Cisco 2012 Annual Report Download - page 110

Download and view the complete annual report

Please find page 110 of the 2012 Cisco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

(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 and Other Total
Allowance for credit loss as of July 30, 2011 ................ $ 237 $ 103 $ 27 $ 367
Provisions ............................................. 22 22 (13) 31
Write-offs net of recoveries .............................. (2) — (1) (3)
Foreign exchange and other .............................. (10) (3) (2) (15)
Allowance for credit loss as of July 28, 2012 ................ $ 247 $ 122 $ 11 $ 380
Gross receivables as of July 28, 2012, net of unearned income .. $3,179 $1,796 $2,651 $7,626
CREDIT LOSS ALLOWANCES
Lease
Receivables
Loan
Receivables
Financed Service
Contracts and Other Total
Allowance for credit loss as of July 31, 2010 .................. $ 207 $ 73 $ 21 $ 301
Provisions ............................................. 31 43 8 82
Write-offs net of recoveries ............................... (13) (18) (2) (33)
Foreign exchange and other ............................... 12 5 — 17
Allowance for credit loss as of July 30, 2011 .................. $ 237 $ 103 $ 27 $ 367
Gross receivables as of July 30, 2011, net of unearned income .... $2,861 $1,468 $2,637 $6,966
Financing receivables that were individually evaluated for impairment during the fiscal years presented were not
material and therefore are not presented separately in the preceding table.
(d) Financing Guarantees
In the ordinary course of business, the Company provides financing guarantees for various third-party financing
arrangements extended to channel partners and end-user customers. Payments under these financing guarantee
arrangements were not material for the periods presented.
Channel Partner Financing Guarantees The Company facilitates arrangements for third-party financing extended
to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60
to 90 days. These financing arrangements facilitate the working capital requirements of the channel partners, and,
in some cases, the Company guarantees a portion of these arrangements. The volume of channel partner
financing was $21.3 billion, $18.2 billion and $17.2 billion for fiscal 2012, 2011, and 2010, respectively. The
balance of the channel partner financing subject to guarantees was $1.2 billion and $1.4 billion as of July 28,
2012 and July 30, 2011, respectively.
End-User Financing Guarantees The Company also provides financing guarantees for third-party financing
arrangements extended to end-user customers related to leases and loans, which typically have terms of up to
three years. The volume of financing provided by third parties for leases and loans for which the Company had
provided guarantees was $227 million for fiscal 2012, $247 million for fiscal 2011 and $180 million for fiscal
2010.
102