Xerox 2014 Annual Report Download - page 98

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short-term nature. Our risk of loss following the sales of accounts receivable is limited to the outstanding deferred
purchase price receivable. These receivables are included in the caption “Other current assets” in the
accompanying Consolidated Balance Sheets and were $73 and $121 at December 31, 2014 and 2013, respectively.
Under most of the agreements, we continue to service the sold accounts receivable. When applicable, a servicing
liability is recorded for the estimated fair value of the servicing. The amounts associated with the servicing liability
were not material.
Of the accounts receivables sold and derecognized from our balance sheet, $580 and $723 remained uncollected
as of December 31, 2014 and 2013, respectively. Accounts receivable sales were as follows:
Year Ended December 31,
2014 2013 2012
Accounts receivable sales $2,906 $3,401 $3,699
Deferred proceeds 387 486 639
Loss on sale of accounts receivable 15 17 21
Estimated decrease to operating cash flows(1) (68)(55)(78)
__________
(1) Represents the difference between current and prior year fourth quarter receivable sales adjusted for the effects of: (i) the deferred
proceeds, (ii) collections prior to the end of the year and (iii) currency.
Note 6 – Finance Receivables, Net
Finance receivables include sales-type leases, direct financing leases and installment loans arising from the
marketing of our equipment. These receivables are typically collateralized by a security interest in the underlying
assets. Finance receivables, net were as follows:
December 31,
2014 2013
Gross receivables $5,009 $5,349
Unearned income (624)(666)
Subtotal 4,385 4,683
Residual values —1
Allowance for doubtful accounts (131)(154)
Finance Receivables, Net 4,254 4,530
Less: Billed portion of finance receivables, net 110 113
Less: Current portion of finance receivables not billed, net 1,425 1,500
Finance Receivables Due After One Year, Net $2,719 $2,917
Contractual maturities of our gross finance receivables as of December 31, 2014 were as follows (including those
already billed of $117):
2015 2016 2017 2018 2019 Thereafter Total
$ 1,883 $ 1,382 $ 958 $ 558 $205 $23$
5,009
Transfer and Sale of Finance Receivables
Sale of Finance Receivables
In 2013 and 2012, we transferred our entire interest in certain groups of lease finance receivables to third-party
entities for cash proceeds and beneficial interests. The transfers were accounted for as sales with derecognition of
the associated lease receivables. There were no transfers or sales of finance receivables in 2014. We continue to
service the sold receivables and record servicing fee income over the expected life of the associated receivables.
The following is a summary of our prior sales activity:
83