Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 27, 2018 | Aug. 15, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 27, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | NTAP | |
Entity Registrant Name | NetApp, Inc. | |
Entity Central Index Key | 1,002,047 | |
Current Fiscal Year End Date | --04-26 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 259,268,252 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,627 | $ 2,941 |
Short-term investments | 2,184 | 2,450 |
Accounts receivable | 616 | 1,047 |
Inventories | 97 | 122 |
Other current assets | 329 | 392 |
Total current assets | 5,853 | 6,952 |
Property and equipment, net | 768 | 756 |
Goodwill | 1,739 | 1,739 |
Other intangible assets, net | 81 | 94 |
Other non-current assets | 464 | 450 |
Total assets | 8,905 | 9,991 |
Current liabilities: | ||
Accounts payable | 425 | 609 |
Accrued expenses | 592 | 825 |
Commercial paper notes | 200 | 385 |
Short-term deferred revenue and financed unearned services revenue | 1,623 | 1,712 |
Total current liabilities | 2,840 | 3,531 |
Long-term debt | 1,542 | 1,541 |
Other long-term liabilities | 964 | 992 |
Long-term deferred revenue and financed unearned services revenue | 1,637 | 1,651 |
Total liabilities | 6,983 | 7,715 |
Commitments and contingencies (Note 16) | ||
Stockholders' equity: | ||
Common stock and additional paid-in capital, $0.001 par value; 260 and 263 shares issued and outstanding as of July 27, 2018 and April 27, 2018, respectively | 1,992 | 2,355 |
Retained earnings (accumulated deficit) | 0 | (9) |
Accumulated other comprehensive loss | (70) | (70) |
Total stockholders' equity | 1,922 | 2,276 |
Total liabilities and stockholders' equity | $ 8,905 | $ 9,991 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 260 | 263 |
Common stock, shares outstanding | 260 | 263 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Revenues: | ||
Net revenues | $ 1,474 | $ 1,321 |
Cost of revenues: | ||
Total cost of revenues | 511 | 497 |
Gross profit | 963 | 824 |
Operating expenses: | ||
Sales and marketing | 409 | 423 |
Research and development | 208 | 193 |
General and administrative | 73 | 68 |
Restructuring charges | 19 | 0 |
Total operating expenses | 709 | 684 |
Income from operations | 254 | 140 |
Other income, net | 18 | 5 |
Income before income taxes | 272 | 145 |
Provision (benefit) for income taxes | (11) | 14 |
Net income | $ 283 | $ 131 |
Net income per share: | ||
Basic | $ 1.08 | $ 0.49 |
Diluted | $ 1.05 | $ 0.47 |
Shares used in net income per share calculations: | ||
Basic | 262 | 270 |
Diluted | 269 | 278 |
Cash dividends declared per share | $ 0.40 | $ 0.20 |
Product [Member] | ||
Revenues: | ||
Net revenues | $ 875 | $ 727 |
Cost of revenues: | ||
Total cost of revenues | 398 | 376 |
Software Maintenance [Member] | ||
Revenues: | ||
Net revenues | 229 | 223 |
Cost of revenues: | ||
Total cost of revenues | 7 | 7 |
Hardware Maintenance and Other Services [Member] | ||
Revenues: | ||
Net revenues | 370 | 371 |
Cost of revenues: | ||
Total cost of revenues | $ 106 | $ 114 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 283 | $ 131 |
Other comprehensive income: | ||
Foreign currency translation adjustments | 0 | 10 |
Unrealized gains on available-for-sale securities: | ||
Unrealized holding gains arising during the period | 0 | 6 |
Other comprehensive income | 0 | 16 |
Comprehensive income | $ 283 | $ 147 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 283 | $ 131 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 49 | 51 |
Stock-based compensation | 40 | 48 |
Deferred income taxes | (26) | 0 |
Other items, net | 8 | 5 |
Changes in assets and liabilities, net of acquisitions of businesses: | ||
Accounts receivable | 423 | 226 |
Inventories | 25 | 24 |
Other operating assets | 5 | 61 |
Accounts payable | (177) | (58) |
Accrued expenses | (221) | (135) |
Deferred revenue and financed unearned services revenue | (87) | (102) |
Long-term taxes payable | 5 | 0 |
Other operating liabilities | (1) | (1) |
Net cash provided by operating activities | 326 | 250 |
Cash flows from investing activities: | ||
Purchases of investments | (19) | (275) |
Maturities, sales and collections of investments | 267 | 387 |
Purchases of property and equipment | (64) | (36) |
Acquisitions of businesses, net of cash acquired | 0 | (24) |
Other investing activities, net | 2 | 1 |
Net cash provided by investing activities | 186 | 53 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock award plans | 63 | 48 |
Payments for taxes related to net share settlement of stock awards | (84) | (57) |
Repurchase of common stock | (500) | (150) |
Proceeds from (repayments of) commercial paper notes, net | (185) | 394 |
Dividends paid | (105) | (54) |
Other financing activities, net | (1) | 0 |
Net cash provided by (used in) financing activities | (812) | 181 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (14) | 19 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (314) | 503 |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 2,947 | 2,450 |
End of period | $ 2,633 | $ 2,953 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 3 Months Ended |
Jul. 27, 2018 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies NetApp, Inc. (we, us, or the Company) provides global organizations the ability to manage and share their data across on-premises, private and public clouds. Together with our partners, 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 2019 and 2018, ending on April 26, 2019, and April 27, 2018, respectively, are each 52-week years, with 13 weeks in each of their quarters. 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 and cash flows 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 27, 2018 contained in our Annual Report on Form 10-K. The results of operations for the three months ended July 27, 2018 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 and purchase order accruals; valuation of goodwill and intangibles; restructuring reserves; product warranties; employee compensation and benefit accruals; stock-based compensation; loss contingencies; valuation of investment securities; income taxes and fair value measurements. Actual results could differ materially from those estimates. Accounting Changes In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard, Revenue from Contracts with Customers (ASC 606) In October 2016, the FASB issued an accounting standards update (ASU) which eliminates the deferred tax effects of intra-entity asset transfers other than inventory. As a result, tax expense from the sale of an asset in the seller’s tax jurisdiction is recognized when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. In the three months ended July 27, 2018, we adopted this ASU using a modified retrospective transition approach and recorded a cumulative-effect adjustment to decrease retained earnings by $51 million, with a corresponding reduction of prepaid taxes, which were classified as other non-current assets on our condensed consolidated balance sheets, as of the beginning of the period. In November 2016, the FASB issued an ASU that requires a statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. In the three months ended July 27, 2018, we adopted this ASU using a retrospective transition method. Accordingly, our condensed consolidated statement of cash flows for the three months ended July 28, 2017, as presented herein, has been restated to comply with the new requirements. Refer to Note 5 – Supplemental Financial Information for a detail of the components of our cash, cash equivalents and restricted cash balances. There have been no other significant changes in our significant accounting policies as of and for the three months ended July 27, 2018, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 27, 2018. |
Recent Accounting Standards Not
Recent Accounting Standards Not Yet Effective | 3 Months Ended |
Jul. 27, 2018 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Standards Not Yet Effective | 2. Recent Accounting Standards Not Yet Effective Leases In February 2016, the FASB issued an accounting standards update on financial reporting for leasing arrangements, including requiring lessees to recognize an operating lease with a term greater than one year on their balance sheets as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. This new standard will be effective for us in our first quarter of fiscal 2020, although early adoption is permitted. Upon adoption, the new standard, as amended, allows lessees to apply the transition requirements either (1) retrospectively to each prior reporting period presented in the financial statements with the cumulative effect of applying the new rules recognized at the beginning of the earliest comparative period presented, or (2) retrospectively at the beginning of the period of adoption with the cumulative effect of applying the new rules recognized then. We are currently in the assessment phase to determine the adoption methodology and are evaluating the impact of this new standard on our consolidated financial statements and disclosures. We expect that most of our operating lease commitments will be subject to the new standard and recognized as lease liabilities and right-of-use assets upon adoption, which will increase the total assets and total liabilities we report. Credit Losses on Financial Instruments In June 2016, the FASB issued an accounting standards update on the measurement of credit losses on financial instruments. The standard introduces a new model for measuring and recognizing credit losses on financial instruments, requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. |
Statements of Cash Flows Additi
Statements of Cash Flows Additional Information | 3 Months Ended |
Jul. 27, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Statements of Cash Flows Additional Information | 3. Statements of Cash Flows Additional Information Non-cash investing and supplemental cash flow information are as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 Non-cash Investing Activities: Capital expenditures incurred but not paid $ 10 $ 18 Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 22 $ 22 Interest paid $ 14 $ 21 |
Purchased Intangible Assets, Ne
Purchased Intangible Assets, Net | 3 Months Ended |
Jul. 27, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Purchased Intangible Assets, Net | 4. Purchased Intangible Assets, Net Purchased intangible assets, net are summarized below (in millions): July 27, 2018 April 27, 2018 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 160 $ (86 ) $ 74 $ 164 $ (80 ) $ 84 Customer contracts/relationships 41 (34 ) 7 43 (33 ) 10 Other purchased intangibles — — — 9 (9 ) — Total purchased intangible assets $ 201 $ (120 ) $ 81 $ 216 $ (122 ) $ 94 Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Statements of July 27, 2018 July 28, 2017 Operations Classification Developed technology $ 9 $ 8 Cost of revenues Customer contracts/relationships 4 4 Operating expenses Other purchased intangibles — 1 Operating expenses Total $ 13 $ 13 As of July 27, 2018, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount Remainder of 2019 $ 34 2020 31 2021 16 Total $ 81 |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Jul. 27, 2018 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | 5. Supplemental Financial Information Cash, cash equivalents and restricted cash (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 statement of cash flows in accordance with our adoption of the ASU discussed in Note 1 – Description of Business and Significant Accounting Policies: July 27, 2018 April 27, 2018 Cash $ 2,519 $ 2,727 Cash equivalents 108 214 Cash and cash equivalents $ 2,627 $ 2,941 Short-term restricted cash 5 5 Long-term restricted cash 1 1 Restricted cash $ 6 $ 6 Cash, cash equivalents and restricted cash $ 2,633 $ 2,947 Inventories (in millions): July 27, 2018 April 27, 2018 Purchased components $ 17 $ 12 Finished goods 80 110 Inventories $ 97 $ 122 Property and equipment, net (in millions): July 27, 2018 April 27, 2018 Land $ 106 $ 106 Buildings and improvements 605 594 Leasehold improvements 87 88 Computer, production, engineering and other equipment 765 733 Computer software 358 357 Furniture and fixtures 104 99 Construction-in-progress 4 27 2,029 2,004 Accumulated depreciation and amortization (1,261 ) (1,248 ) Property and equipment, net $ 768 $ 756 In September 2017, we entered into an agreement to sell certain land and buildings located in Sunnyvale, California, through two separate and independent closings, the first of which was completed in the third quarter of fiscal 2018. The remaining properties, consisting of land with a net book value of $52 million, were classified as assets held for sale, and included as other current assets in our condensed consolidated balance sheets as of July 27, 2018 and April 27, 2018. We will consummate the sale of these properties, and receive cash proceeds of $96 million, upon the completion of the second closing, which is expected to occur within the next 12 months. That closing is subject to due diligence, certain termination rights and customary closing conditions, including local governmental approval of the subdivision of a land parcel. Other non-current assets (in millions): July 27, 2018 April 27, 2018 Deferred tax assets $ 225 $ 229 Other assets 239 221 Other non-current assets $ 464 $ 450 Accrued expenses (in millions): July 27, 2018 April 27, 2018 Accrued compensation and benefits $ 268 $ 441 Product warranty liabilities 25 25 Other current liabilities 299 359 Accrued expenses $ 592 $ 825 Product warranty liabilities: Equipment and software systems sales include a standard product warranty. The following tables summarize the activity related to product warranty liabilities and their balances as reported in our condensed consolidated balance sheets (in millions): Three Months Ended July 27, 2018 July 28, 2017 Balance at beginning of period $ 40 $ 50 Expense accrued during the period 4 1 Warranty costs incurred (6 ) (7 ) Balance at end of period $ 38 $ 44 July 27, 2018 April 27, 2018 Accrued expenses $ 25 $ 25 Other long-term liabilities 13 15 Total warranty liabilities $ 38 $ 40 Warranty expense accrued during the period includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods. Other long-term liabilities (in millions): July 27, 2018 April 27, 2018 Liability for uncertain tax positions $ 319 $ 314 Income taxes payable 549 549 Product warranty liabilities 13 15 Other liabilities 83 114 Other long-term liabilities $ 964 $ 992 |
Revenue
Revenue | 3 Months Ended |
Jul. 27, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 6. Revenue Effective our first quarter of fiscal 2019, we adopted ASC 606 using the full retrospective method and have restated each prior reporting period presented to conform to the new rules. The most significant impact of the new standard relates to our accounting for arrangements containing software. For our enterprise software license agreements (ELAs), we now recognize the license fee component of such arrangements up front. Under the prior rules, the software license fee was recognized over the term of the enterprise license based on our inability to establish vendor specific objective evidence of fair value for the undelivered software support element of these arrangements. In addition, for other software arrangements, revenue deferred for the undelivered elements that was previously allocated based on the residual method is now allocated based on relative fair value, which generally results in more software arrangement revenue being recognized earlier. The new standard also impacts our estimation of variable consideration for certain arrangements with contract terms such as rights of return, potential penalties and acceptance clauses. The following table presents the impacts of adoption of ASC 606 to select line items of our condensed consolidated balance sheet as of the end of fiscal 2018: As of April 27, 2018 As Previously Reported Impact of ASC 606 Adoption As Adjusted ASSETS Accounts receivable $ 1,009 $ 38 (1 ) $ 1,047 Inventories 126 (4 ) 122 Other current assets 330 62 (2 ) 392 Other non-current assets 420 30 (2 ) 450 LIABILITIES AND STOCKHOLDERS' EQUITY Short-term deferred revenue and financed unearned services revenue $ 1,804 $ (92 ) (3 ) $ 1,712 Other long-term liabilities 961 31 (4 ) 992 Long-term deferred revenue and financed unearned services revenue 1,673 (22 ) (3 ) 1,651 Accumulated deficit (218 ) 209 (5 ) (9 ) (1) Netting of accounts receivable and deferred revenue balances for certain customer arrangements has been updated to reflect the impact of adoption (2) Reflects capitalization of commissions and reduction of long-term deferred tax assets (3) Reflects cumulative change in revenue and the impact of adoption to the netting of accounts receivable and deferred revenue balances for certain customer arrangements (4) Reflects increase in long-term deferred tax liabilities (5) Reflects cumulative impact to net income (loss) The following table presents the impacts of adoption of ASC 606 to our statement of operations for the first quarter of fiscal 2018: Three Months Ended July 28, 2017 As Previously Reported Impact of ASC 606 Adoption As Adjusted Revenues: Product $ 723 $ 4 $ 727 Software maintenance 234 (11 ) 223 Hardware maintenance and other services 368 3 371 Net revenues 1,325 (4 ) 1,321 Cost of revenues: Cost of product 371 5 376 Cost of software maintenance 7 — 7 Cost of hardware maintenance and other services 113 1 114 Total cost of revenues 491 6 497 Gross profit 834 (10 ) 824 Operating expenses: Sales and marketing 425 (2 ) 423 Research and development 193 — 193 General and administrative 68 — 68 Total operating expenses 686 (2 ) 684 Income from operations 148 (8 ) 140 Other income, net 5 — 5 Income before income taxes 153 (8 ) 145 Provision for income taxes 17 (3 ) 14 Net income $ 136 $ (5 ) $ 131 Net income per share: Basic $ 0.50 $ (0.01 ) $ 0.49 Diluted $ 0.49 $ (0.02 ) $ 0.47 Shares used in net income per share calculations: Basic 270 270 270 Diluted 278 278 278 The adoption of ASC 606 had no impact to cash provided by or used in operating, investing or financing activities as presented on our condensed consolidated statement of cash flows. The core principle of ASC 606 is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration the entity expects to be entitled in exchange for those goods or services. This principle is achieved through applying the following five-step approach. • Identification of the contract, or contracts, with a customer — A contract with a customer exists when (i) we enter into an enforceable contract with a customer that (ii) defines each party’s rights regarding the goods or services to be transferred and (iii) identifies the payment terms related to these goods or services. Additionally, (iv) the contract has commercial substance and, (v) we determine that collection of substantially all consideration for goods or services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. We apply judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. We also combine two or more contracts entered into at or near the same time with the same customer as a single contract if the contracts are negotiated as one package with a single commercial objective, the amount of consideration to be paid on one contract depends on the price or performance of the other contract or if the goods and services promised in each of the contracts are a single performance obligation. • Identification of the performance obligations in the contract — Performance obligations promised in a contract are identified based on the goods or services (or a bundle of goods and services) that will be transferred to the customer that are distinct. A good or service is distinct if it is capable of being distinct, where the customer can benefit from the goods or service either on its own or together with other resources that are readily available from third parties or from us, and is distinct in the context of the contract, meaning the transfer of the goods or services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised goods or services, we apply judgment to determine whether promised goods or services are capable of being distinct and distinct in the context of the contract. If these criteria are not met, we combine the goods and services until we have a distinct performance obligation. • Determination of the transaction price — The transaction price is determined based on the consideration to which we will be entitled in exchange for transferring goods or services to the customer. Consideration promised may include fixed amounts, variable amounts or both. We use judgment in determining variable consideration, particularly if consideration is contingent on the occurrence or nonoccurrence of a future event. We use the expected value, primarily relying on our history, to estimate variable consideration. We may also use, in certain situations, the most likely amount as the basis of our estimate. In either case, we consider variable consideration only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Reassessments of our variable consideration may occur as historical information changes. Transaction prices should also be adjusted for the effects of time value of money if the timing of payments provides either the customer or ourselves a significant benefit of financing. • Allocation of the transaction price to the performance obligations in the contract — If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis. We determine standalone selling price based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations. Variable consideration is also allocated to the performance obligations. If the terms of variable consideration relate to one performance obligation, it is entirely allocated to that obligation. Otherwise, it is allocated to all the performance obligations in the contract. • Recognition of revenue when, or as, we satisfy a performance obligation — We satisfy performance obligations either over time or at a point in time. We typically recognize revenue at a point in time for promises to transfer goods to a customer. Services are typically transferred over time based on an appropriate method for measuring our progress toward completion of that performance obligation. Our stand-ready services, including both hardware and software maintenance support, are transferred ratably over the period of the contract. For other services such as our fixed professional services contract, we use an input method to determine the percentage of completion. That is, we estimate the effort to date versus the expected effort required over the life of the contract. Disaggregation of revenue To provide visibility into our transition from older products to our newer, higher growth products and clarity into the dynamics of our product revenue, we group our products by “Strategic” and “Mature” solutions. Strategic solutions include Clustered ONTAP, branded E-Series, SolidFire, converged and hyper-converged infrastructure, ELAs The following table depicts the disaggregation of revenue by our products and services (in millions): Three Months Ended July 27, 2018 July 28, 2017 Product revenues $ 875 $ 727 Strategic 612 498 Mature 263 229 Software maintenance revenues 229 223 Hardware maintenance and other services revenues 370 371 Hardware maintenance support contracts 303 298 Professional and other services 67 73 Net revenues $ 1,474 $ 1,321 Revenues by geographic region are presented in Note 15 – Segment, Geographic, and Significant Customer Information. Deferred revenue and financed unearned services revenue The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our condensed consolidated balance sheets (in millions): July 27, 2018 April 27, 2018 Deferred product revenue $ 102 $ 107 Deferred services revenue 3,046 3,134 Financed unearned services revenue 112 122 Total $ 3,260 $ 3,363 Reported as: Short-term $ 1,623 $ 1,712 Long-term 1,637 1,651 Total $ 3,260 $ 3,363 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 maintenance contracts and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 16 – Commitments and Contingencies for additional information related to these arrangements. The following tables summarize the activity related to deferred revenue and financed unearned services revenue (in millions): Three Months Ended July 27, 2018 July 28, 2017 Balance at beginning of period $ 3,363 $ 3,213 Additions 511 497 Revenue recognized during the period (614 ) (583 ) Balance at end of period $ 3,260 $ 3,127 During the three months ended July 27, 2018 and July 28, 2017, we recognized $561 million and $528 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods. As of July 27, 2018, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $3,260 million, which is equivalent to 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 26% in the next 13 to 24 months, and the remainder thereafter. Deferred commissions As a result of our adoption of ASC 606 in the first quarter of fiscal 2019, we capitalize sales commissions that are incremental direct costs of obtaining customer contracts for which revenue is not immediately recognized and classify them as current or non-current based on the terms of the related contracts. Capitalized commissions are amortized based on the transfer of goods or services to which they relate, typically over one to three years, and are also periodically reviewed for impairment. Amortization expense is recorded to sales and marketing expense in our condensed consolidated statements of operations. The following tables summarize the activity related to deferred commissions and their balances as reported in our condensed consolidated balance sheets (in millions): Three Months Ended July 27, 2018 July 28, 2017 Balance at beginning of period $ 137 $ 113 Additions 19 18 Expense recognized during the period (21 ) (15 ) Balance at end of period $ 135 $ 116 July 27, 2018 April 27, 2018 Other current assets $ 64 $ 66 Other non-current assets 71 71 Total deferred commissions $ 135 $ 137 |
Other Income, Net
Other Income, Net | 3 Months Ended |
Jul. 27, 2018 | |
Nonoperating Income Expense [Abstract] | |
Other Income, Net | 7. Other income, net Other income, net consists of the following (in millions): Three Months Ended July 27, 2018 July 28, 2017 Interest income $ 25 $ 16 Interest expense (14 ) (13 ) Other income, net 7 2 Total other income, net $ 18 $ 5 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Jul. 27, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Financial Instruments and Fair Value Measurements | 8. 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 (in millions): July 27, 2018 April 27, 2018 Cost or Estimated Cost or Estimated Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate bonds $ 1,740 $ 1 $ (39 ) $ 1,702 $ 1,865 $ 1 $ (39 ) $ 1,827 U.S. Treasury and government debt securities 441 — (5 ) 436 497 — (5 ) 492 Commercial paper 38 — — 38 230 — — 230 Certificates of deposit 116 — — 116 115 — — 115 Mutual funds 34 — — 34 31 — — 31 Total debt and equity securities $ 2,369 $ 1 $ (44 ) $ 2,326 $ 2,738 $ 1 $ (44 ) $ 2,695 As of July 27, 2018 and April 27, 2018, the unrealized losses on our available-for-sale investments were caused by market value declines as a result of increasing market interest rates. Because the declines in market value are attributable to changes in market conditions and not credit quality, and because we have determined that (i) we do not have the intent to sell any of these investments and (ii) it is not more likely than not that we will be required to sell any of these investments before recovery of the entire amortized cost basis, we have determined that no other-than-temporary impairments were required to be recognized on these investments as of July 27, 2018 and April 27, 2018. The following table presents the contractual maturities of our debt investments as of July 27, 2018 (in millions): Amortized Cost Fair Value Due in one year or less $ 687 $ 685 Due after one year through five years 1,040 1,024 Due after five years through ten years 608 583 $ 2,335 $ 2,292 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. Fair Value of Financial Instruments The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions): July 27, 2018 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 2,519 $ 2,519 $ — Corporate bonds 1,702 — 1,702 U.S. Treasury and government debt securities 436 234 202 Commercial paper 38 — 38 Certificates of deposit 116 — 116 Total cash, cash equivalents and short-term investments $ 4,811 $ 2,753 $ 2,058 Other items: Mutual funds (1) $ 6 $ 6 $ — Mutual funds (2) $ 28 $ 28 $ — Foreign currency exchange contracts assets (1) $ 1 $ — $ 1 (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 Our Level 2 debt instruments are held by a custodian who prices some of the investments using standard inputs in various asset price models or obtains investment prices from third-party pricing providers that incorporate standard inputs in various asset price models. These pricing providers utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. We review Level 2 inputs and fair value for reasonableness and the values may be further validated by comparison to multiple independent pricing sources. In addition, we review third-party pricing provider models, key inputs and assumptions and understand the pricing processes at our third-party providers in determining the overall reasonableness of the fair value of our Level 2 debt instruments. As of July 27, 2018 and April 27, 2018, we have not made any adjustments to the prices obtained from our third-party pricing providers. Fair Value of Debt As of July 27, 2018 and April 27, 2018, the fair value of our long-term debt was approximately $1,518 million and $1,523 million, respectively. The fair value of our long-term debt was based on observable market prices in a less active market. The fair value of our commercial paper notes approximated their carrying value. All of our debt obligations are categorized as Level 2 instruments. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Jul. 27, 2018 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 9. 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): July 27, 2018 April 27, 2018 Effective Effective Amount Interest Rate Amount Interest Rate 2.00% Senior Notes Due September 2019 400 2.32 % 400 2.32 % 3.375% Senior Notes Due June 2021 500 3.54 % 500 3.54 % 3.25% Senior Notes Due December 2022 250 3.43 % 250 3.43 % 3.30% Senior Notes Due September 2024 400 3.42 % 400 3.42 % Total principal amount 1,550 1,550 Unamortized discount and issuance costs (8 ) (9 ) Total long-term debt $ 1,542 $ 1,541 Senior Notes Our 2.00% Senior Notes and 3.30% Senior Notes, each with a principal amount of $400 million, were issued in September 2017. Interest on these Senior Notes is paid semi-annually in March and September. Our 3.375% Senior Notes and 3.25% Senior Notes, with principal amounts of $500 million and $250 million, respectively, were issued in June 2014 and December 2012, respectively. Interest on these Senior Notes is paid semi-annually in June and December. Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any existing and future senior unsecured indebtedness. We may redeem the Senior Notes in whole or in part, at any time at our option at specified redemption prices. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Senior Notes under specified terms. The Senior Notes also include covenants that limit our ability to incur debt secured by liens on assets or on shares of stock or indebtedness of our subsidiaries; to engage in certain sale and lease-back transactions; and to consolidate, merge or sell all or substantially all of our assets. As of July 27, 2018, we were in compliance with all covenants associated with the Senior Notes. As of July 27, 2018, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2020 $ 400 2022 500 2023 250 2025 400 Total $ 1,550 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 proceeds from the issuance of the notes are used for general corporate purposes. As of July 27, 2018, we had commercial paper notes outstanding with an aggregate principal amount of $200 million, a weighted-average interest rate of 2.28% and maturities ranging from 14 days to 31 days. In connection with the Program, we have a senior unsecured credit agreement with a syndicated group of lenders that expires on December 10, 2021. The credit agreement, as amended in July 2017, provides a $1.0 billion revolving unsecured credit facility, with a $50 million letter of credit sub-facility, that serves as a back-up for the Program. Proceeds from the facility may also be used for general corporate purposes to the extent that the credit facility exceeds the outstanding debt issued under the Program . The credit agreement includes options that allow us to request an increase in the facility of up to an additional $300 million and to extend its maturity date for two additional one-year periods, both subject to certain conditions. As of July 27, 2018 we were in compliance with all associated covenants in this agreement. No amounts were drawn against this facility during any of the periods presented. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 27, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Equity Incentive Awards As of July 27, 2018, we have certain equity incentive awards (awards) outstanding, which include stock options, restricted stock units (RSUs), including time-based RSUs and performance-based RSUs (PBRSUs), and Employee Stock Purchase Plan (ESPP) awards. Stock Options The following table summarizes information related to our stock options (in millions, except exercise price and contractual term): Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of April 27, 2018 1 $ 31.19 Outstanding as of July 27, 2018 1 $ 29.86 3.50 $ 40 Exercisable as of July 27, 2018 1 $ 32.23 3.05 $ 34 The aggregate intrinsic value represents the pre-tax difference between the exercise price of stock options and the quoted market price of our stock on that day for all in-the-money options. Additional information related to our stock options is summarized below (in millions): Three Months Ended July 27, 2018 July 28, 2017 Intrinsic value of exercises $ 15 $ 5 Proceeds received from exercises $ 13 $ 6 Fair value of options vested $ 1 $ 3 Restricted Stock Units In the three months ended July 27, 2018, The following table summarizes information related to our RSUs, including PBRSUs, (in millions, except fair value): Number of Shares Weighted- Average Grant Date Fair Value Outstanding as of April 27, 2018 9 $ 32.91 Granted 3 $ 62.42 Vested (3 ) $ 31.34 Forfeited (1 ) $ 31.62 Outstanding as of July 27, 2018 8 $ 43.43 We primarily use the net share settlement approach upon vesting, where a portion of the shares are withheld as settlement of employee withholding taxes, which decreases the shares issued to the employee by a corresponding value. The number and value of the shares netted for employee taxes are summarized in the table below (in millions): Three Months Ended July 27, 2018 July 28, 2017 Shares withheld for taxes 1 1 Fair value of shares withheld $ 84 $ 57 Employee Stock Purchase Plan The following table summarizes activity related to the purchase rights issued under the ESPP (in millions): Three Months Ended July 27, 2018 July 28, 2017 Shares issued under the ESPP 2 2 Proceeds from issuance of shares $ 49 $ 42 Stock-Based Compensation Expense Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 Cost of product revenues $ 1 $ 1 Cost of hardware maintenance and other services revenues 3 3 Sales and marketing 17 21 Research and development 12 15 General and administrative 7 8 Total stock-based compensation expense $ 40 $ 48 Income tax benefit for stock-based compensation expense $ 5 $ 9 As of July 27, 2018, total unrecognized compensation expense related to our equity awards was $362 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.5 years. Stock Repurchase Program Our Board of Directors has authorized the repurchase of up to $13.6 billion of our common stock. Under this program, which we may suspend or discontinue at any time, 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 following table summarizes activity related to this program for the three months ended July 27, 2018 (in millions, except per share amounts): Number of shares repurchased 7 Average price per share $ 74.37 Aggregate purchase price $ 500 Remaining authorization at end of period $ 3,500 The aggregate purchase price of our stock repurchases for the three months ended July 27, 2018 consisted of $500 million of open market purchases, of which $277 million and $223 million were allocated to additional paid-in capital and retained earnings (accumulated deficit), respectively. Since the May 13, 2003 inception of our stock repurchase program through July 27, 2018, we repurchased a total of 291 million shares of our common stock at an average price of $34.79 per share, for an aggregate purchase price of $10.1 billion. Dividends The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts): Three Months Ended July 27, 2018 July 28, 2017 Dividends per share declared $ 0.40 $ 0.20 Dividend payments allocated to additional paid-in capital $ 105 $ — Dividend payments allocated to retained earnings (accumulated deficit) $ — $ 54 On August 15, 2018, we declared a cash dividend of $0.40 per share of common stock, payable on October 24, 2018 to holders of record as of the close of business on October 5, 2018. 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. Retained Earnings (Accumulated Deficit) A reconciliation of retained earnings (accumulated deficit) is as follows (in millions): Balance as of April 27, 2018 $ (9 ) Cumulative-effect of new accounting principle (51 ) Net income 283 Repurchases of common stock (223 ) Balance as of July 27, 2018 $ — In the three months ended July 27, 2018, we adopted an ASU that eliminates the deferred tax effects of intra-entity asset transfers other than inventory and recorded the cumulative-effect of adoption to retained earnings (accumulated deficit). Refer to Note 1 – Description of Business and Significant Accounting Policies for details. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 3 Months Ended |
Jul. 27, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 11. 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 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 the terms of our agreements with them. We seek to mitigate such risk by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. We also have in place master netting arrangements to mitigate the credit risk of our counterparties and to potentially reduce our losses due to counterparty nonperformance. We present our derivative instruments as net amounts in our condensed consolidated balance sheets. The gross and net fair value amounts of such instruments were not material as of July 27, 2018 or April 27, 2018. We did not recognize any gains or losses in earnings due to hedge ineffectiveness for any period presented. All contracts have a maturity of less than six months. The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions): July 27, 2018 April 27, 2018 Forward contracts sold $ 129 $ 115 Forward contracts purchased $ 119 $ 412 As of July 27, 2018 and April 27, 2018, there were no instruments designated as cash flow hedges outstanding. The effect of derivative instruments not designated as hedging instruments recognized in other income, net on our condensed consolidated statements of operations was as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 Gain (Loss) Recognized into Income Foreign currency exchange contracts $ 10 $ (2 ) |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Jul. 27, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 12. Restructuring Charges During the three months ended July 27, 2018, we announced a restructuring plan (the May 2018 Plan) to reduce costs and redirect resources to our highest return activities, which included a reduction in our global workforce of less than 2%. Charges related to the plan consisted primarily of employee severance-related costs. We expect to complete the May 2018 Plan by the second quarter of fiscal 2019 with no significant additional charges incurred. Management previously approved the November 2016 Plan, under which we reduced our global workforce by approximately 6%. We completed all workforce related activities under this plan as of the end of fiscal 2017. The remaining balance as of July 27, 2018 principally relates to lease obligations that will be paid over their remaining terms. Activities related to our restructuring plans are summarized as follows (in millions): Three Months Ended Three Months Ended July 27, 2018 July 28, 2017 May 2018 Plan November 2016 Plan Total November 2016 Plan Balance at beginning of period $ — $ 6 $ 6 $ 13 Net charges 19 — 19 — Cash payments (9 ) (1 ) (10 ) (4 ) Balance at end of period $ 10 $ 5 $ 15 $ 9 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Our effective tax rates for the periods presented were as follows: Three Months Ended July 27, 2018 July 28, 2017 Effective tax rates (4.0 )% 9.7 % Our effective tax rates reflect the impact of a significant amount of our earnings, primarily income from our European operations which are headquartered in the Netherlands, being taxed in foreign jurisdictions at rates below the United States (U.S.) statutory tax rate. The differences in effective tax rates for the three months ended July 27, 2018 and July 28, 2017 were primarily related to the adoption of the new revenue standard and differences in discrete benefits for stock-based compensation. The effective tax rate for the three months ended July 28, 2017 has been restated to reflect the retrospective application of the new revenue standard. During the three months ended July 27, 2018, we recognized a $34 million discrete tax benefit for adjustments to certain intercompany transactions resulting from the retrospective application of the new standard. See Note 6 – Revenue for additional details. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted into law. The TCJA made significant changes to the U.S. corporate income tax system including a reduction of the U.S. federal corporate income tax rate from 35% to 21%, the imposition of a one-time transition tax on deferred foreign earnings, and the creation of new taxes on certain foreign-sourced earnings. As of July 27, 2018, we have not fully completed the accounting for the tax impacts of the TCJA. No significant adjustments to prior period estimates or positions have been made in the current period. The provisional amounts recorded are based on reasonable estimates and our current interpretation and understanding of the TCJA. The final impacts of U.S. tax reform may differ, possibly materially, due to factors such as the issuance of further regulatory guidance, changes in interpretations, and the collection and analysis of additional information. The Company is also still evaluating the effects of the TCJA’s global minimum tax on intangible low-taxed income (“GMT”) and has not yet made an accounting policy election to either account for the tax under a period cost method or a deferred method. For the first quarter of fiscal 2019, we have accounted for the GMT under a period cost method as we continue to evaluate potential impacts. In accordance with Staff Accounting Bulletin 118, we will complete the accounting of the tax effects of the TCJA within the measurement period not to extend beyond one year from the enactment date. As of July 27, 2018, we had $351 million of gross unrecognized tax benefits. Inclusive of penalties, interest and certain income tax benefits, $301 million would affect our provision for income taxes if recognized, and $319 million has been recorded in other long-term liabilities. We are currently undergoing federal income tax audits in the U.S. and several foreign tax jurisdictions. Transfer pricing calculations are key issues under audits in various jurisdictions, and are often subject to dispute and appeals. The IRS has concluded the examination of our tax returns for our fiscal years through 2010. The IRS commenced the examination of our federal income tax returns for our fiscal years 2012 and 2013 in August 2016. In September 2010, the Danish Tax Authorities issued a decision concluding that distributions declared in 2005 and 2006 by our Danish subsidiary were subject to Danish at-source dividend withholding tax. We do not believe that our Danish subsidiary is liable for such withholding tax and filed an appeal with the Danish Tax Tribunal. In December 2011, the Danish Tax Tribunal issued a ruling in favor of NetApp. The Danish tax examination agency appealed this decision at the Danish High Court (DHC) in March 2012. In February 2016, the DHC requested a preliminary ruling from the Court of Justice of the European Union (CJEU). Parties were heard before the court in October 2017. During March 2018, the Advocate General issued an opinion which was largely in favor of NetApp, however, the CJEU is not bound by the opinion of the Advocate General. It is expected that the preliminary ruling will be issued during our fiscal year 2019. Once a ruling has been issued by the CJEU, it will be reviewed and may be subjected to additional briefing by the DHC. Once complete, the DHC will issue its final decision. We expect this decision to be complete during our fiscal year 2019 or 2020. 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 believe that within the next 12 months, it is reasonably possible that either certain audits will conclude, certain statutes of limitations will lapse, or both. As a result of uncertainties regarding tax audits and their possible outcomes, an estimate of the range of possible impacts to unrecognized tax benefits in the next twelve months cannot be made at this time. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Jul. 27, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 14. Net Income per Share The following is a calculation of basic and diluted net income per share (in millions, except per share amounts): Three Months Ended July 27, 2018 July 28, 2017 Numerator: Net income $ 283 $ 131 Denominator: Shares used in basic computation 262 270 Dilutive impact of employee equity award plans 7 8 Shares used in diluted computation 269 278 Net Income per Share: Basic $ 1.08 $ 0.49 Diluted $ 1.05 $ 0.47 No potential shares from outstanding employee equity awards were excluded from the diluted net income per share calculation for the three months ended July 27, 2018. For the three months ended July 28, 2017, 2 million potential shares from outstanding awards were excluded from the calculation as their inclusion would have been anti-dilutive. |
Segment, Geographic, and Signif
Segment, Geographic, and Significant Customer Information | 3 Months Ended |
Jul. 27, 2018 | |
Segment Reporting [Abstract] | |
Segment, Geographic, and Significant Customer Information | 15. Segment, Geographic, and Significant Customer Information We operate in one industry segment: the design, manufacturing, marketing, and technical support of high-performance storage and data management solutions. We conduct business globally, and our sales and support activities are managed on a geographic basis. Our management reviews financial information presented on a consolidated basis, accompanied by disaggregated information it receives from our internal management system about revenues by geographic region, based on the location from which the customer relationship is managed, for purposes of allocating resources and evaluating financial performance. We do not allocate costs of revenues, research and development, sales and marketing, or general and administrative expenses to our geographic regions in this internal management reporting because management does not review operations or operating results, or make planning decisions, below the consolidated entity level. Summarized revenues by geographic region based on information from our internal management system and utilized by our Chief Executive Officer, who is considered our Chief Operating Decision Maker, is as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 United States, Canada and Latin America (Americas) $ 843 $ 721 Europe, Middle East and Africa (EMEA) 430 401 Asia Pacific (APAC) 201 199 Net revenues $ 1,474 $ 1,321 Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $761 million and $639 million during the three months ended July 27, 2018 and July 28, 2017, respectively. The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions): July 27, 2018 April 27, 2018 U.S. $ 553 $ 853 International 4,258 4,538 Total $ 4,811 $ 5,391 With the exception of property and equipment, we do not identify or allocate our long-lived assets by geographic area. The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions): July 27, 2018 April 27, 2018 U.S. $ 581 $ 566 International 187 190 Total $ 768 $ 756 The following customers, each of which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended July 27, 2018 July 28, 2017 Arrow Electronics, Inc. 22 % 23 % Tech Data Corporation 17 % 20 % The following customers accounted for 10% or more of accounts receivable in at least one of the periods presented: July 27, 2018 April 27, 2018 Arrow Electronics, Inc. 16 % 17 % Tech Data Corporation 9 % 17 % |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Jul. 27, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Operating Leases We lease various equipment, vehicles and office space in the U.S. and internationally. Future annual minimum lease payments under non-cancelable operating leases with an initial term in excess of one year totaled $184 million as of July 27, 2018. Purchase Orders and Other Commitments In the ordinary course of business, we make commitments to third-party contract manufacturers to manage manufacturer lead times and meet product forecasts, and to other parties to purchase various key components used in the manufacturing of our products. A significant portion of our reported purchase commitments arising from these agreements consists of firm, non-cancelable, and unconditional commitments. As of July 27, 2018, we had $382 million in non-cancelable purchase commitments for inventory. We record a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of July 27, 2018 and April 27, 2018, such liability amounted to $22 million and $14 million, respectively, and is included in accrued expenses in our condensed consolidated balance sheets. To the extent that such forecasts are not achieved, our commitments and associated accruals may change. In addition to inventory commitments with contract manufacturers and component suppliers, we have open purchase orders and contractual obligations associated with our ordinary course of business for which we have not yet received goods or services. As of July 27, 2018, we had $5 million in construction related obligations and $195 million 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 $30 million and $31 million of receivables during the three months ended July 27, 2018 and July 28, 2017, 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, we recognize revenues in accordance with our revenue recognition policy, as updated to reflect the adoption of ASC 606. In connection with certain recourse financing arrangements, we receive advance payments associated with undelivered elements that are subject to customer refund rights. We defer revenue associated with these advance payments until the related refund rights expire and we perform the services. As of July 27, 2018 and April 27, 2018, the aggregate amount by which such contingencies exceeded the associated liabilities was not significant. To date, we have not experienced significant losses under our lease financing programs or other financing arrangements . We have entered into service contracts with certain of our end-user customers that are supported by third-party financing arrangements. If a service contract is terminated as a result of our non-performance under the contract or our failure to comply with the terms of the financing arrangement, we could, under certain circumstances, be required to acquire certain assets related to the service contract or to pay the aggregate unpaid financing payments under such arrangements. As of July 27, 2018, 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, 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, and overall trends. No material accrual has been recorded as of July 27, 2018 related to such matters. |
Description of Business and S23
Description of Business and Significant Accounting Policies (Policies) | 3 Months Ended |
Jul. 27, 2018 | |
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 2019 and 2018, ending on April 26, 2019, and April 27, 2018, respectively, are each 52-week years, with 13 weeks in each of their quarters. 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 and cash flows 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 27, 2018 contained in our Annual Report on Form 10-K. The results of operations for the three months ended July 27, 2018 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 and purchase order accruals; valuation of goodwill and intangibles; restructuring reserves; product warranties; employee compensation and benefit accruals; stock-based compensation; loss contingencies; valuation of investment securities; income taxes and fair value measurements. Actual results could differ materially from those estimates. Accounting Changes In May 2014, the Financial Accounting Standards Board (FASB) issued a new standard, Revenue from Contracts with Customers (ASC 606) In October 2016, the FASB issued an accounting standards update (ASU) which eliminates the deferred tax effects of intra-entity asset transfers other than inventory. As a result, tax expense from the sale of an asset in the seller’s tax jurisdiction is recognized when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. In the three months ended July 27, 2018, we adopted this ASU using a modified retrospective transition approach and recorded a cumulative-effect adjustment to decrease retained earnings by $51 million, with a corresponding reduction of prepaid taxes, which were classified as other non-current assets on our condensed consolidated balance sheets, as of the beginning of the period. In November 2016, the FASB issued an ASU that requires a statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. In the three months ended July 27, 2018, we adopted this ASU using a retrospective transition method. Accordingly, our condensed consolidated statement of cash flows for the three months ended July 28, 2017, as presented herein, has been restated to comply with the new requirements. Refer to Note 5 – Supplemental Financial Information for a detail of the components of our cash, cash equivalents and restricted cash balances. There have been no other significant changes in our significant accounting policies as of and for the three months ended July 27, 2018, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 27, 2018. |
Accounting Standards on Transfers of Financial Assets | 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 $30 million and $31 million of receivables during the three months ended July 27, 2018 and July 28, 2017, respectively. |
Revenue Recognition | Where we provide a guarantee for recourse leases, we recognize revenues in accordance with our revenue recognition policy, as updated to reflect the adoption of ASC 606. In connection with certain recourse financing arrangements, we receive advance payments associated with undelivered elements that are subject to customer refund rights. |
Debt | 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 . |
Statements of Cash Flows Addi24
Statements of Cash Flows Additional Information (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flows, Non-Cash Investing Activities | Non-cash investing and supplemental cash flow information are as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 Non-cash Investing Activities: Capital expenditures incurred but not paid $ 10 $ 18 Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 22 $ 22 Interest paid $ 14 $ 21 |
Purchased Intangible Assets, 25
Purchased Intangible Assets, Net (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Purchased Intangible Assets, Net | Purchased intangible assets, net are summarized below (in millions): July 27, 2018 April 27, 2018 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 160 $ (86 ) $ 74 $ 164 $ (80 ) $ 84 Customer contracts/relationships 41 (34 ) 7 43 (33 ) 10 Other purchased intangibles — — — 9 (9 ) — Total purchased intangible assets $ 201 $ (120 ) $ 81 $ 216 $ (122 ) $ 94 |
Amortization Expense for Purchased Intangible Assets | Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Statements of July 27, 2018 July 28, 2017 Operations Classification Developed technology $ 9 $ 8 Cost of revenues Customer contracts/relationships 4 4 Operating expenses Other purchased intangibles — 1 Operating expenses Total $ 13 $ 13 |
Future Amortization Expense Related to Purchased Intangible Assets | As of July 27, 2018, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount Remainder of 2019 $ 34 2020 31 2021 16 Total $ 81 |
Supplemental Financial Inform26
Supplemental Financial Information (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Supplemental Financial Information [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash (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 statement of cash flows in accordance with our adoption of the ASU discussed in Note 1 – Description of Business and Significant Accounting Policies: July 27, 2018 April 27, 2018 Cash $ 2,519 $ 2,727 Cash equivalents 108 214 Cash and cash equivalents $ 2,627 $ 2,941 Short-term restricted cash 5 5 Long-term restricted cash 1 1 Restricted cash $ 6 $ 6 Cash, cash equivalents and restricted cash $ 2,633 $ 2,947 |
Inventories | Inventories (in millions): July 27, 2018 April 27, 2018 Purchased components $ 17 $ 12 Finished goods 80 110 Inventories $ 97 $ 122 |
Property and Equipment, Net | Property and equipment, net (in millions): July 27, 2018 April 27, 2018 Land $ 106 $ 106 Buildings and improvements 605 594 Leasehold improvements 87 88 Computer, production, engineering and other equipment 765 733 Computer software 358 357 Furniture and fixtures 104 99 Construction-in-progress 4 27 2,029 2,004 Accumulated depreciation and amortization (1,261 ) (1,248 ) Property and equipment, net $ 768 $ 756 |
Other Non-Current Assets | Other non-current assets (in millions): July 27, 2018 April 27, 2018 Deferred tax assets $ 225 $ 229 Other assets 239 221 Other non-current assets $ 464 $ 450 |
Accrued Expenses | Accrued expenses (in millions): July 27, 2018 April 27, 2018 Accrued compensation and benefits $ 268 $ 441 Product warranty liabilities 25 25 Other current liabilities 299 359 Accrued expenses $ 592 $ 825 |
Product Warranty Liabilities | The following tables summarize the activity related to product warranty liabilities and their balances as reported in our condensed consolidated balance sheets (in millions): Three Months Ended July 27, 2018 July 28, 2017 Balance at beginning of period $ 40 $ 50 Expense accrued during the period 4 1 Warranty costs incurred (6 ) (7 ) Balance at end of period $ 38 $ 44 July 27, 2018 April 27, 2018 Accrued expenses $ 25 $ 25 Other long-term liabilities 13 15 Total warranty liabilities $ 38 $ 40 |
Other Long-term Liabilities | Other long-term liabilities (in millions): July 27, 2018 April 27, 2018 Liability for uncertain tax positions $ 319 $ 314 Income taxes payable 549 549 Product warranty liabilities 13 15 Other liabilities 83 114 Other long-term liabilities $ 964 $ 992 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Disaggregation Of Revenue [Line Items] | |
Summary of Disaggregation of Revenue | The following table depicts the disaggregation of revenue by our products and services (in millions): Three Months Ended July 27, 2018 July 28, 2017 Product revenues $ 875 $ 727 Strategic 612 498 Mature 263 229 Software maintenance revenues 229 223 Hardware maintenance and other services revenues 370 371 Hardware maintenance support contracts 303 298 Professional and other services 67 73 Net revenues $ 1,474 $ 1,321 |
Deferred Revenue and Financed Unearned Services Revenue | The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our condensed consolidated balance sheets (in millions): July 27, 2018 April 27, 2018 Deferred product revenue $ 102 $ 107 Deferred services revenue 3,046 3,134 Financed unearned services revenue 112 122 Total $ 3,260 $ 3,363 Reported as: Short-term $ 1,623 $ 1,712 Long-term 1,637 1,651 Total $ 3,260 $ 3,363 The following tables summarize the activity related to deferred revenue and financed unearned services revenue (in millions): Three Months Ended July 27, 2018 July 28, 2017 Balance at beginning of period $ 3,363 $ 3,213 Additions 511 497 Revenue recognized during the period (614 ) (583 ) Balance at end of period $ 3,260 $ 3,127 |
Summary of Activity Related to Deferred Commissions and their Balances in Condensed Consolidated Balance Sheets | The following tables summarize the activity related to deferred commissions and their balances as reported in our condensed consolidated balance sheets (in millions): Three Months Ended July 27, 2018 July 28, 2017 Balance at beginning of period $ 137 $ 113 Additions 19 18 Expense recognized during the period (21 ) (15 ) Balance at end of period $ 135 $ 116 July 27, 2018 April 27, 2018 Other current assets $ 64 $ 66 Other non-current assets 71 71 Total deferred commissions $ 135 $ 137 |
ASC 606 | |
Disaggregation Of Revenue [Line Items] | |
Schedule of Impacts of Adoption of ASC 606 on Condensed Consolidated Balance Sheet and Statement of Operations | The following table presents the impacts of adoption of ASC 606 to select line items of our condensed consolidated balance sheet as of the end of fiscal 2018: As of April 27, 2018 As Previously Reported Impact of ASC 606 Adoption As Adjusted ASSETS Accounts receivable $ 1,009 $ 38 (1 ) $ 1,047 Inventories 126 (4 ) 122 Other current assets 330 62 (2 ) 392 Other non-current assets 420 30 (2 ) 450 LIABILITIES AND STOCKHOLDERS' EQUITY Short-term deferred revenue and financed unearned services revenue $ 1,804 $ (92 ) (3 ) $ 1,712 Other long-term liabilities 961 31 (4 ) 992 Long-term deferred revenue and financed unearned services revenue 1,673 (22 ) (3 ) 1,651 Accumulated deficit (218 ) 209 (5 ) (9 ) (1) Netting of accounts receivable and deferred revenue balances for certain customer arrangements has been updated to reflect the impact of adoption (2) Reflects capitalization of commissions and reduction of long-term deferred tax assets (3) Reflects cumulative change in revenue and the impact of adoption to the netting of accounts receivable and deferred revenue balances for certain customer arrangements (4) Reflects increase in long-term deferred tax liabilities (5) Reflects cumulative impact to net income (loss) The following table presents the impacts of adoption of ASC 606 to our statement of operations for the first quarter of fiscal 2018: Three Months Ended July 28, 2017 As Previously Reported Impact of ASC 606 Adoption As Adjusted Revenues: Product $ 723 $ 4 $ 727 Software maintenance 234 (11 ) 223 Hardware maintenance and other services 368 3 371 Net revenues 1,325 (4 ) 1,321 Cost of revenues: Cost of product 371 5 376 Cost of software maintenance 7 — 7 Cost of hardware maintenance and other services 113 1 114 Total cost of revenues 491 6 497 Gross profit 834 (10 ) 824 Operating expenses: Sales and marketing 425 (2 ) 423 Research and development 193 — 193 General and administrative 68 — 68 Total operating expenses 686 (2 ) 684 Income from operations 148 (8 ) 140 Other income, net 5 — 5 Income before income taxes 153 (8 ) 145 Provision for income taxes 17 (3 ) 14 Net income $ 136 $ (5 ) $ 131 Net income per share: Basic $ 0.50 $ (0.01 ) $ 0.49 Diluted $ 0.49 $ (0.02 ) $ 0.47 Shares used in net income per share calculations: Basic 270 270 270 Diluted 278 278 278 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Nonoperating Income Expense [Abstract] | |
Other Income, Net | Other income, net consists of the following (in millions): Three Months Ended July 27, 2018 July 28, 2017 Interest income $ 25 $ 16 Interest expense (14 ) (13 ) Other income, net 7 2 Total other income, net $ 18 $ 5 |
Financial Instruments and Fai29
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments | The following is a summary of our investments (in millions): July 27, 2018 April 27, 2018 Cost or Estimated Cost or Estimated Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate bonds $ 1,740 $ 1 $ (39 ) $ 1,702 $ 1,865 $ 1 $ (39 ) $ 1,827 U.S. Treasury and government debt securities 441 — (5 ) 436 497 — (5 ) 492 Commercial paper 38 — — 38 230 — — 230 Certificates of deposit 116 — — 116 115 — — 115 Mutual funds 34 — — 34 31 — — 31 Total debt and equity securities $ 2,369 $ 1 $ (44 ) $ 2,326 $ 2,738 $ 1 $ (44 ) $ 2,695 |
Contractual Maturities of Debt Investments | The following table presents the contractual maturities of our debt investments as of July 27, 2018 (in millions): Amortized Cost Fair Value Due in one year or less $ 687 $ 685 Due after one year through five years 1,040 1,024 Due after five years through ten years 608 583 $ 2,335 $ 2,292 |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions): July 27, 2018 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 2,519 $ 2,519 $ — Corporate bonds 1,702 — 1,702 U.S. Treasury and government debt securities 436 234 202 Commercial paper 38 — 38 Certificates of deposit 116 — 116 Total cash, cash equivalents and short-term investments $ 4,811 $ 2,753 $ 2,058 Other items: Mutual funds (1) $ 6 $ 6 $ — Mutual funds (2) $ 28 $ 28 $ — Foreign currency exchange contracts assets (1) $ 1 $ — $ 1 (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 |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
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): July 27, 2018 April 27, 2018 Effective Effective Amount Interest Rate Amount Interest Rate 2.00% Senior Notes Due September 2019 400 2.32 % 400 2.32 % 3.375% Senior Notes Due June 2021 500 3.54 % 500 3.54 % 3.25% Senior Notes Due December 2022 250 3.43 % 250 3.43 % 3.30% Senior Notes Due September 2024 400 3.42 % 400 3.42 % Total principal amount 1,550 1,550 Unamortized discount and issuance costs (8 ) (9 ) Total long-term debt $ 1,542 $ 1,541 |
Future Principal Debt Maturities | As of July 27, 2018, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2020 $ 400 2022 500 2023 250 2025 400 Total $ 1,550 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Activity Related to Stock Options | The following table summarizes information related to our stock options (in millions, except exercise price and contractual term): Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of April 27, 2018 1 $ 31.19 Outstanding as of July 27, 2018 1 $ 29.86 3.50 $ 40 Exercisable as of July 27, 2018 1 $ 32.23 3.05 $ 34 |
Additional Information Related to Stock Options | Additional information related to our stock options is summarized below (in millions): Three Months Ended July 27, 2018 July 28, 2017 Intrinsic value of exercises $ 15 $ 5 Proceeds received from exercises $ 13 $ 6 Fair value of options vested $ 1 $ 3 |
Activity Related to Restricted Stock Units Including Performance-Based Restricted Stock Units | The following table summarizes information related to our RSUs, including PBRSUs, (in millions, except fair value): Number of Shares Weighted- Average Grant Date Fair Value Outstanding as of April 27, 2018 9 $ 32.91 Granted 3 $ 62.42 Vested (3 ) $ 31.34 Forfeited (1 ) $ 31.62 Outstanding as of July 27, 2018 8 $ 43.43 |
Number and Value of Shares Netted for Employee Taxes | The number and value of the shares netted for employee taxes are summarized in the table below (in millions): Three Months Ended July 27, 2018 July 28, 2017 Shares withheld for taxes 1 1 Fair value of shares withheld $ 84 $ 57 |
Schedule of Employee Stock Purchase Plan (ESPP) | The following table summarizes activity related to the purchase rights issued under the ESPP (in millions): Three Months Ended July 27, 2018 July 28, 2017 Shares issued under the ESPP 2 2 Proceeds from issuance of shares $ 49 $ 42 |
Stock-Based Compensation Expense | Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 Cost of product revenues $ 1 $ 1 Cost of hardware maintenance and other services revenues 3 3 Sales and marketing 17 21 Research and development 12 15 General and administrative 7 8 Total stock-based compensation expense $ 40 $ 48 Income tax benefit for stock-based compensation expense $ 5 $ 9 |
Summary of Activities Related to Stock Repurchase Program | The following table summarizes activity related to this program for the three months ended July 27, 2018 (in millions, except per share amounts): Number of shares repurchased 7 Average price per share $ 74.37 Aggregate purchase price $ 500 Remaining authorization at end of period $ 3,500 |
Summary of Activities Related to Dividends on Common Stock | The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts): Three Months Ended July 27, 2018 July 28, 2017 Dividends per share declared $ 0.40 $ 0.20 Dividend payments allocated to additional paid-in capital $ 105 $ — Dividend payments allocated to retained earnings (accumulated deficit) $ — $ 54 |
Reconciliation of Retained Earnings (Accumulated Deficit) | A reconciliation of retained earnings (accumulated deficit) is as follows (in millions): Balance as of April 27, 2018 $ (9 ) Cumulative-effect of new accounting principle (51 ) Net income 283 Repurchases of common stock (223 ) Balance as of July 27, 2018 $ — |
Derivatives and Hedging Activ32
Derivatives and Hedging Activities (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Value of Outstanding Foreign Currency Exchange Forward Contracts | The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions): July 27, 2018 April 27, 2018 Forward contracts sold $ 129 $ 115 Forward contracts purchased $ 119 $ 412 |
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 operations was as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 Gain (Loss) Recognized into Income Foreign currency exchange contracts $ 10 $ (2 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Restructuring And Related Activities [Abstract] | |
Activities Related to Restructuring Reserves | Activities related to our restructuring plans are summarized as follows (in millions): Three Months Ended Three Months Ended July 27, 2018 July 28, 2017 May 2018 Plan November 2016 Plan Total November 2016 Plan Balance at beginning of period $ — $ 6 $ 6 $ 13 Net charges 19 — 19 — Cash payments (9 ) (1 ) (10 ) (4 ) Balance at end of period $ 10 $ 5 $ 15 $ 9 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rates | Our effective tax rates for the periods presented were as follows: Three Months Ended July 27, 2018 July 28, 2017 Effective tax rates (4.0 )% 9.7 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following is a calculation of basic and diluted net income per share (in millions, except per share amounts): Three Months Ended July 27, 2018 July 28, 2017 Numerator: Net income $ 283 $ 131 Denominator: Shares used in basic computation 262 270 Dilutive impact of employee equity award plans 7 8 Shares used in diluted computation 269 278 Net Income per Share: Basic $ 1.08 $ 0.49 Diluted $ 1.05 $ 0.47 |
Segment, Geographic, and Sign36
Segment, Geographic, and Significant Customer Information (Tables) | 3 Months Ended |
Jul. 27, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | Summarized revenues by geographic region based on information from our internal management system and utilized by our Chief Executive Officer, who is considered our Chief Operating Decision Maker, is as follows (in millions): Three Months Ended July 27, 2018 July 28, 2017 United States, Canada and Latin America (Americas) $ 843 $ 721 Europe, Middle East and Africa (EMEA) 430 401 Asia Pacific (APAC) 201 199 Net revenues $ 1,474 $ 1,321 |
Schedule of Cash, Cash Equivalents and Short-Term Investments | The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions): July 27, 2018 April 27, 2018 U.S. $ 553 $ 853 International 4,258 4,538 Total $ 4,811 $ 5,391 |
Schedule of Property and Equipment, Net by Geographic Areas | The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions): July 27, 2018 April 27, 2018 U.S. $ 581 $ 566 International 187 190 Total $ 768 $ 756 |
Schedule of Revenues from Significant Customers | The following customers, each of which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended July 27, 2018 July 28, 2017 Arrow Electronics, Inc. 22 % 23 % Tech Data Corporation 17 % 20 % |
Schedule of Net Accounts Receivable from Significant Customers | The following customers accounted for 10% or more of accounts receivable in at least one of the periods presented: July 27, 2018 April 27, 2018 Arrow Electronics, Inc. 16 % 17 % Tech Data Corporation 9 % 17 % |
Description of Business and S37
Description of Business and Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jul. 27, 2018USD ($) | |
ASU 2016-16 | |
Description Of Business And Significant Accounting Policies [Line Items] | |
Cumulative-effect adjustment to decrease retained earnings | $ (51) |
Statements of Cash Flows Addi38
Statements of Cash Flows Additional Information - Supplemental Cash Flows, Non-Cash Investing Activities (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Non-cash Investing Activities: | ||
Capital expenditures incurred but not paid | $ 10 | $ 18 |
Supplemental Cash Flow Information: | ||
Income taxes paid, net of refunds | 22 | 22 |
Interest paid | $ 14 | $ 21 |
Purchased Intangible Assets, 39
Purchased Intangible Assets, Net - Purchased Intangible Assets, Net (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 201 | $ 216 |
Accumulated Amortization | (120) | (122) |
Net Assets | 81 | 94 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 160 | 164 |
Accumulated Amortization | (86) | (80) |
Net Assets | 74 | 84 |
Customer Contracts/Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 41 | 43 |
Accumulated Amortization | (34) | (33) |
Net Assets | 7 | 10 |
Other Purchased Intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 0 | 9 |
Accumulated Amortization | 0 | (9) |
Net Assets | $ 0 | $ 0 |
Purchased Intangible Assets, 40
Purchased Intangible Assets, Net - Amortization Expense for Purchased Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 13 | $ 13 |
Cost of revenues | Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | 9 | 8 |
Operating expenses | Customer Contracts/Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | 4 | 4 |
Operating expenses | Other Purchased Intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 0 | $ 1 |
Purchased Intangible Assets, 41
Purchased Intangible Assets, Net - Future Amortization Expense Related to Purchased Intangible Assets (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Assets | $ 81 | $ 94 |
Intangible Assets Subject to Amortization | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Remainder of 2019 | 34 | |
2,020 | 31 | |
2,021 | 16 | |
Net Assets | $ 81 |
Supplemental Financial Inform42
Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 | Jul. 28, 2017 | Apr. 28, 2017 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash | $ 2,519 | $ 2,727 | ||
Cash equivalents | 108 | 214 | ||
Cash and cash equivalents | 2,627 | 2,941 | ||
Short-term restricted cash | 5 | 5 | ||
Long-term restricted cash | 1 | 1 | ||
Restricted cash | 6 | 6 | ||
Cash, cash equivalents and restricted cash | $ 2,633 | $ 2,947 | $ 2,953 | $ 2,450 |
Supplemental Financial Inform43
Supplemental Financial Information - Inventories (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Inventory Disclosure [Abstract] | ||
Purchased components | $ 17 | $ 12 |
Finished goods | 80 | 110 |
Inventories | $ 97 | $ 122 |
Supplemental Financial Inform44
Supplemental Financial Information - Property and Equipment Net (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,029 | $ 2,004 |
Accumulated depreciation and amortization | (1,261) | (1,248) |
Property and equipment, net | 768 | 756 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 106 | 106 |
Buildings and improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 605 | 594 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 87 | 88 |
Computer, production, engineering and other equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 765 | 733 |
Computer software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 358 | 357 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 104 | 99 |
Construction-in-progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 4 | $ 27 |
Supplemental Financial Inform45
Supplemental Financial Information - Additional Information (Detail) - USD ($) $ in Millions | Jul. 26, 2019 | Jul. 27, 2018 | Apr. 27, 2018 |
Scenario, Forecast | |||
Property Plant And Equipment [Line Items] | |||
Sale of assets payments to be received | $ 96 | ||
Other Current Assets | |||
Property Plant And Equipment [Line Items] | |||
Land and buildings held for sale | $ 52 | $ 52 |
Supplemental Financial Inform46
Supplemental Financial Information - Other Non-Current Assets (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Deferred tax assets | $ 225 | $ 229 |
Other assets | 239 | 221 |
Other non-current assets | $ 464 | $ 450 |
Supplemental Financial Inform47
Supplemental Financial Information - Accrued expenses (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $ 268 | $ 441 |
Product warranty liabilities | 25 | 25 |
Other current liabilities | 299 | 359 |
Accrued expenses | $ 592 | $ 825 |
Supplemental Financial Inform48
Supplemental Financial Information - Product Warranty Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Jul. 27, 2018 | Jul. 28, 2017 | Jul. 27, 2018 | Apr. 27, 2018 | |
Movement In Standard Product Warranty Accrual [Roll Forward] | ||||
Balance at beginning of period | $ 40 | $ 50 | ||
Expense accrued during the period | 4 | 1 | ||
Warranty costs incurred | (6) | (7) | ||
Balance at end of period | 38 | 44 | ||
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract] | ||||
Accrued expenses | $ 25 | $ 25 | ||
Other long-term liabilities | 13 | 15 | ||
Total warranty liabilities | $ 40 | $ 50 | $ 38 | $ 40 |
Supplemental Financial Inform49
Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Liabilities Other Than Long Term Debt Noncurrent [Abstract] | ||
Liability for uncertain tax positions | $ 319 | $ 314 |
Income taxes payable | 549 | 549 |
Product warranty liabilities | 13 | 15 |
Other liabilities | 83 | 114 |
Other long-term liabilities | $ 964 | $ 992 |
Revenue - Impacts of Adoption o
Revenue - Impacts of Adoption of ASC 606 to Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 | |
ASSETS | |||
Accounts receivable | $ 616 | $ 1,047 | |
Inventories | 97 | 122 | |
Other current assets | 329 | 392 | |
Other non-current assets | 464 | 450 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Short-term deferred revenue and financed unearned services revenue | 1,623 | 1,712 | |
Other long-term liabilities | 964 | 992 | |
Long-term deferred revenue and financed unearned services revenue | 1,637 | 1,651 | |
Retained earnings (accumulated deficit) | $ 0 | (9) | |
As Previously Reported | ASC 606 | |||
ASSETS | |||
Accounts receivable | 1,009 | ||
Inventories | 126 | ||
Other current assets | 330 | ||
Other non-current assets | 420 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Short-term deferred revenue and financed unearned services revenue | 1,804 | ||
Other long-term liabilities | 961 | ||
Long-term deferred revenue and financed unearned services revenue | 1,673 | ||
Retained earnings (accumulated deficit) | (218) | ||
Impact of ASC 606 Adoption | ASC 606 | |||
ASSETS | |||
Accounts receivable | [1] | 38 | |
Inventories | (4) | ||
Other current assets | [2] | 62 | |
Other non-current assets | [2] | 30 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Short-term deferred revenue and financed unearned services revenue | [3] | (92) | |
Other long-term liabilities | [4] | 31 | |
Long-term deferred revenue and financed unearned services revenue | [3] | (22) | |
Retained earnings (accumulated deficit) | [5] | $ 209 | |
[1] | Netting of accounts receivable and deferred revenue balances for certain customer arrangements has been updated to reflect the impact of adoption | ||
[2] | Reflects capitalization of commissions and reduction of long-term deferred tax assets | ||
[3] | Reflects cumulative change in revenue and the impact of adoption to the netting of accounts receivable and deferred revenue balances for certain customer arrangements | ||
[4] | Reflects increase in long-term deferred tax liabilities | ||
[5] | Reflects cumulative impact to net income (loss) |
Revenue - Impacts of Adoption51
Revenue - Impacts of Adoption of ASC 606 to Statement of Operations (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Revenues: | ||
Net revenues | $ 1,474 | $ 1,321 |
Cost of revenues: | ||
Total cost of revenues | 511 | 497 |
Gross profit | 963 | 824 |
Operating expenses: | ||
Sales and marketing | 409 | 423 |
Research and development | 208 | 193 |
General and administrative | 73 | 68 |
Total operating expenses | 709 | 684 |
Income from operations | 254 | 140 |
Other income, net | 18 | 5 |
Income before income taxes | 272 | 145 |
Provision for income taxes | (11) | 14 |
Net income | $ 283 | $ 131 |
Net income per share: | ||
Basic | $ 1.08 | $ 0.49 |
Diluted | $ 1.05 | $ 0.47 |
Shares used in net income per share calculations: | ||
Basic | 262 | 270 |
Diluted | 269 | 278 |
Product [Member] | ||
Revenues: | ||
Net revenues | $ 875 | $ 727 |
Cost of revenues: | ||
Total cost of revenues | 398 | 376 |
Software Maintenance [Member] | ||
Revenues: | ||
Net revenues | 229 | 223 |
Cost of revenues: | ||
Total cost of revenues | 7 | 7 |
Hardware Maintenance and Other Services [Member] | ||
Revenues: | ||
Net revenues | 370 | 371 |
Cost of revenues: | ||
Total cost of revenues | 106 | 114 |
As Previously Reported | ASC 606 | ||
Revenues: | ||
Net revenues | 1,325 | |
Cost of revenues: | ||
Total cost of revenues | 491 | |
Gross profit | 834 | |
Operating expenses: | ||
Sales and marketing | 425 | |
Research and development | 193 | |
General and administrative | 68 | |
Total operating expenses | 686 | |
Income from operations | 148 | |
Other income, net | 5 | |
Income before income taxes | 153 | |
Provision for income taxes | 17 | |
Net income | $ 136 | |
Net income per share: | ||
Basic | $ 0.50 | |
Diluted | $ 0.49 | |
Shares used in net income per share calculations: | ||
Basic | 270 | |
Diluted | 278 | |
As Previously Reported | Product [Member] | ASC 606 | ||
Revenues: | ||
Net revenues | $ 723 | |
Cost of revenues: | ||
Total cost of revenues | 371 | |
As Previously Reported | Software Maintenance [Member] | ASC 606 | ||
Revenues: | ||
Net revenues | 234 | |
Cost of revenues: | ||
Total cost of revenues | 7 | |
As Previously Reported | Hardware Maintenance and Other Services [Member] | ASC 606 | ||
Revenues: | ||
Net revenues | 368 | |
Cost of revenues: | ||
Total cost of revenues | 113 | |
Impact of ASC 606 Adoption | ASC 606 | ||
Revenues: | ||
Net revenues | (4) | |
Cost of revenues: | ||
Total cost of revenues | 6 | |
Gross profit | (10) | |
Operating expenses: | ||
Sales and marketing | (2) | |
Research and development | 0 | |
General and administrative | 0 | |
Total operating expenses | (2) | |
Income from operations | (8) | |
Other income, net | 0 | |
Income before income taxes | (8) | |
Provision for income taxes | $ (34) | (3) |
Net income | $ (5) | |
Net income per share: | ||
Basic | $ (0.01) | |
Diluted | $ (0.02) | |
Shares used in net income per share calculations: | ||
Basic | 270 | |
Diluted | 278 | |
Impact of ASC 606 Adoption | Product [Member] | ASC 606 | ||
Revenues: | ||
Net revenues | $ 4 | |
Cost of revenues: | ||
Total cost of revenues | 5 | |
Impact of ASC 606 Adoption | Software Maintenance [Member] | ASC 606 | ||
Revenues: | ||
Net revenues | (11) | |
Cost of revenues: | ||
Total cost of revenues | 0 | |
Impact of ASC 606 Adoption | Hardware Maintenance and Other Services [Member] | ASC 606 | ||
Revenues: | ||
Net revenues | 3 | |
Cost of revenues: | ||
Total cost of revenues | $ 1 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Net revenues | $ 1,474 | $ 1,321 |
Product Revenues | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenues | 875 | 727 |
Strategic | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenues | 612 | 498 |
Mature | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenues | 263 | 229 |
Software Maintenance Revenues | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenues | 229 | 223 |
Hardware Maintenance and Other Services Revenues | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenues | 370 | 371 |
Hardware Maintenance Support Contracts | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenues | 303 | 298 |
Professional and Other Services | ||
Disaggregation Of Revenue [Line Items] | ||
Net revenues | $ 67 | $ 73 |
Revenue - Summary of Components
Revenue - Summary of Components of Deferred Revenue and Financed Unearned Services Revenue (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 | Jul. 28, 2017 | Apr. 28, 2017 |
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | $ 3,260 | $ 3,363 | $ 3,127 | $ 3,213 |
Short-term | 1,623 | 1,712 | ||
Long-term | 1,637 | 1,651 | ||
Deferred product revenue | ||||
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | 102 | 107 | ||
Deferred services revenue | ||||
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | 3,046 | 3,134 | ||
Financed unearned services revenue | ||||
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | $ 112 | $ 122 |
Revenue - Summary of Activity R
Revenue - Summary of Activity Related to Deferred Revenue and Financed Unearned Services Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Contract With Customer Liability [Abstract] | ||
Balance at beginning of period | $ 3,363 | $ 3,213 |
Additions | 511 | 497 |
Revenue recognized during the period | (614) | (583) |
Balance at end of period | $ 3,260 | $ 3,127 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue recognized | $ 561 | $ 528 |
Transaction price allocated to remaining performance obligations | $ 3,260 | |
Minimum | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred sales commissions amortization period | 1 year | |
Maximum | ||
Disaggregation Of Revenue [Line Items] | ||
Deferred sales commissions amortization period | 3 years |
Revenue - Additional Informat56
Revenue - Additional Information (Detail1) | Jul. 27, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-07-28 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue expected to be recognized | 50.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-07-29 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue expected to be recognized | 26.00% |
Revenue - Summary of Activity57
Revenue - Summary of Activity Related to Deferred Commissions (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Deferred Revenue Disclosure [Abstract] | ||
Balance at beginning of period | $ 137 | $ 113 |
Additions | 19 | 18 |
Expense recognized during the period | (21) | (15) |
Balance at end of period | $ 135 | $ 116 |
Revenue - Summary of Activity58
Revenue - Summary of Activity Related to the Balances in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 | Jul. 28, 2017 | Apr. 28, 2017 |
Deferred Revenue And Credits [Line Items] | ||||
Total deferred commissions | $ 135 | $ 137 | $ 116 | $ 113 |
Other Current Assets | ||||
Deferred Revenue And Credits [Line Items] | ||||
Total deferred commissions | 64 | 66 | ||
Other Noncurrent Assets | ||||
Deferred Revenue And Credits [Line Items] | ||||
Total deferred commissions | $ 71 | $ 71 |
Other Income, Net (Detail)
Other Income, Net (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Nonoperating Income Expense [Abstract] | ||
Interest income | $ 25 | $ 16 |
Interest expense | (14) | (13) |
Other income, net | 7 | 2 |
Total other income, net | $ 18 | $ 5 |
Financial Instruments and Fai60
Financial Instruments and Fair Value Measurements - Summary of Investments (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | $ 2,369 | $ 2,738 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | (44) | (44) |
Estimated fair value | 2,326 | 2,695 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 1,740 | 1,865 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | (39) | (39) |
Estimated fair value | 1,702 | 1,827 |
U.S. Treasury and Government Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 441 | 497 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (5) | (5) |
Estimated fair value | 436 | 492 |
Commercial Paper | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 38 | 230 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 38 | 230 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 116 | 115 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 116 | 115 |
Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 34 | 31 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 34 | $ 31 |
Financial Instruments and Fai61
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Jul. 27, 2018 | Apr. 27, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other-than-temporary impairment recognized on investments | $ 0 | $ 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 1,518,000,000 | $ 1,523,000,000 |
Financial Instruments and Fai62
Financial Instruments and Fair Value Measurements - Contractual Maturities of Debt Investments (Detail) $ in Millions | Jul. 27, 2018USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Due in one year or less, Amortized Cost | $ 687 |
Due after one year through five years, Amortized Cost | 1,040 |
Due after five years through ten years, Amortized Cost | 608 |
Total, Amortized Cost | 2,335 |
Due in one year or less, Estimated Fair Value | 685 |
Due after one year through five years, Estimated Fair Value | 1,024 |
Due after five years through ten years, Estimated Fair Value | 583 |
Total, Estimated Fair Value | $ 2,292 |
Financial Instruments and Fai63
Financial Instruments and Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) $ in Millions | Jul. 27, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,811 | |
Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts assets | 1 | [1] |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,702 | |
U.S. Treasury and Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 436 | |
Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 38 | |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 116 | |
Mutual Funds | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6 | [1] |
Mutual Funds | Other Noncurrent Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 28 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,753 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts assets | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 234 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 6 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | Other Noncurrent Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 28 | [2] |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,058 | |
Significant Other Observable Inputs (Level 2) | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts assets | 1 | [1] |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 1,702 | |
Significant Other Observable Inputs (Level 2) | U.S. Treasury and Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 202 | |
Significant Other Observable Inputs (Level 2) | Commercial Paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 38 | |
Significant Other Observable Inputs (Level 2) | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 116 | |
Significant Other Observable Inputs (Level 2) | Mutual Funds | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | [1] |
Significant Other Observable Inputs (Level 2) | Mutual Funds | Other Noncurrent Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | [2] |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,519 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 2,519 | |
Cash | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | |
[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 |
Financing Arrangements - Carryi
Financing Arrangements - Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 1,542 | $ 1,541 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Total principal amount | 1,550 | 1,550 |
Unamortized discount and issuance costs | (8) | (9) |
Senior Notes | Due September 2019 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 400 | $ 400 |
Debt Instrument, Effective Interest Rate | 2.32% | 2.32% |
Senior Notes | Due June 2021 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 500 | $ 500 |
Debt Instrument, Effective Interest Rate | 3.54% | 3.54% |
Senior Notes | Due December 2022 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 250 | $ 250 |
Debt Instrument, Effective Interest Rate | 3.43% | 3.43% |
Senior Notes | Due September 2024 | ||
Debt Instrument [Line Items] | ||
Total principal amount | $ 400 | $ 400 |
Debt Instrument, Effective Interest Rate | 3.42% | 3.42% |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Jul. 28, 2017USD ($)Extension | Jul. 27, 2018USD ($) | Apr. 27, 2018USD ($) | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, amount | $ 1,000,000,000 | ||
Credit facility, date expiry | Dec. 10, 2021 | ||
Credit facility, increase in facility | $ 300,000,000 | ||
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 | $ 50,000,000 | ||
Commercial Paper | |||
Debt Instrument [Line Items] | |||
Notes issued, principal amount | $ 200,000,000 | $ 385,000,000 | |
Weighted-average interest rate | 2.28% | 2.29% | |
Commercial Paper | Maximum | |||
Debt Instrument [Line Items] | |||
Notes issued, principal amount | $ 1,000,000,000 | ||
Debt instrument maturity period | 397 days | 31 days | 32 days |
Commercial Paper | Minimum | |||
Debt Instrument [Line Items] | |||
Debt instrument maturity period | 14 days | 19 days | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Notes issued, principal amount | $ 1,550,000,000 | $ 1,550,000,000 | |
Senior Notes | Due September 2019 | |||
Debt Instrument [Line Items] | |||
Notes issued, principal amount | $ 400,000,000 | 400,000,000 | |
Notes issued, interest rate | 2.00% | ||
Senior Notes | Due June 2021 | |||
Debt Instrument [Line Items] | |||
Notes issued, principal amount | $ 500,000,000 | 500,000,000 | |
Notes issued, interest rate | 3.375% | ||
Senior Notes | Due September 2024 | |||
Debt Instrument [Line Items] | |||
Notes issued, principal amount | $ 400,000,000 | 400,000,000 | |
Notes issued, interest rate | 3.30% | ||
Senior Notes | Due December 2022 | |||
Debt Instrument [Line Items] | |||
Notes issued, principal amount | $ 250,000,000 | $ 250,000,000 | |
Notes issued, interest rate | 3.25% |
Financing Arrangements - Future
Financing Arrangements - Future Principal Debt Maturities (Detail) - Senior Notes - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Debt Instrument [Line Items] | ||
2,020 | $ 400 | |
2,022 | 500 | |
2,023 | 250 | |
2,025 | 400 | |
Total | $ 1,550 | $ 1,550 |
Stockholders' Equity - Activity
Stockholders' Equity - Activity Related to Stock Options (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended |
Jul. 27, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Beginning balance, Number of Shares | shares | 1 |
Ending balance, Number of Shares | shares | 1 |
Options Exercisable, Number of Shares | shares | 1 |
Weighted-Average Exercise Price | |
Beginning balance, Weighted-Average Exercise Price | $ / shares | $ 31.19 |
Ending balance, Weighted-Average Exercise Price | $ / shares | 29.86 |
Options Exercisable, Weighted-Average Exercise Price | $ / shares | $ 32.23 |
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, Weighted-Average Remaining Contractual Term | 3 years 6 months |
Exercisable, Weighted-Average Remaining Contractual Term | 3 years 18 days |
Outstanding, Aggregate Intrinsic Value | $ | $ 40 |
Exercisable, Aggregate Intrinsic Value | $ | $ 34 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information Related to Stock Options (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Intrinsic value of exercises | $ 15 | $ 5 |
Proceeds received from exercises | 13 | 6 |
Fair value of options vested | $ 1 | $ 3 |
Stockholders' Equity - Additi69
Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions | Aug. 15, 2018 | Jul. 27, 2018 | Jul. 28, 2017 | Jul. 27, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense related to equity awards | $ 362,000,000 | $ 362,000,000 | ||
Unrecognized compensation expense will be amortized on a straight-line basis over a weighted-average remaining period, in years | 2 years 6 months | |||
Stock repurchase program, authorized amount | $ 13,600,000,000 | 13,600,000,000 | ||
Allocation of purchase price of share repurchases | $ 500,000,000 | $ 10,100,000,000 | ||
Repurchase of common stock, shares | 7 | 291 | ||
Average price of common stock repurchased under repurchase program | $ 74.37 | $ 34.79 | ||
Cash dividends declared, per common share | $ 0.40 | $ 0.20 | ||
Subsequent Event | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash dividends declared, per common share | $ 0.40 | |||
Cash dividend payable date | Oct. 24, 2018 | |||
Cash dividend record date | Oct. 5, 2018 | |||
Additional Paid-in Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocation of purchase price of share repurchases | $ 277,000,000 | |||
Retained Earnings (Accumulated Deficit) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocation of purchase price of share repurchases | $ 223,000,000 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of Common stock issued to settle PBRSUs of target shares granted | 0.00% | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of Common stock issued to settle PBRSUs of target shares granted | 200.00% | |||
Performance Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting Period | 3 years | |||
RSUs grant date fair value | $ 22,000,000 | $ 22,000,000 | ||
Vesting period, description | For the remaining PBRSUs granted, the number of shares issued will depend upon our achievement against a cumulative Adjusted Operating Income (AOI) target, as defined in the grant agreements, for the three year period from fiscal 2019 through 2021. |
Stockholders' Equity - Activi70
Stockholders' Equity - Activity Related to Restricted Stock Units Including Performance-Based Restricted Stock Units (Detail) - Restricted Stock Units shares in Millions | 3 Months Ended |
Jul. 27, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, Number of Shares | shares | 9 |
RSUs granted, Number of Shares | shares | 3 |
RSUs vested, Number of Shares | shares | (3) |
RSUs forfeited, Number of Shares | shares | (1) |
Ending Balance, Number of Shares | shares | 8 |
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 32.91 |
RSUs granted, Weighted-Average Grant Date Fair Value | $ / shares | 62.42 |
RSUs vested, Weighted-Average Grant Date Fair Value | $ / shares | 31.34 |
RSUs forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 31.62 |
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 43.43 |
Stockholders' Equity - Number a
Stockholders' Equity - Number and Value of Shares Netted for Employee Taxes (Detail) - Restricted Stock Units - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares withheld for taxes | 1 | 1 |
Fair value of shares withheld | $ 84 | $ 57 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Employee Stock Purchase Plan (ESPP) (Detail) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued under the ESPP | 2 | 2 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from issuance of shares | $ 49 | $ 42 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 40 | $ 48 |
Income tax benefit for stock-based compensation expense | 5 | 9 |
Cost of Product Revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 1 | 1 |
Cost of Hardware Maintenance and Other Services Revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 3 | 3 |
Sales and Marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 17 | 21 |
Research and Development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 12 | 15 |
General and Administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 7 | $ 8 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activities Related to Stock Repurchase Program (Detail) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 183 Months Ended |
Jul. 27, 2018USD ($)$ / sharesshares | Jul. 27, 2018USD ($)$ / sharesshares | |
Equity [Abstract] | ||
Number of shares repurchased | shares | 7 | 291 |
Average price per share | $ / shares | $ 74.37 | $ 34.79 |
Aggregate purchase price | $ 500 | $ 10,100 |
Remaining authorization at end of period | $ 3,500 | $ 3,500 |
Stockholders' Equity - Summar75
Stockholders' Equity - Summary of Activities Related to Dividends on Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Dividends, Common Stock [Abstract] | ||
Dividends per share declared | $ 0.40 | $ 0.20 |
Dividend payments | $ 105 | $ 54 |
Additional Paid-in Capital | ||
Dividends, Common Stock [Abstract] | ||
Dividend payments | 105 | 0 |
Retained Earnings (Accumulated Deficit) | ||
Dividends, Common Stock [Abstract] | ||
Dividend payments | $ 0 | $ 54 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Retained Earnings (Accumulated Deficit) (Detail) - USD ($) $ in Millions | 3 Months Ended | 183 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | Jul. 27, 2018 | |
Retained Earnings Adjustments [Line Items] | |||
Beginning balance | $ (9) | ||
Net income | 283 | $ 131 | |
Repurchases of common stock | (500) | $ (10,100) | |
Ending balance | 0 | 0 | |
Retained Earnings (Accumulated Deficit) | |||
Retained Earnings Adjustments [Line Items] | |||
Cumulative-effect of new accounting principle | (51) | $ (51) | |
Net income | 283 | ||
Repurchases of common stock | $ (223) |
Derivatives and Hedging Activ77
Derivatives and Hedging Activities - Schedule of Notional Value of Outstanding Foreign Currency Forward Contracts (Detail) - Foreign Exchange Forward Contracts - Non Designated - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Short | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 129 | $ 115 |
Long | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 119 | $ 412 |
Derivatives and Hedging Activ78
Derivatives and Hedging Activities - Additional Information (Detail) - USD ($) | Jul. 27, 2018 | Apr. 27, 2018 |
Foreign Exchange Forward Contracts | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 0 | $ 0 |
Derivatives and Hedging Activ79
Derivatives and Hedging Activities - Schedule of Derivative Instruments Not Designated as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Foreign Exchange Forward Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign currency exchange contracts | $ 10 | $ (2) |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | Jul. 27, 2018USD ($) |
May 2018 Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Reduction of global work force | 2.00% |
Restructuring plan significant additional charges | $ 0 |
November 2016 Restructuring | |
Restructuring Cost and Reserve [Line Items] | |
Reduction of global work force | 6.00% |
Restructuring Charges - Activit
Restructuring Charges - Activities Related to Restructuring Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Balance at beginning of period | $ 6 | |
Net charges | 19 | $ 0 |
Cash payments | (10) | |
Balance at end of period | 15 | |
May 2018 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance at beginning of period | 0 | |
Net charges | 19 | |
Cash payments | (9) | |
Balance at end of period | 10 | |
November 2016 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Balance at beginning of period | 6 | 13 |
Net charges | 0 | 0 |
Cash payments | (1) | (4) |
Balance at end of period | $ 5 | $ 9 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rates (Detail) | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | (4.00%) | 9.70% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 8 Months Ended | ||
Jul. 27, 2018 | Jul. 28, 2017 | Dec. 31, 2017 | Apr. 27, 2018 | |
Income Tax Contingency [Line Items] | ||||
Provision (benefit) for income taxes | $ (11) | $ 14 | ||
U.S. federal corporate tax rate | 21.00% | 35.00% | ||
Gross unrecognized tax benefits | $ 351 | |||
Gross unrecognized tax benefits included in other long-term liabilities | 319 | $ 314 | ||
Unrecognized tax benefits that would affect provision for income taxes | 301 | |||
Impact of ASC 606 Adoption | ASC 606 | ||||
Income Tax Contingency [Line Items] | ||||
Provision (benefit) for income taxes | $ (34) | $ (3) |
Net Income per Share - Computat
Net Income per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Net income per share: | ||
Net income | $ 283 | $ 131 |
Shares used in basic computation | 262 | 270 |
Dilutive impact of employee equity award plans | 7 | 8 |
Shares used in diluted computation | 269 | 278 |
Basic | $ 1.08 | $ 0.49 |
Diluted | $ 1.05 | $ 0.47 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Earnings Per Share [Abstract] | ||
Outstanding employee equity awards excluded from diluted net income per share calculations | 0 | 2,000,000 |
Segment Geographic and Signific
Segment Geographic and Significant Customer Information - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Jul. 27, 2018USD ($)Segment | Jul. 28, 2017USD ($)Segment | |
Segment Reporting Information [Line Items] | ||
Number of industry segment | Segment | 1 | 1 |
Net revenues | $ 1,474 | $ 1,321 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 761 | $ 639 |
Segment Geographic and Signif87
Segment Geographic and Significant Customer Information - Schedule of Revenues by Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Segment Reporting Information [Line Items] | ||
Net revenues | $ 1,474 | $ 1,321 |
United States, Canada And Latin America (Americas) | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 843 | 721 |
Europe, Middle East And Africa (EMEA) | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 430 | 401 |
Asia Pacific (APAC) | ||
Segment Reporting Information [Line Items] | ||
Net revenues | $ 201 | $ 199 |
Segment Geographic and Signif88
Segment Geographic and Significant Customer Information - Schedule of Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 4,811 | $ 5,391 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | 553 | 853 |
International | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 4,258 | $ 4,538 |
Segment Geographic and Signif89
Segment Geographic and Significant Customer Information - Schedule of Property and Equipment Net by Geographic Areas (Detail) - USD ($) $ in Millions | Jul. 27, 2018 | Apr. 27, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 768 | $ 756 |
U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | 581 | 566 |
International | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 187 | $ 190 |
Segment Geographic and Signif90
Segment Geographic and Significant Customer Information - Significant Customers (Detail) - Net Revenue - Customer Concentration Risk | 3 Months Ended | |
Jul. 27, 2018 | Jul. 28, 2017 | |
Arrow Electronics, Inc. | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenues | 22.00% | 23.00% |
Tech Data Corporation | ||
Segment Reporting Information [Line Items] | ||
Percentage of net revenues | 17.00% | 20.00% |
Segment Geographic and Signif91
Segment Geographic and Significant Customer Information - Schedule of Net Accounts Receivable from Significant Customers (Detail) - Accounts Receivable - Credit Concentration Risk | 3 Months Ended | 12 Months Ended |
Jul. 27, 2018 | Apr. 27, 2018 | |
Arrow Electronics, Inc. | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 16.00% | 17.00% |
Tech Data Corporation | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 9.00% | 17.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Jul. 27, 2018 | Jul. 28, 2017 | Apr. 27, 2018 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Future annual minimum lease payments | $ 184,000,000 | ||
Accrued purchase commitments with contract manufacturers | 22,000,000 | $ 14,000,000 | |
Sale of finance receivables | 30,000,000 | $ 31,000,000 | |
Legal proceedings and claims | $ 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, 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 | $ 382,000,000 | ||
Construction Related | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase orders and other commitments | 5,000,000 | ||
Other | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase orders and other commitments | $ 195,000,000 |