Accounts Receivable and Finance Receivables (Tables)

9 Months Ended

Oct. 03, 2026

Accounts receivable is composed of the following:


(In millions)	October 3, 2026		January 3, 2026
Commercial	$	730	$	690
U.S. Government contracts	203		149
	933		839
Allowance for credit losses	(13)		(16)
Total accounts receivable, net	$	920	$	823

Finance receivables are presented in the following table:


(In millions)	October 3, 2026		January 3, 2026
Finance receivables	$	616	$	593
Allowance for credit losses	(20)		(19)
Total finance receivables, net	$	596	$	574

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


(Dollars in millions)	October 3, 2026		January 3, 2026
Performing	$	592	$	578
Watchlist	20		13
Nonaccrual	4		2
Nonaccrual as a percentage of finance receivables	0.65%		0.34%
Current and less than 31 days past due	$	601	$	584
31-60 days past due	13		9
61-90 days past due	2		—
Over 90 days past due	—		—
60+ days contractual delinquency as a percentage of finance receivables	0.32%		—%

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


(Dollars in millions)	October 3, 2026		January 3, 2026
Performing	$	592	$	578
Watchlist	20		13
Nonaccrual	4		2
Nonaccrual as a percentage of finance receivables	0.65%		0.34%
Current and less than 31 days past due	$	601	$	584
31-60 days past due	13		9
61-90 days past due	2		—
Over 90 days past due	—		—
60+ days contractual delinquency as a percentage of finance receivables	0.32%		—%