v3.10.0.1

Financing Receivables and Operating Leases (Tables)

3 Months Ended

Oct. 27, 2018

Receivables [Abstract]

Financing Receivables

A summary of our financing receivables is presented as follows (in millions):

October 27, 2018	Lease Receivables				Loan Receivables				Financed Service Contracts				Total
Gross	$	2,511			$	4,924			$	2,240			$	9,675
Residual value	159				—				—				159
Unearned income	(140		)		—				—				(140		)
Allowance for credit loss	(131		)		(60		)		(8		)		(199		)
Total, net	$	2,399			$	4,864			$	2,232			$	9,495
Reported as:
Current	$	1,143			$	2,422			$	1,286			$	4,851
Noncurrent	1,256				2,442				946				4,644
Total, net	$	2,399			$	4,864			$	2,232			$	9,495

July 28, 2018	Lease Receivables				Loan Receivables				Financed Service Contracts				Total
Gross	$	2,688			$	4,999			$	2,326			$	10,013
Residual value	164				—				—				164
Unearned income	(141		)		—				—				(141		)
Allowance for credit loss	(135		)		(60		)		(10		)		(205		)
Total, net	$	2,576			$	4,939			$	2,316			$	9,831
Reported as:
Current	$	1,249			$	2,376			$	1,324			$	4,949
Noncurrent	1,327				2,563				992				4,882
Total, net	$	2,576			$	4,939			$	2,316			$	9,831

Contractual Maturities of the Gross Lease Receivables

Future minimum lease payments to Cisco on lease receivables as of October 27, 2018 are summarized as follows (in millions):

Fiscal Year	Amount
2019 (remaining nine months)	$	1,105
2020	614
2021	478
2022	231
2023	78
Thereafter	5
Total	$	2,511

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 October 27, 2018 and July 28, 2018 are summarized as follows (in millions):

	INTERNAL CREDIT RISK RATING
October 27, 2018	1 to 4				5 to 6				7 and Higher				Total
Lease receivables	$	1,238			$	1,084			$	49			$	2,371
Loan receivables	3,122				1,744				58				4,924
Financed service contracts	1,454				768				18				2,240
Total	$	5,814			$	3,596			$	125			$	9,535

	INTERNAL CREDIT RISK RATING
July 28, 2018	1 to 4				5 to 6				7 and Higher				Total
Lease receivables	$	1,294			$	1,199			$	54			$	2,547
Loan receivables	3,184				1,752				63				4,999
Financed service contracts	1,468				835				23				2,326
Total	$	5,946			$	3,786			$	140			$	9,872

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 27, 2018 and July 28, 2018 (in millions):

	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
October 27, 2018	31-60				61-90				91+				Total Past Due				Current				Total				Nonaccrual Financing Receivables				Impaired Financing Receivables
Lease receivables	$	79			$	27			$	121			$	227			$	2,144			$	2,371			$	5			$	5
Loan receivables	123				85				348				556				4,368				4,924				29				29
Financed service contracts	102				147				262				511				1,729				2,240				3				3
Total	$	304			$	259			$	731			$	1,294			$	8,241			$	9,535			$	37			$	37

	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 28, 2018	31-60				61-90				91+				Total Past Due				Current				Total				Nonaccrual Financing Receivables				Impaired Financing Receivables
Lease receivables	$	72			$	27			$	155			$	254			$	2,293			$	2,547			$	9			$	9
Loan receivables	104				55				252				411				4,588				4,999				30				30
Financed service contracts	138				78				304				520				1,806				2,326				3				3
Total	$	314			$	160			$	711			$	1,185			$	8,687			$	9,872			$	42			$	42

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 October 27, 2018	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)	(3		)		—				(2		)		(5		)
Foreign exchange and other	(1		)		—				—				(1		)
Allowance for credit loss as of October 27, 2018	$	131			$	60			$	8			$	199

Three months ended October 28, 2017	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

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 27, 2018				July 28, 2018
Operating lease assets	$	475			$	356
Accumulated depreciation	(333		)		(238		)
Operating lease assets, net	$	142			$	118

Schedule of Future Minimum Rental Payments for Operating Leases

Minimum future rentals on noncancelable operating leases as of October 27, 2018 are summarized as follows (in millions):

Fiscal Year	Amount
2019 (remaining nine months)	$	125
2020	108
2021	44
2022	3
Thereafter	1
Total	$	281

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- Definition

Tabular disclosure of financing receivables (examples of financing receivables include loans, trade accounts receivable and notes receivable) and activity in the allowance for credit losses account.

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Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics.

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Tabular disclosure of financing receivables that are past due but not impaired, financing receivables that are 90 days past due and still accruing, and financing receivables on nonaccrual status.

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Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables.

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Tabular disclosure of future minimum payments required in the aggregate and for each of the five succeeding fiscal years for operating leases having initial or remaining noncancelable lease terms in excess of one year and the total minimum rentals to be received in the future under noncancelable subleases as of the balance sheet date.

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Tabular disclosure of lessor's property under leasing agreements and property available for lease (not currently under lease) by property class, the gross amount, accumulated depreciation and net amount of as of the balance sheet date.

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