Financing Receivables and Operating Leases (Tables)

12 Months Ended

Jul. 29, 2017

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



July 29, 2017	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Gross	$	2,784		$	4,560		$	2,517		$	9,861
Residual value	173			—			—			173
Unearned income	(145		)	—			—			(145		)
Allowance for credit loss	(162		)	(103		)	(30		)	(295		)
Total, net	$	2,650		$	4,457		$	2,487		$	9,594
Reported as:
Current	$	1,301		$	2,104		$	1,451		$	4,856
Noncurrent	1,349			2,353			1,036			4,738
Total, net	$	2,650		$	4,457		$	2,487		$	9,594



July 30, 2016	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Gross	$	3,272		$	3,446		$	2,059		$	8,777
Residual value	202			—			—			202
Unearned income	(174		)	—			—			(174		)
Allowance for credit loss	(230		)	(97		)	(48		)	(375		)
Total, net	$	3,070		$	3,349		$	2,011		$	8,430
Reported as:
Current	$	1,490		$	1,580		$	1,202		$	4,272
Noncurrent	1,580			1,769			809			4,158
Total, net	$	3,070		$	3,349		$	2,011		$	8,430

Contractual Maturities of the Gross Lease Receivables

Future minimum lease payments to the Company on lease receivables as of July 29, 2017 are summarized as follows (in millions):



Fiscal Year	Amount
2018	$	1,318
2019	813
2020	438
2021	183
2022	9
Thereafter	23
Total	$	2,784

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 July 29, 2017 and July 30, 2016 are summarized as follows (in millions):



	INTERNAL CREDIT RISK RATING
July 29, 2017	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,408	$	1,181	$	50	$	2,639
Loan receivables	2,865		1,516		179		4,560
Financed service contracts	1,593		902		22		2,517
Total	$	5,866	$	3,599	$	251	$	9,716



	INTERNAL CREDIT RISK RATING
July 30, 2016	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,703	$	1,294	$	101	$	3,098
Loan receivables	1,792		1,464		190		3,446
Financed service contracts	1,271		774		14		2,059
Total	$	4,766	$	3,532	$	305	$	8,603

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 July 29, 2017 and July 30, 2016 (in millions):



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 29, 2017	31 - 60		61 - 90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	160	$	60	$	216	$	436	$	2,203	$	2,639	$	14	$	14
Loan receivables	230		48		259		537		4,023		4,560		43		43
Financed service contracts	160		77		523		760		1,757		2,517		18		2
Total	$	550	$	185	$	998	$	1,733	$	7,983	$	9,716	$	75	$	59



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 30, 2016	31 - 60		61 - 90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	111	$	25	$	251	$	387	$	2,711	$	3,098	$	60	$	60
Loan receivables	83		37		167		287		3,159		3,446		42		42
Financed service contracts	159		124		436		719		1,340		2,059		30		10
Total	$	353	$	186	$	854	$	1,393	$	7,210	$	8,603	$	132	$	112

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
	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of July 30, 2016	$	230		$	97		$	48		$	375
Provisions	(25		)	7			(17		)	(35		)
Recoveries (write-offs), net	(37		)	(11		)	(1		)	(49		)
Foreign exchange and other	(6		)	10			—			4
Allowance for credit loss as of July 29, 2017	$	162		$	103		$	30		$	295



	CREDIT LOSS ALLOWANCES
	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of July 25, 2015	$	259		$	87		$	36		$	382
Provisions	(13		)	13			17			17
Recoveries (write-offs), net	(10		)	—			(5		)	(15		)
Foreign exchange and other	(6		)	(3		)	—			(9		)
Allowance for credit loss as of July 30, 2016	$	230		$	97		$	48		$	375



	CREDIT LOSS ALLOWANCES
	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of July 26, 2014	$	233		$	98		$	18		$	349
Provisions	45			(8		)	20			57
Recoveries (write-offs), net	(7		)	1			(1		)	(7		)
Foreign exchange and other	(12		)	(4		)	(1		)	(17		)
Allowance for credit loss as of July 25, 2015	$	259		$	87		$	36		$	382

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):



	July 29, 2017			July 30, 2016
Operating lease assets	$	356		$	296
Accumulated depreciation	(212		)	(161		)
Operating lease assets, net	$	144		$	135

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum future rentals on noncancelable operating leases as of July 29, 2017 are summarized as follows (in millions):



Fiscal Year	Amount
2018	$	183
2019	102
2020	39
2021	5
Thereafter	2
Total	$	331