Financing Receivables (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Financing Receivables |
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| Summary of the components of financing receivables |
| | | | | | | | | | | | | | | Investment in | | | | | Client Loan and | | | | | | Sales-Type and | | Commercial | | Installment Payment | | | | ($ in millions) | | Direct Financing | | Financing | | Receivables/ | | | | At December 31, 2019: | | Leases | | Receivables | | (Loans) | | Total | Financing receivables, gross | | $ | 6,077 | | $ | 3,836 | | $ | 13,592 | | $ | 23,504 | Unearned income | | | (509) | | | (4) | | | (570) | | | (1,083) | Recorded investment | | $ | 5,567 | | $ | 3,831 | | $ | 13,022 | | $ | 22,421 | Allowance for credit losses | | | (72) | | | (11) | | | (138) | | | (221) | Unguaranteed residual value | | | 652 | | | — | | | — | | | 652 | Guaranteed residual value | | | 53 | | | — | | | — | | | 53 | Total financing receivables, net | | $ | 6,199 | | $ | 3,820 | | $ | 12,884 | | $ | 22,904 | Current portion | | $ | 2,334 | | $ | 3,820 | | $ | 8,037 | | $ | 14,192 | Noncurrent portion | | $ | 3,865 | | $ | — | | $ | 4,847 | | $ | 8,712 |
| | | | | | | | | | | | | | | Investment in | | | | | Client Loan and | | | | | | Sales-Type and | | Commercial | | Installment Payment | | | | ($ in millions) | | Direct Financing | | Financing | | Receivables/ | | | | At December 31, 2018: | | Leases | | Receivables | | (Loans) | | Total | Financing receivables, gross | | $ | 6,846 | | $ | 11,889 | | $ | 13,614 | | $ | 32,348 | Unearned income | | | (526) | | | (37) | | | (632) | | | (1,195) | Recorded investment | | $ | 6,320 | | $ | 11,852 | | $ | 12,981 | | $ | 31,153 | Allowance for credit losses | | | (99) | | | (13) | | | (179) | | | (292) | Unguaranteed residual value | | | 589 | | | — | | | — | | | 589 | Guaranteed residual value | | | 85 | | | — | | | — | | | 85 | Total financing receivables, net | | $ | 6,895 | | $ | 11,838 | | $ | 12,802 | | $ | 31,536 | Current portion | | $ | 2,834 | | $ | 11,838 | | $ | 7,716 | | $ | 22,388 | Noncurrent portion | | $ | 4,061 | | $ | — | | $ | 5,086 | | $ | 9,148 |
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| Schedule of financing receivables and allowance for credit losses by portfolio segment |
($ in millions)($ in millions)
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| Schedule of past due financing receivables |
| | | | | | | | | | | | | | | | | | | | | | | | Recorded | | Billed | | Recorded | | | Total | | Recorded | | Investment | | Invoices | | Investment | ($ in millions) | | Recorded | | Investment | | >90 Days and | | >90 Days and | | Not | At December 31, 2019: | | Investment | | >90 Days (1) | | Accruing (1) | | Accruing | | Accruing (2) | Americas | | $ | 3,419 | | $ | 187 | | $ | 147 | | $ | 11 | | $ | 41 | EMEA | | | 1,186 | | | 28 | | | 13 | | | 2 | | | 17 | Asia Pacific | | | 963 | | | 19 | | | 7 | | | 1 | | | 11 | Total lease receivables | | $ | 5,567 | | $ | 234 | | $ | 168 | | $ | 14 | | $ | 69 | | | | | | | | | | | | | | | | | Americas | | $ | 6,726 | | $ | 127 | | $ | 71 | | $ | 11 | | $ | 72 | EMEA | | | 3,901 | | | 77 | | | 8 | | | 3 | | | 72 | Asia Pacific | | | 2,395 | | | 26 | | | 6 | | | 2 | | | 21 | Total loan receivables | | $ | 13,022 | | $ | 231 | | $ | 85 | | $ | 15 | | $ | 166 | | | | | | | | | | | | | | | | | Total | | $ | 18,590 | | $ | 465 | | $ | 253 | | $ | 29 | | $ | 235 |
| | | | | | | | | | | | | | | | | | | | | | | | Recorded | | Billed | | Recorded | | | Total | | Recorded | | Investment | | Invoices | | Investment | ($ in millions) | | Recorded | | Investment | | >90 Days and | | >90 Days and | | Not | At December 31, 2018: | | Investment | | >90 Days (1) | | Accruing (1) | | Accruing | | Accruing (3) | Americas | | $ | 3,827 | | $ | 310 | | $ | 256 | | $ | 19 | | $ | 57 | EMEA | | | 1,341 | | | 25 | | | 9 | | | 1 | | | 16 | Asia Pacific | | | 1,152 | | | 49 | | | 27 | | | 3 | | | 24 | Total lease receivables | | $ | 6,320 | | $ | 385 | | $ | 292 | | $ | 24 | | $ | 97 | | | | | | | | | | | | | | | | | Americas | | $ | 6,817 | | $ | 259 | | $ | 166 | | $ | 24 | | $ | 99 | EMEA | | | 3,675 | | | 98 | | | 25 | | | 3 | | | 73 | Asia Pacific | | | 2,489 | | | 40 | | | 11 | | | 1 | | | 31 | Total loan receivables | | $ | 12,981 | | $ | 397 | | $ | 202 | | $ | 29 | | $ | 203 | | | | | | | | | | | | | | | | | Total | | $ | 19,301 | | $ | 782 | | $ | 494 | | $ | 52 | | $ | 300 |
| (1) | At a contract level, which includes total billed and unbilled amounts for financing receivables aged greater than 90 days. |
| (2) | Of the recorded investment not accruing, $191 million is individually evaluated for impairment with a related allowance of $171 million. |
| (3) | Of the recorded investment not accruing, $249 million is individually evaluated for impairment with a related allowance of $219 million. |
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| Schedule of net recorded investment by credit quality indicator |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | ($ in millions) | | Lease Receivables | | Loan Receivables | At December 31, 2019: | | Americas | | EMEA | | Asia Pacific | | Americas | | EMEA | | Asia Pacific | Credit rating | | | | | | | | | | | | | | | | | | | Aaa—Aa3 | | $ | 465 | | $ | 54 | | $ | 43 | | $ | 1,028 | | $ | 193 | | $ | 189 | A1—A3 | | | 750 | | | 181 | | | 454 | | | 1,186 | | | 395 | | | 892 | Baa1—Baa3 | | | 955 | | | 409 | | | 147 | | | 1,882 | | | 1,527 | | | 619 | Ba1—Ba2 | | | 746 | | | 326 | | | 154 | | | 1,513 | | | 921 | | | 388 | Ba3—B1 | | | 215 | | | 140 | | | 101 | | | 471 | | | 564 | | | 205 | B2—B3 | | | 242 | | | 50 | | | 47 | | | 522 | | | 253 | | | 72 | Caa—D | | | 13 | | | 2 | | | 2 | | | 36 | | | 18 | | | 10 | Total | | $ | 3,385 | | $ | 1,162 | | $ | 947 | | $ | 6,638 | | $ | 3,871 | | $ | 2,376 |
| | | | | | | | | | | | | | | | | | | ($ in millions) | | Lease Receivables | | Loan Receivables | At December 31, 2018: | | Americas | | EMEA | | Asia Pacific | | Americas | | EMEA | | Asia Pacific | Credit rating | | | | | | | | | | | | | | | | | | | Aaa—Aa3 | | $ | 593 | | $ | 45 | | $ | 85 | | $ | 1,055 | | $ | 125 | | $ | 185 | A1—A3 | | | 678 | | | 158 | | | 413 | | | 1,206 | | | 436 | | | 901 | Baa1—Baa3 | | | 892 | | | 417 | | | 297 | | | 1,587 | | | 1,148 | | | 648 | Ba1—Ba2 | | | 852 | | | 426 | | | 191 | | | 1,516 | | | 1,175 | | | 417 | Ba3—B1 | | | 433 | | | 171 | | | 84 | | | 770 | | | 472 | | | 184 | B2—B3 | | | 299 | | | 90 | | | 50 | | | 531 | | | 249 | | | 109 | Caa—D | | | 26 | | | 10 | | | 7 | | | 47 | | | 28 | | | 15 | Total | | $ | 3,774 | | $ | 1,319 | | $ | 1,128 | | $ | 6,712 | | $ | 3,633 | | $ | 2,457 |
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