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Financing Receivables
 12 Months Ended
Jul. 31, 2021
Receivables [Abstract]  
Financing Receivables Financing Receivables
(a)Financing Receivables
Financing receivables primarily consist of lease receivables, loan receivables, and financed service contracts. Lease receivables represent sales-type leases resulting from the sale of Cisco's and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Lease receivables consist of arrangements with terms of four years on average. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services, which may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables have terms of three years on average. Financed service contracts include financing receivables related to technical support and advanced services. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one year to three years.
A summary of our financing receivables is presented as follows (in millions):
July 31, 2021Lease
Receivables		Loan
Receivables		Financed Service
Contracts		Total
Gross$1,710 $5,203 $2,453 $9,366 
Residual value103 — — 103 
Unearned income(78)— — (78)
Allowance for credit loss(38)(86)(3)(127)
Total, net$1,697 $5,117 $2,450 $9,264 
Reported as:
Current$780 $2,372 $1,228 $4,380 
Noncurrent917 2,745 1,222 4,884 
Total, net$1,697 $5,117 $2,450 $9,264 
July 25, 2020Lease
Receivables		Loan
Receivables		Financed Service
Contracts		Total
Gross$2,127 $5,937 $2,830 $10,894 
Residual value123 — — 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 
Noncurrent1,170 3,164 1,380 5,714 
Total, net$2,088 $5,856 $2,821 $10,765 
(b)Credit Quality of Financing Receivables
Gross financing receivables(1) categorized by our internal credit risk rating by period of origination as of July 31, 2021 are summarized as follows (in millions):
Fiscal Year
Internal Credit Risk RatingPriorJuly 29, 2017July 28, 2018July 27, 2019July 25, 2020July 31, 2021Total
Lease Receivables:
1 to 4$2 $20 $100 $168 $282 $227 $799 
5 to 61 17 65 187 285 231 786 
7 and Higher— 2 6 12 23 4 47 
Total Lease Receivables$3 $39 $171 $367 $590 $462 $1,632 
Loan Receivables:
1 to 4$4 $86 $134 $577 $990 $1,552 $3,343 
5 to 6— 19 75 202 505 925 1,726 
7 and Higher1 2 4 50 43 34 134 
Total Loan Receivables$5 $107 $213 $829 $1,538 $2,511 $5,203 
Financed Service Contracts:
1 to 4$— $38 $26 $106 $252 $1,053 $1,475 
5 to 6— 6 26 105 302 520 959 
7 and Higher— — 1 6 7 5 19 
Total Financed Service Contracts$— $44 $53 $217 $561 $1,578 $2,453 
Total$8 $190 $437 $1,413 $2,689 $4,551 $9,288 
(1) Lease receivables calculated as gross lease receivables, excluding residual value, less unearned income.
The following table summarizes our gross receivables categorized by our internal credit risk rating as of July 25, 2020 and was not restated to reflect the impact of adoption of the accounting standards update on Credit Losses on Financial Instruments:
 INTERNAL CREDIT RISK RATING
July 25, 20201 to 45 to 67 and HigherTotal
Lease receivables$992 $952 $69 $2,013 
Loan receivables3,808 1,961 168 5,937 
Financed service contracts1,645 1,153 32 2,830 
Total$6,445 $4,066 $269 $10,780 
The following tables present the aging analysis of gross receivables as of July 31, 2021 and July 25, 2020 (in millions):
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
July 31, 202131 - 6061 - 90 91+Total
Past Due		CurrentTotal120+ Still AccruingNonaccrual
Financing
Receivables		Impaired
Financing
Receivables
Lease receivables$21 $17 $29 $67 $1,565 $1,632 $1 $33 $26 
Loan receivables71 17 35 123 5,080 5,203 4 33 33 
Financed service contracts18 13 18 49 2,404 2,453 3 3 3 
Total$110 $47 $82 $239 $9,049 $9,288 $8 $69 $62 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
July 25, 202031 - 6061 - 90 91+Total
Past Due		CurrentTotalNonaccrual
Financing
Receivables		Impaired
Financing
Receivables
Lease receivables$29 $47 $48 $124 $1,889 $2,013 $43 $43 
Loan receivables129 78 78 285 5,652 5,937 65 65 
Financed service contracts69 75 124 268 2,562 2,830 4 4 
Total$227 $200 $250 $677 $10,103 $10,780 $112 $112 
Past due financing receivables are those that are 31 days or more past due according to their contractual payment terms. The data in the preceding tables is presented by contract, and the aging classification of each contract is based on the oldest outstanding receivable, and therefore past due amounts also include unbilled and current receivables within the same contract.
As of July 25, 2020, we had financing receivables of $67 million, net of unbilled or current receivables, that were greater than 120 days plus past due but remained on accrual status as they are well secured and in the process of collection.
(c)Allowance for Credit Loss Rollforward
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 25, 2020$48 $81 $9 $138 
Provisions (benefits)(10)(12)(5)(27)
Recoveries (write-offs), net(1)(1)— (2)
Foreign exchange and other1 18 (1)18 
Allowance for credit loss as of July 31, 2021$38 $86 $3 $127 
 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