XML 29 R18.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Financing Receivables | 6 Months Ended
--- | ---
Jan. 27, 2024
Receivables [Abstract] |
Financing Receivables | Financing Receivables (a)Financing Receivables Financing receivables primarily consist of loan receivables and lease receivables. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services (including technical support and advanced services), and also may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables have terms of one year to three years on average. 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. A summary of our financing receivables is presented as follows (in millions):
January 27, 2024 | Loan Receivables |  | Lease Receivables |  | Total
Gross | $ | 5,850 |  |  | $ | 1,099 |  |  | $ | 6,949 |
Residual value | — |  |  | 70 |  |  | 70 |
Unearned income | — |  |  | (110) |  |  | (110) |
Allowance for credit loss | (53) |  |  | (16) |  |  | (69) |
Total, net | $ | 5,797 |  |  | $ | 1,043 |  |  | $ | 6,840 |
Reported as: |  |  |  |  |
Current | $ | 3,066 |  |  | $ | 410 |  |  | $ | 3,476 |
Noncurrent | 2,731 |  |  | 633 |  |  | 3,364 |
Total, net | $ | 5,797 |  |  | $ | 1,043 |  |  | $ | 6,840 |
July 29, 2023 | Loan Receivables |  | Lease Receivables |  | Total
Gross | $ | 5,910 |  |  | $ | 1,015 |  |  | $ | 6,925 |
Residual value | — |  |  | 70 |  |  | 70 |
Unearned income | — |  |  | (88) |  |  | (88) |
Allowance for credit loss | (53) |  |  | (19) |  |  | (72) |
Total, net | $ | 5,857 |  |  | $ | 978 |  |  | $ | 6,835 |
Reported as: |  |  |  |  |
Current | $ | 2,988 |  |  | $ | 364 |  |  | $ | 3,352 |
Noncurrent | 2,869 |  |  | 614 |  |  | 3,483 |
Total, net | $ | 5,857 |  |  | $ | 978 |  |  | $ | 6,835 |
(b)Credit Quality of Financing Receivables The tables below present our gross financing receivables, excluding residual value, less unearned income, categorized by our internal credit risk rating by period of origination (in millions):
January 27, 2024 |  |  | Fiscal Year |  | Six Months Ended |  |
Internal Credit Risk Rating | Prior |  | July 25, 2020 |  | July 31, 2021 |  | July 30, 2022 |  | July 29, 2023 |  | January 27, 2024 |  | Total
Loan Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
1 to 4 | $ | 24 |  |  | $ | 164 |  |  | $ | 552 |  |  | $ | 783 |  |  | $ | 1,243 |  |  | $ | 1,008 |  |  | $ | 3,774 |
5 to 6 | 6 |  |  | 67 |  |  | 169 |  |  | 256 |  |  | 629 |  |  | 821 |  |  | 1,948 |
7 and Higher | 4 |  |  | 4 |  |  | 12 |  |  | 87 |  |  | 18 |  |  | 3 |  |  | 128 |
Total Loan Receivables | $ | 34 |  |  | $ | 235 |  |  | $ | 733 |  |  | $ | 1,126 |  |  | $ | 1,890 |  |  | $ | 1,832 |  |  | $ | 5,850 |
Lease Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
1 to 4 | $ | 6 |  |  | $ | 31 |  |  | $ | 71 |  |  | $ | 71 |  |  | $ | 224 |  |  | $ | 215 |  |  | $ | 618 |
5 to 6 | 4 |  |  | 28 |  |  | 41 |  |  | 71 |  |  | 158 |  |  | 53 |  |  | 355 |
7 and Higher | 1 |  |  | 1 |  |  | 2 |  |  | 4 |  |  | 5 |  |  | 3 |  |  | 16 |
Total Lease Receivables | $ | 11 |  |  | $ | 60 |  |  | $ | 114 |  |  | $ | 146 |  |  | $ | 387 |  |  | $ | 271 |  |  | $ | 989 |
Total | $ | 45 |  |  | $ | 295 |  |  | $ | 847 |  |  | $ | 1,272 |  |  | $ | 2,277 |  |  | $ | 2,103 |  |  | $ | 6,839 |
July 29, 2023 |  |  | Fiscal Year |  |
Internal Credit Risk Rating | Prior |  | July 27, 2019 |  | July 25, 2020 |  | July 31, 2021 |  | July 30, 2022 |  | July 29, 2023 |  | Total
Loan Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
1 to 4 | $ | 10 |  |  | $ | 53 |  |  | $ | 251 |  |  | $ | 791 |  |  | $ | 1,077 |  |  | $ | 1,784 |  |  | $ | 3,966 |
5 to 6 | 3 |  |  | 14 |  |  | 131 |  |  | 287 |  |  | 465 |  |  | 936 |  |  | 1,836 |
7 and Higher | 1 |  |  | 7 |  |  | 15 |  |  | 17 |  |  | 29 |  |  | 39 |  |  | 108 |
Total Loan Receivables | $ | 14 |  |  | $ | 74 |  |  | $ | 397 |  |  | $ | 1,095 |  |  | $ | 1,571 |  |  | $ | 2,759 |  |  | $ | 5,910 |
Lease Receivables: |  |  |  |  |  |  |  |  |  |  |  |  |
1 to 4 | $ | 2 |  |  | $ | 20 |  |  | $ | 57 |  |  | $ | 111 |  |  | $ | 84 |  |  | $ | 235 |  |  | $ | 509 |
5 to 6 | 2 |  |  | 13 |  |  | 44 |  |  | 58 |  |  | 87 |  |  | 191 |  |  | 395 |
7 and Higher | — |  |  | 1 |  |  | 2 |  |  | 4 |  |  | 5 |  |  | 11 |  |  | 23 |
Total Lease Receivables | $ | 4 |  |  | $ | 34 |  |  | $ | 103 |  |  | $ | 173 |  |  | $ | 176 |  |  | $ | 437 |  |  | $ | 927 |
Total | $ | 18 |  |  | $ | 108 |  |  | $ | 500 |  |  | $ | 1,268 |  |  | $ | 1,747 |  |  | $ | 3,196 |  |  | $ | 6,837 |
The following tables present the aging analysis of gross receivables as of January 27, 2024 and July 29, 2023 (in millions):
| DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) |  |  |  |  |  |  |  |  |  |
January 27, 2024 | 31-60 |  | 61-90 |  | 91+ |  | Total Past Due |  | Current |  | Total |  | 120+ Still Accruing |  | Nonaccrual Financing Receivables |  | Impaired Financing Receivables
Loan receivables | $ | 55 |  |  | $ | 32 |  |  | $ | 74 |  |  | $ | 161 |  |  | $ | 5,689 |  |  | $ | 5,850 |  |  | $ | 23 |  |  | $ | 8 |  |  | $ | 8 |
Lease receivables | 19 |  |  | 8 |  |  | 21 |  |  | 48 |  |  | 941 |  |  | 989 |  |  | 11 |  |  | 2 |  |  | 2 |
Total | $ | 74 |  |  | $ | 40 |  |  | $ | 95 |  |  | $ | 209 |  |  | $ | 6,630 |  |  | $ | 6,839 |  |  | $ | 34 |  |  | $ | 10 |  |  | $ | 10 |
| DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) |  |  |  |  |  |  |  |  |  |
July 29, 2023 | 31-60 |  | 61-90 |  | 91+ |  | Total Past Due |  | Current |  | Total |  | 120+ Still Accruing |  | Nonaccrual Financing Receivables |  | Impaired Financing Receivables
Loan receivables | $ | 47 |  |  | $ | 20 |  |  | $ | 37 |  |  | $ | 104 |  |  | $ | 5,806 |  |  | $ | 5,910 |  |  | $ | 17 |  |  | $ | 12 |  |  | $ | 12 |
Lease receivables | 16 |  |  | 4 |  |  | 23 |  |  | 43 |  |  | 884 |  |  | 927 |  |  | 6 |  |  | 3 |  |  | 3 |
Total | $ | 63 |  |  | $ | 24 |  |  | $ | 60 |  |  | $ | 147 |  |  | $ | 6,690 |  |  | $ | 6,837 |  |  | $ | 23 |  |  | $ | 15 |  |  | $ | 15 |
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. (c)Allowance for Credit Loss Rollforward The allowances for credit loss and the related financing receivables are summarized as follows (in millions):
Three Months Ended January 27, 2024 | CREDIT LOSS ALLOWANCES
| Loan Receivables |  | Lease Receivables |  | Total
Allowance for credit loss as of October 28, 2023 | $ | 58 |  |  | $ | 16 |  |  | $ | 74 |
Provisions (benefits) | (1) |  |  | — |  |  | (1) |
Recoveries (write-offs), net | (4) |  |  | — |  |  | (4) |
Allowance for credit loss as of January 27, 2024 | $ | 53 |  |  | $ | 16 |  |  | $ | 69 |
Three Months Ended January 28, 2023 | CREDIT LOSS ALLOWANCES
| Loan Receivables |  | Lease Receivables |  | Total
Allowance for credit loss as of October 29, 2022 | $ | 101 |  |  | $ | 19 |  |  | $ | 120 |
Provisions (benefits) | (3) |  |  | (1) |  |  | (4) |
Other | (4) |  |  | 1 |  |  | (3) |
Allowance for credit loss as of January 28, 2023 | $ | 94 |  |  | $ | 19 |  |  | $ | 113 |
Six Months Ended January 27, 2024 | CREDIT LOSS ALLOWANCES
| Loan Receivables |  | Lease Receivables |  | Total
Allowance for credit loss as of July 29, 2023 | $ | 53 |  |  | $ | 19 |  |  | $ | 72 |
Provisions (benefits) | 4 |  |  | (3) |  |  | 1 |
Recoveries (write-offs), net | (4) |  |  | — |  |  | (4) |
Allowance for credit loss as of January 27, 2024 | $ | 53 |  |  | $ | 16 |  |  | $ | 69 |
Six Months Ended January 28, 2023 | CREDIT LOSS ALLOWANCES
| Loan Receivables |  | Lease Receivables |  | Total
Allowance for credit loss as of July 30, 2022 | $ | 103 |  |  | $ | 23 |  |  | $ | 126 |
Provisions (benefits) | (4) |  |  | (4) |  |  | (8) |
Other | (5) |  |  | — |  |  | (5) |
Allowance for credit loss as of January 28, 2023 | $ | 94 |  |  | $ | 19 |  |  | $ | 113 |

X
- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Subparagraph (a)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-42 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 12A -Publisher FASB -URI https://asc.fasb.org//1943274/2147481933/310-10-55-12A Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 44 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481962/310-10-50-44 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-10/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 310 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//310-20/tableOfContent + Details
Name: | us-gaap_FinancingReceivablesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration