts, at beginning of period
$
19

 
$
3

 
$
28

 
$
50

Provision for doubtful accounts
5

 
—

 
(1
)
 
4

Charge-off of accounts
(6
)
 
—

 
(6
)
 
(12
)
Recoveries
2

 
—

 
—

 
2

Other(A)
—

 
—

 
—

 
—

Allowance for doubtful accounts, at end of period
$
20

 
$
3

 
$
21

 
$
44

 
For the Year Ended October 31, 2018
(in millions)
Retail
Portfolio
 
Wholesale
Portfolio
 
Trade and
Other
Receivables
 
Total
Allowance for doubtful accounts, at beginning of period
$
17

 
$
3

 
$
28

 
$
48

Provision for doubtful accounts
7

 
—

 
3

 
10

Charge-off of accounts
(7
)
 
—

 
(1
)
 
(8
)
Recoveries
3

 
—

 
—

 
3

Other(A)
(1
)
 
—

 
(2
)
 
(3
)
Allowance for doubtful accounts, at end of period
$
19

 
$
3

 
$
28

 
$
50

 
For the Year Ended October 31, 2017
(in millions)
Retail Portfolio
 
Wholesale Portfolio
 
Trade and Other Receivables
 
Total
Allowance for doubtful accounts, at beginning of period
$
19

 
$
2

 
$
28

 
$
49

Provision for doubtful accounts
4

 
1

 
2

 
7

Charge-off of accounts
(7
)
 
—

 
(1
)
 
(8
)
Recoveries
1

 
—

 
—

 
1

Other(A)
—

 
—

 
(1
)
 
(1
)
Allowance for doubtful accounts, at end of period
$
17

 
$
3

 
$
28

 
$
48

____________________
(A)
Amounts include impact from currency translation.
The accrual of interest income is discontinued on certain impaired finance receivables. Impaired finance receivables include accounts with specific loss reserves and certain accounts that are on non-accrual status. In certain cases, we continue to collect payments on our impaired finance receivables.
The following table presents information regarding impaired finance receivables:
 
October 31, 2019
 
October 31, 2018
(in millions)
Retail
Portfolio
 
Wholesale
Portfolio
 
Total
 
Retail
Portfolio
 
Wholesale
Portfolio
 
Total
Impaired finance receivables with specific loss reserves
$
23

 
$
—

 
$
23

 
$
20

 
$
—

 
$
20

Impaired finance receivables without specific loss reserves
1

 
—

 
1

 
—

 
—

 
—

Specific loss reserves on impaired finance receivables
11

 
—

 
11

 
9

 
—

 
9

Finance receivables on non-accrual status
24

 
—

 
24

 
20

 
—

 
20


The average balances of the impaired finance receivables in the retail portfolio were $21 million and $19 million for the years ended October 31, 2019 and 2018, respectively. See Note 13, Fair Value Measurements, for information on the valuation of impaired finance receivables.
We use the aging of our receivables as well as other inputs when assessing credit quality. The following table presents the aging analysis for finance receivables:
 
October 31, 2019
 
October 31, 2018
(in millions)
Retail
Portfolio
 
Wholesale
Portfolio
 
Total
 
Retail
Portfolio
 
Wholesale
Portfolio
 
Total
Current, and less than 30 days past due
$
753

 
$
1,365

 
$
2,118

 
$
655

 
$
1,459

 
$
2,114

30-90 days past due
76

 
1

 
77

 
51

 
1

 
52

Over 90 days past due
25

 
—

 
25

 
14

 
—

 
14

Total finance receivables
$
854

 
$
1,366

 
$
2,220

 
$
720

 
$
1,460

 
$
2,180