Financing Receivables and Operating Leases (Tables)

9 Months Ended

Apr. 28, 2018

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



April 28, 2018	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Gross	$	2,660		$	4,963		$	2,398		$	10,021
Residual value	166			—			—			166
Unearned income	(142		)	—			—			(142		)
Allowance for credit loss	(165		)	(85		)	(12		)	(262		)
Total, net	$	2,519		$	4,878		$	2,386		$	9,783
Reported as:
Current	$	1,223		$	2,288		$	1,357		$	4,868
Noncurrent	1,296			2,590			1,029			4,915
Total, net	$	2,519		$	4,878		$	2,386		$	9,783



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 April 28, 2018 are summarized as follows (in millions):



Fiscal Year	Amount
2018 (remaining three months)	$	324
2019	1,158
2020	673
2021	348
2022	134
Thereafter	23
Total	$	2,660

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 April 28, 2018 and July 29, 2017 are summarized as follows (in millions):



	INTERNAL CREDIT RISK RATING
April 28, 2018	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,207	$	1,248	$	63	$	2,518
Loan receivables	3,234		1,654		75		4,963
Financed service contracts	1,519		863		16		2,398
Total	$	5,960	$	3,765	$	154	$	9,879



	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 April 28, 2018 and July 29, 2017 (in millions):



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
April 28, 2018	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	32	$	42	$	282	$	356	$	2,162	$	2,518	$	15	$	15
Loan receivables	92		74		353		519		4,444		4,963		37		37
Financed service contracts	94		121		321		536		1,862		2,398		3		3
Total	$	218	$	237	$	956	$	1,411	$	8,468	$	9,879	$	55	$	55



	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):



Three months ended April 28, 2018	CREDIT LOSS ALLOWANCES
	Lease Receivables			Loan Receivables			Financed Service Contracts			Total
Allowance for credit loss as of January 27, 2018	$	165		$	94		$	13		$	272
Provisions	1			(8		)	(1		)	(8		)
Foreign exchange and other	(1		)	(1		)	—			(2		)
Allowance for credit loss as of April 28, 2018	$	165		$	85		$	12		$	262



Nine months ended April 28, 2018	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		(19		)	(17		)	(34		)
Foreign exchange and other	1		1			(1		)	1
Allowance for credit loss as of April 28, 2018	$	165	$	85		$	12		$	262



Three months ended April 29, 2017	CREDIT LOSS ALLOWANCES
	Lease Receivables			Loan Receivables		Financed Service Contracts			Total
Allowance for credit loss as of January 28, 2017	$	225		$	106	$	47		$	378
Provisions	3			10		(14		)	(1		)
Recoveries (write-offs), net	(8		)	—		(1		)	(9		)
Foreign exchange and other	—			1		—			1
Allowance for credit loss as of April 29, 2017	$	220		$	117	$	32		$	369



Nine months ended April 29, 2017	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	1			22			(15		)	8
Recoveries (write-offs), net	(10		)	(4		)	(1		)	(15		)
Foreign exchange and other	(1		)	2			—			1
Allowance for credit loss as of April 29, 2017	$	220		$	117		$	32		$	369

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 28, 2018			July 29, 2017
Operating lease assets	$	370		$	356
Accumulated depreciation	(242		)	(212		)
Operating lease assets, net	$	128		$	144

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum future rentals on noncancelable operating leases as of April 28, 2018 are summarized as follows (in millions):



Fiscal Year	Amount
2018 (remaining three months)	$	54
2019	168
2020	85
2021	21
Thereafter	2
Total	$	330