Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 27, 2023 | Nov. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 27, 2023 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NTAP | |
Entity Registrant Name | NetApp, Inc. | |
Entity Central Index Key | 0001002047 | |
Current Fiscal Year End Date | --04-26 | |
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 | 206,031,047 | |
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 | Oct. 27, 2023 | Apr. 28, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 1,934 | $ 2,316 |
Short-term investments | 686 | 754 |
Accounts receivable | 787 | 987 |
Inventories | 122 | 167 |
Other current assets | 464 | 456 |
Total current assets | 3,993 | 4,680 |
Property and equipment, net | 623 | 650 |
Goodwill | 2,759 | 2,759 |
Purchased intangible assets, net | 152 | 181 |
Other non-current assets | 1,546 | 1,548 |
Total assets | 9,073 | 9,818 |
Current liabilities: | ||
Accounts payable | 411 | 392 |
Accrued expenses | 919 | 857 |
Current portion of long-term debt | 400 | 0 |
Short-term deferred revenue and financed unearned services revenue | 2,003 | 2,218 |
Total current liabilities | 3,733 | 3,467 |
Long-term debt | 1,991 | 2,389 |
Other long-term liabilities | 580 | 708 |
Long-term deferred revenue and financed unearned services revenue | 1,999 | 2,095 |
Total liabilities | 8,303 | 8,659 |
Commitments and contingencies (Note 15) | ||
Stockholders' equity: | ||
Common stock and additional paid-in capital, $0.001 par value; 206 and 212 shares issued and outstanding as of October 27, 2023 and April 28, 2023, respectively | 825 | 945 |
Retained earnings | 0 | 265 |
Accumulated other comprehensive loss | (55) | (51) |
Total stockholders' equity | 770 | 1,159 |
Total liabilities and stockholders' equity | $ 9,073 | $ 9,818 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Oct. 27, 2023 | Apr. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 206,000,000 | 212,000,000 |
Common stock, shares outstanding | 206,000,000 | 212,000,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Net revenues: | ||||
Net revenues | $ 1,562 | $ 1,663 | $ 2,994 | $ 3,255 |
Cost of revenues: | ||||
Total cost of revenues | 452 | 576 | 888 | 1,122 |
Gross profit | 1,110 | 1,087 | 2,106 | 2,133 |
Operating expenses: | ||||
Sales and marketing | 461 | 479 | 929 | 937 |
Research and development | 262 | 243 | 509 | 483 |
General and administrative | 75 | 67 | 149 | 139 |
Restructuring charges | 5 | 11 | 31 | 22 |
Acquisition-related expense | 3 | 5 | 6 | 15 |
Total operating expenses | 806 | 805 | 1,624 | 1,596 |
Income from operations | 304 | 282 | 482 | 537 |
Other income, net | 11 | 23 | 19 | 38 |
Income before income taxes | 315 | 305 | 501 | 575 |
Provision (benefit) for income taxes | 82 | (445) | 119 | (389) |
Net income | $ 233 | $ 750 | $ 382 | $ 964 |
Net income per share: | ||||
Basic | $ 1.12 | $ 3.46 | $ 1.82 | $ 4.4 |
Diluted | $ 1.1 | $ 3.41 | $ 1.79 | $ 4.34 |
Shares used in net income per share calculations: | ||||
Basic | 208 | 217 | 210 | 219 |
Diluted | 211 | 220 | 214 | 222 |
Product [Member] | ||||
Net revenues: | ||||
Net revenues | $ 706 | $ 837 | $ 1,296 | $ 1,623 |
Cost of revenues: | ||||
Total cost of revenues | 276 | 418 | 541 | 815 |
Service [Member] | ||||
Net revenues: | ||||
Net revenues | 856 | 826 | 1,698 | 1,632 |
Cost of revenues: | ||||
Total cost of revenues | $ 176 | $ 158 | $ 347 | $ 307 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 233 | $ 750 | $ 382 | $ 964 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (7) | (15) | (5) | (18) |
Unrealized gains on cash flow hedges: | ||||
Unrealized holding gains arising during the period | 3 | 4 | 5 | 4 |
Reclassification adjustments for gains included in net income | (3) | (3) | (4) | (4) |
Total other comprehensive income (loss) | (7) | (14) | (4) | (18) |
Comprehensive income | $ 226 | $ 736 | $ 378 | $ 946 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 27, 2023 | Oct. 28, 2022 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ 382 | $ 964 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 128 | 117 |
Non-cash operating lease cost | 23 | 27 |
Stock-based compensation | 180 | 145 |
Deferred income taxes | (13) | (570) |
Other items, net | (27) | (127) |
Changes in assets and liabilities, net of acquisitions of businesses: | ||
Accounts receivable | 185 | 313 |
Inventories | 46 | (40) |
Other operating assets | (26) | (24) |
Accounts payable | 14 | (28) |
Accrued expenses | 48 | (108) |
Deferred revenue and financed unearned services revenue | (241) | (93) |
Long-term taxes payable | (110) | (84) |
Other operating liabilities | (1) | 3 |
Net cash provided by operating activities | 588 | 495 |
Cash flows from investing activities: | ||
Purchases of investments | (860) | (420) |
Maturities, sales and collections of investments | 932 | 78 |
Purchases of property and equipment | (73) | (142) |
Acquisitions of businesses, net of cash acquired | 0 | (491) |
Other investing activities, net | 0 | 59 |
Net cash used in investing activities | (1) | (916) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock award plans | 52 | 54 |
Payments for taxes related to net share settlement of stock awards | (85) | (63) |
Repurchase of common stock | (700) | (500) |
Repayments and extinguishment of debt | 0 | (250) |
Dividends paid | (209) | (218) |
Other financing activities, net | 0 | (2) |
Net cash used in provided by financing activities | (942) | (979) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (26) | (43) |
Net change in cash, cash equivalents and restricted cash | (381) | (1,443) |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 2,322 | 4,119 |
End of period | $ 1,941 | $ 2,676 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balances at Apr. 29, 2022 | $ 838 | $ 760 | $ 122 | $ (44) |
Balances (in shares) at Apr. 29, 2022 | 220,000,000 | |||
Net Income (Loss) | 964 | 964 | ||
Other comprehensive loss | (18) | (18) | ||
Issuance of common stock under employee stock award plans, net of taxes | (9) | $ (9) | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 4,000,000 | |||
Repurchase of common stock | (500) | $ (25) | (475) | |
Repurchase of common stock, shares | (7,000,000) | |||
Stock-based compensation | 145 | $ 145 | ||
Cash dividends declared ($0.50 per common share) | (218) | (106) | (112) | |
Balances at Oct. 28, 2022 | 1,202 | $ 765 | 499 | (62) |
Balances (in shares) at Oct. 28, 2022 | 217,000,000 | |||
Balances at Jul. 29, 2022 | 657 | $ 705 | (48) | |
Balances (in shares) at Jul. 29, 2022 | 218,000,000 | |||
Net Income (Loss) | 750 | 750 | ||
Other comprehensive loss | (14) | (14) | ||
Issuance of common stock under employee stock award plans, net of taxes | (11) | $ (11) | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 1,000,000 | |||
Repurchase of common stock | (150) | $ (7) | (143) | |
Repurchase of common stock, shares | (2,000,000) | |||
Stock-based compensation | 78 | $ 78 | ||
Cash dividends declared ($0.50 per common share) | (108) | (108) | ||
Balances at Oct. 28, 2022 | 1,202 | $ 765 | 499 | (62) |
Balances (in shares) at Oct. 28, 2022 | 217,000,000 | |||
Balances at Apr. 28, 2023 | $ 1,159 | $ 945 | 265 | (51) |
Balances (in shares) at Apr. 28, 2023 | 212,000,000 | 212,000,000 | ||
Net Income (Loss) | $ 382 | 382 | ||
Other comprehensive loss | (4) | (4) | ||
Issuance of common stock under employee stock award plans, net of taxes | (33) | $ (33) | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 3,000,000 | |||
Repurchase of common stock | (700) | $ (91) | (609) | |
Repurchase of common stock, shares | (9,000,000) | |||
Excise tax on net stock repurchases | (5) | $ (5) | ||
Stock-based compensation | 176 | 176 | ||
Modification of liability-classified awards | 4 | 4 | ||
Cash dividends declared ($0.50 per common share) | (209) | (171) | (38) | |
Balances at Oct. 27, 2023 | $ 770 | $ 825 | (55) | |
Balances (in shares) at Oct. 27, 2023 | 206,000,000 | 206,000,000 | ||
Balances at Jul. 28, 2023 | $ 873 | $ 921 | (48) | |
Balances (in shares) at Jul. 28, 2023 | 209,000,000 | |||
Net Income (Loss) | 233 | 233 | ||
Other comprehensive loss | (7) | (7) | ||
Issuance of common stock under employee stock award plans, net of taxes | (20) | $ (20) | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 1,000,000 | |||
Repurchase of common stock | (300) | $ (67) | $ (233) | |
Repurchase of common stock, shares | (4,000,000) | |||
Excise tax on net stock repurchases | (3) | $ (3) | ||
Stock-based compensation | 93 | 93 | ||
Modification of liability-classified awards | 4 | 4 | ||
Cash dividends declared ($0.50 per common share) | (103) | (103) | ||
Balances at Oct. 27, 2023 | $ 770 | $ 825 | $ (55) | |
Balances (in shares) at Oct. 27, 2023 | 206,000,000 | 206,000,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per common share | $ 0.5 | $ 0.5 | $ 1 | $ 1 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 233 | $ 750 | $ 382 | $ 964 |
Insider Trading Arrangements
Insider Trading Arrangements - shares shares in Millions | 6 Months Ended | |
Sep. 09, 2023 | Oct. 27, 2023 | |
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | I tem 5. Other Information. Insider Adoption or Termination of Trading Arrangements On September 9, 2023 , The Berry Family Trust, a trust affiliated with Michael J. Berry , Chief Financial Officer of the Company, entered into a 10b5-1 trading arrangement intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) promulgated under the Exchange Act. The trading arrangement will expire on December 11, 2024 , and may be terminated earlier in the limited circumstances defined in the trading arrangement. An aggregate of 75,000 shares may be sold pursuant to the trading arrangement. No other directors or executive officers of the Company adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of the Company’s securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1 (c) or any non-Rule 10b5-1 trading arrangement, (as defined in Item 408(c) of Regulation S-K) during the quarterly period covered by this report. | |
Name | Michael J. Berry | |
Title | Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | true |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Adoption Date | September 9, 2023 | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Termination Date | December 11, 2024 | |
Aggregate Available | 75,000 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 6 Months Ended |
Oct. 27, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies NetApp, Inc. (we, us, NetApp, 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 2024 and 2023, ending on April 26, 2024 and April 28, 2023, 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 28, 2023 contained in our Annual Report on Form 10-K. The results of operations for the three and six months ended October 27, 2023 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, the anticipated effects of which have been incorporated, as applicable, into management's estimates as of October 27, 2023. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Oct. 27, 2023 | |
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 | 6 Months Ended |
Oct. 27, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | 3. Business Combination Fiscal 2023 Acquisition Instaclustr Acquisition On May 20, 2022, we acquired all the outstanding shares of privately-held Instaclustr US Holding, 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 acquisition-date values of the assets acquired and liabilities assumed are as follows (in millions): Amount Cash $ 4 Intangible assets 107 Goodwill 413 Other assets 19 Total assets acquired 543 Liabilities assumed ( 45 ) 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. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets, Net | 6 Months Ended |
Oct. 27, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets, Net | 4. Goodwill and Purchased Intangible Assets, Net Goodwill by reportable segment as of October 27, 2023 is as follows (in millions): Amount Hybrid Cloud $ 1,714 Public Cloud 1,045 Total goodwill $ 2,759 Purchased intangible assets, net are summarized below (in millions): October 27, April 28, Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 179 $ ( 91 ) $ 88 $ 212 $ ( 107 ) $ 105 Customer contracts/relationships 114 ( 51 ) 63 118 ( 44 ) 74 Other purchased intangibles 6 ( 5 ) 1 6 ( 4 ) 2 Total purchased intangible assets $ 299 $ ( 147 ) $ 152 $ 336 $ ( 155 ) $ 181 During the first six months of fiscal 2024, we retired approximately $ 37 million of fully amortized intangible assets. Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Six Months Ended Statements of October 27, October 28, October 27, October 28, Income Developed technology $ 8 $ 11 $ 17 $ 21 Cost of revenues Customer contracts/relationships 6 6 11 12 Operating expenses Other purchased intangibles — — 1 1 Operating expenses Total $ 14 $ 17 $ 29 $ 34 As of October 27, 2023, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount 2024 (remainder) $ 28 2025 55 2026 39 2027 29 2028 1 Total $ 152 |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Oct. 27, 2023 | |
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: October 27, April 28, Cash and cash equivalents $ 1,934 $ 2,316 Restricted cash 7 6 Cash, cash equivalents and restricted cash $ 1,941 $ 2,322 Inventories (in millions): October 27, April 28, Purchased components $ 52 $ 65 Finished goods 70 102 Inventories $ 122 $ 167 Property and equipment, net (in millions): October 27, April 28, Land $ 46 $ 46 Buildings and improvements 367 359 Leasehold improvements 81 91 Computer, production, engineering and other equipment 1,085 1,053 Computer software 332 325 Furniture and fixtures 77 84 Construction-in-progress 59 55 2,047 2,013 Accumulated depreciation and amortization ( 1,424 ) ( 1,363 ) Property and equipment, net $ 623 $ 650 Other non-current assets (in millions): October 27, April 28, Deferred tax assets $ 960 $ 948 Operating lease right-of-use (ROU) assets 260 281 Other assets 326 319 Other non-current assets $ 1,546 $ 1,548 Other non-current assets as of October 27, 2023 and April 28, 2023 include $ 83 million and $ 80 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. Accrued expenses (in millions): October 27, April 28, Accrued compensation and benefits $ 413 $ 363 Product warranty liabilities 18 17 Operating lease liabilities 41 47 Other current liabilities 447 430 Accrued expenses $ 919 $ 857 Other long-term liabilities (in millions): October 27, April 28, Liability for uncertain tax positions $ 148 $ 144 Income taxes payable 100 215 Product warranty liabilities 8 8 Operating lease liabilities 230 248 Other liabilities 94 93 Other long-term liabilities $ 580 $ 708 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): October 27, April 28, Deferred product revenue $ 36 $ 18 Deferred services revenue 3,923 4,247 Financed unearned services revenue 43 48 Total $ 4,002 $ 4,313 Reported as: Short-term $ 2,003 $ 2,218 Long-term 1,999 2,095 Total $ 4,002 $ 4,313 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 six months ended October 27, 2023 and October 28, 2022, we recognized revenue of $ 1,258 million and $ 1,280 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods. As of October 27, 2023, 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 25 % 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): October 27, April 28, Other current assets $ 64 $ 64 Other non-current assets 96 99 Total deferred commissions $ 160 $ 163 Other income, net (in millions): Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, Interest income $ 25 $ 14 $ 53 $ 21 Interest expense ( 15 ) ( 17 ) ( 31 ) ( 35 ) Other, net 1 26 ( 3 ) 52 Total other income, net $ 11 $ 23 $ 19 $ 38 In the second quarter of fiscal 2023, Other, net includes $ 21 million of other income for non-refundable, up-front payments from customers in Russia for support contracts, which we were not able to fulfill due to imposed sanctions and for which we have no remaining legal obligation to perform. During the six months ended October 28, 2022, Other, net also 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 in the first quarter of fiscal 2023. 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: Six Months Ended October 27, October 28, Non-cash Investing and Financing Activities: Capital expenditures incurred but not paid $ 18 $ 27 Liabilities incurred to former owners of acquired business $ — $ 3 Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 222 $ 203 Interest paid $ 30 $ 36 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Oct. 27, 2023 | |
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 as of October 27, 2023 and April 28, 2023 (in millions): October 27, April 28, U.S. Treasury and government debt securities 800 754 Money market funds 365 794 Certificates of deposit 43 59 Mutual funds 34 36 Total debt and equity securities $ 1,242 $ 1,643 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 October 27, 2023, 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): October 27, 2023 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash $ 1,412 $ 1,412 $ — Money market funds 365 365 — Certificates of deposit 43 — 43 U.S. Treasury and government debt securities 114 114 — Total cash and cash equivalents 1,934 1,891 43 Short-term investments: U.S. Treasury and government debt securities 686 686 — Total short-term investments 686 686 — Total cash, cash equivalents and short-term investments $ 2,620 $ 2,577 $ 43 Other items: Mutual funds (1) $ 6 $ 6 $ — Mutual funds (2) $ 28 $ 28 $ — Foreign currency exchange contracts assets (1) $ 3 $ — $ 3 Foreign currency exchange contracts liabilities (3) $ ( 7 ) $ — $ ( 7 ) April 28, 2023 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash $ 1,463 $ 1,463 $ — Money market funds 794 794 — Certificates of deposit 59 — 59 Total cash and cash equivalents 2,316 2,257 59 Short-term investments: U.S. Treasury and government debt securities 754 754 — Total short-term investments 754 754 — Total cash, cash equivalents and short-term investments $ 3,070 $ 3,011 $ 59 Other items: Mutual funds (1) $ 7 $ 7 $ — Mutual funds (2) $ 29 $ 29 $ — Foreign currency exchange contracts assets (1) $ 13 $ — $ 13 Foreign currency exchange contracts liabilities (3) $ ( 4 ) $ — $ ( 4 ) (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 October 27, 2023 and April 28, 2023, we have not made any adjustments to the prices obtained from our third-party pricing providers. Fair Value of Debt As of October 27, 2023 and April 28, 2023, the fair value of our long-term debt was approximately $ 2,140 million and $ 2,206 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 | 6 Months Ended |
Oct. 27, 2023 | |
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 October 27, April 28, 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 2,400 2,400 Unamortized discount and issuance costs ( 9 ) ( 11 ) Total senior notes 2,391 2,389 Less: Current portion of long-term debt ( 400 ) — Total long-term debt $ 1,991 $ 2,389 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 each issued in June 2020. Interest on each of 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 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 October 27, 2023, we were in compliance with all covenants associated with the Senior Notes. As of October 27, 2023, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2024 (remainder) $ — 2025 400 2026 750 2027 — 2028 550 Thereafter 700 Total $ 2,400 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 October 27, 2023 or April 28, 2023. 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 May 2023 primarily to replace the London Interbank Offered Rate (LIBOR) with the Secured Overnight Financing Rate (SOFR) as the basis for establishing the interest rate applicable to certain borrowings under the agreement, 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 October 27, 2023, 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 | 6 Months Ended |
Oct. 27, 2023 | |
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 October 27, 2023, 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 October 27, 2023, have remaining lease terms not exceeding 4 years. As of October 27, 2023, 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 Six Months Ended October 27, October 28, October 27, October 28, Operating lease cost $ 14 $ 16 $ 28 $ 31 Variable lease cost 4 4 8 8 Total lease cost $ 18 $ 20 $ 36 $ 39 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): Six Months Ended October 27, October 28, Cash paid for amounts included in the measurement of operating lease liabilities $ 26 $ 29 Right-of-use assets obtained in exchange for new operating lease obligations $ 13 $ 31 The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): October 27, April 28, Other non-current assets $ 260 $ 281 Total operating lease ROU assets $ 260 $ 281 Accrued expenses $ 41 $ 47 Other long-term liabilities 230 248 Total operating lease liabilities $ 271 $ 295 Weighted Average Remaining Lease Term 9.5 years 9.4 years Weighted Average Discount Rate 3.0 % 3.0 % Future minimum operating lease payments as of October 27, 2023, are as follows (in millions): Fiscal Year Amount 2024 (remainder) $ 24 2025 42 2026 36 2027 32 2028 29 Thereafter 153 Total lease payments 316 Less: Interest ( 45 ) Total $ 271 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Oct. 27, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Restricted Stock Units We granted approximately 5 million restricted stock units (RSUs), including performance-based RSUs (PBRSUs), with a weighted average grant date fair value of $ 75.14 per share during the six months ended October 27, 2023. In the first quarter of fiscal 2024, due to an insufficient number of remaining shares available for issuance under the 2021 Equity Incentive Plan (the 2021 Plan), most of the awards granted in that period were subject to cash settlement upon vesting, and accounted for as liability awards. However, in the second quarter of fiscal 2024, stockholders approved an increase in the number of shares available for issuance under the 2021 Plan, and these awards, by their terms, automatically became share-settled, equity-classified awards. The modification resulted in the elimination of the $ 4 million liability related to these awards, with a corresponding increase to additional paid-in capital, as presented on the Statements of Stockholders' Equity. In the six months ended October 27, 2023, 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 a three year performance period, which began on the date specified in the grant agreements and typically ends on the last day of the third fiscal year, following the grant date. The number of shares that will be used to calculate the settlement amount for all 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 six months ended October 27, 2023, the number of shares used to calculate the settlement amount 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. For the remaining half of the PBRSUs granted in the six months ended October 27, 2023, the number of shares used to calculate the settlement amount 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 aggregate grant date fair value of PBRSUs effectively granted in the current year was $ 39 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 Six Months Ended October 27, October 28, October 27, October 28, Cost of product revenues $ 1 $ 1 $ 2 $ 2 Cost of services revenues 6 4 12 8 Sales and marketing 37 35 73 63 Research and development 35 26 67 50 General and administrative 14 12 26 22 Total stock-based compensation expense $ 93 $ 78 $ 180 $ 145 As of October 27, 2023, total unrecognized compensation expense related to equity awards was $ 751 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.3 years. Stock Repurchase Program As of October 27, 2023, our Board of Directors has authorized the repurchase of up to $ 16.1 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 six months ended October 27, 2023 (in millions, except for per share amounts): Number of shares repurchased 9 Average price per share $ 75.12 Stock repurchases allocated to additional paid-in capital $ 91 Stock repurchases allocated to retained earnings $ 609 Remaining authorization at end of period $ 702 Since the May 13, 2003 inception of our stock repurchase program through October 27, 2023, we repurchased a total of 369 million shares of our common stock at an average price of $ 41.75 per share, for an aggregate purchase price of $ 15.4 billion. Dividends The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts): Six Months Ended October 27, October 28, Dividends per share declared $ 1.00 $ 1.00 Dividend payments allocated to additional paid-in capital $ 171 $ 106 Dividend payments allocated to retained earnings $ 38 $ 112 On November 21, 2023, we declared a cash dividend of $ 0.50 per share of common stock, payable on January 24, 2024 to holders of record as of the close of business on January 5, 2024 . 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 28, 2023 $ ( 48 ) $ ( 3 ) $ — $ ( 51 ) Other comprehensive income (loss), net of tax ( 5 ) — 5 — Amounts reclassified from AOCI, net of tax — — ( 4 ) ( 4 ) Total other comprehensive income (loss) ( 5 ) — 1 ( 4 ) Balance as of October 27, 2023 $ ( 53 ) $ ( 3 ) $ 1 $ ( 55 ) The amounts reclassified out of AOCI are as follows (in millions): Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, Statements of Realized gains on cash flow hedges $ ( 3 ) $ ( 3 ) $ ( 4 ) $ ( 4 ) Net revenues Total reclassifications $ ( 3 ) $ ( 3 ) $ ( 4 ) $ ( 4 ) |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Oct. 27, 2023 | |
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 October 27, 2023 or April 28, 2023. 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): October 27, April 28, Cash Flow Hedges Forward contracts purchased $ 132 $ 95 Balance Sheet Contracts Forward contracts sold $ 745 $ 965 Forward contracts purchased $ 46 $ 96 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, net on our condensed consolidated statements of income was as follows (in millions): Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, Foreign currency exchange contracts $ ( 45 ) $ ( 34 ) $ ( 49 ) $ ( 55 ) |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Oct. 27, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 11. Restructuring Charges In the first six months of fiscal 2024, we executed a restructuring plan to redirect resources to highest return activities, and to optimize our global office space for our hybrid work model. In connection with the plan, we reduced our global workforce by approximately 1 % and terminated certain real estate leases in various countries, resulting in restructuring charges comprised primarily of employee severance-related expenses and lease termination charges. The workforce related activities under the plan are substantially complete. In the first six months of fiscal 2023, we executed, or continued to execute, restructuring plans to redirect resources to highest return activities and to establish our international headquarters in Cork, Ireland, which included a reduction in our global workforce of less than 1 % and resulted in restructuring charges comprised primarily of employee severance-related costs and legal and tax-related professional fees. Substantially all activities under these plans were complete as of the end of fiscal 2023. Activities related to our restructuring plans are summarized as follows (in millions): Six Months Ended October 27, October 28, Balance at beginning of period $ 36 $ 1 Net charges 31 22 Cash payments ( 46 ) ( 14 ) Balance at end of period $ 21 $ 9 |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 27, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Our effective tax rates for the periods presented were as follows: Six Months Ended October 27, October 28, Effective tax rates 23.8 % ( 67.7 )% 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 six months ended October 27, 2023 includes benefits for fiscal 2023 foreign tax credits resulting from Internal Revenue Service Notice 2023-55, partially offset by an increase in stock compensation for which no tax benefit is currently recorded as compared to the prior period. The effective tax rate for the six months ended October 28, 2022 was primarily driven by a discrete tax benefit of $ 524 million that resulted from an intra-entity asset transfer of certain intellectual property (“IP” ). During the second quarter of fiscal 2023, we completed an intra-entity asset transfer of certain IP to our international headquarters (the “IP Transfer”). The transaction resulted in a step-up of tax-deductible basis in the transferred assets, and accordingly, created a temporary difference where the tax basis exceeded the financial statement basis of such intangible assets, which resulted in the recognition of a discrete tax benefit and related deferred tax asset of $ 524 million during the second quarter of fiscal 2023. Management applied significant judgment when determining the fair value of the IP, which serves as the tax basis of the deferred tax asset. With the assistance of third-party valuation specialists, the fair value of the IP was determined principally based on the present value of projected cash flows related to the IP which reflects management’s assumptions regarding projected revenues, expenses and a discount rate. The tax-deductible amortization related to the transferred IP rights will be recognized in future periods and any amortization that is unused in a particular year can be carried forward indefinitely. The deferred tax asset and the tax benefit were measured based on the enacted tax rates expected to apply in the years the asset is expected to be realized. We expect to realize the deferred tax asset resulting from the IP Transfer and will assess the realizability of the deferred tax asset quarterly. Any Organisation for Economic Co-operation and Development’s (“OECD”) actions adopted internationally, could impact our financial results in future periods. 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. 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. As of October 27, 2023, we had $ 223 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $ 149 million would affect our provision for income taxes if recognized. Net unrecognized tax benefits of $ 148 million have been recorded in other long-term liabilities. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Oct. 27, 2023 | |
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 Six Months Ended October 27, October 28, October 27, October 28, Numerator: Net income $ 233 $ 750 $ 382 $ 964 Denominator: Shares used in basic computation 208 217 210 219 Dilutive impact of employee equity award plans 3 3 4 3 Shares used in diluted computation 211 220 214 222 Net Income per Share: Basic $ 1.12 $ 3.46 $ 1.82 $ 4.40 Diluted $ 1.10 $ 3.41 $ 1.79 $ 4.34 Three million and four million shares from outstanding employee awards were excluded from the diluted net income per share calculation for the three and six months ended October 27, 2023, respectively, while six million and five million shares from outstanding employee awards each were excluded from the diluted net income per share calculation for the three and six months ended October 28, 2022, respectively, as their inclusion would have been anti-dilutive. |
Segment, Geographic, and Signif
Segment, Geographic, and Significant Customer Information | 6 Months Ended |
Oct. 27, 2023 | |
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. Public Cloud includes certain reseller arrangements in which the timing of our consideration follows the end user consumption of the reseller services. Segment Revenues and Gross Profit Financial information by segment is as follows (in millions, except percentages): Three Months Ended October 27, 2023 Hybrid Cloud Public Cloud Consolidated Product revenues $ 706 $ — $ 706 Support revenues 623 — 623 Professional and other services revenues 79 — 79 Public cloud revenues — 154 154 Net revenues 1,408 154 1,562 Cost of product revenues 275 — 275 Cost of support revenues 50 — 50 Cost of professional and other services revenues 60 — 60 Cost of public cloud revenues — 52 52 Segment cost of revenues 385 52 437 Segment gross profit $ 1,023 $ 102 $ 1,125 Segment gross margin 72.7 % 66.2 % 72.0 % Unallocated cost of revenues 1 15 Total gross profit $ 1,110 Total gross margin 71.1 % 1 Unallocated cost of revenues are composed of $ 7 million of stock-based compensation expense and $ 8 million of amortization of intangible assets. Three Months Ended October 28, 2022 Hybrid Cloud Public Cloud Consolidated Product revenues $ 837 $ — $ 837 Support revenues 607 — 607 Professional and other services revenues 77 — 77 Public cloud revenues — 142 142 Net revenues 1,521 142 1,663 Cost of product revenues 417 — 417 Cost of support revenues 45 — 45 Cost of professional and other services revenues 54 — 54 Cost of public cloud revenues — 45 45 Segment cost of revenues 516 45 561 Segment gross profit $ 1,005 $ 97 $ 1,102 Segment gross margin 66.1 % 68.3 % 66.3 % Unallocated cost of revenues 1 15 Total gross profit $ 1,087 Total gross margin 65.4 % 1 Unallocated cost of revenues are composed of $ 5 million of stock-based compensation expense and $ 10 million of amortization of intangible assets. Six Months Ended October 27, 2023 Hybrid Cloud Public Cloud Consolidated Product revenues $ 1,296 $ — $ 1,296 Support revenues 1,234 — 1,234 Professional and other services revenues 156 — 156 Public cloud revenues — 308 308 Net revenues 2,686 308 2,994 Cost of product revenues 539 — 539 Cost of support revenues 97 — 97 Cost of professional and other services revenues 118 — 118 Cost of public cloud revenues — 103 103 Segment cost of revenues 754 103 857 Segment gross profit $ 1,932 $ 205 $ 2,137 Segment gross margin 71.9 % 66.6 % 71.4 % Unallocated cost of revenues 1 31 Total gross profit $ 2,106 Total gross margin 70.3 % 1 Unallocated cost of revenues are composed of $ 14 million of stock-based compensation expense and $ 17 million of amortization of intangible assets. Six Months Ended October 28, 2022 Hybrid Cloud Public Cloud Consolidated Product revenues $ 1,623 $ — $ 1,623 Support revenues 1,205 — 1,205 Professional and other services revenues 153 — 153 Public cloud revenues — 274 274 Net revenues 2,981 274 3,255 Cost of product revenues 812 — 812 Cost of support revenues 88 — 88 Cost of professional and other services revenues 106 — 106 Cost of public cloud revenues — 85 85 Segment cost of revenues 1,006 85 1,091 Segment gross profit $ 1,975 $ 189 $ 2,164 Segment gross margin 66.3 % 69.0 % 66.5 % Unallocated cost of revenues 1 31 Total gross profit $ 2,133 Total gross margin 65.5 % 1 Unallocated cost of revenues are composed of $ 10 million of stock-based compensation expense and $ 21 million of amortization of intangible assets. Geographical Revenues and Certain Assets Revenues summarized by geographic region are as follows (in millions): Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, United States, Canada and Latin America (Americas) $ 789 $ 845 $ 1,543 $ 1,672 Europe, Middle East and Africa (EMEA) 525 565 971 1,074 Asia Pacific (APAC) 248 253 480 509 Net revenues $ 1,562 $ 1,663 $ 2,994 $ 3,255 Effective in the first quarter of fiscal 2024, management began evaluating revenues by geographic region based on the location to which products and services are delivered, rather than based on the location from which the customer relationship is managed. Prior year numbers have been recast to conform to the current year presentation. Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $ 729 million and $ 784 million during the three months ended October 27, 2023 and October 28, 2022, respectively, and were $ 1,427 million and $ 1,556 million during the six months ended October 27, 2023 and October 28, 2022, 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): October 27, April 28, U.S. $ 458 $ 887 International 2,162 2,183 Total $ 2,620 $ 3,070 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): October 27, April 28, U.S. $ 390 $ 413 International 233 237 Total $ 623 $ 650 Significant Customers T he following customers, each of which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, Arrow Electronics, Inc. 22 % 24 % 23 % 25 % TD Synnex Corporation (previously presented as Tech Data Corporation) 22 % 20 % 21 % 20 % The following customers accounted for 10% or more of accounts receivable in at least one of the periods presented: October 27, April 28, Arrow Electronics, Inc. 10 % 15 % TD Synnex Corporation (previously presented as Tech Data Corporation) 21 % 19 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 27, 2023 | |
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 October 27, 2023, we had approximately $ 0.4 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 October 27, 2023 and April 28, 2023, such liability amounted to $ 17 million and $ 15 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 October 27, 2023, 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 $ 27 million and $ 10 million of receivables during the six months ended October 27, 2023 and October 28, 2022, 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 October 27, 2023 and April 28, 2023, 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 October 27, 2023, 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. We are subject to various 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 October 27, 2023 related to such matters. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 27, 2023 | |
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 2024 and 2023, ending on April 26, 2024 and April 28, 2023, 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 28, 2023 contained in our Annual Report on Form 10-K. The results of operations for the three and six months ended October 27, 2023 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, the anticipated effects of which have been incorporated, as applicable, into management's estimates as of October 27, 2023. |
Business Combinations (Tables)
Business Combinations (Tables) - Instaclustr Inc. Acquisition [Member] | 6 Months Ended |
Oct. 27, 2023 | |
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 $ 4 Intangible assets 107 Goodwill 413 Other assets 19 Total assets acquired 543 Liabilities assumed ( 45 ) 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 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets, Net (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill by reportable segment | Goodwill by reportable segment as of October 27, 2023 is as follows (in millions): Amount Hybrid Cloud $ 1,714 Public Cloud 1,045 Total goodwill $ 2,759 |
Purchased Intangible Assets, Net | Purchased intangible assets, net are summarized below (in millions): October 27, April 28, Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 179 $ ( 91 ) $ 88 $ 212 $ ( 107 ) $ 105 Customer contracts/relationships 114 ( 51 ) 63 118 ( 44 ) 74 Other purchased intangibles 6 ( 5 ) 1 6 ( 4 ) 2 Total purchased intangible assets $ 299 $ ( 147 ) $ 152 $ 336 $ ( 155 ) $ 181 |
Amortization Expense for Purchased Intangible Assets | Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Six Months Ended Statements of October 27, October 28, October 27, October 28, Income Developed technology $ 8 $ 11 $ 17 $ 21 Cost of revenues Customer contracts/relationships 6 6 11 12 Operating expenses Other purchased intangibles — — 1 1 Operating expenses Total $ 14 $ 17 $ 29 $ 34 |
Future Amortization Expense Related to Purchased Intangible Assets | As of October 27, 2023, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount 2024 (remainder) $ 28 2025 55 2026 39 2027 29 2028 1 Total $ 152 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
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: October 27, April 28, Cash and cash equivalents $ 1,934 $ 2,316 Restricted cash 7 6 Cash, cash equivalents and restricted cash $ 1,941 $ 2,322 |
Inventories | Inventories (in millions): October 27, April 28, Purchased components $ 52 $ 65 Finished goods 70 102 Inventories $ 122 $ 167 |
Property and Equipment, Net | Property and equipment, net (in millions): October 27, April 28, Land $ 46 $ 46 Buildings and improvements 367 359 Leasehold improvements 81 91 Computer, production, engineering and other equipment 1,085 1,053 Computer software 332 325 Furniture and fixtures 77 84 Construction-in-progress 59 55 2,047 2,013 Accumulated depreciation and amortization ( 1,424 ) ( 1,363 ) Property and equipment, net $ 623 $ 650 |
Other Non-Current Assets | Other non-current assets (in millions): October 27, April 28, Deferred tax assets $ 960 $ 948 Operating lease right-of-use (ROU) assets 260 281 Other assets 326 319 Other non-current assets $ 1,546 $ 1,548 |
Accrued Expenses | Accrued expenses (in millions): October 27, April 28, Accrued compensation and benefits $ 413 $ 363 Product warranty liabilities 18 17 Operating lease liabilities 41 47 Other current liabilities 447 430 Accrued expenses $ 919 $ 857 |
Other Long-term Liabilities | Other long-term liabilities (in millions): October 27, April 28, Liability for uncertain tax positions $ 148 $ 144 Income taxes payable 100 215 Product warranty liabilities 8 8 Operating lease liabilities 230 248 Other liabilities 94 93 Other long-term liabilities $ 580 $ 708 |
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): October 27, April 28, Deferred product revenue $ 36 $ 18 Deferred services revenue 3,923 4,247 Financed unearned services revenue 43 48 Total $ 4,002 $ 4,313 Reported as: Short-term $ 2,003 $ 2,218 Long-term 1,999 2,095 Total $ 4,002 $ 4,313 |
Summary of Activity Related to Deferred Commissions and their Balances in Condensed Consolidated Balance Sheet | The following table summarizes deferred commissions balances as reported in our condensed consolidated balance sheets (in millions): October 27, April 28, Other current assets $ 64 $ 64 Other non-current assets 96 99 Total deferred commissions $ 160 $ 163 |
Other income, net | Other income, net (in millions): Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, Interest income $ 25 $ 14 $ 53 $ 21 Interest expense ( 15 ) ( 17 ) ( 31 ) ( 35 ) Other, net 1 26 ( 3 ) 52 Total other income, net $ 11 $ 23 $ 19 $ 38 |
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: Six Months Ended October 27, October 28, Non-cash Investing and Financing Activities: Capital expenditures incurred but not paid $ 18 $ 27 Liabilities incurred to former owners of acquired business $ — $ 3 Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 222 $ 203 Interest paid $ 30 $ 36 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
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 as of October 27, 2023 and April 28, 2023 (in millions): October 27, April 28, U.S. Treasury and government debt securities 800 754 Money market funds 365 794 Certificates of deposit 43 59 Mutual funds 34 36 Total debt and equity securities $ 1,242 $ 1,643 |
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): October 27, 2023 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash $ 1,412 $ 1,412 $ — Money market funds 365 365 — Certificates of deposit 43 — 43 U.S. Treasury and government debt securities 114 114 — Total cash and cash equivalents 1,934 1,891 43 Short-term investments: U.S. Treasury and government debt securities 686 686 — Total short-term investments 686 686 — Total cash, cash equivalents and short-term investments $ 2,620 $ 2,577 $ 43 Other items: Mutual funds (1) $ 6 $ 6 $ — Mutual funds (2) $ 28 $ 28 $ — Foreign currency exchange contracts assets (1) $ 3 $ — $ 3 Foreign currency exchange contracts liabilities (3) $ ( 7 ) $ — $ ( 7 ) April 28, 2023 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash and cash equivalents: Cash $ 1,463 $ 1,463 $ — Money market funds 794 794 — Certificates of deposit 59 — 59 Total cash and cash equivalents 2,316 2,257 59 Short-term investments: U.S. Treasury and government debt securities 754 754 — Total short-term investments 754 754 — Total cash, cash equivalents and short-term investments $ 3,070 $ 3,011 $ 59 Other items: Mutual funds (1) $ 7 $ 7 $ — Mutual funds (2) $ 29 $ 29 $ — Foreign currency exchange contracts assets (1) $ 13 $ — $ 13 Foreign currency exchange contracts liabilities (3) $ ( 4 ) $ — $ ( 4 ) (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) | 6 Months Ended |
Oct. 27, 2023 | |
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 October 27, April 28, 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 2,400 2,400 Unamortized discount and issuance costs ( 9 ) ( 11 ) Total senior notes 2,391 2,389 Less: Current portion of long-term debt ( 400 ) — Total long-term debt $ 1,991 $ 2,389 |
Future Principal Debt Maturities | As of October 27, 2023, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2024 (remainder) $ — 2025 400 2026 750 2027 — 2028 550 Thereafter 700 Total $ 2,400 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
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 Six Months Ended October 27, October 28, October 27, October 28, Operating lease cost $ 14 $ 16 $ 28 $ 31 Variable lease cost 4 4 8 8 Total lease cost $ 18 $ 20 $ 36 $ 39 |
Supplemental Cash Flow Information Related to Operating Leases | The supplemental cash flow information related to our operating leases is as follows (in millions): Six Months Ended October 27, October 28, Cash paid for amounts included in the measurement of operating lease liabilities $ 26 $ 29 Right-of-use assets obtained in exchange for new operating lease obligations $ 13 $ 31 |
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): October 27, April 28, Other non-current assets $ 260 $ 281 Total operating lease ROU assets $ 260 $ 281 Accrued expenses $ 41 $ 47 Other long-term liabilities 230 248 Total operating lease liabilities $ 271 $ 295 Weighted Average Remaining Lease Term 9.5 years 9.4 years Weighted Average Discount Rate 3.0 % 3.0 % |
Future Minimum Operating Lease Payments | Future minimum operating lease payments as of October 27, 2023, are as follows (in millions): Fiscal Year Amount 2024 (remainder) $ 24 2025 42 2026 36 2027 32 2028 29 Thereafter 153 Total lease payments 316 Less: Interest ( 45 ) Total $ 271 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
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 Six Months Ended October 27, October 28, October 27, October 28, Cost of product revenues $ 1 $ 1 $ 2 $ 2 Cost of services revenues 6 4 12 8 Sales and marketing 37 35 73 63 Research and development 35 26 67 50 General and administrative 14 12 26 22 Total stock-based compensation expense $ 93 $ 78 $ 180 $ 145 |
Summary of Activities Related to Stock Repurchase Program | The following table summarizes activity related to the stock repurchase program for the six months ended October 27, 2023 (in millions, except for per share amounts): Number of shares repurchased 9 Average price per share $ 75.12 Stock repurchases allocated to additional paid-in capital $ 91 Stock repurchases allocated to retained earnings $ 609 Remaining authorization at end of period $ 702 |
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): Six Months Ended October 27, October 28, Dividends per share declared $ 1.00 $ 1.00 Dividend payments allocated to additional paid-in capital $ 171 $ 106 Dividend payments allocated to retained earnings $ 38 $ 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 28, 2023 $ ( 48 ) $ ( 3 ) $ — $ ( 51 ) Other comprehensive income (loss), net of tax ( 5 ) — 5 — Amounts reclassified from AOCI, net of tax — — ( 4 ) ( 4 ) Total other comprehensive income (loss) ( 5 ) — 1 ( 4 ) Balance as of October 27, 2023 $ ( 53 ) $ ( 3 ) $ 1 $ ( 55 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) | The amounts reclassified out of AOCI are as follows (in millions): Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, Statements of Realized gains on cash flow hedges $ ( 3 ) $ ( 3 ) $ ( 4 ) $ ( 4 ) Net revenues Total reclassifications $ ( 3 ) $ ( 3 ) $ ( 4 ) $ ( 4 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
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): October 27, April 28, Cash Flow Hedges Forward contracts purchased $ 132 $ 95 Balance Sheet Contracts Forward contracts sold $ 745 $ 965 Forward contracts purchased $ 46 $ 96 |
Schedule of Derivative Instruments Not Designated as Hedging Instruments | The effect of derivative instruments not designated as hedging instruments recognized in other income, net on our condensed consolidated statements of income was as follows (in millions): Three Months Ended Six Months Ended October 27, October 28, October 27, October 28, Foreign currency exchange contracts $ ( 45 ) $ ( 34 ) $ ( 49 ) $ ( 55 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
Restructuring and Related Activities [Abstract] | |
Activities Related to Restructuring Reserves | Activities related to our restructuring plans are summarized as follows (in millions): Six Months Ended October 27, October 28, Balance at beginning of period $ 36 $ 1 Net charges 31 22 Cash payments ( 46 ) ( 14 ) Balance at end of period $ 21 $ 9 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rates | Our effective tax rates for the periods presented were as follows: Six Months Ended October 27, October 28, Effective tax rates 23.8 % ( 67.7 )% |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
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 Six Months Ended October 27, October 28, October 27, October 28, Numerator: Net income $ 233 $ 750 $ 382 $ 964 Denominator: Shares used in basic computation 208 217 210 219 Dilutive impact of employee equity award plans 3 3 4 3 Shares used in diluted computation 211 220 214 222 Net Income per Share: Basic $ 1.12 $ 3.46 $ 1.82 $ 4.40 Diluted $ 1.10 $ 3.41 $ 1.79 $ 4.34 |
Segment, Geographic, and Sign_2
Segment, Geographic, and Significant Customer Information (Tables) | 6 Months Ended |
Oct. 27, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Segment | Financial information by segment is as follows (in millions, except percentages): Three Months Ended October 27, 2023 Hybrid Cloud Public Cloud Consolidated Product revenues $ 706 $ — $ 706 Support revenues 623 — 623 Professional and other services revenues 79 — 79 Public cloud revenues — 154 154 Net revenues 1,408 154 1,562 Cost of product revenues 275 — 275 Cost of support revenues 50 — 50 Cost of professional and other services revenues 60 — 60 Cost of public cloud revenues — 52 52 Segment cost of revenues 385 52 437 Segment gross profit $ 1,023 $ 102 $ 1,125 Segment gross margin 72.7 % 66.2 % 72.0 % Unallocated cost of revenues 1 15 Total gross profit $ 1,110 Total gross margin 71.1 % 1 Unallocated cost of revenues are composed of $ 7 million of stock-based compensation expense and $ 8 million of amortization of intangible assets. Three Months Ended October 28, 2022 Hybrid Cloud Public Cloud Consolidated Product revenues $ 837 $ — $ 837 Support revenues 607 — 607 Professional and other services revenues 77 — 77 Public cloud revenues — 142 142 Net revenues 1,521 142 1,663 Cost of product revenues 417 — 417 Cost of support revenues 45 — 45 Cost of professional and other services revenues 54 — 54 Cost of public cloud revenues — 45 45 Segment cost of revenues 516 45 561 Segment gross profit $ 1,005 $ 97 $ 1,102 Segment gross margin 66.1 % 68.3 % 66.3 % Unallocated cost of revenues 1 15 Total gross profit $ 1,087 Total gross margin 65.4 % 1 Unallocated cost of revenues are composed of $ 5 million of stock-based compensation expense and $ 10 million of amortization of intangible assets. Six Months Ended October 27, 2023 Hybrid Cloud Public Cloud Consolidated Product revenues $ 1,296 $ — $ 1,296 Support revenues 1,234 — 1,234 Professional and other services revenues 156 — 156 Public cloud revenues — 308 308 Net revenues 2,686 308 2,994 Cost of product revenues 539 — 539 Cost of support revenues 97 — 97 Cost of professional and other services revenues 118 — 118 Cost of public cloud revenues — 103 103 Segment cost of revenues 754 103 857 Segment gross profit $ 1,932 $ 205 $ 2,137 Segment gross margin 71.9 % 66.6 % 71.4 % Unallocated cost of revenues 1 31 Total gross profit $ 2,106 Total gross margin 70.3 % 1 Unallocated cost of revenues are composed of $ 14 million of stock-based compensation expense and $ 17 million of amortization of intangible assets. Six Months Ended October 28, 2022 Hybrid Cloud Public Cloud Consolidated Product revenues $ 1,623 $ — $ 1,623 Support revenues 1,205 — 1,205 Professional and other services revenues 153 — 153 Public cloud revenues — 274 274 Net revenues 2,981 274 3,255 Cost of product revenues 812 — 812 Cost of support revenues 88 — 88 Cost of professional and other services revenues 106 — 106 Cost of public cloud revenues — 85 85 Segment cost of revenues 1,006 85 1,091 Segment gross profit $ 1,975 $ 189 $ 2,164 Segment gross margin 66.3 % 69.0 % 66.5 % Unallocated cost of revenues 1 31 Total gross profit $ 2,133 Total gross margin 65.5 % 1 Unallocated cost of revenues are composed of $ 10 million of stock-based compensation expense and $ 21 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 Six Months Ended October 27, October 28, October 27, October 28, United States, Canada and Latin America (Americas) $ 789 $ 845 $ 1,543 $ 1,672 Europe, Middle East and Africa (EMEA) 525 565 971 1,074 Asia Pacific (APAC) 248 253 480 509 Net revenues $ 1,562 $ 1,663 $ 2,994 $ 3,255 Effective in the first quarter of fiscal 2024, management began evaluating revenues by geographic region based on the location to which products and services are delivered, rather than based on the location from which the customer relationship is managed. Prior year numbers have been recast to conform to the current year presentation. |
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): October 27, April 28, U.S. $ 458 $ 887 International 2,162 2,183 Total $ 2,620 $ 3,070 |
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): October 27, April 28, U.S. $ 390 $ 413 International 233 237 Total $ 623 $ 650 |
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 Six Months Ended October 27, October 28, October 27, October 28, Arrow Electronics, Inc. 22 % 24 % 23 % 25 % TD Synnex Corporation (previously presented as Tech Data Corporation) 22 % 20 % 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: October 27, April 28, Arrow Electronics, Inc. 10 % 15 % TD Synnex Corporation (previously presented as Tech Data Corporation) 21 % 19 % |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Millions | May 20, 2022 USD ($) |
Instaclustr Inc. Acquisition [Member] | |
Business Acquisition [Line Items] | |
Business acquisition cash paid | $ 498 |
Business Combinations - Summary
Business Combinations - Summary of Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 | May 20, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,759 | $ 2,759 | |
Instaclustr Inc. Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 4 | ||
Intangible assets | 107 | ||
Goodwill | 413 | ||
Other assets | 19 | ||
Total assets acquired | 543 | ||
Liabilities assumed | (45) | ||
Total purchase price | 498 | ||
Instaclustr Inc. Acquisition [Member] | Developed Technology | |||
Business Acquisition [Line Items] | |||
Intangible assets | 55 | ||
Instaclustr Inc. Acquisition [Member] | Customer Contracts/Relationships | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 50 |
Business Combinations - Schedul
Business Combinations - Schedule of Components of Intangible Assets Acquired (Detail) - Instaclustr Inc. Acquisition [Member] $ in Millions | May 20, 2022 USD ($) |
Business Acquisition [Line Items] | |
Intangible assets | $ 107 |
Developed Technology | |
Business Acquisition [Line Items] | |
Intangible assets | $ 55 |
Estimated useful life (years) | 5 years |
Customer Contracts/Relationships | |
Business Acquisition [Line Items] | |
Intangible assets | $ 50 |
Estimated useful life (years) | 5 years |
Trade Name | |
Business Acquisition [Line Items] | |
Intangible assets | $ 2 |
Estimated useful life (years) | 3 years |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets, Net - Additional Information (Detail) $ in Millions | 6 Months Ended |
Oct. 27, 2023 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Retirement of Amortized Assets | $ 37 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets, Net - Summary of Goodwill by Reportable Segment (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Goodwill [Line Items] | ||
Total goodwill | $ 2,759 | $ 2,759 |
Hybrid Cloud | ||
Goodwill [Line Items] | ||
Total goodwill | 1,714 | |
Public Cloud | ||
Goodwill [Line Items] | ||
Total goodwill | $ 1,045 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets, Net - Purchased Intangible Assets, Net (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 299 | $ 336 |
Accumulated Amortization | (147) | (155) |
Total | 152 | 181 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 179 | 212 |
Accumulated Amortization | (91) | (107) |
Total | 88 | 105 |
Customer Contracts/Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 114 | 118 |
Accumulated Amortization | (51) | (44) |
Total | 63 | 74 |
Other Purchased Intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 6 | 6 |
Accumulated Amortization | (5) | (4) |
Total | $ 1 | $ 2 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangible Assets, Net - Amortization Expense for Purchased Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 14 | $ 17 | $ 29 | $ 34 |
Cost of revenues | Developed Technology | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 8 | 11 | 17 | 21 |
Operating expenses | Customer Contracts/Relationships | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 6 | 6 | 11 | 12 |
Operating expenses | Other Purchased Intangibles | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 0 | $ 0 | $ 1 | $ 1 |
Goodwill and Purchased Intang_7
Goodwill and Purchased Intangible Assets, Net - Future Amortization Expense Related to Purchased Intangible Assets (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
2024 (remainder) | $ 28 | |
2025 | 55 | |
2026 | 39 | |
2027 | 29 | |
2028 | 1 | |
Total | $ 152 | $ 181 |
Supplemental Financial Inform_3
Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 | Oct. 28, 2022 | Apr. 29, 2022 |
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,934 | $ 2,316 | ||
Restricted cash | 7 | 6 | ||
Cash, cash equivalents and restricted cash | $ 1,941 | $ 2,322 | $ 2,676 | $ 4,119 |
Supplemental Financial Inform_4
Supplemental Financial Information - Inventories (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Inventory Disclosure [Abstract] | ||
Purchased components | $ 52 | $ 65 |
Finished goods | 70 | 102 |
Inventories | $ 122 | $ 167 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment Net (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,047 | $ 2,013 |
Accumulated depreciation and amortization | (1,424) | (1,363) |
Property and equipment, net | 623 | 650 |
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 | 367 | 359 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 81 | 91 |
Computer, production, engineering and other equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 1,085 | 1,053 |
Computer software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 332 | 325 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 77 | 84 |
Construction-in-progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 59 | $ 55 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Non-Current Assets (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred tax assets | $ 960 | $ 948 |
Operating lease ROU assets | 260 | 281 |
Other assets | 326 | 319 |
Other non-current assets | $ 1,546 | $ 1,548 |
Supplemental Financial Inform_7
Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jul. 29, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | Apr. 28, 2023 | |
Property Plant And Equipment [Line Items] | ||||
Revenue recognized | $ 1,258 | $ 1,280 | ||
Gain recognized on sale of minority equity interest | 32 | |||
Other income | $ 21 | |||
Properties Sold [Member] | ||||
Property Plant And Equipment [Line Items] | ||||
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 | $ 83 | $ 80 |
Supplemental Financial Inform_8
Supplemental Financial Information - Accrued expenses (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Payables and Accruals [Abstract] | ||
Accrued compensation and benefits | $ 413 | $ 363 |
Product warranty liabilities | 18 | 17 |
Operating lease liabilities | 41 | 47 |
Other current liabilities | 447 | 430 |
Accrued expenses | $ 919 | $ 857 |
Supplemental Financial Inform_9
Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract] | ||
Liability for uncertain tax positions | $ 148 | $ 144 |
Income taxes payable | 100 | 215 |
Product warranty liabilities | 8 | 8 |
Operating lease liabilities | 230 | 248 |
Other liabilities | 94 | 93 |
Other long-term liabilities | $ 580 | $ 708 |
Supplemental Financial Infor_10
Supplemental Financial Information - Summary of Components of Deferred Revenue and Financed Unearned Services Revenue (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Contract With Customer Liability [Line Items] | ||
Total | $ 4,002 | $ 4,313 |
Short-term | 2,003 | 2,218 |
Long-term | 1,999 | 2,095 |
Deferred product revenue | ||
Contract With Customer Liability [Line Items] | ||
Total | 36 | 18 |
Deferred services revenue | ||
Contract With Customer Liability [Line Items] | ||
Total | 3,923 | 4,247 |
Financed unearned services revenue | ||
Contract With Customer Liability [Line Items] | ||
Total | $ 43 | $ 48 |
Supplemental Financial Infor_11
Supplemental Financial Information (Additional Information) (Details 1) | Oct. 27, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-28 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue expected to be recognized | 25% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-10-26 | |
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 |
Supplemental Financial Infor_12
Supplemental Financial Information - Summary of Activity Related to the Balances in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Deferred Revenue Disclosure [Abstract] | ||
Other current assets | $ 64 | $ 64 |
Other non-current assets | 96 | 99 |
Total deferred commissions | $ 160 | $ 163 |
Supplemental Financial Infor_13
Supplemental Financial Information - Other Income (expense), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Nonoperating Income (Expense) [Abstract] | ||||
Interest income | $ 25 | $ 14 | $ 53 | $ 21 |
Interest expense | (15) | (17) | (31) | (35) |
Other, net | 1 | 26 | (3) | 52 |
Total other income, net | $ 11 | $ 23 | $ 19 | $ 38 |
Supplemental Financial Infor_14
Supplemental Financial Information - Supplemental Cash Flows, Non-Cash Investing Activities (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 27, 2023 | Oct. 28, 2022 | |
Non-cash Investing and Financing Activities: | ||
Capital expenditures incurred but not paid | $ 18 | $ 27 |
Liabilities incurred to former owners of acquired business | 0 | 3 |
Supplemental Cash Flow Information: | ||
Income taxes paid, net of refunds | 222 | 203 |
Interest paid | $ 30 | $ 36 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Investments at Cost or Amortized Cost (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | $ 1,242 | $ 1,643 |
U.S. Treasury and Government Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 800 | 754 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 43 | 59 |
Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 34 | 36 |
Money Market Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | $ 365 | $ 794 |
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 | Oct. 27, 2023 | Apr. 28, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 2,620 | $ 3,070 | |
Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 1,934 | 2,316 | |
Short Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 686 | 754 | |
Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts assets | [1] | 3 | 13 |
Accrued Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts liabilities | [2] | (7) | (4) |
U.S. Treasury and Government Debt Securities | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 114 | ||
U.S. Treasury and Government Debt Securities | Short Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 686 | 754 | |
Certificates of Deposit | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 43 | 59 | |
Mutual Funds | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 6 | 7 |
Mutual Funds | Other Noncurrent Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [3] | 28 | 29 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 2,577 | 3,011 | |
Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 1,891 | 2,257 | |
Fair Value, Inputs, Level 1 [Member] | Short Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 686 | 754 | |
Fair Value, Inputs, Level 1 [Member] | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts assets | [1] | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Accrued Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts liabilities | [2] | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury and Government Debt Securities | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 114 | ||
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury and Government Debt Securities | Short Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 686 | 754 | |
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Mutual Funds | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 6 | 7 |
Fair Value, Inputs, Level 1 [Member] | Mutual Funds | Other Noncurrent Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [3] | 28 | 29 |
Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 43 | 59 | |
Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 43 | 59 | |
Fair Value, Inputs, Level 2 [Member] | Short Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts assets | [1] | 3 | 13 |
Fair Value, Inputs, Level 2 [Member] | Accrued Expenses | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency exchange contracts liabilities | [2] | (7) | (4) |
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury and Government Debt Securities | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | ||
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury and Government Debt Securities | Short Term Investments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Certificates of Deposit | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 43 | 59 | |
Fair Value, Inputs, Level 2 [Member] | Mutual Funds | Other Current Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Mutual Funds | Other Noncurrent Assets | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [3] | 0 | 0 |
Cash | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 1,412 | 1,463 | |
Cash | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 1,412 | 1,463 | |
Cash | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 0 | 0 | |
Money Market Funds | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 365 | 794 | |
Money Market Funds | Fair Value, Inputs, Level 1 [Member] | Cash and Cash Equivalents | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 365 | 794 | |
Money Market Funds | Fair Value, Inputs, Level 2 [Member] | Cash and Cash Equivalents | |||
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 | Oct. 27, 2023 | Apr. 28, 2023 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 2,140 | $ 2,206 |
Financing Arrangements - Carryi
Financing Arrangements - Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 | Jun. 30, 2020 | Sep. 30, 2017 |
Debt Instrument [Line Items] | ||||
Total senior notes | $ 2,391 | $ 2,389 | ||
Less: Current portion of long-term debt | 400 | 0 | ||
Total long-term debt | 1,991 | 2,389 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | 2,400 | 2,400 | ||
Unamortized discount and issuance costs | (9) | (11) | ||
Senior Notes | Due September 2024 | ||||
Debt Instrument [Line Items] | ||||
Total principal amount | $ 400 | $ 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 | 6 Months Ended | ||||
May 01, 2023 USD ($) Extension | Jul. 28, 2017 USD ($) | Oct. 27, 2023 USD ($) | Apr. 28, 2023 USD ($) | Jun. 30, 2020 USD ($) | Sep. 30, 2017 USD ($) | |
Debt Instrument [Line Items] | ||||||
Commercial paper notes | $ 0 | $ 0 | ||||
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 | 2,400 | 2,400 | ||||
Senior Notes | Due September 2024 | ||||||
Debt Instrument [Line Items] | ||||||
Notes issued, principal amount | 400 | 400 | $ 400 | |||
Notes issued, interest rate | 3.30% | |||||
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 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Notes issued, principal amount | 550 | 550 | $ 550 | |||
Notes issued, interest rate | 2.375% | |||||
Senior Notes | Due June 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Notes issued, principal amount | $ 700 | $ 700 | $ 700 | |||
Notes issued, interest rate | 2.70% |
Financing Arrangements - Future
Financing Arrangements - Future Principal Debt Maturities (Detail) - Senior Notes - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Debt Instrument [Line Items] | ||
2024 (remainder) | $ 0 | |
2025 | 400 | |
2026 | 750 | |
2027 | 0 | |
2028 | 550 | |
Thereafter | 700 | |
Total | $ 2,400 | $ 2,400 |
Leases - Additional Information
Leases - Additional Information (Detail) - Maximum | Oct. 27, 2023 |
Leases [Line Items] | |
Operating remaining lease term | 19 years |
Equipment | |
Leases [Line Items] | |
Operating remaining lease term | 4 years |
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 | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 14 | $ 16 | $ 28 | $ 31 |
Variable lease cost | 4 | 4 | 8 | 8 |
Total lease cost | $ 18 | $ 20 | $ 36 | $ 39 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 27, 2023 | Oct. 28, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 26 | $ 29 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 13 | $ 31 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Leases [Abstract] | ||
Other non-current assets | $ 260 | $ 281 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other non-current assets | Other non-current assets |
Accrued expenses | $ 41 | $ 47 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses | Accrued expenses |
Other long-term liabilities | $ 230 | $ 248 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Total operating lease liabilities | $ 271 | $ 295 |
Weighted Average Remaining Lease Term | 9 years 6 months | 9 years 4 months 24 days |
Weighted Average Discount Rate | 3% | 3% |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Leases [Abstract] | ||
2024 (remainder) | $ 24 | |
2025 | 42 | |
2026 | 36 | |
2027 | 32 | |
2028 | 29 | |
Thereafter | 153 | |
Total lease payments | 316 | |
Less: Interest | (45) | |
Total | $ 271 | $ 295 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 245 Months Ended | |||
Nov. 21, 2023 | Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Modification of liability-classified awards | $ 4 | $ 4 | ||||
Total stock-based compensation expense | 93 | $ 78 | 180 | $ 145 | ||
Unrecognized compensation expense related to equity awards | 751 | $ 751 | $ 751 | |||
Unrecognized compensation expense will be amortized on a straight-line basis over a weighted-average remaining period, in years | 2 years 3 months 18 days | |||||
Stock repurchase program, authorized amount | $ 16,100 | $ 16,100 | $ 16,100 | |||
Repurchase of common stock, shares | 369 | |||||
Average price of common stock repurchased under repurchase program | $ 41.75 | |||||
Aggregate purchase price of common stock authorized under repurchase program | $ 700 | $ 500 | $ 15,400 | |||
Cash dividends declared, per common share | $ 0.5 | $ 0.5 | $ 1 | $ 1 | ||
Subsequent Event | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cash dividends declared, per common share | $ 0.5 | |||||
Cash dividend payable date | Jan. 24, 2024 | |||||
Cash dividend record date | Jan. 05, 2024 | |||||
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 | $ 75.14 | |||||
Modification of liability-classified awards | $ 4 | |||||
Vesting period, description | For the remaining half of the PBRSUs granted in the six months ended October 27, 2023, the number of shares used to calculate the settlement amount 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 fluctuations in foreign currency exchange rates. | |||||
RSUs grant date fair value | $ 39 | $ 39 | $ 39 | |||
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 | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 93 | $ 78 | $ 180 | $ 145 |
Cost of Product Revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1 | 1 | 2 | 2 |
Cost of Services Revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 6 | 4 | 12 | 8 |
Sales and Marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 37 | 35 | 73 | 63 |
Research and Development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 35 | 26 | 67 | 50 |
General and Administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 14 | $ 12 | $ 26 | $ 22 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activities Related to Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 245 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 369,000,000 | ||||
Average price per share | $ 41.75 | ||||
Stock repurchases allocated | $ 300 | $ 150 | $ 700 | $ 500 | |
Retained Earnings | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchases allocated | 233 | $ 143 | $ 609 | $ 475 | |
Stock Repurchase Program | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 9,000,000 | ||||
Average price per share | $ 75.12 | ||||
Remaining authorization at end of period | $ 702 | $ 702 | $ 702 | ||
Stock Repurchase Program | Additional Paid-in Capital | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchases allocated | 91 | ||||
Stock Repurchase Program | Retained Earnings | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchases allocated | $ 609 |
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 | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Dividends, Common Stock [Abstract] | ||||
Dividends per share declared | $ 0.5 | $ 0.5 | $ 1 | $ 1 |
Dividend payments | $ 209 | $ 218 | ||
Additional Paid-in Capital | ||||
Dividends, Common Stock [Abstract] | ||||
Dividend payments | 171 | 106 | ||
Retained Earnings | ||||
Dividends, Common Stock [Abstract] | ||||
Dividend payments | $ 38 | $ 112 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) by Component Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | $ 873 | $ 657 | $ 1,159 | $ 838 |
Total other comprehensive income (loss) | (7) | (14) | (4) | (18) |
Balances | 770 | 1,202 | 770 | 1,202 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (48) | |||
Other comprehensive income (loss), net of tax | 5 | |||
Amounts reclassified from AOCI, net of tax | 0 | |||
Total other comprehensive income (loss) | 5 | |||
Balances | (53) | (53) | ||
Defined Benefit Obligation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (3) | |||
Other comprehensive income (loss), net of tax | 0 | |||
Amounts reclassified from AOCI, net of tax | 0 | |||
Total other comprehensive income (loss) | 0 | |||
Balances | (3) | (3) | ||
Unrealized Gains (Losses) on Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | 0 | |||
Other comprehensive income (loss), net of tax | 5 | |||
Amounts reclassified from AOCI, net of tax | (4) | |||
Total other comprehensive income (loss) | 1 | |||
Balances | 1 | 1 | ||
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (48) | (48) | (51) | (44) |
Other comprehensive income (loss), net of tax | 0 | |||
Amounts reclassified from AOCI, net of tax | (4) | |||
Total other comprehensive income (loss) | (7) | (14) | (4) | (18) |
Balances | $ (55) | $ (62) | $ (55) | $ (62) |
Stockholders' Equity - Amounts
Stockholders' Equity - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net revenues | $ 1,562 | $ 1,663 | $ 2,994 | $ 3,255 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | 0 | (3) | (4) | (4) |
Reclassification out of Accumulated Other Comprehensive Income | Realized gains on cash flow hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net revenues | $ 0 | $ (3) | $ (4) | $ (4) |
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 | Oct. 27, 2023 | Apr. 28, 2023 |
Long | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 132 | $ 95 |
Non Designated | Short | Balance Sheet Contracts | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | 745 | 965 |
Non Designated | Long | Balance Sheet Contracts | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 46 | $ 96 |
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 | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Foreign Exchange Forward Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign currency exchange contracts | $ (45) | $ (34) | $ (49) | $ (55) |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | Oct. 27, 2023 | Oct. 28, 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 | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Restructuring and Related Activities [Abstract] | ||||
Balance at beginning of period | $ 36 | $ 1 | ||
Net charges | $ 5 | $ 11 | 31 | 22 |
Cash payments | (46) | (14) | ||
Balance at end of period | $ 21 | $ 9 | $ 21 | $ 9 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rates (Detail) | 6 Months Ended | |
Oct. 27, 2023 | Oct. 28, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 23.80% | (67.70%) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Income Tax Contingency [Line Items] | ||
Discrete Tax Benefit | $ 524 | |
Gross unrecognized tax benefits | 223 | |
Gross unrecognized tax benefits included in other long-term liabilities | 148 | $ 144 |
Unrecognized tax benefits that would affect provision for income taxes | $ 149 |
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 | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 233 | $ 750 | $ 382 | $ 964 |
Shares used in basic computation | 208 | 217 | 210 | 219 |
Dilutive impact of employee equity award plans | 3 | 3 | 4 | 3 |
Shares used in diluted computation | 211 | 220 | 214 | 222 |
Basic | $ 1.12 | $ 3.46 | $ 1.82 | $ 4.4 |
Diluted | $ 1.1 | $ 3.41 | $ 1.79 | $ 4.34 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Earnings Per Share [Abstract] | ||||
Outstanding employee equity awards excluded from diluted net income per share calculations | 3 | 6 | 4 | 5 |
Segment Geographic and Signific
Segment Geographic and Significant Customer Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 USD ($) | Oct. 28, 2022 USD ($) | Oct. 27, 2023 USD ($) Segment | Oct. 28, 2022 USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of industry segment | Segment | 2 | |||
Net revenues | $ 1,562 | $ 1,663 | $ 2,994 | $ 3,255 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 729 | $ 784 | $ 1,427 | $ 1,556 |
Segment Geographic and Signif_2
Segment Geographic and Significant Customer Information - Schedule of Financial Information by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,562 | $ 1,663 | $ 2,994 | $ 3,255 |
Segment cost of revenues | 437 | 561 | 857 | 1,091 |
Segment gross profit | $ 1,125 | $ 1,102 | $ 2,137 | $ 2,164 |
Segment gross margin | 72% | 66.30% | 71.40% | 66.50% |
Unallocated cost of revenues | $ 15 | $ 15 | $ 31 | $ 31 |
Gross profit | $ 1,110 | $ 1,087 | $ 2,106 | $ 2,133 |
Total gross margin | 71.10% | 65.40% | 70.30% | 65.50% |
Operating Segments | Hybrid Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,408 | $ 1,521 | $ 2,686 | $ 2,981 |
Segment cost of revenues | 385 | 516 | 754 | 1,006 |
Segment gross profit | $ 1,023 | $ 1,005 | $ 1,932 | $ 1,975 |
Segment gross margin | 72.70% | 66.10% | 71.90% | 66.30% |
Operating Segments | Public Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 154 | $ 142 | $ 308 | $ 274 |
Segment cost of revenues | 52 | 45 | 103 | 85 |
Segment gross profit | $ 102 | $ 97 | $ 205 | $ 189 |
Segment gross margin | 66.20% | 68.30% | 66.60% | 69% |
Product [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 706 | $ 837 | $ 1,296 | $ 1,623 |
Segment cost of revenues | 275 | 417 | 539 | 812 |
Product [Member] | Operating Segments | Hybrid Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 706 | 837 | 1,296 | 1,623 |
Segment cost of revenues | 275 | 417 | 539 | 812 |
Product [Member] | Operating Segments | Public Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Segment cost of revenues | 0 | 0 | 0 | 0 |
Public Cloud | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 154 | 142 | 308 | 274 |
Segment cost of revenues | 52 | 45 | 103 | 85 |
Public Cloud | Operating Segments | Hybrid Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Segment cost of revenues | 0 | 0 | 0 | 0 |
Public Cloud | Operating Segments | Public Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 154 | 142 | 308 | 274 |
Segment cost of revenues | 52 | 45 | 103 | 85 |
Support | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 623 | 607 | 1,234 | 1,205 |
Segment cost of revenues | 50 | 45 | 97 | 88 |
Support | Operating Segments | Hybrid Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 623 | 607 | 1,234 | 1,205 |
Segment cost of revenues | 50 | 45 | 97 | 88 |
Support | Operating Segments | Public Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Segment cost of revenues | 0 | 0 | 0 | 0 |
Professional and Other Services | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 79 | 77 | 156 | 153 |
Segment cost of revenues | 60 | 54 | 118 | 106 |
Professional and Other Services | Operating Segments | Hybrid Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 79 | 77 | 156 | 153 |
Segment cost of revenues | 60 | 54 | 118 | 106 |
Professional and Other Services | Operating Segments | Public Cloud Segment | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Segment cost of revenues | $ 0 | $ 0 | $ 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 | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Segment Reporting [Abstract] | ||||
Unallocated cost of revenue stock-based compensation expense | $ 7 | $ 5 | $ 14 | $ 10 |
Unallocated cost of revenue amortization of intangible assets | $ 8 | $ 10 | $ 17 | $ 21 |
Segment Geographic and Signif_4
Segment Geographic and Significant Customer Information - Schedule of Revenues by Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,562 | $ 1,663 | $ 2,994 | $ 3,255 |
United States, Canada And Latin America (Americas) | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 789 | 845 | 1,543 | 1,672 |
Europe, Middle East And Africa (EMEA) | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 525 | 565 | 971 | 1,074 |
Asia Pacific (APAC) | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 248 | $ 253 | $ 480 | $ 509 |
Segment Geographic and Signif_5
Segment Geographic and Significant Customer Information - Schedule of Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 2,620 | $ 3,070 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | 458 | 887 |
International | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 2,162 | $ 2,183 |
Segment Geographic and Signif_6
Segment Geographic and Significant Customer Information - Schedule of Property and Equipment Net by Geographic Areas (Detail) - USD ($) $ in Millions | Oct. 27, 2023 | Apr. 28, 2023 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 623 | $ 650 |
U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | 390 | 413 |
International | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 233 | $ 237 |
Segment Geographic and Signif_7
Segment Geographic and Significant Customer Information - Significant Customers (Detail) - Net Revenue - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Oct. 27, 2023 | Oct. 28, 2022 | |
Arrow Electronics, Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenues | 22% | 24% | 23% | 25% |
TD Synnex Corporation (previously presented as Tech Data Corporation) | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenues | 22% | 20% | 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 | 6 Months Ended | |
Oct. 27, 2023 | Apr. 28, 2023 | |
Arrow Electronics, Inc. | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 10% | 15% |
TD Synnex Corporation (previously presented as Tech Data Corporation) | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 21% | 19% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Oct. 27, 2023 | Oct. 28, 2022 | Apr. 28, 2023 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase orders and other commitments | $ 300 | ||
Accrued purchase commitments with contract manufacturers | 17 | $ 15 | |
Sale of finance receivables | 27 | $ 10 | |
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 | ||
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 | $ 400 |