Accounts Receivable and Finance Receivables (Tables)

3 Months Ended

Apr. 04, 2026

Accounts receivable is composed of the following:


(In millions)	April 4, 2026		January 3, 2026
Commercial	$	758	$	690
U.S. Government contracts	139		149
	897		839
Allowance for credit losses	(12)		(16)
Total accounts receivable, net	$	885	$	823

Finance receivables are presented in the following table:


(In millions)	April 4, 2026		January 3, 2026
Finance receivables	$	599	$	593
Allowance for credit losses	(19)		(19)
Total finance receivables, net	$	580	$	574

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:


(Dollars in millions)	April 4, 2026		January 3, 2026
Performing	$	587	$	578
Watchlist	12		13
Nonaccrual	—		2
Nonaccrual as a percentage of finance receivables	—%		0.34%
Current and less than 31 days past due	$	577	$	584
31-60 days past due	22		9
61-90 days past due	—		—
Over 90 days past due	—		—
60+ days contractual delinquency as a percentage of finance receivables	—%		—%

Finance receivables categorized based on the credit quality indicators and by the delinquency aging category are summarized as follows:


(Dollars in millions)	April 4, 2026		January 3, 2026
Performing	$	587	$	578
Watchlist	12		13
Nonaccrual	—		2
Nonaccrual as a percentage of finance receivables	—%		0.34%
Current and less than 31 days past due	$	577	$	584
31-60 days past due	22		9
61-90 days past due	—		—
Over 90 days past due	—		—
60+ days contractual delinquency as a percentage of finance receivables	—%		—%