Financing Receivables and Operating Leases (Tables)

9 Months Ended

Apr. 25, 2015

Receivables [Abstract]

Financing Receivables

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

April 25, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,276		$	1,720		$	3,081		$	8,077
Residual value	226			—			—			226
Unearned income	(190		)	—			—			(190		)
Allowance for credit loss	(242		)	(80		)	(37		)	(359		)
Total, net	$	3,070		$	1,640		$	3,044		$	7,754
Reported as:
Current	$	1,424		$	820		$	2,004		$	4,248
Noncurrent	1,646			820			1,040			3,506
Total, net	$	3,070		$	1,640		$	3,044		$	7,754

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 April 25, 2015 are summarized as follows (in millions):

Fiscal Year	Amount
2015 (remaining three months)	$	498
2016	1,349
2017	857
2018	406
2019	146
Thereafter	20
Total	$	3,276

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 April 25, 2015 and July 26, 2014 are summarized as follows (in millions):

	INTERNAL CREDIT RISK RATING
April 25, 2015	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,590	$	1,371	$	125	$	3,086
Loan receivables	755		816		149		1,720
Financed service contracts and other	1,650		1,371		60		3,081
Total	$	3,995	$	3,558	$	334	$	7,887

	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 April 25, 2015 and July 26, 2014 (in millions):

	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
April 25, 2015	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	102	$	48	$	138	$	288	$	2,798	$	3,086	$	38	$	38
Loan receivables	12		15		56		83		1,637		1,720		29		29
Financed service contracts and other	99		88		309		496		2,585		3,081		32		12
Total	$	213	$	151	$	503	$	867	$	7,020	$	7,887	$	99	$	79

	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	$	46	$	202	$	311	$	2,983	$	3,294	$	48	$	41
Loan receivables	3		21		27		51		1,632		1,683		19		19
Financed service contracts and other	268		230		220		718		2,492		3,210		12		9
Total	$	334	$	297	$	449	$	1,080	$	7,107	$	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 April 25, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Allowance for credit loss as of January 24, 2015	$	250		$	85		$	40		$	375
Provisions	(4		)	(5		)	(2		)	(11		)
Recoveries (write-offs), net	(1		)	—			—			(1		)
Foreign exchange and other	(3		)	—			(1		)	(4		)
Allowance for credit loss as of April 25, 2015	$	242		$	80		$	37		$	359
Financing receivables as of April 25, 2015 (1)	$	3,312		$	1,720		$	3,081		$	8,113

	CREDIT LOSS ALLOWANCES
Nine Months Ended April 25, 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	25			(15		)	21			31
Recoveries (write-offs), net	(6		)	1			—			(5		)
Foreign exchange and other	(10		)	(4		)	(2		)	(16		)
Allowance for credit loss as of April 25, 2015	$	242		$	80		$	37		$	359

	CREDIT LOSS ALLOWANCES
Three Months Ended April 26, 2014	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Allowance for credit loss as of January 25, 2014	$	254		$	98		$	22		$	374
Provisions	(6		)	(10		)	(2		)	(18		)
Recoveries (write-offs), net	(1		)	4			(1		)	2
Foreign exchange and other	2			—			—			2
Allowance for credit loss as of April 26, 2014	$	249		$	92		$	19		$	360
Financing receivables as of April 26, 2014 (1)	$	3,537		$	1,621		$	2,810		$	7,968

	CREDIT LOSS ALLOWANCES
Nine Months Ended April 26, 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	9		5			—			14
Recoveries (write-offs), net	—		4			(1		)	3
Foreign exchange and other	2		(3		)	—			(1		)
Allowance for credit loss as of April 26, 2014	$	249	$	92		$	19		$	360

⁽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):

	April 25, 2015			July 26, 2014
Operating lease assets	$	359		$	362
Accumulated depreciation	(195		)	(202		)
Operating lease assets, net	$	164		$	160