Financing Receivables and Operating Leases (Tables)
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12 Months Ended |
Oct. 31, 2016 |
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| Leases [Abstract] |
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| Components of financing receivables |
The components of financing receivables were as follows: | | | | | | | | | | As of October 31, | | 2016 | | 2015 | | In millions | Minimum lease payments receivable | $ | 7,293 |
| | $ | 6,941 |
| Unguaranteed residual value | 231 |
| | 217 |
| Unearned income | (574 | ) | | (503 | ) | Financing receivables, gross | 6,950 |
| | 6,655 |
| Allowance for doubtful accounts | (89 | ) | | (95 | ) | Financing receivables, net | 6,861 |
| | 6,560 |
| Less: current portion(1) | (2,923 | ) | | (2,918 | ) | Amounts due after one year, net(1) | $ | 3,938 |
| | $ | 3,642 |
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_______________________________________________________________________________ | | (1) | The Company includes the current portion in Financing receivables and amounts due after one year, net in Long-term financing receivables and other assets in the accompanying Consolidated Balance Sheets. |
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| Scheduled maturities of minimum lease payments receivable |
As of October 31, 2016, scheduled maturities of the Company's minimum lease payments receivable were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 | | Thereafter | | Total | | In millions | Scheduled maturities of minimum lease payments receivable | $ | 3,187 |
| | $ | 1,952 |
| | $ | 1,263 |
| | $ | 595 |
| | $ | 234 |
| | $ | 62 |
| | $ | 7,293 |
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| Credit risk profile of gross financing receivables |
The credit risk profile of gross financing receivables, based on internal risk ratings, was as follows: | | | | | | | | | | As of October 31, | | 2016 | | 2015 | | In millions | Risk Rating: | |
| | |
| Low | $ | 3,484 |
| | $ | 3,467 |
| Moderate | 3,382 |
| | 3,115 |
| High | 84 |
| | 73 |
| Total | $ | 6,950 |
| | $ | 6,655 |
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| Schedule of allowance for doubtful accounts for financing receivables |
The allowance for doubtful accounts related to financing receivables and changes therein were as follows: | | | | | | | | | | | | | | As of October 31, | | 2016 | | 2015 | | 2014 | | In millions | Balance at beginning of year | $ | 95 |
| | $ | 111 |
| | $ | 131 |
| Provision for doubtful accounts | 11 |
| | 25 |
| | 30 |
| Deductions, net of recoveries | (17 | ) | | (41 | ) | | (50 | ) | Balance at end of year | $ | 89 |
| | $ | 95 |
| | $ | 111 |
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| Gross financing receivables and related allowance collectively and individually evaluated for loss |
The gross financing receivables and related allowance evaluated for loss were as follows: | | | | | | | | | | As of October 31, | | 2016 | | 2015 | | In millions | Gross financing receivables collectively evaluated for loss | $ | 6,667 |
| | $ | 6,399 |
| Gross financing receivables individually evaluated for loss | 283 |
| | 256 |
| Total | $ | 6,950 |
| | $ | 6,655 |
| Allowance for financing receivables collectively evaluated for loss | $ | 73 |
| | $ | 82 |
| Allowance for financing receivables individually evaluated for loss | 16 |
| | 13 |
| Total | $ | 89 |
| | $ | 95 |
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| Summary of the aging and non-accrual status of gross financing receivables |
The following table summarizes the aging and non-accrual status of gross financing receivables: | | | | | | | | | | As of October 31, | | 2016 | | 2015 | | In millions | Billed:(1) | |
| | |
| Current 1-30 days | $ | 337 |
| | $ | 358 |
| Past due 31-60 days | 47 |
| | 52 |
| Past due 61-90 days | 12 |
| | 14 |
| Past due >90 days | 59 |
| | 57 |
| Unbilled sales-type and direct-financing lease receivables | 6,495 |
| | 6,174 |
| Total gross financing receivables | $ | 6,950 |
| | $ | 6,655 |
| Gross financing receivables on non-accrual status(2) | $ | 163 |
| | $ | 154 |
| Gross financing receivables 90 days past due and still accruing interest(2) | $ | 120 |
| | $ | 102 |
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_______________________________________________________________________________ | | (1) | Includes billed operating lease receivables and billed sales-type and direct-financing lease receivables. |
| | (2) | Includes billed operating lease receivables and billed and unbilled sales-type and direct-financing lease receivables. |
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| Schedule of operating lease assets included in machinery and equipment |
Operating lease assets included in machinery and equipment in the Consolidated Balance Sheets were as follows: | | | | | | | | | | As of October 31, | | 2016 | | 2015 | | In millions | Equipment leased to customers | $ | 5,467 |
| | $ | 4,428 |
| Accumulated depreciation | (2,134 | ) | | (1,513 | ) | | $ | 3,333 |
| | $ | 2,915 |
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| Minimum future rentals on non-cancelable operating leases |
As of October 31, 2016, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2017 | | 2018 | | 2019 | | 2020 | | 2021 | | Thereafter | | Total | | In millions | Minimum future rentals on non-cancelable operating leases | $ | 1,505 |
| | $ | 971 |
| | $ | 460 |
| | $ | 98 |
| | $ | 17 |
| | $ | 2 |
| | $ | 3,053 |
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