Financing Receivables and Operating Leases (Tables)

3 Months Ended

Oct. 28, 2017

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



October 28, 2017	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Gross	$	2,848		$	4,748		$	2,583		$	10,179
Residual value	167			—			—			167
Unearned income	(143		)	—			—			(143		)
Allowance for credit loss	(160		)	(106		)	(23		)	(289		)
Total, net	$	2,712		$	4,642		$	2,560		$	9,914
Reported as:
Current	$	1,290		$	2,236		$	1,512		$	5,038
Noncurrent	1,422			2,406			1,048			4,876
Total, net	$	2,712		$	4,642		$	2,560		$	9,914



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

Contractual Maturities Of The Gross Lease Receivables

Future minimum lease payments to the Company on lease receivables as of October 28, 2017 are summarized as follows (in millions):



Fiscal Year	Amount
2018 (remaining nine months)	$	1,106
2019	932
2020	512
2021	239
2022	57
Thereafter	2
Total	$	2,848

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 October 28, 2017 and July 29, 2017 are summarized as follows (in millions):



	INTERNAL CREDIT RISK RATING
October 28, 2017	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,320	$	1,337	$	48	$	2,705
Loan receivables	2,988		1,571		189		4,748
Financed service contracts	1,656		911		16		2,583
Total	$	5,964	$	3,819	$	253	$	10,036



	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

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 October 28, 2017 and July 29, 2017 (in millions):



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
October 28, 2017	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	161	$	86	$	320	$	567	$	2,138	$	2,705	$	14	$	14
Loan receivables	145		81		407		633		4,115		4,748		44		44
Financed service contracts	261		184		106		551		2,032		2,583		13		2
Total	$	567	$	351	$	833	$	1,751	$	8,285	$	10,036	$	71	$	60



	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

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 29, 2017	$	162		$	103	$	30		$	295
Provisions	(2		)	2		(6		)	(6		)
Foreign exchange and other	—			1		(1		)	—
Allowance for credit loss as of October 28, 2017	$	160		$	106	$	23		$	289



	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	(4		)	12		—		8
Foreign exchange and other	1			2		—		3
Allowance for credit loss as of October 29, 2016	$	227		$	111	$	48	$	386

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):



	October 28, 2017			July 29, 2017
Operating lease assets	$	352		$	356
Accumulated depreciation	(221		)	(212		)
Operating lease assets, net	$	131		$	144

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum future rentals on noncancelable operating leases as of October 28, 2017 are summarized as follows (in millions):



Fiscal Year	Amount
2018 (remaining nine months)	$	139
2019	110
2020	48
2021	7
Thereafter	2
Total	$	306