Financing Receivables and Operating Leases (Tables)
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9 Months Ended |
Apr. 27, 2019 |
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| Receivables [Abstract] |
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| Financing Receivables |
A summary of our financing receivables is presented as follows (in millions): | | | | | | | | | | | | | | | | | April 27, 2019 | Lease Receivables | | Loan Receivables | | Financed Service Contracts | | Total | Gross | $ | 2,442 |
| | $ | 5,240 |
| | $ | 2,349 |
| | $ | 10,031 |
| Residual value | 152 |
| | — |
| | — |
| | 152 |
| Unearned income | (139 | ) | | — |
| | — |
| | (139 | ) | Allowance for credit loss | (68 | ) | | (77 | ) | | (8 | ) | | (153 | ) | Total, net | $ | 2,387 |
| | $ | 5,163 |
| | $ | 2,341 |
| | $ | 9,891 |
| Reported as: | | | | | | | | Current | $ | 1,033 |
| | $ | 2,632 |
| | $ | 1,364 |
| | $ | 5,029 |
| Noncurrent | 1,354 |
| | 2,531 |
| | 977 |
| | 4,862 |
| Total, net | $ | 2,387 |
| | $ | 5,163 |
| | $ | 2,341 |
| | $ | 9,891 |
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| | | | | | | | | | | | | | | | | 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 |
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| Contractual Maturities of the Gross Lease Receivables |
Future minimum lease payments to Cisco on lease receivables as of April 27, 2019 are summarized as follows (in millions): | | | | | Fiscal Year | Amount | 2019 (remaining three months) | $ | 308 |
| 2020 | 984 |
| 2021 | 632 |
| 2022 | 341 |
| 2023 | 147 |
| Thereafter | 30 |
| Total | $ | 2,442 |
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| 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 27, 2019 and July 28, 2018 are summarized as follows (in millions): | | | | | | | | | | | | | | | | | | INTERNAL CREDIT RISK RATING | April 27, 2019 | 1 to 4 | | 5 to 6 | | 7 and Higher | | Total | Lease receivables | $ | 1,235 |
| | $ | 1,029 |
| | $ | 39 |
| | $ | 2,303 |
| Loan receivables | 3,187 |
| | 1,890 |
| | 163 |
| | 5,240 |
| Financed service contracts | 1,351 |
| | 984 |
| | 14 |
| | 2,349 |
| Total | $ | 5,773 |
| | $ | 3,903 |
| | $ | 216 |
| | $ | 9,892 |
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| | | | | | | | | | | | | | | | | | 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 |
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| 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 27, 2019 and July 28, 2018 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) | | | | | | | | | April 27, 2019 | 31-60 | | 61-90 | | 91+ | | Total Past Due | | Current | | Total | | Nonaccrual Financing Receivables | | Impaired Financing Receivables | Lease receivables | $ | 79 |
| | $ | 36 |
| | $ | 114 |
| | $ | 229 |
| | $ | 2,074 |
| | $ | 2,303 |
| | $ | 18 |
| | $ | 18 |
| Loan receivables | 108 |
| | 81 |
| | 255 |
| | 444 |
| | 4,796 |
| | 5,240 |
| | 30 |
| | 30 |
| Financed service contracts | 75 |
| | 113 |
| | 471 |
| | 659 |
| | 1,690 |
| | 2,349 |
| | 4 |
| | 4 |
| Total | $ | 262 |
| | $ | 230 |
| | $ | 840 |
| | $ | 1,332 |
| | $ | 8,560 |
| | $ | 9,892 |
| | $ | 52 |
| | $ | 52 |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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 |
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| 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 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 |
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| | | | | | | | | | | | | | | | | 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 |
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| | | | | | | | | | | | | | | | | 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 (benefits) | 1 |
| | (8 | ) | | (1 | ) | | (8 | ) | Foreign exchange and other | (1 | ) | | (1 | ) | | — |
| | (2 | ) | Allowance for credit loss as of April 28, 2018 | $ | 165 |
| | $ | 85 |
| | $ | 12 |
| | $ | 262 |
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| | | | | | | | | | | | | | | | | 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 (benefits) | 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 |
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| 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 27, 2019 | | July 28, 2018 | Operating lease assets | $ | 562 |
| | $ | 356 |
| Accumulated depreciation | (382 | ) | | (238 | ) | Operating lease assets, net | $ | 180 |
| | $ | 118 |
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| Schedule of Future Minimum Rental Payments for Operating Leases |
Minimum future rentals on noncancelable operating leases as of April 27, 2019 are summarized as follows (in millions): | | | | | Fiscal Year | Amount | 2019 (remaining three months) | $ | 42 |
| 2020 | 120 |
| 2021 | 58 |
| 2022 | 12 |
| Total | $ | 232 |
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