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Accounting for Leases as a Lessor (Tables)

12 Months Ended

Oct. 31, 2021

Leases [Abstract]

Components of Financing Receivables

The components of financing receivables were as follows:

			As of October 31,
			2021						2020
			In millions
Minimum lease payments receivable			$	9,526					$	9,448
Unguaranteed residual value			390						364
Unearned income			(718)						(754)
Financing receivables, gross			9,198						9,058
Allowance for credit losses			(228)						(154)
Financing receivables, net			8,970						8,904
Less: current portion			(3,932)						(3,794)
Amounts due after one year, net			$	5,038					$	5,110

Scheduled Maturities of Minimum Lease Payments Receivable

As of October 31, 2021, scheduled maturities of the Company's minimum lease payments receivable were as follows:

			As of October 31,
			2021
Fiscal year			In millions
2022			$	4,338
2023			2,557
2024			1,567
2025			747
2026			233
Thereafter			84
Total undiscounted cash flows			$	9,526
Present value of lease payments (recognized as finance receivables)			$	8,808
Difference between undiscounted cash flows and discounted cash flows			$	718

Credit Risk Profile of Gross Financing Receivables

The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2021, presented on an amortized cost basis by year of origination was as follows:

			As of October 31, 2021
			Risk Rating
			Low						Moderate						High
Fiscal Year			In millions
2021			$	1,978					$	1,542					$	49
2020			1,441						1,061						87
2019			829						771						85
2018			364						407						78
2017 and prior			169						234						103
Total			$	4,781					$	4,015					$	402

The credit risk profile of gross financing receivables, based on internal risk ratings as of October 31, 2020, was as follows:

			As of October 31,
			2020
			In millions
Risk Rating:
Low			$	4,590
Moderate			4,091
High			377
Total			$	9,058

Schedule of Allowance for Doubtful Accounts for Financing Receivables

The allowance for credit losses for financing receivables and changes therein were as follows:

			As of October 31,
			2021						2020						2019
			In millions
Balance at beginning of period			$	154					$	131					$	120
Adjustment for adoption of the new credit loss standard			28						—						—
Provision for credit losses			61						43						33
Adjustment to the existing allowance			19						—						—
Write-offs			(34)						(20)						(22)
Balance at end of period			$	228					$	154					$	131

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,
			2021						2020
			In millions
Billed:(1)
Current 1-30 days			$	410					$	340
Past due 31-60 days			35						43
Past due 61-90 days			17						22
Past due >90 days			111						140
Unbilled sales-type and direct-financing lease receivables			8,625						8,513
Total gross financing receivables			$	9,198					$	9,058
Gross financing receivables on non-accrual status(2)			$	257					$	364
Gross financing receivables 90 days past due and still accruing interest(2)			$	78					$	74

(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.

Operating Lease Assets Included in Machinery and Equipment

Operating lease assets included in Property, plant and equipment in the Consolidated Balance Sheets were as follows:

			As of October 31,
			2021						2020
			In millions
Equipment leased to customers			$	7,039					$	7,184
Accumulated depreciation			(3,038)						(3,157)
Total			$	4,001					$	4,027

Lessor Operating Lease Payments Maturity

As of October 31, 2021, minimum future rentals on non-cancelable operating leases related to leased equipment were as follows:

			As of October 31,
			2021
Fiscal year			In millions
2022			$	1,744
2023			1,090
2024			457
2025			89
2026			26
Total			$	3,406

Lessor Lease Activity

The following table presents amounts included in the Consolidated Statement of Earnings related to lessor activity:

			For the fiscal years ended October 31,
			2021						2020						2019
			In millions
Sales-type leases and direct financing leases:
Interest income			$	494					$	469					$	458
Lease income - operating leases			2,383						2,431						2,596
Total lease income			$	2,877					$	2,900					$	3,054

Schedule of Variable Interest Entities

The assets in the table below includes those that can be used to settle the obligations of the VIE. Additionally, general Creditors do not have recourse to the assets of the VIE.

			As of October 31,
			2021						2020
Assets held by VIE			In millions
Other current assets			$	165					$	120
Financing receivables
Short-term			$	749					$	531
Long-term			$	707					$	584
Property, plant and equipment			$	854					$	665
Liabilities held by VIE
Notes payable and short-term borrowings, net of unamortized debt issuance costs			$	1,204					$	886
Long-term debt, net of unamortized debt issuance costs			$	950					$	834

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