Financing Receivables and Operating Leases (Tables)
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6 Months Ended |
Apr. 30, 2018 |
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| Leases [Abstract] |
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| Components of Financing Receivables |
The components of financing receivables were as follows: | | | | | | | | | | As of | | April 30, 2018 | | October 31, 2017 | | In millions | Minimum lease payments receivable | $ | 8,571 |
| | $ | 8,226 |
| Unguaranteed residual value | 289 |
| | 272 |
| Unearned income | (697 | ) | | (654 | ) | Financing receivables, gross | 8,163 |
| | 7,844 |
| Allowance for doubtful accounts | (97 | ) | | (86 | ) | Financing receivables, net | 8,066 |
| | 7,758 |
| Less: current portion(1) | (3,503 | ) | | (3,378 | ) | Amounts due after one year, net(1) | $ | 4,563 |
| | $ | 4,380 |
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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 Condensed Consolidated Balance Sheets. |
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| Credit Risk Profile of Gross Financing Receivables |
The credit risk profile of gross financing receivables, based upon internal risk ratings, was as follows: | | | | | | | | | | As of | | April 30, 2018 | | October 31, 2017 | | In millions | Risk Rating: | |
| | |
| Low | $ | 4,296 |
| | $ | 4,156 |
| Moderate | 3,678 |
| | 3,556 |
| High | 189 |
| | 132 |
| Total | $ | 8,163 |
| | $ | 7,844 |
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| Allowance for Doubtful Accounts for Financing Receivables |
The allowance for doubtful accounts for financing receivables as of April 30, 2018 and October 31, 2017 and the respective changes during the six and twelve months then ended were as follows: | | | | | | | | | | As of | | April 30, 2018 | | October 31, 2017 | | In millions | Balance at beginning of period | $ | 86 |
| | $ | 89 |
| Provision for doubtful accounts | 16 |
| | 23 |
| Write-offs, net of recoveries | (5 | ) | | (26 | ) | Balance at end of period | $ | 97 |
| | $ | 86 |
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| Gross Financing Receivables and Related Allowance Evaluated for Loss |
The gross financing receivables and related allowance evaluated for loss were as follows: | | | | | | | | | | As of | | April 30, 2018 | | October 31, 2017 | | In millions | Gross financing receivables collectively evaluated for loss | $ | 7,776 |
| | $ | 7,523 |
| Gross financing receivables individually evaluated for loss | 387 |
| | 321 |
| Total | $ | 8,163 |
| | $ | 7,844 |
| Allowance for financing receivables collectively evaluated for loss | $ | 71 |
| | $ | 67 |
| Allowance for financing receivables individually evaluated for loss | 26 |
| | 19 |
| Total | $ | 97 |
| | $ | 86 |
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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 | | April 30, 2018 | | October 31, 2017 | | In millions | Billed:(1) | |
| | |
| Current 1-30 days | $ | 317 |
| | $ | 257 |
| Past due 31-60 days | 32 |
| | 52 |
| Past due 61-90 days | 28 |
| | 15 |
| Past due > 90 days | 68 |
| | 58 |
| Unbilled sales-type and direct-financing lease receivables | 7,718 |
| | 7,462 |
| Total gross financing receivables | $ | 8,163 |
| | $ | 7,844 |
| Gross financing receivables on non-accrual status(2) | $ | 230 |
| | $ | 188 |
| Gross financing receivables 90 days past due and still accruing interest(2) | $ | 157 |
| | $ | 133 |
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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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| Operating Lease Assets Included in Machinery and Equipment |
Operating lease assets included in Property, plant and equipment in the Condensed Consolidated Balance Sheets were as follows: | | | | | | | | | | As of | | April 30, 2018 | | October 31, 2017 | | In millions | Equipment leased to customers | $ | 7,507 |
| | $ | 7,356 |
| Accumulated depreciation | (3,169 | ) | | (2,943 | ) | Total | $ | 4,338 |
| | $ | 4,413 |
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