Financing Receivables and Operating Leases (Tables)

6 Months Ended

Jan. 24, 2015

Receivables [Abstract]

Financing Receivables

A summary of the Company's financing receivables is presented as follows (in millions):

January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,369		$	1,674		$	3,069		$	8,112
Residual value	228			—			—			228
Unearned income	(206		)	—			—			(206		)
Allowance for credit loss	(250		)	(85		)	(40		)	(375		)
Total, net	$	3,141		$	1,589		$	3,029		$	7,759
Reported as:
Current	$	1,462		$	782		$	1,966		$	4,210
Noncurrent	1,679			807			1,063			3,549
Total, net	$	3,141		$	1,589		$	3,029		$	7,759

July 26, 2014	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,532		$	1,683		$	3,210		$	8,425
Residual value	233			—			—			233
Unearned income	(238		)	—			—			(238		)
Allowance for credit loss	(233		)	(98		)	(18		)	(349		)
Total, net	$	3,294		$	1,585		$	3,192		$	8,071
Reported as:
Current	$	1,476		$	728		$	1,949		$	4,153
Noncurrent	1,818			857			1,243			3,918
Total, net	$	3,294		$	1,585		$	3,192		$	8,071

Contractual Maturities Of The Gross Lease Receivables

Future minimum lease payments at January 24, 2015 are summarized as follows (in millions):

Fiscal Year	Amount
2015 (remaining six months)	$	883
2016	1,281
2017	753
2018	327
2019	115
Thereafter	10
Total	$	3,369

Schedule Of Internal Credit Risk Rating For Each Portfolio Segment And Class

Gross receivables less unearned income categorized by the Company’s internal credit risk rating as of January 24, 2015 and July 26, 2014 are summarized as follows (in millions):

	INTERNAL CREDIT RISK RATING
January 24, 2015	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,632	$	1,386	$	145	$	3,163
Loan receivables	717		803		154		1,674
Financed service contracts and other	1,647		1,342		80		3,069
Total	$	3,996	$	3,531	$	379	$	7,906

	INTERNAL CREDIT RISK RATING
July 26, 2014	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,615	$	1,538	$	141	$	3,294
Loan receivables	953		593		137		1,683
Financed service contracts and other	1,744		1,367		99		3,210
Total	$	4,312	$	3,498	$	377	$	8,187

Schedule Of Financing Receivables By Portfolio Segment And Class Aging Analysis

The following tables present the aging analysis of gross receivables less unearned income as of January 24, 2015 and July 26, 2014 (in millions):

	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
January 24, 2015	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	171	$	63	$	224	$	458	$	2,705	$	3,163	$	53	$	48
Loan receivables	30		42		177		249		1,425		1,674		33		33
Financed service contracts and other	144		135		385		664		2,405		3,069		30		8
Total	$	345	$	240	$	786	$	1,371	$	6,535	$	7,906	$	116	$	89

	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 26, 2014	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	63	$	48	$	203	$	314	$	2,980	$	3,294	$	48	$	41
Loan receivables	7		21		28		56		1,627		1,683		19		19
Financed service contracts and other	268		238		221		727		2,483		3,210		12		9
Total	$	338	$	307	$	452	$	1,097	$	7,090	$	8,187	$	79	$	69

Allowance For Credit Loss And Related Financing Receivables

The allowances for credit loss and the related financing receivables are summarized as follows (in millions):

	CREDIT LOSS ALLOWANCES
Three Months Ended January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of October 25, 2014	$	248		$	84		$	36	$	368
Provisions	7			3			4		14
Recoveries (write-offs), net	(1		)	—			—		(1		)
Foreign exchange and other	(4		)	(2		)	—		(6		)
Allowance for credit loss as of January 24, 2015	$	250		$	85		$	40	$	375
Financing receivables as of January 24, 2015 (1)	$	3,391		$	1,674		$	3,069	$	8,134

	CREDIT LOSS ALLOWANCES
Six Months Ended January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Allowance for credit loss as of July 26, 2014	$	233		$	98		$	18		$	349
Provisions	29			(10		)	23			42
Recoveries (write-offs), net	(5		)	1			—			(4		)
Foreign exchange and other	(7		)	(4		)	(1		)	(12		)
Allowance for credit loss as of January 24, 2015	$	250		$	85		$	40		$	375

	CREDIT LOSS ALLOWANCES
Three Months Ended January 25, 2014	Lease Receivables			Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of October 26, 2013	$	237		$	93		$	20	$	350
Provisions	18			9			2		29
Recoveries (write-offs), net	1			—			—		1
Foreign exchange and other	(2		)	(4		)	—		(6		)
Allowance for credit loss as of January 25, 2014	$	254		$	98		$	22	$	374
Financing receivables as of January 25, 2014 (1)	$	3,551		$	1,660		$	2,807	$	8,018

	CREDIT LOSS ALLOWANCES
Six Months Ended January 25, 2014	Lease Receivables		Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of July 27, 2013	$	238	$	86		$	20	$	344
Provisions	15		15			2		32
Recoveries (write-offs), net	1		—			—		1
Foreign exchange and other	—		(3		)	—		(3		)
Allowance for credit loss as of January 25, 2014	$	254	$	98		$	22	$	374

⁽¹⁾ Total financing receivables before allowance for credit loss.

Schedule of Property Subject to or Available for Operating Lease

Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):

	January 24, 2015			July 26, 2014
Operating lease assets	$	343		$	362
Accumulated depreciation	(195		)	(202		)
Operating lease assets, net	$	148		$	160