HP 2015 Annual Report Download - page 143

Table of Contents
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collateralized by a security interest in the underlying assets. Financing receivables also include billed receivables from operating leases. The components of
financing receivables were as follows:
As of October 31, 2015, scheduled maturities of HP's minimum lease payments receivable were as follows:
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Due to the homogenous nature of its leasing transactions, HP manages its financing receivables on an aggregate basis when assessing and monitoring
credit risk. Credit risk is generally diversified due to the large number of entities comprising HP's customer base and their dispersion across many different
industries and geographic regions. HP evaluates the credit quality of an obligor at lease inception and monitors that credit quality over the term of a
transaction. HP assigns risk ratings to each lease based on the creditworthiness of the obligor and other variables that augment or mitigate the inherent credit
risk of a particular transaction. Such variables include the underlying value and liquidity of the collateral, the essential use of the equipment, the term of the
lease, and the inclusion of credit enhancements, such as guarantees, letters of credit or security deposits. HP classifies accounts as high risk when it considers
the financing receivable to be impaired or when management believes there is a significant near-term risk of impairment.
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    
   
Minimum lease payments receivable $ 7,000 $ 6,982
Unguaranteed residual value 217 235
Unearned income (528) (547)
Financing receivables, gross 6,689 6,670
Allowance for doubtful accounts (95) (111)
Financing receivables, net 6,594 6,559
Less: current portion(1) (2,918) (2,946)
Amounts due after one year, net(1) $ 3,676 $ 3,613
(1) HP 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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2016 $ 3,176
2017 1,922
2018 1,144
2019 526
2020 194
Thereafter 38
Total $ 7,000
Source: HP INC, 10-K, December 16, 2015 Powered by Morningstar® Document Research℠
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