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Financing Receivables (Tables) | 6 Months Ended
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Jan. 23, 2021
Receivables [Abstract] |
Summary of Financing Receivables | A summary of our financing receivables is presented as follows (in millions):
January 23, 2021 | Lease Receivables |  | Loan Receivables |  | Financed Service Contracts |  | Total
Gross | $ | 1,865 |  |  | $ | 5,817 |  |  | $ | 2,575 |  |  | $ | 10,257 |
Residual value | 115 |  |  | — |  |  | — |  |  | 115 |
Unearned income | (97) |  |  | — |  |  | — |  |  | (97) |
Allowance for credit loss | (43) |  |  | (96) |  |  | (9) |  |  | (148) |
Total, net | $ | 1,840 |  |  | $ | 5,721 |  |  | $ | 2,566 |  |  | $ | 10,127 |
Reported as: |  |  |  |  |  |  |
Current | $ | 868 |  |  | $ | 2,746 |  |  | $ | 1,413 |  |  | $ | 5,027 |
Noncurrent | 972 |  |  | 2,975 |  |  | 1,153 |  |  | 5,100 |
Total, net | $ | 1,840 |  |  | $ | 5,721 |  |  | $ | 2,566 |  |  | $ | 10,127 |
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 |
Schedule of Financing Receivables by Internal Credit Risk Rating by Period of Origination | Gross financing receivables(1) categorized by our internal credit risk rating by period of origination as of January 23, 2021 are summarized as follows (in millions):
|  |  | Fiscal Year |  | Six Months Ended |  |
Internal Credit Risk Rating | Prior |  | July 29, 2017 |  | July 28, 2018 |  | July 27, 2019 |  | July 25, 2020 |  | January 23, 2021 |  | Total
Lease Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
1 to 4 | $ | 10 |  |  | $ | 49 |  |  | $ | 153 |  |  | $ | 248 |  |  | $ | 331 |  |  | $ | 16 |  |  | $ | 807 |
5 to 6 | 15 |  |  | 48 |  |  | 121 |  |  | 270 |  |  | 360 |  |  | 98 |  |  | 912 |
7 and Higher | 3 |  |  | 2 |  |  | 6 |  |  | 14 |  |  | 20 |  |  | 4 |  |  | 49 |
Total Lease Receivables | $ | 28 |  |  | $ | 99 |  |  | $ | 280 |  |  | $ | 532 |  |  | $ | 711 |  |  | $ | 118 |  |  | $ | 1,768 |
Loan Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
1 to 4 | $ | 16 |  |  | $ | 141 |  |  | $ | 387 |  |  | $ | 774 |  |  | $ | 1,302 |  |  | $ | 1,053 |  |  | $ | 3,673 |
5 to 6 | 5 |  |  | 60 |  |  | 145 |  |  | 362 |  |  | 745 |  |  | 672 |  |  | 1,989 |
7 and Higher | 2 |  |  | 3 |  |  | 8 |  |  | 65 |  |  | 58 |  |  | 19 |  |  | 155 |
Total Loan Receivables | $ | 23 |  |  | $ | 204 |  |  | $ | 540 |  |  | $ | 1,201 |  |  | $ | 2,105 |  |  | $ | 1,744 |  |  | $ | 5,817 |
Financed Service Contracts: |  |  |  |  |  |  |  |  |  |  |  |  |
1 to 4 | $ | 2 |  |  | $ | 49 |  |  | $ | 51 |  |  | $ | 213 |  |  | $ | 455 |  |  | $ | 742 |  |  | $ | 1,512 |
5 to 6 | 1 |  |  | 21 |  |  | 57 |  |  | 235 |  |  | 412 |  |  | 305 |  |  | 1,031 |
7 and Higher | — |  |  | — |  |  | 2 |  |  | 15 |  |  | 12 |  |  | 3 |  |  | 32 |
Total Financed Service Contracts | $ | 3 |  |  | $ | 70 |  |  | $ | 110 |  |  | $ | 463 |  |  | $ | 879 |  |  | $ | 1,050 |  |  | $ | 2,575 |
Total | $ | 54 |  |  | $ | 373 |  |  | $ | 930 |  |  | $ | 2,196 |  |  | $ | 3,695 |  |  | $ | 2,912 |  |  | $ | 10,160 |
(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, 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 |
Schedule of Aging Analysis of Financing Receivables | The following tables present the aging analysis of gross receivables as of January 23, 2021 and July 25, 2020 (in millions):
| DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) |  |  |  |  |  |  |  |  |  |
January 23, 2021 | 31-60 |  | 61-90 |  | 91+ |  | Total Past Due |  | Current |  | Total |  | 120+ Still Accruing |  | Nonaccrual Financing Receivables |  | Impaired Financing Receivables
Lease receivables | $ | 68 |  |  | $ | 13 |  |  | $ | 83 |  |  | $ | 164 |  |  | $ | 1,604 |  |  | $ | 1,768 |  |  | $ | 2 |  |  | $ | 33 |  |  | $ | 33 |
Loan receivables | 109 |  |  | 30 |  |  | 73 |  |  | 212 |  |  | 5,605 |  |  | 5,817 |  |  | 15 |  |  | 50 |  |  | 50 |
Financed service contracts | 40 |  |  | 11 |  |  | 101 |  |  | 152 |  |  | 2,423 |  |  | 2,575 |  |  | 31 |  |  | 4 |  |  | 4 |
Total | $ | 217 |  |  | $ | 54 |  |  | $ | 257 |  |  | $ | 528 |  |  | $ | 9,632 |  |  | $ | 10,160 |  |  | $ | 48 |  |  | $ | 87 |  |  | $ | 87 |
| 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 |
Schedule of 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 January 23, 2021 | CREDIT LOSS ALLOWANCES
| Lease Receivables |  | Loan Receivables |  | Financed Service Contracts |  | Total
Allowance for credit loss as of October 24, 2020 | $ | 46 |  |  | $ | 101 |  |  | $ | 7 |  |  | $ | 154 |
Provisions (benefits) | (4) |  |  | (6) |  |  | 2 |  |  | (8) |
Other | 1 |  |  | 1 |  |  | — |  |  | 2 |
Allowance for credit loss as of January 23, 2021 | $ | 43 |  |  | $ | 96 |  |  | $ | 9 |  |  | $ | 148 |
Six months ended January 23, 2021 | 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) | (7) |  |  | (3) |  |  | 1 |  |  | (9) |
Other | 2 |  |  | 18 |  |  | (1) |  |  | 19 |
Allowance for credit loss as of January 23, 2021 | $ | 43 |  |  | $ | 96 |  |  | $ | 9 |  |  | $ | 148 |
Three months ended January 25, 2020 | CREDIT LOSS ALLOWANCES
| Lease Receivables |  | Loan Receivables |  | Financed Service Contracts |  | Total
Allowance for credit loss as of October 26, 2019 | $ | 43 |  |  | $ | 81 |  |  | $ | 9 |  |  | $ | 133 |
Provisions (benefits) | (1) |  |  | 15 |  |  | — |  |  | 14 |
Recoveries (write-offs), net | (1) |  |  | (1) |  |  | — |  |  | (2) |
Foreign exchange and other | 1 |  |  | — |  |  | (1) |  |  | — |
Allowance for credit loss as of January 25, 2020 | $ | 42 |  |  | $ | 95 |  |  | $ | 8 |  |  | $ | 145 |
Six months ended January 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) | (4) |  |  | 42 |  |  | — |  |  | 38 |
Recoveries (write-offs), net | (1) |  |  | (17) |  |  | — |  |  | (18) |
Foreign exchange and other | 1 |  |  | (1) |  |  | (1) |  |  | (1) |
Allowance for credit loss as of January 25, 2020 | $ | 42 |  |  | $ | 95 |  |  | $ | 8 |  |  | $ | 145 |

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- Definition 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. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 20 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919230-210447 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953659-111524 + Details
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