Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 29, 2022 | Aug. 24, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 29, 2022 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NTAP | |
Entity Registrant Name | NetApp, Inc. | |
Entity Central Index Key | 0001002047 | |
Current Fiscal Year End Date | --04-28 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 217,365,705 | |
Entity File Number | 000-27130 | |
Entity Tax Identification Number | 77-0307520 | |
Entity Address, Address Line One | 3060 Olsen Drive | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95128 | |
City Area Code | 408 | |
Local Phone Number | 822-6000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, $0.001 Par Value |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 3,288 | $ 4,112 |
Short-term investments | 151 | 22 |
Accounts receivable | 865 | 1,230 |
Inventories | 232 | 204 |
Other current assets | 386 | 377 |
Total current assets | 4,922 | 5,945 |
Property and equipment, net | 622 | 602 |
Goodwill | 2,767 | 2,346 |
Other intangible assets, net | 232 | 142 |
Other non-current assets | 1,001 | 991 |
Total assets | 9,544 | 10,026 |
Current liabilities: | ||
Accounts payable | 515 | 607 |
Accrued expenses | 722 | 925 |
Current portion of long-term debt | 250 | 250 |
Short-term deferred revenue and financed unearned services revenue | 2,088 | 2,171 |
Total current liabilities | 3,575 | 3,953 |
Long-term debt | 2,387 | 2,386 |
Other long-term liabilities | 843 | 788 |
Long-term deferred revenue and financed unearned services revenue | 2,082 | 2,061 |
Total liabilities | 8,887 | 9,188 |
Commitments and contingencies (Note 15) | 0 | 0 |
Stockholders' equity: | ||
Common stock and additional paid-in capital, $0.001 par value; 223 and 220 shares issued and outstanding as of July 29, 2022 and April 29, 2022, respectively | 705 | 760 |
Retained earnings | 0 | 122 |
Accumulated other comprehensive loss | (48) | (44) |
Total stockholders' equity | 657 | 838 |
Total liabilities and stockholders' equity | $ 9,544 | $ 10,026 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 218 | 220 |
Common stock, shares outstanding | 218 | 220 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Net revenues: | ||
Net revenues | $ 1,592 | $ 1,458 |
Cost of revenues: | ||
Total cost of revenues | 546 | 459 |
Gross profit | 1,046 | 999 |
Operating expenses: | ||
Sales and marketing | 458 | 451 |
Research and development | 240 | 210 |
General and administrative | 72 | 66 |
Restructuring charges | 11 | 22 |
Acquisition-related expense | 10 | 1 |
Total operating expenses | 791 | 750 |
Income from operations | 255 | 249 |
Other expense, net | 15 | (12) |
Income before income taxes | 270 | 237 |
Provision for income taxes | 56 | 35 |
Net income | $ 214 | $ 202 |
Net income per share: | ||
Basic | $ 0.97 | $ 0.91 |
Diluted | $ 0.96 | $ 0.88 |
Shares used in net income per share calculations: | ||
Basic | 220 | 223 |
Diluted | 224 | 229 |
Product [Member] | ||
Net revenues: | ||
Net revenues | $ 786 | $ 730 |
Cost of revenues: | ||
Total cost of revenues | 397 | 329 |
Service [Member] | ||
Net revenues: | ||
Net revenues | 806 | 728 |
Cost of revenues: | ||
Total cost of revenues | $ 149 | $ 130 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 214 | $ 202 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (3) | (4) |
Unrealized gains (losses) on available-for-sale securities: | ||
Unrealized holding gains (losses) arising during the period | 0 | (1) |
Unrealized gains (losses) on cash flow hedges: | ||
Unrealized holding gains (losses) arising during the period | 0 | 1 |
Reclassification adjustments for gains included in net income | (1) | 0 |
Other comprehensive income (loss) | (4) | (4) |
Comprehensive income | $ 210 | $ 198 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 214 | $ 202 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 58 | 46 |
Non-cash operating lease cost | 14 | 13 |
Stock-based compensation | 67 | 53 |
Deferred income taxes | (15) | (15) |
Other items, net | (66) | 4 |
Changes in assets and liabilities, net of acquisitions of businesses: | ||
Accounts receivable | 364 | 287 |
Inventories | (28) | 6 |
Other operating assets | 1 | 29 |
Accounts payable | (90) | (51) |
Accrued expenses | (208) | (242) |
Deferred revenue and financed unearned services revenue | (32) | (82) |
Long-term taxes payable | 1 | (8) |
Other operating liabilities | 1 | 0 |
Net cash provided by operating activities | 281 | 242 |
Cash flows from investing activities: | ||
Purchases of investments | (133) | (5) |
Maturities, sales and collections of investments | 2 | 16 |
Purchases of property and equipment | (65) | (51) |
Acquisitions of businesses, net of cash acquired | (491) | (14) |
Other investing activities, net | 59 | 0 |
Net cash used in investing activities | (628) | (54) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock award plans | 54 | 53 |
Payments for taxes related to net share settlement of stock awards | (52) | (57) |
Repurchase of common stock | (350) | (100) |
Dividends paid | (110) | (112) |
Other financing activities, net | (1) | (2) |
Net cash (used in) provided by financing activities | (459) | (218) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (18) | (5) |
Net change in cash, cash equivalents and restricted cash | (824) | (35) |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 4,119 | |
End of period | $ 3,295 | $ 4,500 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balances at Apr. 30, 2021 | $ 685 | $ 504 | $ 211 | $ (30) |
Balances (in shares) at Apr. 30, 2021 | 222 | |||
Net income | 202 | 202 | ||
Other comprehensive income (loss) | (4) | (4) | ||
Issuance of common stock under employee stock award plans, net of taxes | (4) | $ (4) | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 3 | |||
Repurchase of common stock | (100) | $ (3) | (97) | |
Repurchase of common stock, shares | (1) | |||
Stock-based compensation | 53 | $ 53 | ||
Cash dividends declared ($0.50 per common share) | (112) | (112) | ||
Balances at Jul. 30, 2021 | 720 | $ 550 | 204 | (34) |
Balances (in shares) at Jul. 30, 2021 | 224 | |||
Balances at Apr. 29, 2022 | $ 838 | $ 760 | 122 | (44) |
Balances (in shares) at Apr. 29, 2022 | 220 | 220 | ||
Net income | $ 214 | 214 | ||
Other comprehensive income (loss) | (4) | (4) | ||
Issuance of common stock under employee stock award plans, net of taxes | 2 | $ 2 | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 3 | |||
Repurchase of common stock | $ (350) | $ (18) | (332) | |
Repurchase of common stock, shares | (5) | (5) | ||
Stock-based compensation | $ 67 | $ 67 | ||
Cash dividends declared ($0.50 per common share) | (110) | (106) | $ (4) | |
Balances at Jul. 29, 2022 | $ 657 | $ 705 | $ (48) | |
Balances (in shares) at Jul. 29, 2022 | 218 | 218 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared, per common share | $ 0.50 | $ 0.50 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Jul. 29, 2022 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies NetApp, Inc. (we, us, or the Company) is a global cloud-led, data-centric software company that provides organizations the ability to manage and share their data across on-premises, private and public clouds. We provide a full range of enterprise-class software, systems and services solutions that customers use to modernize their infrastructures, build next generation data centers and harness the power of hybrid clouds. Basis of Presentation and Preparation Our fiscal year is reported on a 52- or 53-week year ending on the last Friday in April. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal months with calendar months. Fiscal years 2023 and 2022, ending on April 28, 2023, and April 29, 2022, respectively, are each 52-week years, with 13 weeks in each quarter. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company, and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, comprehensive income, cash flows and stockholders’ equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all information and footnotes required by GAAP for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended April 29, 2022 contained in our Annual Report on Form 10-K. The results of operations for the three months ended July 29, 2022 are not necessarily indicative of the operating results to be expected for the full fiscal year or future operating periods. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, reserves and allowances; inventory valuation; valuation of goodwill and intangibles; restructuring reserves; employee benefit accruals; stock-based compensation; loss contingencies; investment impairments; income taxes and fair value measurements. Actual results could differ materially from those estimates. Management’s estimates include, as applicable, the anticipated impacts of the COVID-19 pandemic. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Jul. 29, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | 2. Recent Accounting Pronouncements Although there are new accounting pronouncements issued or proposed by the FASB that we have adopted or will adopt, as applicable, we do not believe any of these accounting pronouncements had or will have a material impact on our consolidated financial position, operating results, cash flows or disclosures. |
Business Combinations
Business Combinations | 3 Months Ended |
Jul. 29, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combinations Fiscal 2023 Acquisition Instaclustr Inc. Acquisition On May 20, 2022, we acquired all the outstanding shares of privately-held Instaclustr Inc., (Instaclustr) for approximately $ 498 million. Instaclustr is a leading platform provider of fully managed open-source database, pipeline and workflow applications delivered as-a-service. The preliminary acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 4 Intangible assets 107 Goodwill 421 Other assets 15 Total assets acquired 547 Liabilities assumed ( 49 ) Total purchase price $ 498 The components of the intangible assets acquired were as follows (in millions, except useful life): Amount Estimated useful life Developed technology $ 55 5 Customer contracts/relationships 50 5 Trade name 2 3 Total intangible assets $ 107 The acquired net assets and assumed debt of Instaclustr were recorded at their estimated values. We determined the estimated values with the assistance of valuations and appraisals performed by third party specialists and estimates made by management. We expect to realize revenue synergies and anticipate opportunities for growth through the ability to leverage additional future products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated value of their identifiable net assets acquired, and as a result, we have recorded goodwill in connection with the acquisition. The goodwill is not deductible for income tax purposes. The results of operations related to the acquisition of Instaclustr have been included in our condensed consolidated statements of income from the acquisition date. Pro forma results of operations have not been presented because the impact from the acquisition was not material to our consolidated results of operations. Fiscal 2022 Acquisitions Fylamynt Acquisition On February 18, 2022, we acquired all the outstanding shares of privately-held NeurOps Inc. (which operated under the name "Fylamynt") for approximately $ 27 million in cash, of which $ 22 million was paid at closing. The purchase price includes $ 5 million related to an indemnity holdback provision, of which $ 4 million is expected to be paid within 12 months from the acquisition date. Fylamynt is an innovative CloudOps automation technology company that enables customers to build, run, manage and analyze workflows securely in any cloud with little to no code. The preliminary acquisition-date values of the assets acquired are as follows (in millions): Amount Cash $ 1 Developed technology 6 Goodwill 20 Total assets acquired 27 Total purchase price $ 27 CloudCheckr Acquisition On November 5, 2021, we acquired all the outstanding shares of privately-held CloudCheckr Inc. (CloudCheckr) for approximately $ 347 million in cash. CloudCheckr is a leading cloud optimization platform that provides cloud visibility and insights to lower costs, maintain security and compliance, and optimize cloud resources. The acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 2 Intangible assets 76 Goodwill 276 Other assets 6 Total assets acquired 360 Liabilities assumed ( 13 ) Total purchase price $ 347 The components of the intangible assets acquired were as follows (in millions, except useful life): Amount Estimated useful life Developed technology $ 45 5 Customer contracts/relationships 30 5 Trade name 1 3 Total intangible assets $ 76 Data Mechanics Acquisition On June 18, 2021, we acquired all the outstanding shares of privately-held Data Mechanics Inc., a provider of managed platforms for big data processing and cloud analytics headquartered in Paris, France, for approximately $ 15 million in cash . The acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 1 Developed technology 5 Goodwill 11 Total assets acquired 17 Liabilities assumed ( 2 ) Total purchase price $ 15 The acquired assets and assumed liabilities of Fylamynt, CloudCheckr and Data Mechanics were recorded at their estimated values. We determined the estimated values with the assistance of valuations and appraisals performed by third party specialists and estimates made by management. We expect to realize incremental revenue by offering continuous cost optimization and managed services from our existing capabilities to help customers improve their cloud resources and realize the benefits of cloud faster and at scale. We also anticipate opportunities for growth through the ability to leverage additional future products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated fair value of their identifiable net assets acquired, and as a result, we have recorded goodwill in connection with these acquisitions. The goodwill is not deductible for income tax purposes. The results of operations related to the acquisitions of Fylamynt, CloudCheckr and Data Mechanics have been included in our consolidated statements of income from their respective acquisition dates. Pro forma results of operations have not been presented because the impact from these acquisitions was not material to our consolidated results of operations. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets, Net | 3 Months Ended |
Jul. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets, Net | 4. Goodwill and Purchased Intangible Assets, Net Goodwill activity is summarized as follows (in millions): Amount Balance as of April 29, 2022 $ 2,346 Additions 421 Balance as of July 29, 2022 $ 2,767 The goodwill addition of $ 421 million related to the acquisition of Instaclustr has been allocated to our Public Cloud segment. Goodwill by reportable segment as of July 29, 2022 is as follows (in millions): Amount Hybrid Cloud $ 1,714 Public Cloud 1,053 Total goodwill $ 2,767 Purchased intangible assets, net are summarized below (in millions): July 29, April 29, Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 212 $ ( 76 ) $ 136 $ 157 $ ( 65 ) $ 92 Customer contracts/relationships 118 ( 25 ) 93 68 ( 20 ) 48 Other purchased intangibles 6 ( 3 ) 3 4 ( 2 ) 2 Total purchased intangible assets $ 336 $ ( 104 ) $ 232 $ 229 $ ( 87 ) $ 142 Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Statements of July 29, July 30, Income Developed technology $ 10 $ 7 Cost of revenues Customer contracts/relationships 6 1 Operating expenses Other purchased intangibles 1 1 Operating expenses Total $ 17 $ 9 As of July 29, 2022, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount 2023 (remainder) $ 51 2024 57 2025 55 2026 39 2027 29 2028 1 Total $ 232 |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Jul. 29, 2022 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | 5. Supplemental Financial Information Cash and cash equivalents (in millions): The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows: July 29, April 29, Cash and cash equivalents $ 3,288 $ 4,112 Restricted cash 7 7 Cash, cash equivalents and restricted cash $ 3,295 $ 4,119 Inventories (in millions): July 29, April 29, Purchased components $ 145 $ 131 Finished goods 87 73 Inventories $ 232 $ 204 Property and equipment, net (in millions): July 29, April 29, Land $ 46 $ 46 Buildings and improvements 354 353 Leasehold improvements 93 92 Computer, production, engineering and other equipment 944 904 Computer software 321 316 Furniture and fixtures 77 76 Construction-in-progress 67 65 1,902 1,852 Accumulated depreciation and amortization ( 1,280 ) ( 1,250 ) Property and equipment, net $ 622 $ 602 Other non-current assets (in millions): July 29, April 29, Deferred tax assets $ 377 $ 362 Operating lease ROU assets 318 294 Other assets 306 335 Other non-current assets $ 1,001 $ 991 Other non-current assets as of July 29, 2022 and April 29, 2022 include $ 75 million and $ 73 million, respectively, for our 49 % non-controlling equity interest in Lenovo NetApp Technology Limited (LNTL), a China-based entity that we formed with Lenovo (Beijing) Information Technology Ltd. in fiscal 2019. LNTL is integral to our sales channel strategy in China, acting as a distributor of our offerings to customers headquartered there, and involved in certain OEM sales to Lenovo. LNTL is also focused on localizing our products and services, and developing new joint offerings for the China market by leveraging NetApp and Lenovo technologies. Our sales to LNTL are conducted on terms equivalent to those prevailing in an arm’s length transaction. Accrued expenses (in millions): July 29, April 29, Accrued compensation and benefits $ 282 $ 462 Product warranty liabilities 17 17 Operating lease liabilities 50 47 Other current liabilities 373 399 Accrued expenses $ 722 $ 925 Other long-term liabilities (in millions): July 29, April 29, Liability for uncertain tax positions $ 137 $ 131 Income taxes payable 303 303 Product warranty liabilities 9 9 Operating lease liabilities 278 257 Other liabilities 116 88 Other long-term liabilities $ 843 $ 788 Deferred revenue and financed unearned services revenue The following table summarizes the components of our deferred revenue and financed unearned services revenue balance as reported in our condensed consolidated balance sheets (in millions): July 29, April 29, Deferred product revenue $ 36 $ 31 Deferred services revenue 4,079 4,140 Financed unearned services revenue 55 61 Total $ 4,170 $ 4,232 Reported as: Short-term $ 2,088 $ 2,171 Long-term 2,082 2,061 Total $ 4,170 $ 4,232 Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware support contracts, certain public cloud services and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 15 – Commitments and Contingencies for additional information related to these arrangements. During the three months ended July 29, 2022 and July 30, 2021, we recognized revenue of $ 706 million and $ 617 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods. As of July 29, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied approximated our deferred revenue and unearned services revenue balance. Because customer orders are typically placed on an as-needed basis, and cancellable without penalty prior to shipment, orders in backlog may not be a meaningful indicator of future revenue and have not been included in this amount. We expect to recognize as revenue approximately 50 % of our deferred revenue and financed unearned services revenue balance in the next 12 months, approximately 23 % in the next 13 to 24 months, and the remainder thereafter. Deferred commissions The following table summarizes deferred commissions balances as reported in our condensed consolidated balance sheets (in millions): July 29, April 29, Other current assets $ 83 $ 80 Other non-current assets 111 117 Total deferred commissions $ 194 $ 197 Other income (expense), net (in millions): Three Months Ended July 29, July 30, Interest income $ 7 $ 2 Interest expense ( 18 ) ( 18 ) Other, net 26 4 Total other income (expense), net $ 15 $ ( 12 ) In the first quarter of fiscal 2023, Other, net includes a $ 32 million gain recognized on our sale of a minority equity interest in a privately held company for proceeds of approximately $ 59 million. Statements of cash flows additional information (in millions): Supplemental cash flow information related to our operating leases is included in Note 8 ─ Leases. Non-cash investing and financing activities and other supplemental cash flow information are presented below: Three Months Ended July 29, July 30, Non-cash Investing and Financing Activities: Capital expenditures incurred but not paid $ 20 $ 15 Liabilities incurred to former owners of acquired business $ 3 $ — Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 12 $ 17 Interest paid $ 27 $ 27 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Jul. 29, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments and Fair Value Measurements | 6. Financial Instruments and Fair Value Measurements The accounting guidance for fair value measurements provides a framework for measuring fair value on either a recurring or nonrecurring basis, whereby the inputs used in valuation techniques are assigned a hierarchical level. The following are the three levels of inputs to measure fair value: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs that reflect quoted prices for identical assets or liabilities in less active markets; quoted prices for similar assets or liabilities in active markets; benchmark yields, reported trades, broker/dealer quotes, inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Unobservable inputs that reflect our own assumptions incorporated in valuation techniques used to measure fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our own or the counterparty’s non-performance risk is considered in measuring the fair values of liabilities and assets, respectively. Investments The following is a summary of our investments at their cost or amortized cost for the periods ended July 29, 2022 and April 29, 2022 (in millions): July 29, April 29, Corporate bonds $ 9 $ 9 U.S. Treasury and government debt securities 142 13 Certificates of deposit 69 71 Mutual funds 38 36 Total debt and equity securities $ 258 $ 129 The fair value of our investments approximates their cost or amortized cost for both periods presented. Investments in mutual funds relate to the non-qualified deferred compensation plan offered to certain employees. As of July 29, 2022, all our debt investments are due to mature in one year or less. Fair Value of Financial Instruments The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions): July 29, 2022 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 3,219 $ 3,219 $ — Corporate bonds 9 — 9 U.S. Treasury and government debt securities 142 142 — Certificates of deposit 69 — 69 Total cash, cash equivalents and short-term investments $ 3,439 $ 3,361 $ 78 Other items: Mutual funds (1) $ 7 $ 7 $ — Mutual funds (2) $ 31 $ 31 $ — Foreign currency exchange contracts assets (1) $ 4 $ — $ 4 Foreign currency exchange contracts liabilities (3) $ ( 13 ) $ — $ ( 13 ) April 29, 2022 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 4,041 $ 4,041 $ — Corporate bonds 9 — 9 U.S. Treasury and government debt securities 13 13 — Certificates of deposit 71 — 71 Total cash, cash equivalents and short-term investments $ 4,134 $ 4,054 $ 80 Other items: Mutual funds (1) $ 6 $ 6 $ — Mutual funds (2) $ 30 $ 30 $ — Foreign currency exchange contracts assets (1) $ 2 $ — $ 2 Foreign currency exchange contracts liabilities (3) $ ( 29 ) $ — $ ( 29 ) (1) Reported as other current assets in the condensed consolidated balance sheets (2) Reported as other non-current assets in the condensed consolidated balance sheets (3) Reported as accrued expenses in the condensed consolidated balance sheets Our Level 2 debt instruments are held by a custodian who prices some of the investments using standard inputs in various asset price models or obtains investment prices from third-party pricing providers that incorporate standard inputs in various asset price models. These pricing providers utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. We review Level 2 inputs and fair value for reasonableness and the values may be further validated by comparison to multiple independent pricing sources. In addition, we review third-party pricing provider models, key inputs and assumptions and understand the pricing processes at our third-party providers in determining the overall reasonableness of the fair value of our Level 2 debt instruments. As of July 29, 2022 and April 29, 2022, we have not made any adjustments to the prices obtained from our third-party pricing providers. Fair Value of Debt As of July 29, 2022 and April 29, 2022, the fair value of our long-term debt was approximately $ 2,472 million and $ 2,491 million, respectively. The fair value of our long-term debt was based on observable market prices in a less active market. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jul. 29, 2022 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 7. Financing Arrangements Long-Term Debt The following table summarizes information relating to our long-term debt, which we collectively refer to as our Senior Notes (in millions, except interest rates): Effective Interest Rate July 29, April 29, 3.25% Senior Notes Due December 2022 3.43 % $ 250 $ 250 3.30% Senior Notes Due September 2024 3.42 % 400 400 1.875% Senior Notes Due June 2025 2.03 % 750 750 2.375% Senior Notes Due June 2027 2.51 % 550 550 2.70% Senior Notes Due June 2030 2.81 % 700 700 Total principal amount 2,650 2,650 Unamortized discount and issuance costs ( 13 ) ( 14 ) Total senior notes 2,637 2,636 Less: Current portion of long-term debt ( 250 ) ( 250 ) Total long-term debt $ 2,387 $ 2,386 Senior Notes Our $ 750 million aggregate principal amount of 1.875 % Senior Notes due 2025, $ 550 million aggregate principal amount of 2.375 % Senior Notes due 2027 and $ 700 million aggregate principal amount of 2.70 % Senior Notes due 2030, were issued in June 2020. Interest on these Senior Notes is payable semi-annually in June and December. Our 3.30 % Senior Notes, with a principal amount of $ 400 million, were issued in September 2017 with interest paid semi-annually in March and September. Our 3.25 % Senior Notes, with a principal amount of $ 250 million, were issued in December 2012 with interest paid semi-annually in June and December. Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any existing and future senior unsecured indebtedness. We may redeem the Senior Notes in whole or in part, at any time at our option at specified redemption prices. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Senior Notes under specified terms. The Senior Notes also include covenants that limit our ability to incur debt secured by liens on assets or on shares of stock or indebtedness of our subsidiaries; to engage in certain sale and lease-back transactions; and to consolidate, merge or sell all or substantially all of our assets. As of July 29, 2022, we were in compliance with all covenants associated with the Senior Notes. In August 2022, we called for redemption of the aggregate principal amount of 3.25 % Senior Notes due December 2022. The aggregate redemption price to be paid is $ 252 million, comprised of the principal and unpaid interest. The redemption date is September 15, 2022. As of July 29, 2022, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2023 (remainder) $ 250 2024 — 2025 400 2026 750 2027 — Thereafter 1,250 Total $ 2,650 Commercial Paper Program and Credit Facility We have a commercial paper program (the Program), under which we may issue unsecured commercial paper notes. Amounts available under the Program, as amended in July 2017, may be borrowed, repaid and re-borrowed, with the aggregate face or principal amount of the notes outstanding under the Program at any time not to exceed $ 1.0 billion. The maturities of the notes can vary, but may not exceed 397 days from the date of issue. The notes are sold under customary terms in the commercial paper market and may be issued at a discount from par or, alternatively, may be sold at par and bear interest at rates dictated by market conditions at the time of their issuance. The proceeds from the issuance of the notes are used for general corporate purposes. There were no commercial paper notes outstanding as of July 29, 2022 or April 29, 2022. In connection with the Program, we have a senior unsecured credit agreement with a syndicated group of lenders. The credit agreement, which was amended in January 2021, provides for a $ 1.0 billion revolving unsecured credit facility, with a sublimit of $ 50 million available for the issuance of letters of credit on our behalf. The credit facility matures on January 22, 2026 , with an option for us to extend the maturity date for two additional 1 -year periods, subject to certain conditions. The proceeds of the loans may be used by us for general corporate purposes and as liquidity support for our existing commercial paper program. As of July 29, 2022, we were compliant with all associated covenants in the agreement . No amounts were drawn against this credit facility during any of the periods presented. |
Leases
Leases | 3 Months Ended |
Jul. 29, 2022 | |
Leases [Abstract] | |
Leases | 8. Leases We lease real estate, equipment and automobiles in the U.S. and internationally. Our real estate leases, which are responsible for the majority of our aggregate ROU asset and liability balances, include leases for office space, data centers and other facilities, and as of July 29, 2022, have remaining lease terms not exceeding 19 years. Some of these leases contain options that allow us to extend or terminate the lease agreement. Our equipment leases are primarily for servers and networking equipment and as of July 29, 2022, have remaining lease terms not exceeding 4 years. As of July 29, 2022, our automobile leases have remaining lease terms not exceeding 4 years. All our leases are classified as operating leases except for certain immaterial equipment finance leases. The components of lease cost related to our operating leases were as follows (in millions): Three Months Ended July 29, July 30, Operating lease cost $ 15 $ 15 Variable lease cost 4 4 Total lease cost $ 19 $ 19 Variable lease cost is primarily attributable to amounts paid to lessors for common area maintenance and utility charges under our real estate leases. The supplemental cash flow information related to our operating leases is as follows (in millions): Three Months Ended July 29, July 30, Cash paid for amounts included in the measurement of operating lease liabilities $ 14 $ 13 Right-of-use assets obtained in exchange for new operating lease obligations $ 38 $ 159 The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): July 29, April 29, Other non-current assets $ 318 $ 294 Total operating lease ROU assets $ 318 $ 294 Accrued expenses $ 50 $ 47 Other long-term liabilities 278 257 Total operating lease liabilities $ 328 $ 304 Weighted Average Remaining Lease Term 9.6 years 9.6 years Weighted Average Discount Rate 2.9 % 2.8 % Future minimum operating lease payments as of July 29, 2022, are as follows (in millions): Fiscal Year Operating Leases 2023 (remainder) $ 44 2024 52 2025 42 2026 37 2027 33 Thereafter 175 Total lease payments 383 Less: Interest ( 55 ) Total $ 328 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 29, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Restricted Stock Units We granted approximately 5 million restricted stock units (RSUs) with a weighted average grant date fair value of $ 58.42 per share, including performance-based RSUs (PBRSUs), during the three months ended July 29, 2022. In the three months ended July 29, 2022, we granted PBRSUs to certain of our executives. Each PBRSU has performance-based vesting criteria (in addition to the service-based vesting criteria) such that the PBRSUs cliff-vest at the end of an approximate one , two or three year performance period, which began on the date specified in the grant agreements and typically ends on the last day of the first, second or third fiscal year, respectively, following the grant date. The number of shares of common stock that will be issued to settle most of these PBRSUs at the end of the applicable performance and service period will range from 0 % to 200 % of a target number of shares originally granted. For half of the PBRSUs granted in the three months ended July 29, 2022, the number of shares issued will depend upon our Total Stockholder Return (TSR) as compared to the TSR of a specified group of benchmark peer companies (each expressed as a growth rate percentage) calculated as of the end of the performance period. The fair values of these TSR performance-based awards were fixed at grant date using a Monte Carlo simulation model. For the remaining half of the PBRSUs granted in the three months ended July 29, 2022, the number of shares issued will depend upon the Company's billings result average over the three-year performance period as compared to a predetermined billings target. Billings for purposes of measuring the performance of these PBRSUs means the total obtained by adding net revenues as reported on the Company's Consolidated Statements of Income to the amount reported as the change in deferred revenue and financed unearned services revenue on the Consolidated Statements of Cash Flows for the applicable measurement period, excluding the impact of f luctuations in foreign currency exchange rates . The fair values of these billings PBRSUs were established consistent with our methodology for valuing time-based RSUs, while compensation cost is being recognized based on the probable outcome of the performance condition. The aggregate grant date fair value of PBRSUs effectively granted in the current year was $ 27 million, which is being recognized to compensation expense over the remaining performance / service periods. Stock-Based Compensation Expense Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions): Three Months Ended July 29, July 30, Cost of product revenues $ 1 $ 1 Cost of services revenues 4 2 Sales and marketing 28 26 Research and development 24 16 General and administrative 10 8 Total stock-based compensation expense $ 67 $ 53 As of July 29, 2022, total unrecognized compensation expense related to our equity awards was $ 746 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.6 years. Stock Repurchase Program As of July 29, 2022, our Board of Directors has authorized the repurchase of up to $ 15.1 billion of our common stock. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time. The following table summarizes activity related to the stock repurchase program for the three months ended July 29, 2022 (in millions, except for per share amounts): Number of shares repurchased 5 Average price per share $ 67.26 Stock repurchases allocated to additional paid-in capital $ 18 Stock repurchases allocated to retained earnings $ 332 Remaining authorization at end of period $ 902 Since the May 13, 2003 inception of our stock repurchase program through July 29, 2022, we repurchased a total of 352 million shares of our common stock at an average price of $ 40.35 per share, for an aggregate purchase price of $ 14.2 billion. Dividends The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts): Three Months Ended July 29, July 30, Dividends per share declared $ 0.50 $ 0.50 Dividend payments allocated to additional paid-in capital $ 106 $ — Dividend payments allocated to retained earnings $ 4 $ 112 On August 22, 2022, we declared a cash dividend of $ 0.50 per share of common stock, payable on October 26, 2022 to holders of record as of the close of business on October 7, 2022 . The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by us to be legally authorized under the laws of the state in which we are incorporated. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions): Foreign Defined Unrealized Total Balance as of April 29, 2022 $ ( 44 ) $ ( 1 ) $ 1 $ ( 44 ) Other comprehensive income (loss), net of tax ( 3 ) — — ( 3 ) Amounts reclassified from AOCI, net of tax — — ( 1 ) ( 1 ) Total other comprehensive income (loss) ( 3 ) — ( 1 ) ( 4 ) Balance as of July 29, 2022 $ ( 47 ) $ ( 1 ) $ — $ ( 48 ) The amounts reclassified out of AOCI are as follows (in millions): Three Months Ended July 29, July 30, Statements of Realized gains on cash flow hedges $ ( 1 ) $ — Net revenues Total reclassifications $ ( 1 ) $ — |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Jul. 29, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 10. Derivatives and Hedging Activities We use derivative instruments to manage exposures to foreign currency risk. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The maximum length of time over which forecasted foreign currency denominated revenues are hedged is 12 months. The program is not designated for trading or speculative purposes. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet their obligations under the terms of our agreements. We seek to mitigate such risk by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. We also have in place master netting arrangements to mitigate the credit risk of our counterparties and to potentially reduce our losses due to counterparty nonperformance. We present our derivative instruments as net amounts in our condensed consolidated balance sheets. The gross and net fair value amounts of such instruments were not material as of July 29, 2022 or April 29, 2022. All contracts have a maturity of less than 12 months. The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions): July 29, April 29, Cash Flow Hedges Forward contracts purchased $ 115 $ 78 Balance Sheet Contracts Forward contracts sold $ 708 $ 841 Forward contracts purchased $ 139 $ 129 The gain (loss) of cash flow hedges recognized in net revenues is presented in the condensed consolidated statements of comprehensive income and Note 9 – Stockholders’ Equity. The effect of derivative instruments not designated as hedging instruments recognized in other income (expense), net on our condensed consolidated statements of income was as follows (in millions): Three Months Ended July 29, July 30, Foreign currency exchange contracts $ ( 21 ) $ 9 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Jul. 29, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 11. Restructuring Charges In the first three months of fiscal 2023, we executed a restructuring plan to redirect resources to highest return activities, which included a reduction in our global workforce of less than 1 %, and consisted primarily of employee severance-related costs . We also continued activities related to the establishment of an international headquarters in Cork, Ireland, during the first three months of fiscal 2023, and incurred restructuring charges consisting primarily of legal and tax-related professional fees. Activities under this plan, for which we expect to incur additional charges, will continue during the remainder of fiscal 2023. During the first three months of fiscal 2022, we executed a restructuring plan to reduce the amount of office space we occupied as we allow more employees to work remotely. In connection with the plan, we also reduced our global workforce by approximately 1 %. Charges related to the plan consisted primarily of office relocation costs, lease termination fees, and employee severance-related costs. Substantially all activities under the plan had been completed by the end of fiscal 2022. Activities related to our restructuring plans are summarized as follows (in millions): Three Months Ended July 29, July 30, Balance at beginning of period $ 1 $ 1 Net charges 11 22 Cash payments ( 3 ) ( 17 ) Balance at end of period $ 9 $ 6 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Our effective tax rates for the periods presented were as follows: Three Months Ended July 29, July 30, Effective tax rates 20.7 % 14.8 % Our effective tax rate reflects the impact of a significant amount of earnings being taxed in foreign jurisdictions at rates below the United States (U.S.) statutory rate. Our effective tax rate for the three months ended July 29, 2022 increased from the prior year primarily due to the capitalization of research and development expenses. Under the Tax Cuts and Jobs Act of 2017, costs incurred beginning in our fiscal 2023 are to be amortized over five or 15 years depending on where the research activities are conducted. Additionally, our effective tax rate for the three months ended July 29, 2022 includes the impact of discrete benefits related to stock-based compensation. The effective tax rate for the three months ended July 30, 2021 includes the impact of discrete tax benefits for lapses of statute of limitations as well as larger benefits related to stock-based compensation as compared to the current year. As of July 29, 2022, we had $ 224 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $ 137 million would affect our provision for income taxes if recognized. Net unrecognized tax benefits of $ 137 million have been recorded in other long-term liabilities. We are currently undergoing various income tax audits in the U.S. and audits in several foreign tax jurisdictions. Transfer pricing calculations are key topics under these audits and are often subject to dispute and appeals. In September 2010, the Danish Tax Authorities issued a decision concluding that distributions declared in 2005 and 2006 by our Danish subsidiary were subject to Danish at-source dividend withholding tax. We do not believe that our Danish subsidiary is liable for such withholding tax and filed an appeal with the Danish Tax Tribunal. In December 2011, the Danish Tax Tribunal issued a ruling in favor of NetApp. The Danish tax examination agency appealed this decision at the Danish High Court (DHC) in March 2012. In February 2016, the DHC requested a preliminary ruling from the Court of Justice of the European Union (CJEU). In March 2018, the Advocate General issued an opinion which was largely in favor of NetApp. The CJEU was not bound by the opinion of the Advocate General and issued its preliminary ruling in February 2019. The CJEU ruling did not preclude the Danish Tax Authorities from imposing withholding tax on distributions based on the benefits of certain European Union directives. On May 3, 2021, the DHC reached a decision resulting in NetApp prevailing on the predominate distribution made in 2005. The smaller distribution made in 2006 was ruled in favor of the Danish Tax Authorities. On May 28, 2021, the Danish Tax Authorities appealed the DHC decision to the Danish Supreme Court. We believe it is more likely than not that our distributions were not subject to withholding tax and we will continue to support our position in the appeals process with the Danish Supreme Court. We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We engage in continuous discussion and negotiation with taxing authorities regarding tax matters in multiple jurisdictions. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude, certain statutes of limitations will lapse, or both. As a result of uncertainties regarding tax audits and their possible outcomes, an estimate of the range of possible impacts to unrecognized tax benefits in the next twelve months cannot be made at this time. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Jul. 29, 2022 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 13. Net Income per Share The following is a calculation of basic and diluted net income per share (in millions, except per share amounts): Three Months Ended July 29, July 30, Numerator: Net income $ 214 $ 202 Denominator: Shares used in basic computation 220 223 Dilutive impact of employee equity award plans 4 6 Shares used in diluted computation 224 229 Net Income per Share: Basic $ 0.97 $ 0.91 Diluted $ 0.96 $ 0.88 Five million shares from outstanding employee awards were excluded from the diluted net income per share calculation for the three months ended July 29, 2022, as their inclusion would have been anti-dilutive. No potential shares from outstanding employee equity awards were excluded from the diluted net income per share calculations for the three months ended July 30, 2021. |
Segment, Geographic, and Signif
Segment, Geographic, and Significant Customer Information | 3 Months Ended |
Jul. 29, 2022 | |
Segment Reporting [Abstract] | |
Segment, Geographic, and Significant Customer Information | 14. Segment, Geographic, and Significant Customer Information Our operations are organized into two segments: Hybrid Cloud and Public Cloud. The two segments are based on the information reviewed by our Chief Operating Decision Maker (CODM), who is the Chief Executive Officer, to evaluate results and allocate resources. The CODM measures performance of each segment based on segment revenue and segment gross profit. We do not allocate to our segments certain cost of revenues which we manage at the corporate level. These unallocated costs include stock-based compensation and amortization of intangible assets. We do not allocate assets to our segments. Hybrid Cloud offers a portfolio of storage and infrastructure solutions that help customers recast their data centers with the power of cloud. This portfolio is designed to operate with public clouds to unlock the potential of hybrid, multi-cloud operations. Hybrid Cloud is composed of software, hardware, and related support, as well as professional and other services. Public Cloud offers a portfolio of products delivered primarily as-a-service, including related support. This portfolio includes cloud storage and data services, and cloud operations services. Segment Revenues and Gross Profit Financial information by segment is as follows (in millions, except percentages): Three Months Ended July 29, 2022 Hybrid Cloud Public Cloud Consolidated Product revenues $ 786 $ — $ 786 Support revenues 598 — 598 Professional and other services revenues 76 — 76 Public cloud revenues — 132 132 Net revenues 1,460 132 1,592 Cost of product revenues 395 — 395 Cost of support revenues 43 — 43 Cost of professional and other services revenues 52 — 52 Cost of public cloud revenues — 40 40 Segment cost of revenues 490 40 530 Segment gross profit $ 970 $ 92 $ 1,062 Segment gross margin 66.4 % 69.7 % 66.7 % Unallocated cost of revenues 1 16 Total gross profit $ 1,046 Total gross margin 65.7 % 1 Unallocated cost of revenues are composed of $ 5 million of stock-based compensation expense and $ 11 million of amortization of intangible assets. Three Months Ended July 30, 2021 Hybrid Cloud Public Cloud Consolidated Product revenues $ 730 $ — $ 730 Support revenues 578 — 578 Professional and other services revenues 71 — 71 Public cloud revenues — 79 79 Net revenues 1,379 79 1,458 Cost of product revenues 326 — 326 Cost of support revenues 48 — 48 Cost of professional and other services revenues 51 — 51 Cost of public cloud revenues — 23 23 Segment cost of revenues 425 23 448 Segment gross profit $ 954 $ 56 $ 1,010 Segment gross margin 69.2 % 70.9 % 69.3 % Unallocated cost of revenues 1 11 Total gross profit $ 999 Total gross margin 68.5 % 1 Unallocated cost of revenues are composed of $ 4 million of stock-based compensation expense and $ 7 million of amortization of intangible assets. Geographical Revenues and Certain Assets Revenues summarized by geographic region are as follows (in millions): Three Months Ended July 29, July 30, United States, Canada and Latin America (Americas) $ 856 $ 786 Europe, Middle East and Africa (EMEA) 500 454 Asia Pacific (APAC) 236 218 Net revenues $ 1,592 $ 1,458 Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $ 758 million and $ 696 million during the three months ended July 29, 2022 and July 30, 2021, respectively. The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions): July 29, April 29, U.S. $ 1,441 $ 1,820 International 1,998 2,314 Total $ 3,439 $ 4,134 With the exception of property and equipment, we do not identify or allocate our long-lived assets by geographic area. The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions): July 29, April 29, U.S. $ 399 $ 392 International 223 210 Total $ 622 $ 602 Significant Customers T he following customers, each of which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended July 29, July 30, Arrow Electronics, Inc. 25 % 24 % Tech Data Corporation 21 % 20 % The following customers accounted for 10% or more of accounts receivable in at least one of the periods presented: July 29, April 29, Arrow Electronics, Inc. 12 % 10 % Tech Data Corporation 15 % 19 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 29, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Purchase Orders and Other Commitments In the ordinary course of business, we make commitments to third-party contract manufacturers and component suppliers to manage manufacturer lead times and meet product forecasts, and to other parties, to purchase various key components used in the manufacture of our products. A significant portion of our reported purchase commitments arising from these agreements consist of firm, non-cancelable, and unconditional commitments. As of July 29, 2022, we had approximately $ 0.9 billion in non-cancelable purchase commitments for inventory. We record a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of July 29, 2022 and April 29, 2022, such liability amounted to $ 23 million and $ 18 million, respectively, and is included in accrued expenses in our condensed consolidated balance sheets. To the extent that such forecasts are not achieved, our commitments and associated accruals may change. In addition to inventory commitments with contract manufacturers and component suppliers, we have open purchase orders and contractual obligations associated with our ordinary course of business for which we have not yet received goods or services. As of July 29, 2022, we had approximately $ 0.3 billion in other purchase obligations. Financing Guarantees While most of our arrangements for sales include short-term payment terms, from time to time we provide long-term financing to creditworthy customers. We have generally sold receivables financed through these arrangements on a non-recourse basis to third party financing institutions within 10 days of the contracts’ dates of execution, and we classify the proceeds from these sales as cash flows from operating activities in our condensed consolidated statements of cash flows. We account for the sales of these receivables as “true sales” as defined in the accounting standards on transfers of financial assets, as we are considered to have surrendered control of these financing receivables. Provided all other revenue recognition criteria have been met, we recognize product revenues for these arrangements, net of any payment discounts from financing transactions, upon product acceptance. We sold $ 3 million and $ 17 million of receivables during the three months ended July 29, 2022 and July 30, 2021, respectively. In addition, we enter into arrangements with leasing companies for the sale of our hardware systems products. These leasing companies, in turn, lease our products to end-users. The leasing companies generally have no recourse to us in the event of default by the end-user and we recognize revenue upon delivery to the end-user customer, if all other revenue recognition criteria have been met. Some of the leasing arrangements described above have been financed on a recourse basis through third-party financing institutions. Under the terms of recourse leases, which are generally three years or less, we remain liable for the aggregate unpaid remaining lease payments to the third-party leasing companies in the event of end-user customer default. These arrangements are generally collateralized by a security interest in the underlying assets. Where we provide a guarantee for recourse leases and collectability is probable, we account for these transactions as sales type leases. If collectability is not probable, the cash received is recorded as a deposit liability and revenue is deferred until the arrangement is deemed collectible. For leases that we are not a party to, other than providing recourse, we recognize revenue when control is transferred. As of July 29, 2022 and April 29, 2022, the aggregate amount by which such contingencies exceeded the associated liabilities was not significant. To date, we have not experienced significant losses under our lease financing programs or other financing arrangements. We have entered into service contracts with certain of our end-user customers that are supported by third-party financing arrangements. If a service contract is terminated as a result of our non-performance under the contract or our failure to comply with the terms of the financing arrangement, we could, under certain circumstances, be required to acquire certain assets related to the service contract or to pay the aggregate unpaid financing payments under such arrangements. As of July 29, 2022, we have not been required to make any payments under these arrangements, and we believe the likelihood of having to acquire a material amount of assets or make payments under these arrangements is remote. The portion of the financial arrangement that represents unearned services revenue is included in deferred revenue and financed unearned services revenue in our condensed consolidated balance sheets . Legal Contingencies When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. On August 14, 2019 , a purported securities class action lawsuit was filed in the United States District Court for the Northern District of California , naming as defendants NetApp and certain of our executive officers . The complaint alleges that the defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and SEC Rule 10b-5, by making materially false or misleading statements with respect to our financial guidance for fiscal 2020, as provided on May 22, 2019. Members of the alleged class are purchasers of the Company’s stock between May 22, 2019 and August 1, 2019, the date we provided revised financial guidance for fiscal 2020. The complaint alleges unspecified damages based on the decline in the market price of our shares following the issuance of the revised guidance on August 1, 2019. The defendant s' Motion to Dismiss was granted and on February 26, 2021 and the judge entered judgment in favor of NetApp and the other defendants. On March 26, 2021, plaintiffs filed a notice of appeal. The parties subsequently engaged in settlement discussions, and on July 30, 2021 entered into a Memorandum of Understanding (MOU) providing for the settlement of the class action. Pursuant to the terms of the MOU, NetApp has agreed to pay approximately $ 2.0 million in connection with the settlement, and this amount was accrued during the three months ended July 30, 2021. The parties subsequently executed a stipulation of settlement, which contains no admission of liability, wrongdoing or responsibility by any of the parties, and which provides that the class action will be dismissed with prejudice, with mutual releases by all parties, upon final court approval. On September 24, 2021, plaintiff filed an unopposed motion seeking court approval of the settlement. On May 2, 2022, the court preliminarily approved the settlement, subject to further consideration at a final approval hearing, which is scheduled to be held on September 1, 2022. The court’s approval of settlement will remain preliminary pending the outcome of the final approval hearing. We are subject to various other legal proceedings and claims that arise in the normal course of business. We may, from time to time, receive claims that we are infringing third parties’ intellectual property rights, including claims for alleged patent infringement brought by non-practicing entities. We are currently involved in patent litigations brought by non-practicing entities and other third parties. We believe we have strong arguments that our products do not infringe and/or the asserted patents are invalid, and we intend to vigorously defend against the plaintiffs’ claims. However, there is no guarantee that we will prevail at trial and if a jury were to find that our products infringe, we could be required to pay significant monetary damages, and may cause product shipment delays or stoppages, require us to redesign our products, or require us to enter into royalty or licensing agreements. Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, cash flows and overall trends . No material accrual has been recorded as of July 29, 2022 related to such matters. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 29, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation Our fiscal year is reported on a 52- or 53-week year ending on the last Friday in April. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal months with calendar months. Fiscal years 2023 and 2022, ending on April 28, 2023, and April 29, 2022, respectively, are each 52-week years, with 13 weeks in each quarter. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company, and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, comprehensive income, cash flows and stockholders’ equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all information and footnotes required by GAAP for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended April 29, 2022 contained in our Annual Report on Form 10-K. The results of operations for the three months ended July 29, 2022 are not necessarily indicative of the operating results to be expected for the full fiscal year or future operating periods. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, reserves and allowances; inventory valuation; valuation of goodwill and intangibles; restructuring reserves; employee benefit accruals; stock-based compensation; loss contingencies; investment impairments; income taxes and fair value measurements. Actual results could differ materially from those estimates. Management’s estimates include, as applicable, the anticipated impacts of the COVID-19 pandemic. |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Instaclustr Inc. Acquisition [Member] | |
Business Acquisition [Line Items] | |
Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The preliminary acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 4 Intangible assets 107 Goodwill 421 Other assets 15 Total assets acquired 547 Liabilities assumed ( 49 ) Total purchase price $ 498 |
Schedule of Components of Intangible Assets Acquired | The components of the intangible assets acquired were as follows (in millions, except useful life): Amount Estimated useful life Developed technology $ 55 5 Customer contracts/relationships 50 5 Trade name 2 3 Total intangible assets $ 107 |
Fylamynt Acquisition [Member] | |
Business Acquisition [Line Items] | |
Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The preliminary acquisition-date values of the assets acquired are as follows (in millions): Amount Cash $ 1 Developed technology 6 Goodwill 20 Total assets acquired 27 Total purchase price $ 27 |
CloudCheckr Acquisition [Member] | |
Business Acquisition [Line Items] | |
Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 2 Intangible assets 76 Goodwill 276 Other assets 6 Total assets acquired 360 Liabilities assumed ( 13 ) Total purchase price $ 347 |
Schedule of Components of Intangible Assets Acquired | The components of the intangible assets acquired were as follows (in millions, except useful life): Amount Estimated useful life Developed technology $ 45 5 Customer contracts/relationships 30 5 Trade name 1 3 Total intangible assets $ 76 |
Data Mechanics Acquisition [Member] | |
Business Acquisition [Line Items] | |
Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 1 Developed technology 5 Goodwill 11 Total assets acquired 17 Liabilities assumed ( 2 ) Total purchase price $ 15 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets, Net (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Activity and Classification of Goodwill by Reportable Segment | Goodwill activity is summarized as follows (in millions): Amount Balance as of April 29, 2022 $ 2,346 Additions 421 Balance as of July 29, 2022 $ 2,767 Goodwill by reportable segment as of July 29, 2022 is as follows (in millions): Amount Hybrid Cloud $ 1,714 Public Cloud 1,053 Total goodwill $ 2,767 |
Purchased Intangible Assets, Net | Purchased intangible assets, net are summarized below (in millions): July 29, April 29, Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 212 $ ( 76 ) $ 136 $ 157 $ ( 65 ) $ 92 Customer contracts/relationships 118 ( 25 ) 93 68 ( 20 ) 48 Other purchased intangibles 6 ( 3 ) 3 4 ( 2 ) 2 Total purchased intangible assets $ 336 $ ( 104 ) $ 232 $ 229 $ ( 87 ) $ 142 |
Amortization Expense for Purchased Intangible Assets | Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Statements of July 29, July 30, Income Developed technology $ 10 $ 7 Cost of revenues Customer contracts/relationships 6 1 Operating expenses Other purchased intangibles 1 1 Operating expenses Total $ 17 $ 9 |
Future Amortization Expense Related to Purchased Intangible Assets | As of July 29, 2022, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount 2023 (remainder) $ 51 2024 57 2025 55 2026 39 2027 29 2028 1 Total $ 232 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Supplemental Financial Information [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows: July 29, April 29, Cash and cash equivalents $ 3,288 $ 4,112 Restricted cash 7 7 Cash, cash equivalents and restricted cash $ 3,295 $ 4,119 |
Inventories | Inventories (in millions): July 29, April 29, Purchased components $ 145 $ 131 Finished goods 87 73 Inventories $ 232 $ 204 |
Property and Equipment, Net | Property and equipment, net (in millions): July 29, April 29, Land $ 46 $ 46 Buildings and improvements 354 353 Leasehold improvements 93 92 Computer, production, engineering and other equipment 944 904 Computer software 321 316 Furniture and fixtures 77 76 Construction-in-progress 67 65 1,902 1,852 Accumulated depreciation and amortization ( 1,280 ) ( 1,250 ) Property and equipment, net $ 622 $ 602 |
Other Non-Current Assets | Other non-current assets (in millions): July 29, April 29, Deferred tax assets $ 377 $ 362 Operating lease ROU assets 318 294 Other assets 306 335 Other non-current assets $ 1,001 $ 991 |
Accrued Expenses | Accrued expenses (in millions): July 29, April 29, Accrued compensation and benefits $ 282 $ 462 Product warranty liabilities 17 17 Operating lease liabilities 50 47 Other current liabilities 373 399 Accrued expenses $ 722 $ 925 |
Other Long-term Liabilities | Other long-term liabilities (in millions): July 29, April 29, Liability for uncertain tax positions $ 137 $ 131 Income taxes payable 303 303 Product warranty liabilities 9 9 Operating lease liabilities 278 257 Other liabilities 116 88 Other long-term liabilities $ 843 $ 788 |
Deferred Revenue and Financed Unearned Services Revenue | The following table summarizes the components of our deferred revenue and financed unearned services revenue balance as reported in our condensed consolidated balance sheets (in millions): July 29, April 29, Deferred product revenue $ 36 $ 31 Deferred services revenue 4,079 4,140 Financed unearned services revenue 55 61 Total $ 4,170 $ 4,232 Reported as: Short-term $ 2,088 $ 2,171 Long-term 2,082 2,061 Total $ 4,170 $ 4,232 |
Summary of Activity Related to Deferred Commissions and their Balances in Condensed Consolidated Balance Sheets | The following table summarizes deferred commissions balances as reported in our condensed consolidated balance sheets (in millions): July 29, April 29, Other current assets $ 83 $ 80 Other non-current assets 111 117 Total deferred commissions $ 194 $ 197 |
Other Expense, Net | Other income (expense), net (in millions): Three Months Ended July 29, July 30, Interest income $ 7 $ 2 Interest expense ( 18 ) ( 18 ) Other, net 26 4 Total other income (expense), net $ 15 $ ( 12 ) |
Statements of Cash Flows Additional Information | Supplemental cash flow information related to our operating leases is included in Note 8 ─ Leases. Non-cash investing and financing activities and other supplemental cash flow information are presented below: Three Months Ended July 29, July 30, Non-cash Investing and Financing Activities: Capital expenditures incurred but not paid $ 20 $ 15 Liabilities incurred to former owners of acquired business $ 3 $ — Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 12 $ 17 Interest paid $ 27 $ 27 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments at Cost or Amortized Cost | The following is a summary of our investments at their cost or amortized cost for the periods ended July 29, 2022 and April 29, 2022 (in millions): July 29, April 29, Corporate bonds $ 9 $ 9 U.S. Treasury and government debt securities 142 13 Certificates of deposit 69 71 Mutual funds 38 36 Total debt and equity securities $ 258 $ 129 |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions): July 29, 2022 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 3,219 $ 3,219 $ — Corporate bonds 9 — 9 U.S. Treasury and government debt securities 142 142 — Certificates of deposit 69 — 69 Total cash, cash equivalents and short-term investments $ 3,439 $ 3,361 $ 78 Other items: Mutual funds (1) $ 7 $ 7 $ — Mutual funds (2) $ 31 $ 31 $ — Foreign currency exchange contracts assets (1) $ 4 $ — $ 4 Foreign currency exchange contracts liabilities (3) $ ( 13 ) $ — $ ( 13 ) April 29, 2022 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 4,041 $ 4,041 $ — Corporate bonds 9 — 9 U.S. Treasury and government debt securities 13 13 — Certificates of deposit 71 — 71 Total cash, cash equivalents and short-term investments $ 4,134 $ 4,054 $ 80 Other items: Mutual funds (1) $ 6 $ 6 $ — Mutual funds (2) $ 30 $ 30 $ — Foreign currency exchange contracts assets (1) $ 2 $ — $ 2 Foreign currency exchange contracts liabilities (3) $ ( 29 ) $ — $ ( 29 ) (1) Reported as other current assets in the condensed consolidated balance sheets (2) Reported as other non-current assets in the condensed consolidated balance sheets (3) Reported as accrued expenses in the condensed consolidated balance sheets |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Debt Disclosure [Abstract] | |
Carrying Value of Long-Term Debt | The following table summarizes information relating to our long-term debt, which we collectively refer to as our Senior Notes (in millions, except interest rates): Effective Interest Rate July 29, April 29, 3.25% Senior Notes Due December 2022 3.43 % $ 250 $ 250 3.30% Senior Notes Due September 2024 3.42 % 400 400 1.875% Senior Notes Due June 2025 2.03 % 750 750 2.375% Senior Notes Due June 2027 2.51 % 550 550 2.70% Senior Notes Due June 2030 2.81 % 700 700 Total principal amount 2,650 2,650 Unamortized discount and issuance costs ( 13 ) ( 14 ) Total senior notes 2,637 2,636 Less: Current portion of long-term debt ( 250 ) ( 250 ) Total long-term debt $ 2,387 $ 2,386 |
Future Principal Debt Maturities | As of July 29, 2022, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2023 (remainder) $ 250 2024 — 2025 400 2026 750 2027 — Thereafter 1,250 Total $ 2,650 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Leases [Abstract] | |
Components of Lease Cost Related to Operating Leases | The components of lease cost related to our operating leases were as follows (in millions): Three Months Ended July 29, July 30, Operating lease cost $ 15 $ 15 Variable lease cost 4 4 Total lease cost $ 19 $ 19 |
Supplemental Cash Flow Information Related to Operating Leases | The supplemental cash flow information related to our operating leases is as follows (in millions): Three Months Ended July 29, July 30, Cash paid for amounts included in the measurement of operating lease liabilities $ 14 $ 13 Right-of-use assets obtained in exchange for new operating lease obligations $ 38 $ 159 |
Supplemental Balance Sheet Information Related to Operating Leases | The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): July 29, April 29, Other non-current assets $ 318 $ 294 Total operating lease ROU assets $ 318 $ 294 Accrued expenses $ 50 $ 47 Other long-term liabilities 278 257 Total operating lease liabilities $ 328 $ 304 Weighted Average Remaining Lease Term 9.6 years 9.6 years Weighted Average Discount Rate 2.9 % 2.8 % |
Future Minimum Operating Lease Payments | Future minimum operating lease payments as of July 29, 2022, are as follows (in millions): Fiscal Year Operating Leases 2023 (remainder) $ 44 2024 52 2025 42 2026 37 2027 33 Thereafter 175 Total lease payments 383 Less: Interest ( 55 ) Total $ 328 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-based compensation expense is included in the condensed consolidated statements of income as follows (in millions): Three Months Ended July 29, July 30, Cost of product revenues $ 1 $ 1 Cost of services revenues 4 2 Sales and marketing 28 26 Research and development 24 16 General and administrative 10 8 Total stock-based compensation expense $ 67 $ 53 |
Summary of Activities Related to Stock Repurchase Program | The following table summarizes activity related to the stock repurchase program for the three months ended July 29, 2022 (in millions, except for per share amounts): Number of shares repurchased 5 Average price per share $ 67.26 Stock repurchases allocated to additional paid-in capital $ 18 Stock repurchases allocated to retained earnings $ 332 Remaining authorization at end of period $ 902 |
Summary of Activities Related to Dividends on Common Stock | The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts): Three Months Ended July 29, July 30, Dividends per share declared $ 0.50 $ 0.50 Dividend payments allocated to additional paid-in capital $ 106 $ — Dividend payments allocated to retained earnings $ 4 $ 112 |
Accumulated Other Comprehensive Income (Loss) by Component Net of Tax | Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions): Foreign Defined Unrealized Total Balance as of April 29, 2022 $ ( 44 ) $ ( 1 ) $ 1 $ ( 44 ) Other comprehensive income (loss), net of tax ( 3 ) — — ( 3 ) Amounts reclassified from AOCI, net of tax — — ( 1 ) ( 1 ) Total other comprehensive income (loss) ( 3 ) — ( 1 ) ( 4 ) Balance as of July 29, 2022 $ ( 47 ) $ ( 1 ) $ — $ ( 48 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) | The amounts reclassified out of AOCI are as follows (in millions): Three Months Ended July 29, July 30, Statements of Realized gains on cash flow hedges $ ( 1 ) $ — Net revenues Total reclassifications $ ( 1 ) $ — |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Value of Outstanding Foreign Currency Exchange Forward Contracts | The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions): July 29, April 29, Cash Flow Hedges Forward contracts purchased $ 115 $ 78 Balance Sheet Contracts Forward contracts sold $ 708 $ 841 Forward contracts purchased $ 139 $ 129 |
Schedule of Derivative Instruments Not Designated as Hedging Instruments | The effect of derivative instruments not designated as hedging instruments recognized in other income (expense), net on our condensed consolidated statements of income was as follows (in millions): Three Months Ended July 29, July 30, Foreign currency exchange contracts $ ( 21 ) $ 9 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Restructuring and Related Activities [Abstract] | |
Activities Related to Restructuring Reserves | Activities related to our restructuring plans are summarized as follows (in millions): Three Months Ended July 29, July 30, Balance at beginning of period $ 1 $ 1 Net charges 11 22 Cash payments ( 3 ) ( 17 ) Balance at end of period $ 9 $ 6 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rates | Our effective tax rates for the periods presented were as follows: Three Months Ended July 29, July 30, Effective tax rates 20.7 % 14.8 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following is a calculation of basic and diluted net income per share (in millions, except per share amounts): Three Months Ended July 29, July 30, Numerator: Net income $ 214 $ 202 Denominator: Shares used in basic computation 220 223 Dilutive impact of employee equity award plans 4 6 Shares used in diluted computation 224 229 Net Income per Share: Basic $ 0.97 $ 0.91 Diluted $ 0.96 $ 0.88 |
Segment, Geographic, and Sign_2
Segment, Geographic, and Significant Customer Information (Tables) | 3 Months Ended |
Jul. 29, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Segment | Financial information by segment is as follows (in millions, except percentages): Three Months Ended July 29, 2022 Hybrid Cloud Public Cloud Consolidated Product revenues $ 786 $ — $ 786 Support revenues 598 — 598 Professional and other services revenues 76 — 76 Public cloud revenues — 132 132 Net revenues 1,460 132 1,592 Cost of product revenues 395 — 395 Cost of support revenues 43 — 43 Cost of professional and other services revenues 52 — 52 Cost of public cloud revenues — 40 40 Segment cost of revenues 490 40 530 Segment gross profit $ 970 $ 92 $ 1,062 Segment gross margin 66.4 % 69.7 % 66.7 % Unallocated cost of revenues 1 16 Total gross profit $ 1,046 Total gross margin 65.7 % 1 Unallocated cost of revenues are composed of $ 5 million of stock-based compensation expense and $ 11 million of amortization of intangible assets. Three Months Ended July 30, 2021 Hybrid Cloud Public Cloud Consolidated Product revenues $ 730 $ — $ 730 Support revenues 578 — 578 Professional and other services revenues 71 — 71 Public cloud revenues — 79 79 Net revenues 1,379 79 1,458 Cost of product revenues 326 — 326 Cost of support revenues 48 — 48 Cost of professional and other services revenues 51 — 51 Cost of public cloud revenues — 23 23 Segment cost of revenues 425 23 448 Segment gross profit $ 954 $ 56 $ 1,010 Segment gross margin 69.2 % 70.9 % 69.3 % Unallocated cost of revenues 1 11 Total gross profit $ 999 Total gross margin 68.5 % 1 Unallocated cost of revenues are composed of $ 4 million of stock-based compensation expense and $ 7 million of amortization of intangible assets. |
Schedule of Revenues by Geographic Region | Revenues summarized by geographic region are as follows (in millions): Three Months Ended July 29, July 30, United States, Canada and Latin America (Americas) $ 856 $ 786 Europe, Middle East and Africa (EMEA) 500 454 Asia Pacific (APAC) 236 218 Net revenues $ 1,592 $ 1,458 |
Schedule of Cash, Cash Equivalents and Short-Term Investments | The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions): July 29, April 29, U.S. $ 1,441 $ 1,820 International 1,998 2,314 Total $ 3,439 $ 4,134 |
Schedule of Property and Equipment, Net by Geographic Areas | The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions): July 29, April 29, U.S. $ 399 $ 392 International 223 210 Total $ 622 $ 602 |
Schedule of Revenues from Significant Customers | he following customers, each of which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended July 29, July 30, Arrow Electronics, Inc. 25 % 24 % Tech Data Corporation 21 % 20 % |
Schedule of Net Accounts Receivable from Significant Customers | The following customers accounted for 10% or more of accounts receivable in at least one of the periods presented: July 29, April 29, Arrow Electronics, Inc. 12 % 10 % Tech Data Corporation 15 % 19 % |
Description of Business and S_3
Description of Business and Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended |
Jul. 29, 2022 Segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 2 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Millions | May 20, 2022 | Feb. 18, 2022 | Nov. 05, 2021 | Jun. 18, 2021 |
Instaclustr Inc. Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition cash paid | $ 498 | |||
Fylamynt Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition cash paid | $ 27 | |||
Cash paid at closing | 22 | |||
Indemnity holdback provision | 5 | |||
Current Portion of Indemnity Holdback Provision | $ 4 | |||
CloudCheckr Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition cash paid | $ 347 | |||
Data Mechanics Acquisition [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition cash paid | $ 15 |
Business Combinations - Summary
Business Combinations - Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | May 20, 2022 | Apr. 29, 2022 | Feb. 18, 2022 | Nov. 05, 2021 | Jun. 18, 2021 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 2,767 | $ 2,346 | ||||
Instaclustr Inc. Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 4 | |||||
Intangible assets | 107 | |||||
Developed technology | 107 | |||||
Goodwill | 421 | |||||
Other assets | 15 | |||||
Total assets acquired | 547 | |||||
Liabilities assumed | (49) | |||||
Total purchase price | 498 | |||||
Instaclustr Inc. Acquisition [Member] | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 55 | |||||
Developed technology | 55 | |||||
Instaclustr Inc. Acquisition [Member] | Customer Contracts/Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 50 | |||||
Developed technology | $ 50 | |||||
Fylamynt Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 1 | |||||
Intangible assets | 6 | |||||
Developed technology | 6 | |||||
Goodwill | 20 | |||||
Total assets acquired | 27 | |||||
Total purchase price | $ 27 | |||||
CloudCheckr Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 2 | |||||
Intangible assets | 76 | |||||
Developed technology | 76 | |||||
Goodwill | 276 | |||||
Other assets | 6 | |||||
Total assets acquired | 360 | |||||
Liabilities assumed | (13) | |||||
Total purchase price | 347 | |||||
CloudCheckr Acquisition [Member] | Developed Technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 45 | |||||
Developed technology | 45 | |||||
CloudCheckr Acquisition [Member] | Customer Contracts/Relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 30 | |||||
Developed technology | $ 30 | |||||
Data Mechanics Acquisition [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash | $ 1 | |||||
Intangible assets | 5 | |||||
Developed technology | 5 | |||||
Goodwill | 11 | |||||
Total assets acquired | 17 | |||||
Liabilities assumed | (2) | |||||
Total purchase price | $ 15 |
Business Combinations - Schedul
Business Combinations - Schedule of Components of Intangible Assets Acquired (Detail) - USD ($) $ in Millions | May 20, 2022 | Nov. 05, 2021 |
CloudCheckr Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 76 | |
Instaclustr Inc. Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 107 | |
Developed Technology | CloudCheckr Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 45 | |
Estimated useful life (years) | 5 years | |
Developed Technology | Instaclustr Inc. Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 55 | |
Estimated useful life (years) | 5 years | |
Customer Contracts/Relationships | CloudCheckr Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 30 | |
Estimated useful life (years) | 5 years | |
Customer Contracts/Relationships | Instaclustr Inc. Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 50 | |
Estimated useful life (years) | 5 years | |
Trade Name | CloudCheckr Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 1 | |
Estimated useful life (years) | 3 years | |
Trade Name | Instaclustr Inc. Acquisition [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 2 | |
Estimated useful life (years) | 3 years |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets, Net - Schedule of Goodwill Activity (Detail) $ in Millions | 3 Months Ended |
Jul. 29, 2022 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 2,346 |
Additions | 421 |
Ending balance | $ 2,767 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets, Net - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jul. 29, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Goodwill addition related to acquisition | $ 421 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets, Net - Summary of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Goodwill [Line Items] | ||
Total goodwill | $ 2,767 | $ 2,346 |
Public Cloud | ||
Goodwill [Line Items] | ||
Total goodwill | 1,053 | |
Hybrid Cloud | ||
Goodwill [Line Items] | ||
Total goodwill | $ 1,714 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangible Assets, Net - Purchased Intangible Assets, Net (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 336 | $ 229 |
Accumulated Amortization | (104) | (87) |
Net Assets | 232 | 142 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 212 | 157 |
Accumulated Amortization | (76) | (65) |
Net Assets | 136 | 92 |
Customer Contracts/Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 118 | 68 |
Accumulated Amortization | (25) | (20) |
Net Assets | 93 | 48 |
Other Purchased Intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 6 | 4 |
Accumulated Amortization | (3) | (2) |
Net Assets | $ 3 | $ 2 |
Goodwill and Purchased Intang_7
Goodwill and Purchased Intangible Assets, Net - Amortization Expense for Purchased Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 17 | $ 9 |
Cost of revenues | Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | 10 | 7 |
Operating expenses | Customer Contracts/Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | 6 | 1 |
Operating expenses | Other Purchased Intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 1 | $ 1 |
Goodwill and Purchased Intang_8
Goodwill and Purchased Intangible Assets, Net - Future Amortization Expense Related to Purchased Intangible Assets (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
2023 (remainder) | $ 51 | |
2024 | 57 | |
2025 | 55 | |
2026 | 39 | |
2027 | 29 | |
2028 | 1 | |
Net Assets | $ 232 | $ 142 |
Supplemental Financial Inform_3
Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 | Jul. 30, 2021 | Apr. 29, 2021 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 3,288 | $ 4,112 | ||
Restricted cash | 7 | 7 | ||
Cash, cash equivalents and restricted cash | $ 3,295 | $ 4,119 | $ 4,500 | $ 4,535 |
Supplemental Financial Inform_4
Supplemental Financial Information - Inventories (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Inventory Disclosure [Abstract] | ||
Purchased components | $ 145 | $ 131 |
Finished goods | 87 | 73 |
Inventories | $ 232 | $ 204 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment Net (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 1,902 | $ 1,852 |
Accumulated depreciation and amortization | (1,280) | (1,250) |
Property and equipment, net | 622 | 602 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 46 | 46 |
Buildings and improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 354 | 353 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 93 | 92 |
Computer, production, engineering and other equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 944 | 904 |
Computer software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 321 | 316 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 77 | 76 |
Construction-in-progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 67 | $ 65 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Non-Current Assets (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred tax assets | $ 377 | $ 362 |
Operating lease ROU assets | 318 | 294 |
Other assets | 306 | 335 |
Other non-current assets | $ 1,001 | $ 991 |
Supplemental Financial Inform_7
Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 29, 2022 | Jul. 30, 2021 | Apr. 29, 2022 | |
Property Plant And Equipment [Line Items] | |||
Revenue recognized | $ 706 | $ 617 | |
Gain recognized on sale of minority equity interest | 32 | ||
Proceeds from sale of minority equity interest | $ 59 | ||
Lenovo NetApp Technology Limited (“LNTL”) | |||
Property Plant And Equipment [Line Items] | |||
Non-controlling equity interest, ownership percentage | 49% | ||
Other non current assets | $ 75 | $ 73 |
Supplemental Financial Inform_8
Supplemental Financial Information - Accrued expenses (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 282 | $ 462 |
Product warranty liabilities | 17 | 17 |
Operating lease liabilities | 50 | 47 |
Other current liabilities | 373 | 399 |
Accrued expenses | $ 722 | $ 925 |
Supplemental Financial Inform_9
Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract] | ||
Liability for uncertain tax positions | $ 137 | $ 131 |
Income taxes payable | 303 | 303 |
Product warranty liabilities | 9 | 9 |
Operating lease liabilities | 278 | 257 |
Other liabilities | 116 | 88 |
Other long-term liabilities | $ 843 | $ 788 |
Supplemental Financial Infor_10
Supplemental Financial Information - Summary of Components of Deferred Revenue and Financed Unearned Services Revenue (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Contract With Customer Liability [Line Items] | ||
Deferred revenue and financed unearned services revenue | $ 4,170 | $ 4,232 |
Short-term | 2,088 | 2,171 |
Long-term | 2,082 | 2,061 |
Deferred product revenue | ||
Contract With Customer Liability [Line Items] | ||
Deferred revenue and financed unearned services revenue | 36 | 31 |
Deferred services revenue | ||
Contract With Customer Liability [Line Items] | ||
Deferred revenue and financed unearned services revenue | 4,079 | 4,140 |
Financed unearned services revenue | ||
Contract With Customer Liability [Line Items] | ||
Deferred revenue and financed unearned services revenue | $ 55 | $ 61 |
Supplemental Financial Infor_11
Supplemental Financial Information - Additional Information (Detail1) | Jul. 29, 2022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-30 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue expected to be recognized | 50% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-07-29 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue expected to be recognized | 23% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Supplemental Financial Infor_12
Supplemental Financial Information - Summary of Activity Related to the Balances in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Deferred Revenue Disclosure [Abstract] | ||
Other current assets | $ 83 | $ 80 |
Other non-current assets | 111 | 117 |
Total deferred commissions | $ 194 | $ 197 |
Supplemental Financial Infor_13
Supplemental Financial Information - Other Income (expense), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Nonoperating Income (Expense) [Abstract] | ||
Interest income | $ 7 | $ 2 |
Interest expense | (18) | (18) |
Other income (expense), net | 26 | 4 |
Total other expense, net | $ 15 | $ (12) |
Supplemental Financial Infor_14
Supplemental Financial Information - Supplemental Cash Flows, Non-Cash Investing Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Non-cash Investing Activities: | ||
Capital expenditures incurred but not paid | $ 20 | $ 15 |
Liabilities incurred to former owners of acquired business | 3 | |
Supplemental Cash Flow Information: | ||
Income taxes paid, net of refunds | 12 | 17 |
Interest paid | $ 27 | $ 27 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Investments at Cost or Amortized Cost (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | $ 258 | $ 129 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 9 | 9 |
U.S. Treasury and Government Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 142 | 13 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 69 | 71 |
Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | $ 38 | $ 36 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 3,439 | $ 4,134 | |
Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts assets | [1] | 4 | 2 |
Accrued Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts liabilities | [2] | (13) | (29) |
Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 9 | 9 | |
U.S. Treasury and Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 142 | 13 | |
Certificates of Deposit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 69 | 71 | |
Mutual Funds | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 7 | 6 |
Mutual Funds | Other Noncurrent Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [3] | 31 | 30 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 3,361 | 4,054 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts assets | [1] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Accrued Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts liabilities | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 142 | 13 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of Deposit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 7 | 6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | Other Noncurrent Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [3] | 31 | 30 |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 78 | 80 | |
Significant Other Observable Inputs (Level 2) | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts assets | [1] | 4 | 2 |
Significant Other Observable Inputs (Level 2) | Accrued Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts liabilities | [2] | (13) | (29) |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 9 | 9 | |
Significant Other Observable Inputs (Level 2) | U.S. Treasury and Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Certificates of Deposit | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 69 | 71 | |
Significant Other Observable Inputs (Level 2) | Mutual Funds | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Mutual Funds | Other Noncurrent Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [3] | 0 | 0 |
Cash | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 3,219 | 4,041 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 3,219 | 4,041 | |
Cash | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 0 | $ 0 | |
[1] Reported as other current assets in the condensed consolidated balance sheets Reported as accrued expenses in the condensed consolidated balance sheets Reported as other non-current assets in the condensed consolidated balance sheets |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 2,472 | $ 2,491 |
Financing Arrangements - Carryi
Financing Arrangements - Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Total senior notes | $ 2,637 | $ 2,636 | |
Less: Current portion of long-term debt | (250) | (250) | |
Total long-term debt | 2,387 | 2,386 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Total principal amount | 2,650 | 2,650 | |
Unamortized discount and issuance costs | (13) | (14) | |
Senior Notes | Due December 2022 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 250 | $ 250 | |
Debt Instrument, Effective Interest Rate | 3.43% | 3.43% | |
Senior Notes | Due September 2024 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 400 | $ 400 | |
Debt Instrument, Effective Interest Rate | 3.42% | 3.42% | |
Senior Notes | Due June 2025 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 750 | $ 750 | $ 750 |
Debt Instrument, Effective Interest Rate | 2.03% | 2.03% | |
Senior Notes | Due June 2027 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 550 | $ 550 | 550 |
Debt Instrument, Effective Interest Rate | 2.51% | 2.51% | |
Senior Notes | Due June 2030 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 700 | $ 700 | $ 700 |
Debt Instrument, Effective Interest Rate | 2.81% | 2.81% |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | |||||
Jan. 22, 2021 USD ($) Extension | Jul. 28, 2017 USD ($) | Jul. 29, 2022 USD ($) | Aug. 31, 2022 | Apr. 29, 2022 USD ($) | Apr. 30, 2021 USD ($) | Jun. 30, 2020 USD ($) | |
Debt Instrument [Line Items] | |||||||
Commercial paper notes | $ 0 | $ 0 | |||||
Notes aggregate cash redemption price | 252 | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | $ 1,000 | ||||||
Credit facility, maturity | Jan. 22, 2026 | ||||||
Credit facility, number of extensions | Extension | 2 | ||||||
Credit facility, extensions period | 1 year | ||||||
Credit facility, amounts drawn | $ 0 | ||||||
Revolving Credit Facility | Letter Of Credit Sub Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | $ 50 | ||||||
Commercial Paper | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 1,000 | ||||||
Debt instrument maturity period | 397 days | ||||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | 2,650 | $ 2,650 | |||||
Senior Notes | Due June 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | 550 | 550 | $ 550 | ||||
Notes issued, interest rate | 2.375% | ||||||
Senior Notes | Due June 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | 750 | 750 | $ 750 | ||||
Notes issued, interest rate | 1.875% | ||||||
Senior Notes | Due June 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | 700 | 700 | $ 700 | ||||
Notes issued, interest rate | 2.70% | ||||||
Senior Notes | Due September 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 400 | 400 | |||||
Notes issued, interest rate | 3.30% | ||||||
Senior Notes | Due December 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 250 | $ 250 | |||||
Notes issued, interest rate | 3.25% | 3.25% |
Financing Arrangements - Future
Financing Arrangements - Future Principal Debt Maturities (Detail) - Senior Notes - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Debt Instrument [Line Items] | ||
2023 (remainder) | $ 250 | |
2024 | 0 | |
2025 | 400 | |
2026 | 750 | |
2027 | 0 | |
Thereafter | 1,250 | |
Total | $ 2,650 | $ 2,650 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | ||
Apr. 30, 2021 | Jun. 30, 2020 | Jul. 29, 2022 | |
Leases [Line Items] | |||
Future undiscounted payments | $ 383 | ||
Build-to-suit Office Building | |||
Leases [Line Items] | |||
Operating lease, existence of option to extend | true | ||
Corporate Headquarters Leases | |||
Leases [Line Items] | |||
Operating lease, existence of option to extend | true | ||
Maximum | Equipment | |||
Leases [Line Items] | |||
Operating remaining lease term | 4 years | ||
Maximum | Automobiles | |||
Leases [Line Items] | |||
Operating remaining lease term | 4 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost Related to Operating Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Leases [Abstract] | ||
Operating lease cost | $ 15 | $ 15 |
Variable lease cost | 4 | 4 |
Total lease cost | $ 19 | $ 19 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 14 | $ 13 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 38 | $ 159 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Leases [Abstract] | ||
Other non-current assets | $ 318 | $ 294 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets |
Accrued expenses | $ 50 | $ 47 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses | Accrued expenses |
Other long-term liabilities | $ 278 | $ 257 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Total operating lease liabilities | $ 328 | $ 304 |
Weighted Average Remaining Lease Term | 9 years 7 months 6 days | 9 years 7 months 6 days |
Weighted Average Discount Rate | 2.90% | 2.80% |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Leases [Abstract] | ||
2023 (remainder) | $ 44 | |
2024 | 52 | |
2025 | 42 | |
2026 | 37 | |
2027 | 33 | |
Thereafter | 175 | |
Total lease payments | 383 | |
Less: Interest | (55) | |
Total | $ 328 | $ 304 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 231 Months Ended | ||
Aug. 22, 2022 | Jul. 29, 2022 | Jul. 30, 2021 | Jul. 29, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense related to equity awards | $ 746 | $ 746 | ||
Unrecognized compensation expense will be amortized on a straight-line basis over a weighted-average remaining period, in years | 2 years 7 months 6 days | |||
Stock repurchase program, authorized amount | $ 15,100 | $ 15,100 | ||
Repurchase of common stock, shares | 5 | 352 | ||
Average price of common stock repurchased under repurchase program | $ 67.26 | $ 40.35 | ||
Aggregate purchase price of common stock authorized under repurchase program | $ 350 | $ 100 | $ 14,200 | |
Cash dividends declared, per common share | $ 0.50 | $ 0.50 | ||
Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash dividends declared, per common share | $ 0.50 | |||
Cash dividend payable date | Oct. 26, 2022 | |||
Cash dividend record date | Oct. 07, 2022 | |||
PBRSU One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs grant date fair value | $ 27 | $ 27 | ||
Performance Based Restricted Stock Unit | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
RSUs granted, Number of Shares | 5 | |||
RSUs granted, Weighted-Average Grant Date Fair Value | $ 58.42 | |||
Performance Based Restricted Stock Unit | PBRSU One | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Performance Based Restricted Stock Unit | PBRSU Two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years | |||
Performance Based Restricted Stock Unit | PBRSU Three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of Common stock issued to settle PBRSUs of target shares granted | 0% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of Common stock issued to settle PBRSUs of target shares granted | 200% |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 67 | $ 53 |
Cost of Product Revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1 | 1 |
Cost of Services Revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 4 | 2 |
Sales and Marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 28 | 26 |
Research and Development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 24 | 16 |
General and Administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 10 | $ 8 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activities Related to Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 231 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | Jul. 29, 2022 | |
Equity Class Of Treasury Stock [Line Items] | |||
Number of shares repurchased | 5 | 352 | |
Average price per share | $ 67.26 | $ 40.35 | |
Stock repurchases allocated | $ 350 | $ 100 | |
Remaining authorization at end of period | 902 | $ 902 | |
Additional Paid-in Capital | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchases allocated | 18 | ||
Retained Earnings | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchases allocated | $ 332 | $ 97 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Activities Related to Dividends on Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Dividends, Common Stock [Abstract] | ||
Dividends per share declared | $ 0.50 | $ 0.50 |
Dividend payments | $ 110 | $ 112 |
Additional Paid-in Capital | ||
Dividends, Common Stock [Abstract] | ||
Dividend payments | 106 | 0 |
Retained Earnings | ||
Dividends, Common Stock [Abstract] | ||
Dividend payments | $ 4 | $ 112 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) by Component Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balances | $ 838 | $ 685 |
Other comprehensive income (loss), net of tax | (3) | |
Amounts reclassified from AOCI, net of tax | (1) | |
Other comprehensive income (loss) | (4) | (4) |
Balances | 657 | 720 |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balances | (44) | |
Other comprehensive income (loss), net of tax | (3) | |
Amounts reclassified from AOCI, net of tax | 0 | |
Other comprehensive income (loss) | (3) | |
Balances | (47) | |
Defined Benefit Obligation Adjustments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balances | (1) | |
Other comprehensive income (loss), net of tax | 0 | |
Amounts reclassified from AOCI, net of tax | 0 | |
Other comprehensive income (loss) | 0 | |
Balances | (1) | |
Unrealized Gains (Losses) on Derivative Instruments | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balances | 1 | |
Other comprehensive income (loss), net of tax | 0 | |
Amounts reclassified from AOCI, net of tax | (1) | |
Other comprehensive income (loss) | (1) | |
Balances | 0 | |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balances | (44) | (30) |
Other comprehensive income (loss) | (4) | (4) |
Balances | $ (48) | $ (34) |
Stockholders' Equity - Amounts
Stockholders' Equity - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net revenues | $ 1,592 | $ 1,458 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Total reclassifications | (1) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Realized (Gains) Losses on Cash Flow Hedges | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net revenues | $ (1) | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Schedule of Notional Value of Outstanding Foreign Currency Forward Contracts (Detail) - Foreign Exchange Forward Contracts - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Long | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 115 | $ 78 |
Non Designated | Short | Balance Sheet Contracts | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | 708 | 841 |
Non Designated | Long | Balance Sheet Contracts | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 139 | $ 129 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Derivative Instruments Not Designated as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Foreign Exchange Forward Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency exchange contracts | $ (21) | $ 9 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | Jul. 29, 2023 | Jul. 29, 2022 |
Restructuring Cost and Reserve [Line Items] | ||
Reduction of global work force | 1% | 1% |
Restructuring Charges - Activit
Restructuring Charges - Activities Related to Restructuring Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Restructuring and Related Activities [Abstract] | ||
Balance at beginning of period | $ 1 | $ 1 |
Net charges | 11 | 22 |
Cash payments | (3) | (17) |
Balance at end of period | $ 9 | $ 6 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rates (Detail) | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 20.70% | 14.80% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Income Tax Contingency [Line Items] | ||
Gross unrecognized tax benefits | $ 224 | |
Gross unrecognized tax benefits included in other long-term liabilities | 137 | $ 131 |
Unrecognized tax benefits that would affect provision for income taxes | $ 137 |
Net Income per Share - Computat
Net Income per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Net income | $ 214 | $ 202 |
Shares used in basic computation | 220 | 223 |
Dilutive impact of employee equity award plans | 4 | 6 |
Shares used in diluted computation | 224 | 229 |
Basic | $ 0.97 | $ 0.91 |
Diluted | $ 0.96 | $ 0.88 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Outstanding employee equity awards excluded from diluted net income per share calculations | 5,000,000 | 0 |
Segment Geographic and Signific
Segment Geographic and Significant Customer Information - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 USD ($) Segment | Jul. 30, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of industry segment | Segment | 2 | |
Net revenues | $ 1,592 | $ 1,458 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 758 | $ 696 |
Segment Geographic and Signif_2
Segment Geographic and Significant Customer Information - Schedule of Financial Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,592 | $ 1,458 |
Segment cost of revenues | 530 | 448 |
Segment gross profit | $ 1,062 | $ 1,010 |
Segment gross margin | 66.70% | 69.30% |
Unallocated cost of revenues | $ 16 | $ 11 |
Gross profit | $ 1,046 | $ 999 |
Total gross margin | 65.70% | 68.50% |
Operating Segments | Hybrid Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,460 | $ 1,379 |
Segment cost of revenues | 490 | 425 |
Segment gross profit | $ 970 | $ 954 |
Segment gross margin | 66.40% | 69.20% |
Operating Segments | Public Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 132 | $ 79 |
Segment cost of revenues | 40 | 23 |
Segment gross profit | $ 92 | $ 56 |
Segment gross margin | 69.70% | 70.90% |
Product [Member] | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 786 | $ 730 |
Segment cost of revenues | 395 | 326 |
Product [Member] | Operating Segments | Hybrid Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 786 | 730 |
Segment cost of revenues | 395 | 326 |
Product [Member] | Operating Segments | Public Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 0 | 0 |
Segment cost of revenues | 0 | 0 |
Public Cloud | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 132 | 79 |
Segment cost of revenues | 40 | 23 |
Public Cloud | Operating Segments | Hybrid Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 0 | 0 |
Segment cost of revenues | 0 | 0 |
Public Cloud | Operating Segments | Public Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 132 | 79 |
Segment cost of revenues | 40 | 23 |
Support | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 598 | 578 |
Segment cost of revenues | 43 | 48 |
Support | Operating Segments | Hybrid Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 598 | 578 |
Segment cost of revenues | 43 | 48 |
Support | Operating Segments | Public Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 0 | 0 |
Segment cost of revenues | 0 | 0 |
Professional and Other Services | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 76 | 71 |
Segment cost of revenues | 52 | 51 |
Professional and Other Services | Operating Segments | Hybrid Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 76 | 71 |
Segment cost of revenues | 52 | 51 |
Professional and Other Services | Operating Segments | Public Cloud Segment | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 0 | 0 |
Segment cost of revenues | $ 0 | $ 0 |
Segment Geographic and Signif_3
Segment Geographic and Significant Customer Information - Schedule of Financial Information by Segment (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Segment Reporting [Abstract] | ||
Unallocated cost of revenue stock-based compensation expense | $ 5 | $ 4 |
Unallocated cost of revenue amortization of intangible assets | $ 11 | $ 7 |
Segment Geographic and Signif_4
Segment Geographic and Significant Customer Information - Schedule of Revenues by Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,592 | $ 1,458 |
United States, Canada And Latin America (Americas) | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 856 | 786 |
Europe, Middle East And Africa (EMEA) | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 500 | 454 |
Asia Pacific (APAC) | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 236 | $ 218 |
Segment Geographic and Signif_5
Segment Geographic and Significant Customer Information - Schedule of Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 3,439 | $ 4,134 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | 1,441 | 1,820 |
International | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 1,998 | $ 2,314 |
Segment Geographic and Signif_6
Segment Geographic and Significant Customer Information - Schedule of Property and Equipment Net by Geographic Areas (Detail) - USD ($) $ in Millions | Jul. 29, 2022 | Apr. 29, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 622 | $ 602 |
U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | 399 | 392 |
International | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 223 | $ 210 |
Segment Geographic and Signif_7
Segment Geographic and Significant Customer Information - Significant Customers (Detail) - Net Revenue - Customer Concentration Risk | 3 Months Ended | |
Jul. 29, 2022 | Jul. 30, 2021 | |
Arrow Electronics, Inc. | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenues | 25% | 24% |
Tech Data Corporation | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenues | 21% | 20% |
Segment Geographic and Signif_8
Segment Geographic and Significant Customer Information - Schedule of Net Accounts Receivable from Significant Customers (Detail) - Accounts Receivable - Credit Concentration Risk | 3 Months Ended | 12 Months Ended |
Jul. 29, 2022 | Apr. 29, 2022 | |
Arrow Electronics, Inc. | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 12% | 10% |
Tech Data Corporation | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 15% | 19% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jul. 29, 2022 | Jul. 30, 2021 | Jan. 28, 2022 | Apr. 29, 2022 | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Purchase orders and other commitments | $ 300,000,000 | |||
Accrued purchase commitments with contract manufacturers | 23,000,000 | $ 18,000,000 | ||
Sale of finance receivables | 3,000,000 | $ 17,000,000 | ||
Accrued settlement amount | $ 0 | |||
Management estimation of loss contingency | Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, cash flows and overall trends | |||
Purported Securities Class Action Lawsuit | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Lawsuit commencement date | August 14, 2019 | |||
Lawsuit action domicile | United States District Court for the Northern District of California | |||
Name of defendant | NetApp and certain of our executive officers | |||
Loss contingency, laws affected | The complaint alleges that the defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and SEC Rule 10b-5, by making materially false or misleading statements with respect to our financial guidance for fiscal 2020, as provided on May 22, 2019. | |||
Accrued settlement amount | $ 2,000,000 | |||
Maximum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Terms of recourse leases | 3 years | |||
Inventory | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Purchase orders and other commitments | $ 900,000,000 |