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Financing Receivables (Tables)
 12 Months Ended
Jul. 25, 2020
Receivables [Abstract]  
Financing Receivables
A summary of our financing receivables is presented as follows (in millions):
July 25, 2020
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,127

 
$
5,937

 
$
2,830

 
$
10,894

Residual value
123

 
—

 
—

 
123

Unearned income
(114
)
 
—

 
—

 
(114
)
Allowance for credit loss
(48
)
 
(81
)
 
(9
)
 
(138
)
Total, net
$
2,088

 
$
5,856

 
$
2,821

 
$
10,765

Reported as:
 
 
 
 
 
 
 
Current
$
918

 
$
2,692

 
$
1,441

 
$
5,051

Noncurrent
1,170

 
3,164

 
1,380

 
5,714

Total, net
$
2,088

 
$
5,856

 
$
2,821

 
$
10,765

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 July 25, 2020 and July 27, 2019 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
July 25, 2020
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
992

 
$
952

 
$
69

 
$
2,013

Loan receivables
3,808

 
1,961

 
168

 
5,937

Financed service contracts
1,645

 
1,153

 
32

 
2,830

Total
$
6,445

 
$
4,066

 
$
269

 
$
10,780

 
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 July 25, 2020 and July 27, 2019 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 25, 2020
31 - 60
 
61 - 90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
29

 
$
47

 
$
48

 
$
124

 
$
1,889

 
$
2,013

 
$
43

 
$
43

Loan receivables
129

 
78

 
78

 
285

 
5,652

 
5,937

 
65

 
65

Financed service contracts
69

 
75

 
124

 
268

 
2,562

 
2,830

 
4

 
4

Total
$
227

 
$
200

 
$
250

 
$
677

 
$
10,103

 
$
10,780

 
$
112

 
$
112

 
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):
 
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)
5

 
32

 
1

 
38

Recoveries (write-offs), net
(3
)
 
(19
)
 
—

 
(22
)
Foreign exchange and other
—

 
(3
)
 
(1
)
 
(4
)
Allowance for credit loss as of July 25, 2020
$
48

 
$
81

 
$
9

 
$
138

 
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)
(54
)
 
11

 
27

 
(16
)
Recoveries (write-offs), net
(14
)
 
—

 
(28
)
 
(42
)
Foreign exchange and other
(21
)
 
—

 
—

 
(21
)
Allowance for credit loss as of July 27, 2019
$
46

 
$
71

 
$
9

 
$
126

 
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 (benefits)
(26
)
 
(43
)
 
(20
)
 
(89
)
Recoveries (write-offs), net
(1
)
 
(5
)
 
—

 
(6
)
Foreign exchange and other
—

 
5

 
—

 
5

Allowance for credit loss as of July 28, 2018
$
135

 
$
60

 
$
10

 
$
205