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Financing Receivables (Tables)
 9 Months Ended
Apr. 25, 2020
Receivables [Abstract]  
Financing Receivables
A summary of our financing receivables is presented as follows (in millions):
April 25, 2020
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,169

 
$
5,259

 
$
2,167

 
$
9,595

Residual value
127

 
—

 
—

 
127

Unearned income
(121
)
 
—

 
—

 
(121
)
Allowance for credit loss
(36
)
 
(86
)
 
(6
)
 
(128
)
Total, net
$
2,139

 
$
5,173

 
$
2,161

 
$
9,473

Reported as:
 
 
 
 
 
 
 
Current
$
963

 
$
2,474

 
$
1,266

 
$
4,703

Noncurrent
1,176

 
2,699

 
895

 
4,770

Total, net
$
2,139

 
$
5,173

 
$
2,161

 
$
9,473

July 27, 2019
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,367

 
$
5,438

 
$
2,369

 
$
10,174

Residual value
142

 
—

 
—

 
142

Unearned income
(137
)
 
—

 
—

 
(137
)
Allowance for credit loss
(46
)
 
(71
)
 
(9
)
 
(126
)
Total, net
$
2,326

 
$
5,367

 
$
2,360

 
$
10,053

Reported as:
 
 
 
 
 
 
 
Current
$
1,029

 
$
2,653

 
$
1,413

 
$
5,095

Noncurrent
1,297

 
2,714

 
947

 
4,958

Total, net
$
2,326

 
$
5,367

 
$
2,360

 
$
10,053
Schedule of Internal Credit Risk Rating for Each Portfolio Segment and Class
Gross receivables, excluding residual value, less unearned income categorized by our internal credit risk rating as of April 25, 2020 and July 27, 2019 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
April 25, 2020
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,033

 
$
969

 
$
46

 
$
2,048

Loan receivables
3,180

 
1,914

 
165

 
5,259

Financed service contracts
1,227

 
911

 
29

 
2,167

Total
$
5,440

 
$
3,794

 
$
240

 
$
9,474

 
INTERNAL CREDIT RISK RATING
July 27, 2019
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,204

 
$
991

 
$
35

 
$
2,230

Loan receivables
3,367

 
1,920

 
151

 
5,438

Financed service contracts
1,413

 
939

 
17

 
2,369

Total
$
5,984

 
$
3,850

 
$
203

 
$
10,037
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 25, 2020 and July 27, 2019 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
April 25, 2020
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
81

 
$
18

 
$
119

 
$
218

 
$
1,830

 
$
2,048

 
$
18

 
$
18

Loan receivables
146

 
43

 
139

 
328

 
4,931

 
5,259

 
60

 
60

Financed service contracts
77

 
62

 
180

 
319

 
1,848

 
2,167

 
3

 
3

Total
$
304

 
$
123

 
$
438

 
$
865

 
$
8,609

 
$
9,474

 
$
81

 
$
81

 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 27, 2019
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
101

 
$
42

 
$
291

 
$
434

 
$
1,796

 
$
2,230

 
$
13

 
$
13

Loan receivables
257

 
67

 
338

 
662

 
4,776

 
5,438

 
31

 
31

Financed service contracts
145

 
131

 
271

 
547

 
1,822

 
2,369

 
3

 
3

Total
$
503

 
$
240

 
$
900

 
$
1,643

 
$
8,394

 
$
10,037

 
$
47

 
$
47
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 25, 2020
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Allowance for credit loss as of January 25, 2020
$
42

 
$
95

 
$
8

 
$
145

Provisions (benefits)
(4
)
 
(5
)
 
(2
)
 
(11
)
Recoveries (write-offs), net
(1
)
 
(1
)
 
—

 
(2
)
Foreign exchange and other
(1
)
 
(3
)
 
—

 
(4
)
Allowance for credit loss as of April 25, 2020
$
36

 
$
86

 
$
6

 
$
128

Nine months ended April 25, 2020
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Allowance for credit loss as of July 27, 2019
$
46

 
$
71

 
$
9

 
$
126

Provisions (benefits)
(8
)
 
37

 
(2
)
 
27

Recoveries (write-offs), net
(2
)
 
(18
)
 
—

 
(20
)
Foreign exchange and other
—

 
(4
)
 
(1
)
 
(5
)
Allowance for credit loss as of April 25, 2020
$
36

 
$
86

 
$
6

 
$
128

Three months ended April 27, 2019
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Allowance for credit loss as of January 26, 2019
$
127

 
$
64

 
$
9

 
$
200

Provisions (benefits)
(41
)
 
13

 
27

 
(1
)
Recoveries (write-offs), net
2

 
—

 
(28
)
 
(26
)
Foreign exchange and other
(20
)
 
—

 
—

 
(20
)
Allowance for credit loss as of April 27, 2019
$
68

 
$
77

 
$
8

 
$
153

Nine months ended April 27, 2019
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Allowance for credit loss as of July 28, 2018
$
135

 
$
60

 
$
10

 
$
205

Provisions (benefits)
(48
)
 
17

 
26

 
(5
)
Recoveries (write-offs), net
2

 
—

 
(28
)
 
(26
)
Foreign exchange and other
(21
)
 
—

 
—

 
(21
)
Allowance for credit loss as of April 27, 2019
$
68

 
$
77

 
$
8

 
$
153