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2007 Annual Report 61
Notes to Consolidated Financial Statements
5. Lease Receivables, Net
Lease receivables represent sales-type and direct-financing leases resulting from the sale of the Company’s and complementary
third-party products and services. These lease arrangements typically have terms from two to three years and are generally collateralized
by a security interest in the underlying assets. The current portion of lease receivables, net, is recorded in prepaid expenses and other
current assets, and the noncurrent portion is recorded in other assets. The net lease receivables are summarized as follows (in millions):
July 28, 2007 July 29, 2006
Gross lease receivables $ 1,140 $ 960
Unearned income and other allowances (212) (188)
Total $ 928 $ 772
Reported as:
Current $ 389 $ 308
Noncurrent 539 464
Total $ 928 $ 772
Contractual maturities of the gross lease receivables at July 28, 2007 were $499 million in fiscal 2008, $350 million in fiscal 2009, $180 million
in fiscal 2010, $81 million in fiscal 2011, and $30 million in fiscal 2012 and thereafter. Actual cash collections may differ from the contractual
maturities due to early customer buyouts, refinancings, or defaults.
6. Investments
The following tables summarize the Company’s investments (in millions):
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
ValueJuly 28, 2007
Fixed income securities:
U.S. government notes and bonds $ 6,919 $ 29 $ (8) $ 6,940
Corporate notes, bonds, and asset-backed securities 8,765 7 (57) 8,715
Municipal notes and bonds 1,643 — (1) 1,642
Total fixed income securities 17,327 36 (66) 17,297
Publicly traded equity securities 901 354 (14) 1,241
Total $ 18,228 $ 390 $ (80) $ 18,538
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
ValueJuly 29, 2006
Fixed income securities:
U.S. government notes and bonds $ 5,179 $ 3 $ (47) $ 5,135
Corporate notes, bonds, and asset-backed securities 7,950 2 (88) 7,864
Municipal notes and bonds 809 — (3) 806
Total fixed income securities 13,938 5 (138) 13,805
Publicly traded equity securities 467 252 (7) 712
Total $ 14,405 $ 257 $ (145) $ 14,517