Financing Receivables and Operating Leases (Tables)

6 Months Ended

Jan. 23, 2016

Receivables [Abstract]

Financing Receivables

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

January 23, 2016	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,176		$	2,177		$	3,405		$	8,758
Residual value	201			—			—			201
Unearned income	(177		)	—			—			(177		)
Allowance for credit loss	(248		)	(80		)	(37		)	(365		)
Total, net	$	2,952		$	2,097		$	3,368		$	8,417
Reported as:
Current	$	1,460		$	978		$	2,076		$	4,514
Noncurrent	1,492			1,119			1,292			3,903
Total, net	$	2,952		$	2,097		$	3,368		$	8,417

July 25, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,361		$	1,763		$	3,573		$	8,697
Residual value	224			—			—			224
Unearned income	(190		)	—			—			(190		)
Allowance for credit loss	(259		)	(87		)	(36		)	(382		)
Total, net	$	3,136		$	1,676		$	3,537		$	8,349
Reported as:
Current	$	1,468		$	856		$	2,167		$	4,491
Noncurrent	1,668			820			1,370			3,858
Total, net	$	3,136		$	1,676		$	3,537		$	8,349

Contractual Maturities Of The Gross Lease Receivables

Future minimum lease payments at January 23, 2016 are summarized as follows (in millions):

Fiscal Year	Amount
2016 (remaining six months)	$	822
2017	1,234
2018	693
2019	316
2020	104
Thereafter	7
Total	$	3,176

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

Gross receivables, excluding residual value, less unearned income categorized by the Company’s internal credit risk rating as of January 23, 2016 and July 25, 2015 are summarized as follows (in millions):

	INTERNAL CREDIT RISK RATING
January 23, 2016	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,640	$	1,245	$	114	$	2,999
Loan receivables	1,224		811		142		2,177
Financed service contracts and other	2,156		1,204		45		3,405
Total	$	5,020	$	3,260	$	301	$	8,581

	INTERNAL CREDIT RISK RATING
July 25, 2015	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,688	$	1,342	$	141	$	3,171
Loan receivables	788		823		152		1,763
Financed service contracts and other	2,133		1,389		51		3,573
Total	$	4,609	$	3,554	$	344	$	8,507

Schedule Of Financing Receivables By Portfolio Segment And Class Aging Analysis

The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of January 23, 2016 and July 25, 2015 (in millions):

	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
January 23, 2016	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	93	$	41	$	176	$	310	$	2,689	$	2,999	$	71	$	64
Loan receivables	91		40		48		179		1,998		2,177		43		43
Financed service contracts and other	245		45		171		461		2,944		3,405		29		9
Total	$	429	$	126	$	395	$	950	$	7,631	$	8,581	$	143	$	116

	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 25, 2015	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	90	$	27	$	185	$	302	$	2,869	$	3,171	$	73	$	73
Loan receivables	21		3		25		49		1,714		1,763		32		32
Financed service contracts and other	396		152		414		962		2,611		3,573		29		9
Total	$	507	$	182	$	624	$	1,313	$	7,194	$	8,507	$	134	$	114

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 23, 2016	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Allowance for credit loss as of October 24, 2015	$	255		$	90		$	33		$	378
Provisions	(4		)	(10		)	5			(9		)
Recoveries (write-offs), net	—			—			(1		)	(1		)
Foreign exchange and other	(3		)	—			—			(3		)
Allowance for credit loss as of January 23, 2016	$	248		$	80		$	37		$	365

	CREDIT LOSS ALLOWANCES
Six months ended January 23, 2016	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Allowance for credit loss as of July 25, 2015	$	259		$	87		$	36		$	382
Provisions	(4		)	(6		)	5			(5		)
Recoveries (write-offs), net	(4		)	—			(4		)	(8		)
Foreign exchange and other	(3		)	(1		)	—			(4		)
Allowance for credit loss as of January 23, 2016	$	248		$	80		$	37		$	365

	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

	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

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 23, 2016			July 25, 2015
Operating lease assets	$	324		$	372
Accumulated depreciation	(181		)	(205		)
Operating lease assets, net	$	143		$	167