Accounts Receivable and Finance Receivables (Tables)

6 Months Ended

Jul. 04, 2026

Accounts receivable is composed of the following:


(In millions)	July 4, 2026		January 3, 2026
Commercial	$	762	$	690
U.S. Government contracts	166		149
	928		839
Allowance for credit losses	(12)		(16)
Total accounts receivable, net	$	916	$	823

Finance receivables are presented in the following table:


(In millions)	July 4, 2026		January 3, 2026
Finance receivables	$	542	$	593
Allowance for credit losses	(18)		(19)
Total finance receivables, net	$	524	$	574

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


(Dollars in millions)	July 4, 2026		January 3, 2026
Performing	$	512	$	578
Watchlist	25		13
Nonaccrual	5		2
Nonaccrual as a percentage of finance receivables	0.92%		0.34%
Current and less than 31 days past due	$	520	$	584
31-60 days past due	15		9
61-90 days past due	7		—
Over 90 days past due	—		—
60+ days contractual delinquency as a percentage of finance receivables	1.29%		—%

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


(Dollars in millions)	July 4, 2026		January 3, 2026
Performing	$	512	$	578
Watchlist	25		13
Nonaccrual	5		2
Nonaccrual as a percentage of finance receivables	0.92%		0.34%
Current and less than 31 days past due	$	520	$	584
31-60 days past due	15		9
61-90 days past due	7		—
Over 90 days past due	—		—
60+ days contractual delinquency as a percentage of finance receivables	1.29%		—%