Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jul. 25, 2020 | Aug. 28, 2020 | Jan. 24, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jul. 25, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-18225 | ||
Entity Registrant Name | CISCO SYSTEMS, INC. | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 77-0059951 | ||
Entity Address, Address Line One | 170 West Tasman Drive | ||
Entity Address, City or Town | San Jose, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95134-1706 | ||
City Area Code | 408 | ||
Local Phone Number | 526-4000 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | CSCO | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 207.1 | ||
Entity Common Stock, Shares Outstanding | 4,233,425,297 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement relating to the registrant’s 2020 Annual Meeting of Shareholders, to be held on December 10, 2020, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated. | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Entity Central Index Key | 0000858877 | ||
Current Fiscal Year End Date | --07-25 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 11,809 | $ 11,750 |
Investments | 17,610 | 21,663 |
Accounts receivable, net of allowance for doubtful accounts of $143 at July 25, 2020 and $136 at July 27, 2019 | 5,472 | 5,491 |
Inventories | 1,282 | 1,383 |
Financing receivables, net | 5,051 | 5,095 |
Other current assets | 2,349 | 2,373 |
Total current assets | 43,573 | 47,755 |
Property and equipment, net | 2,453 | 2,789 |
Financing receivables, net | 5,714 | 4,958 |
Goodwill | 33,806 | 33,529 |
Purchased intangible assets, net | 1,576 | 2,201 |
Deferred tax assets | 3,990 | 4,065 |
Other assets | 3,741 | 2,496 |
TOTAL ASSETS | 94,853 | 97,793 |
Current liabilities: | ||
Short-term debt | 3,005 | 10,191 |
Accounts payable | 2,218 | 2,059 |
Income taxes payable | 839 | 1,149 |
Accrued compensation | 3,122 | 3,221 |
Deferred revenue | 11,406 | 10,668 |
Other current liabilities | 4,741 | 4,424 |
Total current liabilities | 25,331 | 31,712 |
Long-term debt | 11,578 | 14,475 |
Income taxes payable | 8,837 | 8,927 |
Deferred revenue | 9,040 | 7,799 |
Other long-term liabilities | 2,147 | 1,309 |
Total liabilities | 56,933 | 64,222 |
Commitments and contingencies (Note 14) | ||
Cisco shareholders’ equity: | ||
Preferred stock, no par value: 5 shares authorized; none issued and outstanding | 0 | 0 |
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,237 and 4,250 shares issued and outstanding at July 25, 2020 and July 27, 2019, respectively | 41,202 | 40,266 |
Accumulated deficit | (2,763) | (5,903) |
Accumulated other comprehensive loss | (519) | (792) |
Total equity | 37,920 | 33,571 |
TOTAL LIABILITIES AND EQUITY | $ 94,853 | $ 97,793 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 143 | $ 136 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 20,000,000,000 | 20,000,000,000 |
Common stock, shares issued (in shares) | 4,237,000,000 | 4,250,000,000 |
Common stock, shares outstanding (in shares) | 4,237,000,000 | 4,250,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
REVENUE: | |||
Revenue | $ 49,301 | $ 51,904 | $ 49,330 |
COST OF SALES: | |||
Total cost of sales | 17,618 | 19,238 | 18,724 |
GROSS MARGIN | 31,683 | 32,666 | 30,606 |
OPERATING EXPENSES: | |||
Research and development | 6,347 | 6,577 | 6,332 |
Sales and marketing | 9,169 | 9,571 | 9,242 |
General and administrative | 1,925 | 1,827 | 2,144 |
Amortization of purchased intangible assets | 141 | 150 | 221 |
Restructuring and other charges | 481 | 322 | 358 |
Total operating expenses | 18,063 | 18,447 | 18,297 |
OPERATING INCOME | 13,620 | 14,219 | 12,309 |
Interest income | 920 | 1,308 | 1,508 |
Interest expense | (585) | (859) | (943) |
Other income (loss), net | 15 | (97) | 165 |
Interest and other income (loss), net | 350 | 352 | 730 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 13,970 | 14,571 | 13,039 |
Provision for income taxes | 2,756 | 2,950 | 12,929 |
NET INCOME | $ 11,214 | $ 11,621 | $ 110 |
Net income per share: | |||
Basic (in dollars per share) | $ 2.65 | $ 2.63 | $ 0.02 |
Diluted (in dollars per share) | $ 2.64 | $ 2.61 | $ 0.02 |
Shares used in per-share calculation: | |||
Basic (in shares) | 4,236 | 4,419 | 4,837 |
Diluted (in shares) | 4,254 | 4,453 | 4,881 |
Product | |||
REVENUE: | |||
Revenue | $ 35,978 | $ 39,005 | $ 36,709 |
COST OF SALES: | |||
Total cost of sales | 13,199 | 14,863 | 14,427 |
Service | |||
REVENUE: | |||
Revenue | 13,323 | 12,899 | 12,621 |
COST OF SALES: | |||
Total cost of sales | $ 4,419 | $ 4,375 | $ 4,297 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 11,214 | $ 11,621 | $ 110 |
Available-for-sale investments: | |||
Change in net unrealized gains and losses, net of tax benefit (expense) of $(84), $(101), and $(11) for fiscal 2020, 2019, and 2018, respectively | 336 | 459 | (554) |
Net (gains) losses reclassified into earnings, net of tax expense (benefit) of $21, $6, and $104 for fiscal 2020, 2019, and 2018, respectively | (21) | 19 | (183) |
Total Available-for-sale investments | 315 | 478 | (737) |
Cash flow hedging instruments: | |||
Change in unrealized gains and losses, net of tax benefit (expense) of $0, $0, and $(3) for fiscal 2020, 2019, and 2018, respectively | 7 | ||
Change in unrealized gains and losses, net of tax benefit (expense) of $0, $0, and $(3) for fiscal 2020, 2019, and 2018, respectively | 0 | 18 | |
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $0, $0, and $7 for fiscal 2020, 2019, and 2018, respectively | 1 | ||
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $0, $0, and $7 for fiscal 2020, 2019, and 2018, respectively | (3) | (61) | |
Total cash flow hedging instruments | 8 | ||
Total Cash flow hedging instruments | (3) | (43) | |
Net change in cumulative translation adjustment and actuarial gains and losses, net of tax benefit (expense) of $(5), $15, and $(8) for fiscal 2020, 2019, and 2018, respectively | (50) | (250) | (160) |
Other comprehensive income (loss) | 273 | 225 | (940) |
Comprehensive income (loss) | $ 11,487 | $ 11,846 | $ (830) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Change in net unrealized gains, tax benefit (expense) | $ (84) | $ (101) | $ (11) |
Net (gains) losses reclassified into earnings, tax expense (benefit) | 21 | 6 | 104 |
Change in unrealized gains and losses, tax benefit (expense) | 0 | ||
Change in unrealized gains and losses, tax benefit (expense) | 0 | (3) | |
Net (gains) losses reclassified into earnings, tax (benefit) expense | 0 | ||
Net (gains) losses reclassified into earnings, tax (benefit) expense | 0 | 7 | |
Net change in cumulative translation adjustment and actuarial gains and losses, tax benefit (expense) | $ (5) | $ 15 | $ (8) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 11,214 | $ 11,621 | $ 110 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization, and other | 1,808 | 1,897 | 2,192 |
Share-based compensation expense | 1,569 | 1,570 | 1,576 |
Provision (benefit) for receivables | 93 | 40 | (134) |
Deferred income taxes | (38) | (350) | 900 |
(Gains) losses on divestitures, investments and other, net | (138) | (24) | (322) |
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||
Accounts receivable | (107) | (84) | (269) |
Inventories | 84 | 131 | (244) |
Financing receivables | (797) | (249) | (219) |
Other assets | 96 | (955) | 66 |
Accounts payable | 141 | 87 | 504 |
Income taxes, net | (322) | 312 | 8,118 |
Accrued compensation | (78) | 277 | 100 |
Deferred revenue | 2,011 | 1,407 | 1,205 |
Other liabilities | (110) | 151 | 83 |
Net cash provided by operating activities | 15,426 | 15,831 | 13,666 |
Cash flows from investing activities: | |||
Purchases of investments | (9,212) | (2,416) | (14,285) |
Proceeds from sales of investments | 5,631 | 7,388 | 17,706 |
Proceeds from maturities of investments | 7,975 | 12,928 | 15,769 |
Acquisitions and divestitures | (327) | (2,175) | (2,979) |
Purchases of investments in privately held companies | (190) | (148) | (267) |
Return of investments in privately held companies | 224 | 159 | 168 |
Acquisition of property and equipment | (770) | (909) | (834) |
Proceeds from sales of property and equipment | 179 | 22 | 59 |
Other | (10) | (12) | (19) |
Net cash provided by investing activities | 3,500 | 14,837 | 15,318 |
Cash flows from financing activities: | |||
Issuances of common stock | 655 | 640 | 623 |
Repurchases of common stock - repurchase program | (2,659) | (20,717) | (17,547) |
Shares repurchased for tax withholdings on vesting of restricted stock units | (727) | (862) | (703) |
Short-term borrowings, original maturities of 90 days or less, net | (3,470) | 3,446 | (2,502) |
Issuances of debt | 0 | 2,250 | 6,877 |
Repayments of debt | (6,720) | (6,780) | (12,375) |
Dividends paid | (6,016) | (5,979) | (5,968) |
Other | 51 | 113 | (169) |
Net cash used in financing activities | (18,886) | (27,889) | (31,764) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 40 | 2,779 | (2,780) |
Cash, cash equivalents, and restricted cash, beginning of fiscal year | 11,772 | 8,993 | 11,773 |
Cash, cash equivalents, and restricted cash, end of fiscal year | 11,812 | 11,772 | 8,993 |
Supplemental cash flow information: | |||
Cash paid for interest | 603 | 892 | 911 |
Cash paid for income taxes, net | $ 3,116 | $ 2,986 | $ 3,911 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Shares of Common Stock | Common Stock and Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, AdjustmentRetained Earnings (Accumulated Deficit) | Cumulative Effect, Period of Adoption, AdjustmentAccumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Jul. 29, 2017 | 4,983 | |||||||
Balance, beginning of period at Jul. 29, 2017 | $ 66,137 | $ 45,253 | $ 20,838 | $ 46 | $ 9 | $ (36) | $ 45 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 110 | 110 | ||||||
Other comprehensive income (loss) | (940) | (940) | ||||||
Issuance of common stock (in shares) | 83 | |||||||
Issuance of common stock | $ 623 | 623 | ||||||
Repurchase of common stock (in shares) | (432) | (432) | ||||||
Repurchase of common stock | $ (17,661) | (3,950) | (13,711) | |||||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (20) | |||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (703) | (703) | ||||||
Cash dividends declared | (5,968) | (5,968) | ||||||
Share-based compensation | 1,576 | 1,576 | ||||||
Purchase acquisitions and other | 21 | 21 | ||||||
Ending Balance (in shares) at Jul. 28, 2018 | 4,614 | |||||||
Balance, end of period at Jul. 28, 2018 | 43,204 | 42,820 | 1,233 | (849) | $ 3,729 | $ 3,897 | $ (168) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 11,621 | 11,621 | ||||||
Other comprehensive income (loss) | 225 | 225 | ||||||
Issuance of common stock (in shares) | 71 | |||||||
Issuance of common stock | $ 640 | 640 | ||||||
Repurchase of common stock (in shares) | (418) | (418) | ||||||
Repurchase of common stock | $ (20,577) | (3,902) | (16,675) | |||||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (17) | |||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (862) | (862) | ||||||
Cash dividends declared | (5,979) | (5,979) | ||||||
Share-based compensation | 1,570 | 1,570 | ||||||
Ending Balance (in shares) at Jul. 27, 2019 | 4,250 | |||||||
Balance, end of period at Jul. 27, 2019 | 33,571 | 40,266 | (5,903) | (792) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 11,214 | 11,214 | ||||||
Other comprehensive income (loss) | 273 | 273 | ||||||
Issuance of common stock (in shares) | 61 | |||||||
Issuance of common stock | $ 655 | 655 | ||||||
Repurchase of common stock (in shares) | (59) | (59) | ||||||
Repurchase of common stock | $ (2,619) | (561) | (2,058) | |||||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (15) | |||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (727) | (727) | ||||||
Cash dividends declared | (6,016) | (6,016) | ||||||
Share-based compensation | 1,569 | 1,569 | ||||||
Ending Balance (in shares) at Jul. 25, 2020 | 4,237 | |||||||
Balance, end of period at Jul. 25, 2020 | $ 37,920 | $ 41,202 | $ (2,763) | $ (519) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, per common share (in dollars per share) | $ 1.42 | $ 1.36 | $ 1.24 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Jul. 25, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The fiscal year for Cisco Systems, Inc. (the “Company,” “Cisco,” “we,” “us,” or “our”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2020 , fiscal 2019 and fiscal 2018 were each 52-week fiscal years. The Consolidated Financial Statements include the accounts of ours and those of our subsidiaries. All intercompany accounts and transactions have been eliminated. We conduct business globally and are primarily managed on a geographic basis in the following three geographic segments: the Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC). Our consolidated financial statements include our accounts and entities consolidated under the variable interest and voting models. The noncontrolling interests attributed to these investments, if any, are presented as a separate component from our equity in the equity section of the Consolidated Balance Sheets. The share of earnings attributable to the noncontrolling interests are not presented separately in the Consolidated Statements of Operations as these amounts are not material for any of the fiscal periods presented. Certain reclassifications have been made to the amounts for prior years in order to conform to the current year’s presentation. We have evaluated subsequent events through the date that the financial statements were issued. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jul. 25, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Cash and Cash Equivalents We consider all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions. (b) Available-for-Sale Debt Investments We classify our investments in fixed income securities as available-for-sale debt investments. Our available-for-sale debt investments primarily consist of U.S. government, U.S. government agency, corporate debt, and U.S. agency mortgage-backed securities. These available-for-sale debt investments are primarily held in the custody of a major financial institution. A specific identification method is used to determine the cost basis of available-for-sale debt investments sold. These investments are recorded in the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments, to the extent the investments are unhedged, are included as a separate component of accumulated other comprehensive income (AOCI), net of tax. We classify our investments as current based on the nature of the investments and their availability for use in current operations. (c) Equity Instruments Our equity investments are accounted for as follows: • Marketable equity securities have readily determinable fair value (RDFV) that are measured and recorded at fair value through income. • Non-marketable equity securities do not have RDFV and are measured using a measurement alternative recorded at cost less any impairment, plus or minus changes resulting from qualifying observable price changes. For certain of these securities, we have elected to apply the net asset value (NAV) practical expedient. The NAV is the estimated fair value of these investments. • Equity method investments are securities we do not control, but are able to exert significant influence over the investee. These investments are measured at cost less any impairment, plus or minus our share of equity method investee income or loss. (d) Impairments of Investments When the fair value of a debt security is less than its amortized cost, it is deemed impaired, and we will assess whether the impairment is other than temporary. An impairment is considered other than temporary if (i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis, or (iii) we do not expect to recover the entire amortized cost basis of the security. If impairment is considered other than temporary based on condition (i) or (ii) described earlier, the entire difference between the amortized cost and the fair value of the debt security is recognized in earnings. If an impairment is considered other than temporary based on condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security) will be recognized in earnings, and the amount relating to all other factors will be recognized in other comprehensive income (OCI). We hold non-marketable equity and other investments which are included in other assets in the Consolidated Balance Sheets. We monitor these investments for impairments and make reductions in carrying values if we determine that an impairment charge is required based primarily on the financial condition and near-term prospects of these companies. (e) Inventories Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. We provide inventory write-downs based on excess and obsolete inventories determined primarily by future demand forecasts. The write-down is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. In addition, we record a liability for firm, noncancelable, and unconditional purchase commitments with contract manufacturers and suppliers for quantities in excess of our future demand forecasts consistent with our valuation of excess and obsolete inventory. (f) Allowance for Doubtful Accounts The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. We regularly review the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, economic conditions that may affect a customer’s ability to pay, and expected default frequency rates. Trade receivables are written off at the point when they are considered uncollectible. (g) Financing Receivables and Guarantees We provide financing arrangements, including leases, financed service contracts, and loans, for certain qualified end-user customers to build, maintain, and upgrade their networks. Lease receivables primarily represent sales-type and direct-financing leases. Leases have on average a four -year term and are usually collateralized by a security interest in the underlying assets. Loan receivables include customers financing purchases of our hardware, software and services and also may include additional funds for other costs associated with network installation and integration of our products and services. Loan receivables have terms of three years on average. Financed service contracts typically have terms of one to three years and primarily relate to technical support services. We determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by us to our customers: lease receivables, loan receivables, and financed service contracts. We assess the allowance for credit loss related to financing receivables on either an individual or a collective basis. We consider various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include our historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer’s ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, are assessed and reserved at the customer level. Our internal credit risk ratings are categorized as 1 through 10 , with the lowest credit risk rating representing the highest quality financing receivables. Typically, we also consider financing receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. We evaluate the remainder of our financing receivables portfolio for impairment on a collective basis and record an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, we use historical default rates and expected default frequency rates published by major third-party credit-rating agencies as well as our own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation. Expected default frequency rates and historical default rates are published quarterly by major third-party credit-rating agencies, and the internal credit risk rating is derived by taking into consideration various customer-specific factors and macroeconomic conditions. These factors, which include the strength of the customer’s business and financial performance, the quality of the customer’s banking relationships, our specific historical experience with the customer, the performance and outlook of the customer’s industry, the customer’s legal and regulatory environment, the potential sovereign risk of the geographic locations in which the customer is operating, and independent third-party evaluations, are updated regularly or when facts and circumstances indicate that an update is deemed necessary. Financing receivables are written off at the point when they are considered uncollectible, and all outstanding balances, including any previously earned but uncollected interest income, will be reversed and charged against the allowance for credit loss. We do not typically have any partially written-off financing receivables. Outstanding financing receivables that are aged 31 days or more from the contractual payment date are considered past due. We do not accrue interest on financing receivables that are considered impaired or more than 120 days past due unless either the receivable has not been collected due to administrative reasons or the receivable is well secured and in the process of collection. Financing receivables may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a financing receivable has been categorized as nonaccrual, interest will be recognized when cash is received. A financing receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and the customer remains current for an appropriate period. We facilitate arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60 to 90 days. In certain instances, these financing arrangements result in a transfer of our receivables to the third party. The receivables are derecognized upon transfer, as these transfers qualify as true sales, and we receive a payment for the receivables from the third party based on our standard payment terms. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, we guarantee a portion of these arrangements. We also provide financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years . We could be called upon to make payments under these guarantees in the event of nonpayment by the channel partners or end-user customers. Deferred revenue relating to these financing arrangements is recorded in accordance with revenue recognition policies or for the fair value of the financing guarantees. (h) Leases We lease real estate, information technology (IT) and other equipment and vehicles. We also have arrangements with certain suppliers and contract manufacturers which includes the leasing of dedicated space and equipment costs. Our leases have the option to extend or terminate the lease when it is reasonably certain that we will exercise that option. As a lessee, we determine if an arrangement is a lease at commencement. Our ROU lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments related to the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use incremental borrowing rates based on information available at the commencement date to determine the present value of our lease payments. Certain of our lease agreements contain variable lease payments. Our variable lease payments can fluctuate depending on the level of activity or the cost of certain services where we have elected to combine lease and non-lease components. While these payments are not included as part of our lease liabilities, they are recognized as variable lease expense in the period they are incurred. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. As a lessor, we determine if an arrangement is a lease at inception. We provide leasing arrangements for our equipment to certain qualified customers. Our lease portfolio primarily consists of sales-type leases. We allocate the consideration in a bundled contract with our customers based on relative standalone selling prices of our lease and non-lease components. The residual value on our leased equipment is determined at the inception of the lease based on an analysis of estimates of the value of equipment, market factors and historical customer behavior. Residual value estimates are reviewed on a periodic basis and other-than-temporary declines are expensed in the period they occur. Our leases generally provide an end-of-term option for the customer to extend the lease under mutually-agreed terms, return the leased equipment, or purchase the equipment for either the then-market value of the equipment or a pre-determined purchase price. If a customer chooses to terminate their lease prior to the original end of term date, the customer is required to pay all remaining lease payments in full. For additional information, see Note 8. (i) Depreciation and Amortization Property and equipment are stated at cost, less accumulated depreciation or amortization, whenever applicable. Depreciation and amortization expenses for property and equipment were approximately $0.9 billion , $1.0 billion , and $1.1 billion for fiscal 2020 , 2019 , and 2018 , respectively. Depreciation and amortization are computed using the straight-line method, generally over the following periods: Asset Category Period Buildings 25 years Building improvements 10 years Leasehold improvements Shorter of remaining lease term or up to 10 years Computer equipment and related software 30 to 36 months Production, engineering, and other equipment Up to 5 years Operating lease assets Based on lease term Furniture and fixtures 5 years (j) Business Combinations We allocate the fair value of the purchase consideration of our acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (IPR&D), based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. Acquisition-related expenses and related restructuring costs are recognized separately from the business combination and are expensed as incurred. (k) Goodwill and Purchased Intangible Assets Goodwill is tested for impairment on an annual basis in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. When impaired, the carrying value of goodwill is written down to fair value. Identifying a potential impairment consists of comparing the fair value of a reporting unit with its carrying amount, including goodwill. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. See “Long-Lived Assets” for our policy regarding impairment testing of purchased intangible assets with finite lives. Purchased intangible assets with indefinite lives are assessed for potential impairment annually or when events or circumstances indicate that their carrying amounts might be impaired. (l) Long-Lived Assets Long-lived assets that are held and used by us are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of the undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the difference between the fair value of the asset and its carrying value. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. (m) Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the principal or most advantageous market in which we would transact, and we also consider assumptions that market participants would use when pricing the asset or liability. The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. We use inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of assets or liabilities. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair values are determined based on model-based techniques such as discounted cash flow models using inputs that we could not corroborate with market data. (n) Derivative Instruments We recognize derivative instruments as either assets or liabilities and measure those instruments at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For a derivative instrument designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For a derivative instrument designated as a net investment hedge of our foreign operations, the gain or loss is recorded in the cumulative translation adjustment within AOCI together with the offsetting loss or gain of the hedged exposure of the underlying foreign operations. Any ineffective portion of the net investment hedges is reported in earnings during the period of change. For derivative instruments that are not designated as accounting hedges, changes in fair value are recognized in earnings in the period of change. We record derivative instruments in the statements of cash flows to operating, investing, or financing activities consistent with the cash flows of the hedged item. Hedge effectiveness for foreign exchange forward contracts used as cash flow hedges is assessed by comparing the change in the fair value of the hedge contract with the change in the fair value of the forecasted cash flows of the hedged item. Hedge effectiveness for equity forward contracts and foreign exchange net investment hedge forward contracts is assessed by comparing changes in fair value due to changes in spot rates for both the derivative and the hedged item. For foreign exchange option contracts, hedge effectiveness is assessed based on the hedging instrument’s entire change in fair value. Hedge effectiveness for interest rate swaps is assessed by comparing the change in fair value of the swap with the change in the fair value of the hedged item due to changes in the benchmark interest rate. (o) Foreign Currency Translation Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of AOCI. Income and expense accounts are translated at average exchange rates during the year. Remeasurement adjustments are recorded in other income (loss), net. The effect of foreign currency exchange rates on cash and cash equivalents was not material for any of the fiscal years presented. (p) Concentrations of Risk Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. We seek to mitigate our credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. We perform ongoing credit evaluations of our customers and, with the exception of certain financing transactions, do not require collateral from our customers. We receive certain of our components from sole suppliers. Additionally, we rely on a limited number of contract manufacturers and suppliers to provide manufacturing services for our products. The inability of a contract manufacturer or supplier to fulfill our supply requirements could materially impact future operating results. (q) Revenue Recognition We enter into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. As a result, our contracts may contain multiple performance obligations. We determine whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether our commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. We classify our hardware, perpetual software licenses, and SaaS as distinct performance obligations. Term software licenses represent multiple obligations, which include software licenses and software maintenance. In transactions where we deliver hardware or software, we are typically the principal and we record revenue and costs of goods sold on a gross basis. We refer to our term software licenses, security software licenses, SaaS, and associated service arrangements as subscription offers. We recognize revenue upon transfer of control of promised goods or services in a contract with a customer in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once title and risk of loss has transferred to the customer. Transfer of control can also occur over time for software maintenance and services as the customer receives the benefit over the contract term. Our hardware and perpetual software licenses are distinct performance obligations where revenue is recognized upfront upon transfer of control. Term software licenses include multiple performance obligations where the term licenses are recognized upfront upon transfer of control, with the associated software maintenance revenue recognized ratably over the contract term as services and software updates are provided. SaaS arrangements do not include the right for the customer to take possession of the software during the term, and therefore have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term as the customer consumes the services. On our product sales, we record consideration from shipping and handling on a gross basis within net product sales. We record our revenue net of any associated sales taxes. An allowance for future sales returns is established based on historical trends in product return rates. The allowance for future sales returns as of July 25, 2020 and July 27, 2019 was $79 million and $84 million , respectively, and was recorded as a reduction of our accounts receivable and revenue. Significant Judgments Revenue is allocated among these performance obligations in a manner that reflects the consideration that we expect to be entitled to for the promised goods or services based on standalone selling prices (SSP). SSP is estimated for each distinct performance obligation and judgment may be required in their determination. The best evidence of SSP is the observable price of a product or service when we sell the goods separately in similar circumstances and to similar customers. In instances where SSP is not directly observable, we determine SSP using information that may include market conditions and other observable inputs. We apply judgment in determining the transaction price as we may be required to estimate variable consideration when determining the amount of revenue to recognize. Variable consideration includes potential contractual penalties and various rebate, cooperative marketing and other incentive programs that we offer to our distributors, channel partners and customers. When determining the amount of revenue to recognize, we estimate the expected usage of these programs, applying the expected value or most likely estimate and update the estimate at each reporting period as actual utilization becomes available. We also consider the customers' right of return in determining the transaction price, where applicable. We assess certain software licenses, such as for security software, that contain critical updates or upgrades which customers can download throughout the contract term. Without these updates or upgrades, the functionality of the software would diminish over a relatively short time period. These updates or upgrades provide the customer the full functionality of the purchased security software licenses and are required to maintain the security license's utility as the risks and threats in the environment are rapidly changing. In these circumstances, the revenue from these software arrangements is recognized as a single performance obligation satisfied over the contract term. We adopted ASC 606 at the beginning of fiscal 2019 using the modified retrospective method to those contracts that were not completed as of July 28, 2018. For the additional information, see Note 3. (r) Advertising Costs We expense all advertising costs as incurred. Advertising costs included within sales and marketing expenses were approximately $187 million , $204 million , and $166 million for fiscal 2020 , 2019 , and 2018 , respectively. (s) Share-Based Compensation Expense We measure and recognize the compensation expense for all share-based awards made to employees and directors, including employee stock options, restricted stock units (RSUs), performance-based restricted stock units (PRSUs), and employee stock purchases related to the Employee Stock Purchase Plan (Employee Stock Purchase Rights) based on estimated fair values. The fair value of employee stock options is estimated on the date of grant using a lattice-binomial option-pricing model (Lattice-Binomial Model) or the Black-Scholes model, and for employee stock purchase rights we estimate the fair value using the Black-Scholes model. The fair value for time-based stock awards and stock awards that are contingent upon the achievement of financial performance metrics is based on the grant date share price reduced by the present value of the expected dividend yield prior to vesting. The fair value of market-based stock awards is estimated using an option-pricing model on the date of grant. Share-based compensation expense is reduced for forfeitures. (t) Software Development Costs Software development costs, including costs to develop software sold, leased, or otherwise marketed, that are incurred subsequent to the establishment of technological feasibility are capitalized if significant. Costs incurred during the application development stage for internal-use software are capitalized if significant. Capitalized software development costs are amortized using the straight-line amortization method over the estimated useful life of the applicable software. Such software development costs required to be capitalized have not been material to date. (u) Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. We account for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We classify the liability for unrecognized tax benefits as current to the extent that we anticipate payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. (v) Computation of Net Income per Share Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Diluted shares outstanding includes the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase shares. (w) Consolidation of Variable Interest Entities Our approach in assessing the consolidation requirement for variable interest entities focuses on identifying which enterprise has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. Should we conclude that we are the primary beneficiary of a variable interest entity, the assets, liabilities, a |
Revenue
Revenue | 12 Months Ended |
Jul. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue (a) Disaggregation of Revenue We disaggregate our revenue into groups of similar products and services that depict the nature, amount, and timing of revenue and cash flows for our various offerings. The sales cycle, contractual obligations, customer requirements, and go-to-market strategies differ for each of our product categories, resulting in different economic risk profiles for each category. The following table presents this disaggregation of revenue (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Infrastructure Platforms $ 27,122 $ 30,099 $ 28,286 Applications 5,568 5,803 5,036 Security 3,154 2,821 2,388 Other Products 135 281 999 Total Product 35,978 39,005 36,709 Services 13,323 12,899 12,621 Total (1) $ 49,301 $ 51,904 $ 49,330 Amounts may not sum due to rounding. We have made certain reclassifications to the product revenue amounts for prior years to conform to the current year’s presentation. (1) During the second quarter of fiscal 2019, we completed the divestiture of the Service Provider Video Software Solutions (SPVSS) business. Total revenue includes SPVSS business revenue of $168 million and $903 million for fiscal 2019 and 2018 , respectively. Infrastructure Platforms consist of our core networking technologies of switching, routing, wireless, and data center products that are designed to work together to deliver networking capabilities and transport and/or store data. These technologies consist of both hardware and software offerings, including software licenses and software-as-a-service (SaaS), that help our customers build networks, automate, orchestrate, integrate, and digitize data. We are shifting and expanding more of our business to software and subscriptions across our core networking portfolio. Our hardware and perpetual software in this category are distinct performance obligations where revenue is recognized upfront upon transfer of control. Term software licenses are multiple performance obligations where the term license is recognized upfront upon transfer of control with the associated software maintenance revenue recognized ratably over the contract term. SaaS arrangements in this category have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term. Applications consists of offerings that utilize the core networking and data center platforms to provide their functions. The products consist primarily of software offerings, including software licenses and SaaS, as well as hardware. Our perpetual software and hardware in this category are distinct performance obligations where revenue is recognized upfront upon transfer of control. Term software licenses are multiple performance obligations where the term license is recognized upfront upon transfer of control with the associated software maintenance revenue recognized ratably over the contract term. SaaS arrangements in this category have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term. Security primarily includes our network security, cloud and email security, identity and access management, advanced threat protection, and unified threat management products. These products consist of both hardware and software offerings, including software licenses and SaaS. Updates and upgrades for the term software licenses are critical for our software to perform its intended commercial purpose because of the continuous need for our software to secure our customers' network environments against frequent threats. Therefore, security software licenses are generally represented by a single distinct performance obligation with revenue recognized ratably over the contract term. Our hardware and perpetual software in this category are distinct performance obligations where revenue is recognized upfront upon transfer of control. SaaS arrangements in this category have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term. Other Products primarily include our Service Provider Video Software Solutions and cloud and system management products. On October 28, 2018 , we completed the sale of the SPVSS business. These products include both hardware and software licenses. Our offerings in this category are distinct performance obligations where revenue is recognized upfront upon transfer of control. In addition to our product offerings, we provide a broad range of service and support options for our customers, including technical support services and advanced services. Technical support services represent the majority of these offerings which are distinct performance obligations that are satisfied over time with revenue recognized ratably over the contract term. Advanced services are distinct performance obligations that are satisfied over time with revenue recognized as services are delivered. The sales arrangements as discussed above are typically made pursuant to customer purchase orders based on master purchase or partner agreements. Cash is received based on our standard payment terms which is typically 30 days . We provide financing arrangements to customers for all of our hardware, software and service offerings. Refer to Note 9 for additional information. For these arrangements, cash is typically received over time. (b) Contract Balances Accounts receivable, net was $5.5 billion as of each of July 25, 2020 and July 27, 2019 , as reported on the Consolidated Balance Sheet. Contract assets consist of unbilled receivables and are recorded when revenue is recognized in advance of scheduled billings to our customers. These amounts are primarily related to software and service arrangements where transfer of control has occurred but we have not yet invoiced. As of July 25, 2020 and July 27, 2019 , our contract assets for these unbilled receivables were $1.2 billion and $860 million , respectively, and were included in other current assets and other assets. Contract liabilities consist of deferred revenue. Deferred revenue was $20.4 billion as of July 25, 2020 compared to $18.5 billion as of July 27, 2019 . We recognized approximately $10.6 billion of revenue during fiscal 2020 that was included in the deferred revenue balance at July 27, 2019 . (c) Capitalized Contract Acquisition Costs We capitalize direct and incremental costs incurred to acquire contracts, primarily sales commissions, for which the associated revenue is expected to be recognized in future periods. We incur these costs in connection with both initial contracts and renewals. These costs are initially deferred and typically amortized over the term of the customer contract which corresponds to the period of benefit. Deferred sales commissions were $732 million and $750 million as of July 25, 2020 and July 27, 2019 , respectively, and were included in other current assets and other assets. The amortization expense associated with these costs was $477 million and $471 million for fiscal 2020 and 2019 , respectively, and was included in sales and marketing expenses. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Jul. 25, 2020 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures (a) Acquisition Summary We completed six acquisitions during fiscal 2020 . A summary of the allocation of the total purchase consideration is presented as follows (in millions): Fiscal 2020 Purchase Consideration Net Tangible Assets Acquired (Liabilities Assumed) Purchased Intangible Assets Goodwill Total acquisitions (six in total) $ 359 $ (11 ) $ 172 $ 198 The total purchase consideration related to our acquisitions completed during fiscal 2020 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $23 million . Fiscal 2019 Acquisitions Allocation of the purchase consideration for acquisitions completed in fiscal 2019 is summarized as follows (in millions): Fiscal 2019 Purchase Consideration Net Tangible Assets Acquired (Liabilities Assumed) Purchased Intangible Assets Goodwill Duo $ 2,025 $ (57 ) $ 342 $ 1,740 Luxtera 596 (19 ) 319 296 Others (three in total) 65 2 11 52 Total $ 2,686 $ (74 ) $ 672 $ 2,088 On September 28, 2018, we completed our acquisition of privately held Duo Security, Inc. (“Duo”), a leading provider of unified access security and multi-factor authentication delivered through the cloud. Revenue from the Duo acquisition has been included in our Security product category. On February 6, 2019, we completed our acquisition of Luxtera, Inc. (“Luxtera”), a privately held semiconductor company. Revenue from the Luxtera acquisition has been included in our Infrastructure Platforms product category. The total purchase consideration related to our acquisitions completed during fiscal 2019 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $100 million . Fiscal 2018 Acquisitions In fiscal 2018 , we completed eight acquisitions for total purchase consideration of $3.2 billion . (b) Divestiture of Service Provider Video Software Solutions Business On October 28, 2018 , we completed the sale of the Service Provider Video Software Solutions business. This business had tangible assets of approximately $160 million (primarily comprised of accounts receivables, inventories and various other current and long-term assets) and net intangible assets and goodwill (based on relative fair value) of $340 million . In addition, the business had total liabilities of approximately $200 million (primarily comprised of deferred revenue and various other current and long-term liabilities). We recognized an immaterial gain from this transaction in fiscal 2019 . We completed two divestitures during fiscal 2018 . The financial statement impact of these divestitures was not material for fiscal 2018 . (c) Pending Acquisitions at Year End On July 9, 2019, we announced our intent to acquire Acacia Communications, Inc. (“Acacia”), a public fabless semiconductor company that develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity and cost. Under the terms of the agreement, we have agreed to pay total consideration of approximately $2.6 billion , net of cash and marketable securities, to acquire Acacia. The acquisition is expected to close during the first half of fiscal 2021, subject to customary closing conditions and regulatory approvals. Upon close of the acquisition, revenue from Acacia will be included in our Infrastructure Platforms product category. On August 7, 2020, we completed the acquisition of ThousandEyes, Inc. (“ThousandEyes”), a privately-held company. ThousandEyes’ Internet and Cloud intelligence platform delivers deep visibility and insights into the digital delivery of applications and services over the internet. We expect that most of the purchase price for the acquisition of ThousandEyes will be allocated to goodwill and purchased intangible assets. The financial statement impact of this acquisition will not have a material impact to our consolidated financial statements. (d) Other Acquisition and Divestiture Information Total transaction costs related to our acquisition and divestiture activities during fiscal 2020, 2019, and 2018 were $21 million , $21 million , and $41 million , respectively. These transaction costs were expensed as incurred in G&A expenses in the Consolidated Statements of Operations. The goodwill generated from our acquisitions completed during fiscal 2020 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes. The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition. Pro forma results of operations for the acquisitions completed during fiscal 2020, 2019, and 2018 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to our financial results. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 12 Months Ended |
Jul. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets (a) Goodwill The following tables present the goodwill allocated to our reportable segments as of July 25, 2020 and July 27, 2019 , as well as the changes to goodwill during fiscal 2020 and 2019 (in millions): Balance at July 27, 2019 Acquisitions Foreign Currency Translation and Other Balance at July 25, 2020 Americas $ 21,120 $ 132 $ 52 $ 21,304 EMEA 7,977 44 19 8,040 APJC 4,432 22 8 4,462 Total $ 33,529 $ 198 $ 79 $ 33,806 Balance at July 28, 2018 Acquisitions & Divestitures Foreign Currency Translation and Other Balance at July 27, 2019 Americas $ 19,998 $ 1,240 $ (118 ) $ 21,120 EMEA 7,529 486 (38 ) 7,977 APJC 4,179 274 (21 ) 4,432 Total $ 31,706 $ 2,000 $ (177 ) $ 33,529 (b) Purchased Intangible Assets The following tables present details of our intangible assets acquired through acquisitions completed during fiscal 2020 and 2019 (in millions, except years): FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER IPR&D Fiscal 2020 Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Amount Amount Total acquisitions (six in total) 4.8 $ 161 4.2 $ 10 1.5 $ 1 $ — $ 172 FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER IPR&D Fiscal 2019 Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Amount Amount Duo 5.0 $ 153 5.0 $ 94 2.5 $ 18 $ 77 $ 342 Luxtera 4.0 2 5.0 58 1.6 3 256 319 Others (three in total) 4.4 11 — — — — — 11 Total $ 166 $ 152 $ 21 $ 333 $ 672 The following tables present details of our purchased intangible assets (in millions): July 25, 2020 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 3,298 $ (2,336 ) $ 962 Customer relationships 760 (365 ) 395 Other 26 (20 ) 6 Total purchased intangible assets with finite lives 4,084 (2,721 ) 1,363 In-process research and development, with indefinite lives 213 — 213 Total $ 4,297 $ (2,721 ) $ 1,576 July 27, 2019 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 3,270 $ (1,933 ) $ 1,337 Customer relationships 840 (331 ) 509 Other 41 (22 ) 19 Total purchased intangible assets with finite lives 4,151 (2,286 ) 1,865 In-process research and development, with indefinite lives 336 — 336 Total $ 4,487 $ (2,286 ) $ 2,201 Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses. The following table presents the amortization of purchased intangible assets, including impairment charges (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Amortization of purchased intangible assets: Cost of sales $ 659 $ 624 $ 640 Operating expenses 141 150 221 Total $ 800 $ 774 $ 861 The estimated future amortization expense of purchased intangible assets with finite lives as of July 25, 2020 is as follows (in millions): Fiscal Year Amount 2021 $ 633 2022 $ 371 2023 $ 229 2024 $ 118 2025 $ 12 |
Restructuring and Other Charges
Restructuring and Other Charges | 12 Months Ended |
Jul. 25, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges In the first quarter of fiscal 2021, we initiated a restructuring plan (the “Fiscal 2021 Plan”), which includes a voluntary early retirement program, in order to realign the organization and enable further investment in key priority areas with estimated pretax charges of approximately $900 million . These aggregate pretax charges will be primarily cash-based and will consist of severance and other one-time termination benefits, and other costs. We expect the plan to be substantially completed in fiscal 2021. We initiated a restructuring plan during fiscal 2020 (the “Fiscal 2020 Plan”) in order to realign the organization and enable further investment in key priority areas. The total pretax charges are estimated to be approximately $300 million . These aggregate pretax charges related to the Fiscal 2020 Plan are primarily cash-based and consist of employee severance and other one-time termination benefits, and other costs. In connection with the Fiscal 2020 Plan, we incurred charges of $255 million during fiscal 2020 . We expect the Fiscal 2020 Plan to be substantially completed in fiscal 2021. In prior years, we initiated restructuring plans in order to realign our organization and enable further investment in key priority areas. The aggregate pretax charges related to these plans were primarily cash-based and consisted of employee severance and other one-time termination benefits, and other associated costs. These plans have been completed. The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions): FISCAL 2018 AND PRIOR PLANS FISCAL 2020 PLAN Employee Severance Other Employee Severance Other Total Liability as of July 29, 2017 $ 74 $ 43 $ — $ — $ 117 Charges 319 39 — — 358 Cash payments (335 ) (37 ) — — (372 ) Non-cash items 2 (32 ) — — (30 ) Liability as of July 28, 2018 60 13 — — 73 Charges 252 70 — — 322 Cash payments (289 ) (10 ) — — (299 ) Non-cash items (1 ) (62 ) — — (63 ) Liability as of July 27, 2019 22 11 — — 33 Charges 209 17 144 111 481 Cash payments (224 ) (3 ) (93 ) (7 ) (327 ) Non-cash items — (23 ) — (92 ) (115 ) Liability as of July 25, 2020 $ 7 $ 2 $ 51 $ 12 $ 72 |
Balance Sheet Details
Balance Sheet Details | 12 Months Ended |
Jul. 25, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Details | Balance Sheet Details The following tables provide details of selected balance sheet items (in millions): July 25, 2020 July 27, 2019 Cash and cash equivalents $ 11,809 $ 11,750 Restricted cash included in other current assets — 21 Restricted cash included in other assets 3 1 Total cash, cash equivalents, and restricted cash $ 11,812 $ 11,772 Inventories: Raw materials $ 456 $ 374 Work in process 25 10 Finished goods: Deferred cost of sales 59 109 Manufactured finished goods 542 643 Total finished goods 601 752 Service-related spares 184 225 Demonstration systems 16 22 Total $ 1,282 $ 1,383 Our provision for inventory was $74 million , $77 million , and $63 million in fiscal 2020, 2019, and 2018 , respectively. Property and equipment, net: Gross property and equipment: Land, buildings, and building and leasehold improvements $ 4,252 $ 4,545 Computer equipment and related software 875 922 Production, engineering, and other equipment 5,163 5,711 Operating lease assets 337 485 Furniture, fixtures and other 387 376 Total gross property and equipment 11,014 12,039 Less: accumulated depreciation and amortization (8,561 ) (9,250 ) Total $ 2,453 $ 2,789 Deferred revenue: Service $ 12,551 $ 11,709 Product 7,895 6,758 Total $ 20,446 $ 18,467 Reported as: Current $ 11,406 $ 10,668 Noncurrent 9,040 7,799 Total $ 20,446 $ 18,467 Remaining Performance Obligations: Product $ 11,261 $ 9,603 Service 17,093 15,702 Total $ 28,354 $ 25,305 Remaining Performance Obligations (RPO) are comprised of deferred revenue plus unbilled contract revenue. As of July 25, 2020 , the aggregate amount of RPO was comprised of $20.4 billion of deferred revenue and $7.9 billion of unbilled contract revenue. We expect approximately 54% of this amount to be recognized as revenue over the next year. As of July 27, 2019 , the aggregate amount of RPO was comprised of $18.5 billion of deferred revenue and $6.8 billion of unbilled contract revenue. Unbilled contract revenue represents noncancelable contracts for which we have not invoiced, have an obligation to perform, and revenue has not yet been recognized in the financial statements. |
Leases
Leases | 12 Months Ended |
Jul. 25, 2020 | |
Leases [Abstract] | |
Leases | Leases (a) Lessee Arrangements As of July 25, 2020 , our operating lease right-of-use assets were $921 million and were recorded in other assets, and our operating lease liabilities were $1.0 billion , of which $341 million was included in other current liabilities and $661 million was included in other long-term liabilities. The weighted-average lease term was 4.0 years and the weighted-average discount rate was 1.5% as of July 25, 2020 . The components of our lease expenses were as follows (in millions): Year Ended July 25, 2020 Operating lease expense $ 428 Short-term lease expense 69 Variable lease expense 157 Total lease expense $ 654 Supplemental information related to our operating leases is as follows (in millions): Year Ended July 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 413 Right-of-use assets obtained in exchange for operating leases liabilities $ 197 The maturities of our operating leases (undiscounted) as of July 25, 2020 are as follows (in millions): Fiscal Year Amount 2021 $ 354 2022 247 2023 192 2024 120 2025 68 Thereafter 52 Total lease payments 1,033 Less interest (31 ) Total $ 1,002 Prior to the adoption of the new leasing standard, future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of July 27, 2019 were as follows (in millions): Fiscal Year Amount 2020 $ 441 2021 299 2022 195 2023 120 2024 70 Thereafter 54 Total $ 1,179 (b) Lessor Arrangements Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income for fiscal 2020 was $94 million and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9. Future minimum lease payments on our lease receivables as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 946 2022 590 2023 353 2024 166 2025 72 Total 2,127 Less: Present value of lease payments 2,013 Difference between undiscounted cash flows and discounted cash flows $ 114 Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults. Prior to the adoption of the new leasing standard, future minimum lease payments on our lease receivables as of July 27, 2019 were summarized as follows (in millions): Fiscal Year Amount 2020 $ 1,028 2021 702 2022 399 2023 185 2024 53 Total $ 2,367 We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by Cisco and the associated accumulated depreciation are summarized as follows (in millions): July 25, 2020 July 27, 2019 Operating lease assets $ 337 $ 485 Accumulated depreciation (198 ) (306 ) Operating lease assets, net $ 139 $ 179 Our lease income for fiscal 2020 was $190 million and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 74 2022 27 2023 7 Total $ 108 |
Leases | Leases (a) Lessee Arrangements As of July 25, 2020 , our operating lease right-of-use assets were $921 million and were recorded in other assets, and our operating lease liabilities were $1.0 billion , of which $341 million was included in other current liabilities and $661 million was included in other long-term liabilities. The weighted-average lease term was 4.0 years and the weighted-average discount rate was 1.5% as of July 25, 2020 . The components of our lease expenses were as follows (in millions): Year Ended July 25, 2020 Operating lease expense $ 428 Short-term lease expense 69 Variable lease expense 157 Total lease expense $ 654 Supplemental information related to our operating leases is as follows (in millions): Year Ended July 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 413 Right-of-use assets obtained in exchange for operating leases liabilities $ 197 The maturities of our operating leases (undiscounted) as of July 25, 2020 are as follows (in millions): Fiscal Year Amount 2021 $ 354 2022 247 2023 192 2024 120 2025 68 Thereafter 52 Total lease payments 1,033 Less interest (31 ) Total $ 1,002 Prior to the adoption of the new leasing standard, future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of July 27, 2019 were as follows (in millions): Fiscal Year Amount 2020 $ 441 2021 299 2022 195 2023 120 2024 70 Thereafter 54 Total $ 1,179 (b) Lessor Arrangements Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income for fiscal 2020 was $94 million and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9. Future minimum lease payments on our lease receivables as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 946 2022 590 2023 353 2024 166 2025 72 Total 2,127 Less: Present value of lease payments 2,013 Difference between undiscounted cash flows and discounted cash flows $ 114 Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults. Prior to the adoption of the new leasing standard, future minimum lease payments on our lease receivables as of July 27, 2019 were summarized as follows (in millions): Fiscal Year Amount 2020 $ 1,028 2021 702 2022 399 2023 185 2024 53 Total $ 2,367 We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by Cisco and the associated accumulated depreciation are summarized as follows (in millions): July 25, 2020 July 27, 2019 Operating lease assets $ 337 $ 485 Accumulated depreciation (198 ) (306 ) Operating lease assets, net $ 139 $ 179 Our lease income for fiscal 2020 was $190 million and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 74 2022 27 2023 7 Total $ 108 |
Leases | Leases (a) Lessee Arrangements As of July 25, 2020 , our operating lease right-of-use assets were $921 million and were recorded in other assets, and our operating lease liabilities were $1.0 billion , of which $341 million was included in other current liabilities and $661 million was included in other long-term liabilities. The weighted-average lease term was 4.0 years and the weighted-average discount rate was 1.5% as of July 25, 2020 . The components of our lease expenses were as follows (in millions): Year Ended July 25, 2020 Operating lease expense $ 428 Short-term lease expense 69 Variable lease expense 157 Total lease expense $ 654 Supplemental information related to our operating leases is as follows (in millions): Year Ended July 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 413 Right-of-use assets obtained in exchange for operating leases liabilities $ 197 The maturities of our operating leases (undiscounted) as of July 25, 2020 are as follows (in millions): Fiscal Year Amount 2021 $ 354 2022 247 2023 192 2024 120 2025 68 Thereafter 52 Total lease payments 1,033 Less interest (31 ) Total $ 1,002 Prior to the adoption of the new leasing standard, future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of July 27, 2019 were as follows (in millions): Fiscal Year Amount 2020 $ 441 2021 299 2022 195 2023 120 2024 70 Thereafter 54 Total $ 1,179 (b) Lessor Arrangements Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income for fiscal 2020 was $94 million and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9. Future minimum lease payments on our lease receivables as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 946 2022 590 2023 353 2024 166 2025 72 Total 2,127 Less: Present value of lease payments 2,013 Difference between undiscounted cash flows and discounted cash flows $ 114 Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults. Prior to the adoption of the new leasing standard, future minimum lease payments on our lease receivables as of July 27, 2019 were summarized as follows (in millions): Fiscal Year Amount 2020 $ 1,028 2021 702 2022 399 2023 185 2024 53 Total $ 2,367 We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by Cisco and the associated accumulated depreciation are summarized as follows (in millions): July 25, 2020 July 27, 2019 Operating lease assets $ 337 $ 485 Accumulated depreciation (198 ) (306 ) Operating lease assets, net $ 139 $ 179 Our lease income for fiscal 2020 was $190 million and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 74 2022 27 2023 7 Total $ 108 |
Financing Receivables
Financing Receivables | 12 Months Ended |
Jul. 25, 2020 | |
Receivables [Abstract] | |
Financing Receivables | Financing Receivables (a) Financing Receivables Financing receivables primarily consist of lease receivables, loan receivables, and financed service contracts. Lease receivables represent sales-type leases resulting from the sale of Cisco's and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Lease receivables consist of arrangements with terms of four years on average. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services, which may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables have terms of three years on average. Financed service contracts include financing receivables related to technical support and advanced services. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one to three years . A summary of our financing receivables is presented as follows (in millions): July 25, 2020 Lease Receivables Loan Receivables Financed Service Contracts Total Gross $ 2,127 $ 5,937 $ 2,830 $ 10,894 Residual value 123 — — 123 Unearned income (114 ) — — (114 ) Allowance for credit loss (48 ) (81 ) (9 ) (138 ) Total, net $ 2,088 $ 5,856 $ 2,821 $ 10,765 Reported as: Current $ 918 $ 2,692 $ 1,441 $ 5,051 Noncurrent 1,170 3,164 1,380 5,714 Total, net $ 2,088 $ 5,856 $ 2,821 $ 10,765 July 27, 2019 Lease Receivables Loan Receivables Financed Service Contracts Total Gross $ 2,367 $ 5,438 $ 2,369 $ 10,174 Residual value 142 — — 142 Unearned income (137 ) — — (137 ) Allowance for credit loss (46 ) (71 ) (9 ) (126 ) Total, net $ 2,326 $ 5,367 $ 2,360 $ 10,053 Reported as: Current $ 1,029 $ 2,653 $ 1,413 $ 5,095 Noncurrent 1,297 2,714 947 4,958 Total, net $ 2,326 $ 5,367 $ 2,360 $ 10,053 (b) Credit Quality of Financing Receivables Gross receivables, excluding residual value, less unearned income categorized by our internal credit risk rating as of July 25, 2020 and July 27, 2019 are summarized as follows (in millions): INTERNAL CREDIT RISK RATING July 25, 2020 1 to 4 5 to 6 7 and Higher Total Lease receivables $ 992 $ 952 $ 69 $ 2,013 Loan receivables 3,808 1,961 168 5,937 Financed service contracts 1,645 1,153 32 2,830 Total $ 6,445 $ 4,066 $ 269 $ 10,780 INTERNAL CREDIT RISK RATING July 27, 2019 1 to 4 5 to 6 7 and Higher Total Lease receivables $ 1,204 $ 991 $ 35 $ 2,230 Loan receivables 3,367 1,920 151 5,438 Financed service contracts 1,413 939 17 2,369 Total $ 5,984 $ 3,850 $ 203 $ 10,037 We determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by us to our customers, which consist of the following: lease receivables, loan receivables, and financed service contracts. Our internal credit risk ratings of 1 through 4 correspond to investment-grade ratings, while credit risk ratings of 5 and 6 correspond to non-investment grade ratings. Credit risk ratings of 7 and higher correspond to substandard ratings. The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of July 25, 2020 and July 27, 2019 (in millions): DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) July 25, 2020 31 - 60 61 - 90 91+ Total Past Due Current Total Nonaccrual Financing Receivables Impaired Financing Receivables Lease receivables $ 29 $ 47 $ 48 $ 124 $ 1,889 $ 2,013 $ 43 $ 43 Loan receivables 129 78 78 285 5,652 5,937 65 65 Financed service contracts 69 75 124 268 2,562 2,830 4 4 Total $ 227 $ 200 $ 250 $ 677 $ 10,103 $ 10,780 $ 112 $ 112 DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) July 27, 2019 31 - 60 61 - 90 91+ Total Past Due Current Total Nonaccrual Financing Receivables Impaired Financing Receivables Lease receivables $ 101 $ 42 $ 291 $ 434 $ 1,796 $ 2,230 $ 13 $ 13 Loan receivables 257 67 338 662 4,776 5,438 31 31 Financed service contracts 145 131 271 547 1,822 2,369 3 3 Total $ 503 $ 240 $ 900 $ 1,643 $ 8,394 $ 10,037 $ 47 $ 47 Past due financing receivables are those that are 31 days or more past due according to their contractual payment terms. The data in the preceding tables is presented by contract, and the aging classification of each contract is based on the oldest outstanding receivable, and therefore past due amounts also include unbilled and current receivables within the same contract. As of July 25, 2020 , we had financing receivables of $67 million , net of unbilled or current receivables, that were greater than 120 days plus past due but remained on accrual status as they are well secured and in the process of collection. Such balance was $215 million as of July 27, 2019 . (c) Allowance for Credit Loss Rollforward The allowances for credit loss and the related financing receivables are summarized as follows (in millions): CREDIT LOSS ALLOWANCES Lease Receivables Loan Receivables Financed Service Contracts Total Allowance for credit loss as of July 27, 2019 $ 46 $ 71 $ 9 $ 126 Provisions (benefits) 5 32 1 38 Recoveries (write-offs), net (3 ) (19 ) — (22 ) Foreign exchange and other — (3 ) (1 ) (4 ) Allowance for credit loss as of July 25, 2020 $ 48 $ 81 $ 9 $ 138 CREDIT LOSS ALLOWANCES Lease Receivables Loan Receivables Financed Service Contracts Total Allowance for credit loss as of July 28, 2018 $ 135 $ 60 $ 10 $ 205 Provisions (benefits) (54 ) 11 27 (16 ) Recoveries (write-offs), net (14 ) — (28 ) (42 ) Foreign exchange and other (21 ) — — (21 ) Allowance for credit loss as of July 27, 2019 $ 46 $ 71 $ 9 $ 126 CREDIT LOSS ALLOWANCES Lease Receivables Loan Receivables Financed Service Contracts Total Allowance for credit loss as of July 29, 2017 $ 162 $ 103 $ 30 $ 295 Provisions (benefits) (26 ) (43 ) (20 ) (89 ) Recoveries (write-offs), net (1 ) (5 ) — (6 ) Foreign exchange and other — 5 — 5 Allowance for credit loss as of July 28, 2018 $ 135 $ 60 $ 10 $ 205 |
Available-for-Sale Debt and Equ
Available-for-Sale Debt and Equity Investments | 12 Months Ended |
Jul. 25, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Debt and Equity Investments | Available-for-Sale Debt and Equity Investments The following table summarizes our available-for-sale debt investments and equity investments (in millions): July 25, 2020 July 27, 2019 Available-for-sale debt investments $ 17,610 $ 21,660 Marketable equity securities — 3 Total investments 17,610 21,663 Non-marketable equity securities included in other assets 1,207 1,113 Equity method investments included in other assets 71 87 Total $ 18,888 $ 22,863 (a) Summary of Available-for-Sale Debt Investments The following tables summarize our available-for-sale debt investments (in millions): July 25, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 2,614 $ 71 $ — $ 2,685 U.S. government agency securities 110 — — 110 Corporate debt securities 11,549 334 (6 ) 11,877 U.S. agency mortgage-backed securities 1,987 49 (1 ) 2,035 Commercial paper 727 — — 727 Certificates of deposit 176 — — 176 Total $ 17,163 $ 454 $ (7 ) $ 17,610 July 27, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 808 $ 1 $ (1 ) $ 808 U.S. government agency securities 169 — — 169 Corporate debt securities 19,188 103 (29 ) 19,262 U.S. agency mortgage-backed securities 1,425 7 (11 ) 1,421 Total $ 21,590 $ 111 $ (41 ) $ 21,660 The following table presents the gross realized gains and gross realized losses related to available-for-sale debt investments (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Gross realized gains $ 70 $ 17 $ 16 Gross realized losses (28 ) (30 ) (258 ) Total $ 42 $ (13 ) $ (242 ) The following tables present the breakdown of the available-for-sale debt investments with gross unrealized losses and the duration that those losses had been unrealized at July 25, 2020 and July 27, 2019 (in millions): UNREALIZED LOSSES LESS THAN 12 MONTHS UNREALIZED LOSSES 12 MONTHS OR GREATER TOTAL July 25, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. government agency securities $ 33 $ — $ — $ — $ 33 $ — Corporate debt securities 1,060 (6 ) 3 — 1,063 (6 ) U.S. agency mortgage-backed securities 265 (1 ) — — 265 (1 ) Total $ 1,358 $ (7 ) $ 3 $ — $ 1,361 $ (7 ) UNREALIZED LOSSES LESS THAN 12 MONTHS UNREALIZED LOSSES 12 MONTHS OR GREATER TOTAL July 27, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. government securities $ 204 $ — $ 488 $ (1 ) $ 692 $ (1 ) U.S. government agency securities — — 169 — 169 — Corporate debt securities 2,362 (4 ) 5,271 (25 ) 7,633 (29 ) U.S. agency mortgage-backed securities 123 — 847 (11 ) 970 (11 ) Total $ 2,689 $ (4 ) $ 6,775 $ (37 ) $ 9,464 $ (41 ) As of July 25, 2020 , for available-for-sale debt investments that were in an unrealized loss position, we have determined that no other-than-temporary impairments were required to be recognized. The following table summarizes the maturities of our available-for-sale debt investments as of July 25, 2020 (in millions): Amortized Cost Fair Value Within 1 year $ 5,773 $ 5,812 After 1 year through 5 years 7,360 7,532 After 5 years through 10 years 2,032 2,218 After 10 years 11 13 Mortgage-backed securities with no single maturity 1,987 2,035 Total $ 17,163 $ 17,610 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. (b) Summary of Equity Investments Gains and losses recognized on our marketable and non-marketable equity securities are summarized below (in millions): July 25, 2020 July 27, 2019 Net gains and losses recognized during the period on equity investments $ 63 $ 58 Less: Net gains and losses recognized on equity investments sold (76 ) (69 ) Net unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date $ (13 ) $ (11 ) We recorded adjustments to the carrying value of our non-marketable equity securities measured using the measurement alternative as follows (in millions): July 25, 2020 July 27, 2019 Adjustments to non-marketable equity securities measured using the measurement alternative: Upward adjustments $ 28 $ 26 Downward adjustments, including impairments (41 ) (57 ) Net adjustments $ (13 ) $ (31 ) As of July 25, 2020 and July 27, 2019 , we held equity interests in certain private equity funds of $0.7 billion and $0.6 billion , respectively, which are accounted for under the NAV practical expedient. (c) Variable Interest Entities In the ordinary course of business, we have investments in privately held companies and provide financing to certain customers. These privately held companies and customers are evaluated for consolidation under the variable interest or voting interest entity models. We evaluate on an ongoing basis our investments in these privately held companies and our customer financings, and have determined that as of July 25, 2020 , there were no significant variable interest or voting interest entities required to be consolidated in our Consolidated Financial Statements. As of July 25, 2020 , the carrying value of our investments in privately held companies was $1.3 billion . $0.7 billion of such investments are considered to be in variable interest entities which are unconsolidated. We have total funding commitments of $0.3 billion |
Fair Value
Fair Value | 12 Months Ended |
Jul. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value (a) Assets and Liabilities Measured at Fair Value on a Recurring Basis Assets and liabilities measured at fair value on a recurring basis were as follows (in millions): JULY 25, 2020 JULY 27, 2019 FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS Level 1 Level 2 Level 3 Total Balance Level 1 Level 2 Total Balance Assets: Cash equivalents: Money market funds $ 10,024 $ — $ — $ 10,024 $ 10,083 $ — $ 10,083 Corporate debt securities — 8 — 8 — — — Available-for-sale debt investments: U.S. government securities — 2,685 — 2,685 — 808 808 U.S. government agency securities — 110 — 110 — 169 169 Corporate debt securities — 11,877 — 11,877 — 19,262 19,262 U.S. agency mortgage-backed securities — 2,035 — 2,035 — 1,421 1,421 Commercial paper — 727 — 727 — — — Certificates of deposit — 176 — 176 — — — Equity investments: Marketable equity securities — — — — 3 — 3 Derivative assets — 190 1 191 — 89 89 Total $ 10,024 $ 17,808 $ 1 $ 27,833 $ 10,086 $ 21,749 $ 31,835 Liabilities: Derivative liabilities $ — $ 10 $ — $ 10 $ — $ 15 $ 15 Total $ — $ 10 $ — $ 10 $ — $ 15 $ 15 Level 1 marketable equity securities are determined by using quoted prices in active markets for identical assets. Level 2 available-for-sale debt investments are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. Our derivative instruments are primarily classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. We did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. Level 3 assets include certain derivative instruments, the values of which are determined based on discounted cash flow models using inputs that we could not corroborate with market data. (b) Assets Measured at Fair Value on a Nonrecurring Basis The carrying value of our non-marketable equity securities recorded to fair value on a non-recurring basis is adjusted for observable transactions for identical or similar investments of the same issuer or impairment. These securities are classified as Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs such as volatility, rights, and obligations of the securities we hold. The fair value for purchased intangible assets measured at fair value on a nonrecurring basis was categorized as Level 3 due to the use of significant unobservable inputs in the valuation. Significant unobservable inputs that were used included expected revenues and net income related to the assets and the expected life of the assets. The difference between the estimated fair value and the carrying value of the assets was recorded as an impairment charge, which was included in product cost of sales and operating expenses as applicable. The remaining carrying value of the specific purchased intangible assets that were impaired were zero as of July 25, 2020 . The fair value of property held for sale was measured with the assistance of third-party valuation models, which used discounted cash flow techniques as part of their analysis. The fair value measurement was categorized as Level 3, as significant unobservable inputs were used in the valuation report. The impairment charges as a result of the valuations, which represented the difference between the fair value less cost to sell and the carrying amount of the assets held for sale, were included in restructuring and other charges. We recognized an impairment charge of $65 million during fiscal 2020 and the remaining carrying value of the property held for sale that was impaired was $9 million as of July 25, 2020 . (c) Other Fair Value Disclosures The fair value of our short-term loan receivables and financed service contracts approximates their carrying value due to their short duration. The aggregate carrying value of our long-term loan receivables and financed service contracts as of July 25, 2020 and July 27, 2019 was $4.5 billion and $3.7 billion , respectively. The estimated fair value of our long-term loan receivables and financed service contracts approximates their carrying value. We use significant unobservable inputs in determining discounted cash flows to estimate the fair value of our long-term loan receivables and financed service contracts, and therefore they are categorized as Level 3. As of July 25, 2020 and July 27, 2019 , the estimated fair value of our short-term debt approximates its carrying value due to the short maturities. As of July 25, 2020 , the fair value of our senior notes and other long-term debt was $17.4 billion , with a carrying amount of $14.6 billion . This compares to a fair value of $22.1 billion and a carrying amount of $20.5 billion as of July 27, 2019 |
Borrowings
Borrowings | 12 Months Ended |
Jul. 25, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings (a) Short-Term Debt The following table summarizes our short-term debt (in millions, except percentages): July 25, 2020 July 27, 2019 Amount Effective Rate Amount Effective Rate Current portion of long-term debt $ 3,005 2.07 % $ 5,998 3.20 % Commercial paper — — 4,193 2.34 % Total short-term debt $ 3,005 $ 10,191 We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes. The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging. (b) Long-Term Debt The following table summarizes our long-term debt (in millions, except percentages): July 25, 2020 July 27, 2019 Maturity Date Amount Effective Rate Amount Effective Rate Senior notes: Floating-rate notes: Three-month LIBOR plus 0.34% September 20, 2019 $ — — $ 500 2.77% Fixed-rate notes: 1.40% September 20, 2019 — — 1,500 1.48% 4.45% January 15, 2020 — — 2,500 4.72% 2.45% June 15, 2020 — — 1,500 2.54% 2.20% February 28, 2021 2,500 2.30% 2,500 2.30% 2.90% March 4, 2021 500 0.94% 500 3.14% 1.85% September 20, 2021 2,000 1.90% 2,000 1.90% 3.00% June 15, 2022 500 1.21% 500 3.36% 2.60% February 28, 2023 500 2.68% 500 2.68% 2.20% September 20, 2023 750 2.27% 750 2.27% 3.625% March 4, 2024 1,000 1.06% 1,000 3.25% 3.50% June 15, 2025 500 1.37% 500 3.52% 2.95% February 28, 2026 750 3.01% 750 3.01% 2.50% September 20, 2026 1,500 2.55% 1,500 2.55% 5.90% February 15, 2039 2,000 6.11% 2,000 6.11% 5.50% January 15, 2040 2,000 5.67% 2,000 5.67% Total 14,500 20,500 Unaccreted discount/issuance costs (88 ) (100 ) Hedge accounting fair value adjustments 171 73 Total $ 14,583 $ 20,473 Reported as: Short-term debt $ 3,005 $ 5,998 Long-term debt 11,578 14,475 Total $ 14,583 $ 20,473 We have entered into interest rate swaps in prior periods with an aggregate notional amount of $2.5 billion designated as fair value hedges of certain of our fixed-rate senior notes. These swaps convert the fixed interest rates of the fixed-rate notes to floating interest rates based on the London InterBank Offered Rate (LIBOR). The gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. For additional information, see Note 13. Interest is payable semiannually on each class of the senior fixed-rate notes. Each of the senior fixed-rate notes is redeemable by us at any time, subject to a make-whole premium. The senior notes rank at par with the commercial paper notes that have been issued in the future pursuant to our short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of July 25, 2020 , we were in compliance with all debt covenants. As of July 25, 2020 , future principal payments for long-term debt, including the current portion, are summarized as follows (in millions): Fiscal Year Amount 2021 $ 3,000 2022 2,500 2023 500 2024 1,750 2025 500 Thereafter 6,250 Total $ 14,500 (c) Credit Facility On May 15, 2020, we entered into a 364-day credit agreement with certain institutional lenders that provides for a $2.75 billion unsecured revolving credit facility that is scheduled to expire on May 14, 2021 . The credit agreement is structured as an amendment and restatement of our five -year credit facility which would have terminated on May 15, 2020, the end of its five -year term. As of July 25, 2020 , we were in compliance with the required interest coverage ratio and the other covenants, and we had no t borrowed any funds under the credit facility. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the highest of (a) the Federal Funds rate plus 0.50% , (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR, or a comparable or successor rate that is approved by the Administrative Agent (“Eurocurrency Rate”), for an interest period of one-month plus 1.00% , or (ii) the Eurocurrency Rate, plus a margin that is based on our senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than 0.25% . We may also, upon the agreement of either the then-existing lenders or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $2.0 billion . The credit agreement requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Jul. 25, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments (a) Summary of Derivative Instruments We use derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks 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. Management does not expect material losses as a result of defaults by counterparties. The fair values of our derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions): DERIVATIVE ASSETS DERIVATIVE LIABILITIES Balance Sheet Line Item July 25, 2020 July 27, 2019 Balance Sheet Line Item July 25, 2020 July 27, 2019 Derivatives designated as hedging instruments: Foreign currency derivatives Other current assets $ 7 $ 5 Other current liabilities $ 2 $ 8 Interest rate derivatives Other current assets 6 — Other current liabilities — 1 Interest rate derivatives Other assets 169 75 Other long-term liabilities — — Total 182 80 2 9 Derivatives not designated as hedging instruments: Foreign currency derivatives Other current assets 8 9 Other current liabilities 8 6 Equity derivatives Other assets 1 — Other long-term liabilities — — Total 9 9 8 6 Total $ 191 $ 89 $ 10 $ 15 The following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for our fair value hedges (in millions): CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES Balance Sheet Line Item of Hedged Item July 25, July 27, July 25, July 27, Short-term debt $ (506 ) $ (2,000 ) $ (6 ) $ — Long-term debt $ (2,159 ) $ (2,565 ) $ (165 ) $ (73 ) See Note 17 for the effects of our cash flow hedging instruments on other comprehensive income (OCI) and the Consolidated Statements of Operations. The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value and cash flow hedges is summarized as follows (in millions): July 25, 2020 July 27, 2019 Revenue Cost of sales Operating expenses Interest and other income (loss), net Revenue Cost of sales Operating expenses Interest and other income (loss), net Total amounts presented in the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded $ 49,301 $ 17,618 $ 18,063 $ 350 $ 51,904 $ 19,238 $ 18,447 $ 352 The effects of fair value and cash flow hedging: Gains (losses) on fair value hedging relationships: Interest rate derivatives Hedged items — — — (98 ) — — — (138 ) Derivatives designated as hedging instruments — — — 101 — — — 145 Gains (losses) on cash flow hedging relationships: Foreign currency derivatives Amount of gains (losses) reclassified from AOCI to income (1 ) — — — 2 — 1 — Total gains (losses) $ (1 ) $ — $ — $ 3 $ 2 $ — $ 1 $ 7 The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions): GAINS (LOSSES) FOR THE YEARS ENDED Derivatives Not Designated as Hedging Instruments Line Item in Statements of Operations July 25, 2020 July 27, 2019 July 28, 2018 Foreign currency derivatives Other income (loss), net $ (5 ) $ (60 ) $ (24 ) Total return swaps—deferred compensation Operating expenses 24 19 50 Cost of sales 1 2 4 Other income (loss), net (10 ) (16 ) (11 ) Equity derivatives Other income (loss), net 9 3 (4 ) Total $ 19 $ (52 ) $ 15 The notional amounts of our outstanding derivatives are summarized as follows (in millions): July 25, 2020 July 27, 2019 Derivatives designated as hedging instruments: Foreign currency derivatives—cash flow hedges $ 743 $ 663 Interest rate derivatives 2,500 4,500 Net investment hedging instruments 331 309 Derivatives not designated as hedging instruments: Foreign currency derivatives 3,241 2,708 Total return swaps—deferred compensation 580 574 Total $ 7,395 $ 8,754 (b) Offsetting of Derivative Instruments We present our derivative instruments at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of July 25, 2020 and July 27, 2019 , the potential effects of these rights of set-off associated with the derivative contracts would be a reduction to both derivative assets and derivative liabilities of $10 million and $13 million , respectively. To further limit credit risk, we also enter into collateral security arrangements related to certain derivative instruments whereby cash is posted as collateral between the counterparties based on the fair market value of the derivative instrument. Under these collateral security arrangements, the net cash collateral received as of July 25, 2020 and July 27, 2019 was $173 million and $76 million , respectively. Including the effects of collateral, this results in a net derivative asset of $8 million and $2 million as of July 25, 2020 and July 27, 2019 , respectively. (c) Foreign Currency Exchange Risk We conduct business globally in numerous currencies. Therefore, we are exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, we enter into foreign currency contracts. We do not enter into such contracts for speculative purposes. We hedge forecasted foreign currency transactions related to certain revenues, operating expenses and service cost of sales with currency options and forward contracts. These currency options and forward contracts, designated as cash flow hedges, generally have maturities of less than 24 months . The derivative instrument’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. During the fiscal years presented, we did not discontinue any cash flow hedges for which it was probable that a forecasted transaction would not occur. We enter into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, including long-term customer financings, investments, and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances or other current assets, investments, or liabilities denominated in currencies other than the functional currency of the reporting entity. We hedge certain net investments in our foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on our net investment in those foreign subsidiaries. These derivative instruments generally have maturities of up to six months . (d) Interest Rate Risk Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt We hold interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in fiscal 2021 through 2025. Under these interest rate swaps, we receive fixed-rate interest payments and make interest payments based on LIBOR plus a fixed number of basis points. The effect of such swaps is to convert the fixed interest rates of the senior fixed-rate notes to floating interest rates based on LIBOR. The gains and losses related to changes in the fair value of the interest rate swaps are included in interest expense and substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. (e) Equity Price Risk We may hold marketable equity securities in our portfolio that are subject to price risk. To diversify our overall portfolio, we also hold equity derivatives that are not designated as accounting hedges. The change in the fair value of each of these investment types are included in other income (loss), net. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jul. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Purchase Commitments with Contract Manufacturers and Suppliers We purchase components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. Certain of these purchase commitments with contract manufacturers and suppliers relate to arrangements to secure long-term pricing for certain product components for multi-year periods. In certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed. As of July 25, 2020 and July 27, 2019 , we had total purchase commitments for inventory of $4.4 billion and $5.0 billion , respectively. We record a liability for firm, noncancelable, 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 25, 2020 and July 27, 2019 , the liability for these purchase commitments was $141 million and $129 million , respectively, and was included in other current liabilities. The provision for the liability related to purchase commitments with contract manufacturers and suppliers was $139 million , $95 million , and $105 million in fiscal 2020, 2019, and 2018 , respectively. (b) Other Commitments In connection with our acquisitions, we have agreed to pay certain additional amounts contingent upon the achievement of certain agreed-upon technology, development, product, or other milestones or upon the continued employment with Cisco of certain employees of the acquired entities. The following table summarizes the compensation expense related to acquisitions (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Compensation expense related to acquisitions $ 214 $ 313 $ 203 As of July 25, 2020 , we estimated that future cash compensation expense of up to $271 million may be required to be recognized pursuant to the applicable business combination agreements. We also have certain funding commitments, primarily related to our non-marketable equity and other investments, some of which are based on the achievement of certain agreed-upon milestones, and some of which are required to be funded on demand. The funding commitments were $0.3 billion as of each of July 25, 2020 and July 27, 2019 . (c) Product Warranties The following table summarizes the activity related to the product warranty liability (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Balance at beginning of fiscal year $ 342 $ 359 $ 407 Provisions for warranties issued 561 600 582 Adjustments for pre-existing warranties (8 ) (12 ) (38 ) Settlements (564 ) (603 ) (592 ) Acquisitions and divestitures — (2 ) — Balance at end of fiscal year $ 331 $ 342 $ 359 We accrue for warranty costs as part of our cost of sales based on associated material product costs, labor costs for technical support staff, and associated overhead. Our products are generally covered by a warranty for periods ranging from 90 days to five years , and for some products we provide a limited lifetime warranty. (d) Financing and Other Guarantees In the ordinary course of business, we provide financing guarantees for various third-party financing arrangements extended to channel partners and end-user customers. Payments under these financing guarantee arrangements were not material for the periods presented. Channel Partner Financing Guarantees We facilitate arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, with payment terms generally ranging from 60 to 90 days . During fiscal 2020, we expanded the payment terms on certain of our channel partner financing programs by 30 days in response to the COVID-19 pandemic environment. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, we guarantee a portion of these arrangements. The volume of channel partner financing was $26.9 billion , $29.6 billion , and $28.2 billion in fiscal 2020, 2019, and 2018 , respectively. The balance of the channel partner financing subject to guarantees was $1.1 billion and $1.4 billion as of July 25, 2020 and July 27, 2019 , respectively. End-User Financing Guarantees We also provide financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years . The volume of financing provided by third parties for leases and loans as to which we had provided guarantees was $9 million , $14 million , and $35 million in fiscal 2020, 2019, and 2018 , respectively. Financing Guarantee Summary The aggregate amounts of financing guarantees outstanding at July 25, 2020 and July 27, 2019 , representing the total maximum potential future payments under financing arrangements with third parties along with the related deferred revenue, are summarized in the following table (in millions): July 25, 2020 July 27, 2019 Maximum potential future payments relating to financing guarantees: Channel partner $ 198 $ 197 End user 9 21 Total $ 207 $ 218 Deferred revenue associated with financing guarantees: Channel partner $ (19 ) $ (62 ) End user (9 ) (15 ) Total $ (28 ) $ (77 ) Total $ 179 $ 141 (e) Indemnifications In the normal course of business, we indemnify other parties, including customers, lessors, and parties to other transactions with us, with respect to certain matters. We have agreed to indemnify against losses arising from a breach of representations or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. Charter Communications, Inc. (“Charter”), which acquired Time Warner Cable (“TWC”) in May 2016, is seeking indemnification from us for a final judgment obtained by Sprint Communications Company, L.P. (“Sprint”) against TWC in federal court in Kansas. Sprint sought monetary damages, alleging that TWC infringed certain Sprint patents by offering VoIP telephone services utilizing products provided by us generally in combination with those of other manufacturers. Following a trial on March 3, 2017 , a jury in Kansas found that TWC willfully infringed five Sprint patents and awarded Sprint $139.8 million in damages. The Court awarded Sprint pre and post judgment interest of approximately $10 million and denied TWC’s post-trial motions and appeals. Charter reported that it paid the judgment in full. At this time, we are working with Charter to calculate the correct amount of indemnification. We do not believe that our indemnity obligations under our agreement will be material. We also have been asked to indemnify certain of our service provider customers that have been subject to patent infringement claims asserted by Chanbond, LLC (“Chanbond”) in the United States District Court for the District of Delaware on September 21, 2015 . Chanbond alleges that 13 service provider companies, including among others, Comcast Corporation, Charter Communications, Inc. (“Charter”), Time Warner Cable, Inc. (subsequently acquired by Charter), Cox Communications, Inc. (“Cox”), and Cablevision Systems Corporation, infringe three patents by providing high speed cable internet services to their customers utilizing cable modems and cable modem termination systems, consistent with the DOCSIS 3.0 standard, provided by us and other manufacturers generally used in combination with each other. Chanbond seeks monetary damages. On July 15, 2020, the Court vacated the August 19, 2020 trial date for Chanbond’s case against Cox and has not yet set a new trial date. The other cases against the remaining service provider defendants also have not yet been set for trial. We believe that the service provider defendants have strong non-infringement, invalidity and other defenses. Due to uncertainties surrounding the litigation processes, we are unable to reasonably estimate the ultimate outcome of the cases at this time, but should Chanbond prevail in its cases against the service provider defendants, we do not believe that any potential indemnity liability would be material. During fiscal 2018, we recorded legal and indemnification settlement charges of $127 million to product cost of sales related to prior indemnification matters resolved in fiscal 2018. In addition, we have entered into indemnification agreements with our officers and directors, and our Amended and Restated Bylaws contain similar indemnification obligations to our agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to uncertainties in the litigation process, coordination with other suppliers and the defendants in these cases, and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material effect on our operating results, financial position, or cash flows. (f) Legal Proceedings Brazil Brazilian authorities have investigated our Brazilian subsidiary and certain of its former employees, as well as a Brazilian importer of our products, and its affiliates and employees, relating to alleged evasion of import taxes and alleged improper transactions involving the subsidiary and the importer. Brazilian tax authorities have assessed claims against our Brazilian subsidiary based on a theory of joint liability with the Brazilian importer for import taxes, interest, and penalties. In addition to claims asserted by the Brazilian federal tax authorities in prior fiscal years, tax authorities from the Brazilian state of Sao Paulo have asserted similar claims on the same legal basis in prior fiscal years. During the second quarter of fiscal 2020, $0.8 billion of penalty and interest asserted by the Brazilian federal tax authorities against our Brazilian subsidiary on the theory of joint liability was dismissed on its merits. The asserted claims by Brazilian federal tax authorities that remain are for calendar years 2003 through 2007, and the asserted claims by the tax authorities from the state of Sao Paulo are for calendar years 2005 through 2007. The total remaining asserted claims by Brazilian state and federal tax authorities aggregate to $155 million for the alleged evasion of import and other taxes, $756 million for interest, and $383 million for various penalties, all determined using an exchange rate as of July 25, 2020 . We have completed a thorough review of the matters and believe the remaining asserted claims against our Brazilian subsidiary are without merit, and we are defending the claims vigorously. While we believe there is no legal basis for the alleged liability, due to the complexities and uncertainty surrounding the judicial process in Brazil and the nature of the claims asserting joint liability with the importer, we are unable to determine the likelihood of an unfavorable outcome against our Brazilian subsidiary and are unable to reasonably estimate a range of loss, if any. We do not expect a final judicial determination for several years. SRI International On September 4, 2013 , SRI International, Inc. (“SRI”) asserted patent infringement claims against us in the U.S. District Court for the District of Delaware, accusing our products and services in the area of network intrusion detection of infringing two U.S. patents. SRI sought monetary damages of at least a reasonable royalty and enhanced damages. The trial started on May 2, 2016 , and, on May 12, 2016 , the jury returned a verdict finding willful infringement. The jury awarded SRI damages of $23.7 million . On May 25, 2017 , the District Court awarded SRI enhanced damages and attorneys’ fees, entered judgment in the new amount of $57.0 million , and ordered an ongoing royalty of 3.5% through the expiration of the patents in 2018. We appealed to the United States Court of Appeals for the Federal Circuit on various grounds, and after various proceedings, on July 12, 2019 , the Federal Circuit vacated the enhanced damages award; vacated and remanded in part the willful infringement finding; vacated and remanded the attorneys’ fees award for further proceedings; and affirmed the District Court’s other findings. On April 1, 2020 , the District Court issued a final judgment on the remanded issues, finding no evidence of willful infringement and reinstating the $8 million award of attorneys’ fees. SRI appealed the judgment of no willful infringement to the Federal Circuit on April 3, 2020 , and Cisco filed a cross-appeal on the attorneys’ fees award on April 9, 2020 . Cisco has paid SRI $28.1 million , representing the portion of the judgment that the Federal Circuit previously affirmed, plus interest and royalties on post-verdict sales. While the remaining proceedings may result in an additional loss, we do not expect it to be material. Centripetal On February 13, 2018 , Centripetal Networks, Inc. (“Centripetal”) asserted patent infringement claims against us in the U.S. District Court for the Eastern District of Virginia, alleging that several Cisco products and services (including Cisco’s Catalyst switches, ASR and ISR series routers, ASAs with FirePOWER services, and Stealthwatch products) infringe eleven Centripetal patents. Cisco thereafter petitioned the Patent Trial and Appeal Board (“PTAB”) of the United States Patent and Trademark Office to review the validity of nine of the asserted patents. The PTAB instituted inter partes review proceedings (“IPR Proceedings”) on six asserted patents and certain claims of another asserted patent. The PTAB has issued Final Written Decisions for seven patents in the instituted IPR Proceedings, and all claims of five patents have been found unpatentable and several of the claims of the other two patents have been found unpatentable. Starting on May 6, 2020 and concluding on June 25, 2020 , the District Court conducted a bench trial by videoconference on the claims in the five patents not subject to the IPR Proceedings, including claims in three for which the PTAB declined to institute IPR Proceedings. Centripetal seeks damages, enhanced damages for willful infringement, and broad injunctive relief. While the trial result is uncertain, we believe that a District Court finding of validity and infringement, finding of willfulness, award of damages including any enhancement, and/or entry of injunctive relief are not supported by either the law or the evidence presented at trial. We intend to appeal any adverse outcome to the United States Court of Appeals for the Federal Circuit, and we believe that any relief ultimately awarded would not be material. On April 29, 2020 and April 30, 2020 , Centripetal submitted complaints in the District Court of Dusseldorf in Germany against Cisco Systems GmbH and Cisco Systems, Inc., asserting three European patents seeking both injunctive relief and damages. Two of the three European patents are counterparts to two U.S. patents Centripetal asserted against us in the U.S. District Court proceedings, one of which has been invalidated by the PTAB. We are currently assessing the cases filed in Germany. Due to uncertainty surrounding patent litigation processes in the U.S. and Europe, however, we are unable to reasonably estimate the ultimate outcome of the cases at this time. Oyster Optics On November 24, 2016 , Oyster Optics, LLC (“Oyster”) asserted patent infringement claims against us in the U.S. District Court for the Eastern District of Texas. Oyster alleged that certain Cisco ONS 15454 and NCS 2000 line cards infringe U.S. Patent No. 7,620,327 (“the ‘327 Patent”). Oyster sought monetary damages. Oyster also had filed infringement claims based on the ‘327 Patent against other defendants, including ZTE, Nokia, NEC, Infinera, Huawei, Ciena, Alcatel-Lucent, and Fujitsu, and the District Court consolidated the cases alleging infringement of the ‘327 Patent. Oyster’s cases against some of the defendants were resolved. The District Court vacated the November 4, 2018 trial date set for Oyster’s claims against Cisco and one other remaining defendant, pending resolution of Oyster’s December 6, 2018 appeal of the District Court’s summary judgment ruling dismissing certain of Oyster’s claims. On May 8, 2020 , the Federal Circuit affirmed the District Court’s summary judgment ruling. On June 18, 2020, Oyster dismissed its case against us based on the ‘327 Patent with prejudice. Finjan On January 6, 2017 , Finjan, Inc. (“Finjan”) asserted patent infringement claims against us in the U.S. District Court for the Northern District of California, seeking injunctive relief and damages, including enhanced damages for allegations of willful infringement. Finjan alleges that Cisco’s AMP and ThreatGrid products and the URL rewrite feature of Cisco’s ESA Outbreak Filter product infringe five patents, four of which have expired. Finjan has conceded that they are not entitled to any pre-suit damages, accordingly it seeks approximately three weeks of damages for the alleged infringement of the 8,677,494 and 6,154,844 patents, approximately ten months of damages for the 6,804,780 patent, approximately three years of damages for the 7,647,633 patent, and approximately three-and-a-half years of past damages for the 8,141,154 patent and an ongoing royalty until its expiration on December 12, 2025 . The case is currently set for jury trial starting October 19, 2020 . While we believe that we have strong non-infringement arguments, that the patents are invalid, that Finjan’s damages theories are not supported by prevailing law and that Finjan will not be able to meet its burden required for injunctive relief, we are unable to reasonably estimate the ultimate outcome of this litigation at this time due to uncertainties in the litigation processes. If we do not prevail in the District Court, we believe that any damages ultimately assessed would not be material. In addition, we are subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. While the outcome of these matters is currently not determinable, we do not expect that the ultimate costs to resolve these matters will have a material adverse effect on our consolidated financial position, results of operations, or cash flows. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jul. 25, 2020 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity (a) Cash Dividends on Shares of Common Stock We declared and paid cash dividends of $1.42 , $1.36 and $1.24 per common share, or $6.0 billion each year, on our outstanding common stock during fiscal 2020, 2019, and 2018 , respectively. Any future dividends will be subject to the approval of our Board of Directors. (b) Stock Repurchase Program In September 2001, our Board of Directors authorized a stock repurchase program. As of July 25, 2020 , the remaining authorized amount for stock repurchases under this program, including the additional authorization, is approximately $10.8 billion , with no termination date. A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts): Years Ended Shares Weighted-Average Price per Share Amount July 25, 2020 59 $ 44.36 $ 2,619 July 27, 2019 418 $ 49.22 $ 20,577 July 28, 2018 432 $ 40.88 $ 17,661 There were no stock repurchases pending settlement as of July 25, 2020 . There were $40 million and $180 million in stock repurchases that were pending settlement as of July 27, 2019 and July 28, 2018 , respectively. The purchase price for the shares of our stock repurchased is reflected as a reduction to shareholders’ equity. We are required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings or an increase to accumulated deficit and (ii) a reduction of common stock and additional paid-in capital. (c) Preferred Stock Under the terms of our Articles of Incorporation, the Board of Directors may determine the rights, preferences, and terms of our authorized but unissued shares of preferred stock. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jul. 25, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans (a) Employee Stock Incentive Plans Stock Incentive Plan Program Description As of July 25, 2020 , we had one stock incentive plan: the 2005 Stock Incentive Plan (the “2005 Plan”). In addition, we have, in connection with our acquisitions of various companies, assumed the share-based awards granted under stock incentive plans of the acquired companies or issued share-based awards in replacement thereof. Share-based awards are designed to reward employees for their long-term contributions to us and provide incentives for them to remain with Cisco. The number and frequency of share-based awards are based on competitive practices, operating results of Cisco, government regulations, and other factors. Our primary stock incentive plan is summarized as follows: 2005 Plan The 2005 Plan provides for the granting of stock options, stock grants, stock units and stock appreciation rights (SARs), the vesting of which may be time-based or upon satisfaction of performance goals, or both, and/or other conditions. Employees (including employee directors and executive officers) and consultants of Cisco and its subsidiaries and affiliates and non-employee directors of Cisco are eligible to participate in the 2005 Plan. As of July 25, 2020 , the maximum number of shares issuable under the 2005 Plan over its term was 694 million shares. The 2005 Plan may be terminated by the Board of Directors at any time and for any reason, and is currently set to terminate at the 2021 Annual Meeting unless re-adopted or extended by the shareholders prior to or on such date. Under the 2005 Plan’s share reserve feature, a distinction is made between the number of shares in the reserve attributable to (i) stock options and SARs and (ii) “full value” awards (i.e., stock grants and stock units). Shares issued as stock grants, pursuant to stock units or pursuant to the settlement of dividend equivalents are counted against shares available for issuance under the 2005 Plan on a 1.5 -to-1 ratio. For each share awarded as restricted stock or a restricted stock unit award under the 2005 Plan, 1.5 shares was deducted from the available share-based award balance. For restricted stock units that were awarded with vesting contingent upon the achievement of future financial performance or market-based metrics, the maximum awards that can be achieved upon full vesting of such awards. If awards issued under the 2005 Plan are forfeited or terminated for any reason before being exercised or settled, then the shares underlying such awards, plus the number of additional shares, if any, that counted against shares available for issuance under the 2005 Plan at the time of grant as a result of the application of the share ratio described above, will become available again for issuance under the 2005 Plan. As of July 25, 2020 , 183 million shares were authorized for future grant under the 2005 Plan. (b) Employee Stock Purchase Plan We have an Employee Stock Purchase Plan under which 721.4 million shares of our common stock have been reserved for issuance as of July 25, 2020 . Eligible employees are offered shares through a 24-month offering period, which consists of four consecutive 6-month purchase periods. Employees may purchase a limited amount of shares of our stock at a discount of up to 15% of the lesser of the fair market value at the beginning of the offering period or the end of each 6-month purchase period. The Employee Stock Purchase Plan is scheduled to terminate on the earlier of (i) January 3, 2030 and (ii) the date on which all shares available for issuance under the Employee Stock Purchase Plan are sold pursuant to exercised purchase rights. We issued 18 million , 19 million , and 22 million shares under the Employee Stock Purchase Plan in fiscal 2020, 2019, and 2018 , respectively. As of July 25, 2020 , 141 million shares were available for issuance under the Employee Stock Purchase Plan. (c) Summary of Share-Based Compensation Expense Share-based compensation expense consists primarily of expenses for stock options, stock purchase rights, restricted stock, and RSUs granted to employees. The following table summarizes share-based compensation expense (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Cost of sales—product $ 93 $ 90 $ 94 Cost of sales—service 144 130 133 Share-based compensation expense in cost of sales 237 220 227 Research and development 592 540 538 Sales and marketing 500 519 555 General and administrative 215 250 246 Restructuring and other charges 25 62 33 Share-based compensation expense in operating expenses 1,332 1,371 1,372 Total share-based compensation expense $ 1,569 $ 1,591 $ 1,599 Income tax benefit for share-based compensation $ 452 $ 542 $ 558 As of July 25, 2020 , the total compensation cost related to unvested share-based awards not yet recognized was $3.9 billion , which is expected to be recognized over approximately 2.7 years on a weighted-average basis. (d) Restricted Stock and Stock Unit Awards A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts): Restricted Stock/ Stock Units Weighted-Average Grant Date Fair Value per Share Aggregate Fair Value UNVESTED BALANCE AT JULY 29, 2017 141 $ 26.94 Granted 46 35.62 Assumed from acquisitions 1 28.26 Vested (53 ) 26.02 $ 1,909 Canceled/forfeited/other (16 ) 28.37 UNVESTED BALANCE AT JULY 28, 2018 119 30.56 Granted 45 47.71 Vested (50 ) 29.25 $ 2,446 Canceled/forfeited/other (14 ) 32.01 UNVESTED BALANCE AT JULY 27, 2019 100 38.66 Granted 49 42.61 Vested (44 ) 35.20 $ 2,045 Canceled/forfeited/other (9 ) 40.45 UNVESTED BALANCE AT JULY 25, 2020 96 $ 42.03 (e) Valuation of Employee Share-Based Awards Time-based restricted stock units and PRSUs that are based on our financial performance metrics or non-financial operating goals are valued using the market value of our common stock on the date of grant, discounted for the present value of expected dividends. On the date of grant, we estimated the fair value of the total shareholder return (TSR) component of the PRSUs using a Monte Carlo simulation model. The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows: RESTRICTED STOCK UNITS Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Number of shares granted (in millions) 47 43 43 Grant date fair value per share $ 42.68 $ 47.75 $ 35.81 Weighted-average assumptions/inputs: Expected dividend yield 3.1 % 2.7 % 3.2 % Range of risk-free interest rates 0.0% – 2.0% 0.0% – 2.9% 0.0% – 2.7% PERFORMANCE BASED RESTRICTED STOCK UNITS Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Number of shares granted (in millions) 2 2 3 Grant date fair value per share $ 41.91 $ 47.00 $ 32.69 Weighted-average assumptions/inputs: Expected dividend yield 2.8 % 2.8 % 3.5 % Range of risk-free interest rates 1.7% – 2.0% 2.1% – 3.0% 1.0% – 2.7% Range of expected volatilities for index 13.7% - 69.0% 13.0% - 65.2% 12.5% – 82.8% The PRSUs granted during the fiscal years presented are contingent on the achievement of our financial performance metrics, our comparative market-based returns, or the achievement of financial and non-financial operating goals. For the awards based on financial performance metrics or comparative market-based returns, generally 50% of the PRSUs are earned based on the average of annual operating cash flow and earnings per share goals established at the beginning of each fiscal year over a three -year performance period. Generally, the remaining 50% of the PRSUs are earned based on our TSR measured against the benchmark TSR of a peer group over the same period. Each PRSU recipient could vest in 0% to 150% of the target shares granted contingent on the achievement of our financial performance metrics or our comparative market-based returns, and 0% to 100% of the target shares granted contingent on the achievement of non-financial operating goals. The assumptions for the valuation of employee stock purchase rights are summarized as follows: EMPLOYEE STOCK PURCHASE RIGHTS Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Weighted-average assumptions: Expected volatility 22.2 % 20.4 % 22.1 % Risk-free interest rate 1.8 % 1.9 % 1.3 % Expected dividend 3.0 % 3.0 % 3.1 % Expected life (in years) 1.3 1.3 1.3 Weighted-average estimated grant date fair value per share $ 10.20 $ 9.06 $ 7.48 The valuation of employee stock purchase rights and the related assumptions are for the employee stock purchases made during the respective fiscal years. We used third-party analyses to assist in developing the assumptions used in our Black-Scholes model. We are responsible for determining the assumptions used in estimating the fair value of our share-based payment awards. We used the implied volatility for traded options (with contract terms corresponding to the expected life of the employee stock purchase rights) on our stock as the expected volatility assumption required in the Black-Scholes model. The implied volatility is more representative of future stock price trends than historical volatility. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of our employee stock purchase rights. The dividend yield assumption is based on the history and expectation of dividend payouts at the grant date. (f) Employee 401(k) Plans We sponsor the Cisco Systems, Inc. 401(k) Plan (the “Plan”) to provide retirement benefits for our employees. As allowed under Section 401(k) of the Internal Revenue Code, the Plan provides for tax-deferred salary contributions and after-tax contributions for eligible employees. The Plan allows employees to contribute up to 75% of their annual eligible earnings to the Plan on a pretax and after-tax basis, including Roth contributions. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Code. We match pretax and Roth employee contributions up to 100% of the first 4.5% of eligible earnings that are contributed by employees. Therefore, the maximum matching contribution that we may allocate to each participant’s account will not exceed $12,825 for the 2020 calendar year due to the $285,000 annual limit on eligible earnings imposed by the Internal Revenue Code. All matching contributions vest immediately. Our matching contributions to the Plan totaled $295 million , $283 million , and $269 million in fiscal 2020, 2019, and 2018 , respectively. The Plan allows employees who meet the age requirements and reach the Plan contribution limits to make catch-up contributions (pretax or Roth) not to exceed the lesser of 75% of their annual eligible earnings or the limit set forth in the Internal Revenue Code. Catch-up contributions are not eligible for matching contributions. In addition, the Plan provides for discretionary profit-sharing contributions as determined by the Board of Directors. Such contributions to the Plan are allocated among eligible participants in the proportion of their salaries to the total salaries of all participants. There were no discretionary profit-sharing contributions made in fiscal 2020, 2019, and 2018 . We also sponsor other 401(k) plans as a result of acquisitions of other companies. Our contributions to these plans were not material to Cisco on either an individual or aggregate basis for any of the fiscal years presented. (g) Deferred Compensation Plans The Cisco Systems, Inc. Deferred Compensation Plan (the “Deferred Compensation Plan”), a nonqualified deferred compensation plan, became effective in 2007. As required by applicable law, participation in the Deferred Compensation Plan is limited to a select group of our management employees. Under the Deferred Compensation Plan, which is an unfunded and unsecured deferred compensation arrangement, a participant may elect to defer base salary, bonus, and/or commissions, pursuant to such rules as may be established by Cisco, up to the maximum percentages for each deferral election as described in the plan. We may also, at our discretion, make a matching contribution to the employee under the Deferred Compensation Plan. A matching contribution equal to 4.5% of eligible compensation in excess of the Internal Revenue Code limit for qualified plans for calendar year 2020 that is deferred by participants under the Deferred Compensation Plan (with a $1.5 million cap on eligible compensation) will be made to eligible participants’ accounts at the end of calendar year 2020 . The total deferred compensation liability under the Deferred Compensation Plan, together with deferred compensation plans assumed from acquired companies, was approximately $704 million and $678 million as of July 25, 2020 and July 27, 2019 |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Jul. 25, 2020 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, are summarized as follows (in millions): Net Unrealized Gains (Losses) on Available-for-Sale Investments Net Unrealized Gains (Losses) Cash Flow Hedging Instruments Cumulative Translation Adjustment and Actuarial Gains and Losses Accumulated Other Comprehensive Income (Loss) BALANCE AT JULY 29, 2017 $ 373 $ 32 $ (359 ) $ 46 Other comprehensive income (loss) before reclassifications (543 ) 21 (159 ) (681 ) (Gains) losses reclassified out of AOCI (287 ) (68 ) 7 (348 ) Tax benefit (expense) 93 4 (8 ) 89 Total change for the period (737 ) (43 ) (160 ) (940 ) Effect of adoption of accounting standard 54 — (9 ) 45 BALANCE AT JULY 28, 2018 (310 ) (11 ) (528 ) (849 ) Other comprehensive income (loss) before reclassifications 560 — (267 ) 293 (Gains) losses reclassified out of AOCI 13 (3 ) 2 12 Tax benefit (expense) (95 ) — 15 (80 ) Total change for the period 478 (3 ) (250 ) 225 Effect of adoption of accounting standard (168 ) — — (168 ) BALANCE AT JULY 27, 2019 — (14 ) (778 ) (792 ) Other comprehensive income (loss) before reclassifications 420 7 (51 ) 376 (Gains) losses reclassified out of AOCI (42 ) 1 6 (35 ) Tax benefit (expense) (63 ) — (5 ) (68 ) BALANCE AT JULY 25, 2020 $ 315 $ (6 ) $ (828 ) $ (519 ) The net gains (losses) reclassified out of AOCI into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Comprehensive Income Components Income Before Taxes Line Item in Statements of Operations Net unrealized gains and losses on available-for-sale investments $ 42 $ (13 ) $ 287 Other income (loss), net Net unrealized gains and losses on cash flow hedging instruments Foreign currency derivatives (1 ) 2 — Revenue Foreign currency derivatives — — 16 Cost of sales Foreign currency derivatives — 1 52 Operating expenses (1 ) 3 68 Cumulative translation adjustment and actuarial gains and losses — — (7 ) Operating expenses Cumulative translation adjustment and actuarial gains and losses (6 ) (2 ) — Other income (loss), net Total amounts reclassified out of AOCI $ 35 $ (12 ) $ 348 |
Income Taxes
Income Taxes | 12 Months Ended |
Jul. 25, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (a) Provision for Income Taxes The provision for income taxes consists of the following (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Federal: Current $ 1,101 $ 1,760 $ 9,900 Deferred (374 ) (84 ) 1,156 727 1,676 11,056 State: Current 264 302 340 Deferred 287 (2 ) (232 ) 551 300 108 Foreign: Current 1,429 1,238 1,789 Deferred 49 (264 ) (24 ) 1,478 974 1,765 Total $ 2,756 $ 2,950 $ 12,929 Income before provision for income taxes consists of the following (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 United States $ 7,534 $ 7,611 $ 3,765 International 6,436 6,960 9,274 Total $ 13,970 $ 14,571 $ 13,039 The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following: Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Federal statutory rate 21.0 % 21.0 % 27.0 % Effect of: State taxes, net of federal tax benefit 3.5 2.0 0.6 Foreign income at other than U.S. rates (1.5 ) (4.5 ) (5.2 ) Tax credits (0.9 ) (1.7 ) (2.5 ) Foreign-derived intangible income deduction (2.6 ) (1.3 ) — Domestic manufacturing deduction — — (0.5 ) Stock-based compensation (0.1 ) (0.6 ) (0.1 ) Impact of the Tax Act — 6.1 80.1 Other, net 0.3 (0.8 ) (0.2 ) Total 19.7 % 20.2 % 99.2 % During fiscal 2018 and 2019, we recorded a total tax charge as a result of the Tax Act of $11.3 billion , consisting of $9.0 billion of tax expense for the U.S. transition tax on accumulated earnings of foreign subsidiaries, $1.2 billion of foreign withholding tax and $1.1 billion of tax expense for DTA re-measurement. During fiscal 2020 , the Internal Revenue Service (IRS) and Cisco settled all outstanding items related to the audit of our federal income tax returns for the fiscal year ended July 30, 2011 through July 27, 2013. As a result of the settlement, we recognized a net benefit to the provision for income taxes of $102 million , which included a reduction in interest expense of $4 million . We are no longer subject to U.S. federal tax audit through fiscal 2013. Foreign taxes associated with the repatriation of earnings of foreign subsidiaries were not provided on a cumulative total of $6.8 billion of undistributed earnings for certain foreign subsidiaries as of the end of fiscal 2020 . We intend to reinvest these earnings indefinitely in such foreign subsidiaries. If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, we could be subject to additional foreign taxes. The amount of potential unrecognized deferred income tax liability related to these earnings is approximately $706 million . As a result of certain employment and capital investment actions, our income in certain foreign countries was subject to reduced tax rates. The tax incentives expired at the end of fiscal 2019. As of the end of fiscal 2019 and 2018 , the gross income tax benefits attributable to tax incentives were estimated to be $0.3 billion and $0.9 billion ( $0.08 and $0.19 per diluted share) for the respective years. The gross income tax benefits were partially offset by accruals of U.S. income taxes on foreign earnings. Unrecognized Tax Benefits The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Beginning balance $ 1,925 $ 2,000 $ 1,973 Additions based on tax positions related to the current year 188 185 251 Additions for tax positions of prior years 554 84 84 Reductions for tax positions of prior years (136 ) (283 ) (129 ) Settlements (4 ) (38 ) (124 ) Lapse of statute of limitations (9 ) (23 ) (55 ) Ending balance $ 2,518 $ 1,925 $ 2,000 As of July 25, 2020 , $2.2 billion of the unrecognized tax benefits would affect the effective tax rate if realized. During fiscal 2020 , we recognized $104 million of net interest expense and increased our unrecognized tax benefits for prior year tax positions by $554 million to reflect expected settlement positions in on-going U.S. federal, state, and foreign income tax return examinations. We recognized net interest expense of $30 million and $10 million , respectively, during fiscal 2019 and 2018. Our net penalty expense for fiscal 2020, 2019 and 2018 was not material. Our total accrual for interest and penalties was $340 million , $220 million , and $180 million as of the end of fiscal 2020, 2019, and 2018 , respectively. We are no longer subject to U.S. federal income tax audit for returns covering tax years through fiscal 2013. We are no longer subject to foreign or state income tax audits for returns covering tax years through fiscal 1999 and fiscal 2008, respectively. We regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. We believe it is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. Specific positions that may be resolved include issues involving transfer pricing and various other matters. We estimate that the unrecognized tax benefits at July 25, 2020 could be reduced by $150 million in the next 12 months. (b) Deferred Tax Assets and Liabilities The following table presents the breakdown for net deferred tax assets (in millions): July 25, 2020 July 27, 2019 Deferred tax assets $ 3,990 $ 4,065 Deferred tax liabilities (81 ) (95 ) Total net deferred tax assets $ 3,909 $ 3,970 The following table presents the components of the deferred tax assets and liabilities (in millions): July 25, 2020 July 27, 2019 ASSETS Allowance for doubtful accounts and returns $ 110 $ 127 Sales-type and direct-financing leases 179 176 Inventory write-downs and capitalization 350 409 Deferred foreign income 253 — IPR&D, goodwill, and purchased intangible assets 1,289 1,427 Deferred revenue 1,182 1,150 Credits and net operating loss carryforwards 1,105 1,241 Share-based compensation expense 135 164 Accrued compensation 353 342 Lease liabilities 240 — Other 571 419 Gross deferred tax assets 5,767 5,455 Valuation allowance (700 ) (457 ) Total deferred tax assets 5,067 4,998 LIABILITIES Purchased intangible assets (577 ) (705 ) Depreciation (179 ) (141 ) Unrealized gains on investments (119 ) (70 ) ROU lease assets (222 ) — Other (61 ) (112 ) Total deferred tax liabilities (1,158 ) (1,028 ) Total net deferred tax assets $ 3,909 $ 3,970 As of July 25, 2020 , our federal, state, and foreign net operating loss carryforwards for income tax purposes were $405 million , $1.2 billion , and $644 million , respectively. A significant amount of the net operating loss carryforwards relates to acquisitions and, as a result, is limited in the amount that can be recognized in any one year. If not utilized, the federal net operating loss carryforwards will begin to expire in fiscal 2022, and the state and foreign net operating loss carryforwards will begin to expire in fiscal 2021 . We have provided a valuation allowance of $98 million for deferred tax assets related to foreign net operating losses that are not expected to be realized. As of July 25, 2020 , our federal, state, and foreign tax credit carryforwards for income tax purposes were approximately $10 million , $1.2 billion , and $5 million , respectively. The federal tax credit carryforwards will begin to expire in fiscal 2021 . The majority of state and foreign tax credits can be carried forward indefinitely. We have provided a valuation allowance of $541 million |
Segment Information and Major C
Segment Information and Major Customers | 12 Months Ended |
Jul. 25, 2020 | |
Segment Reporting [Abstract] | |
Segment Information and Major Customers | Segment Information and Major Customers (a) Revenue and Gross Margin by Segment We conduct business globally and are primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. Our management makes financial decisions and allocates resources based on the information it receives from our internal management system. Sales are attributed to a segment based on the ordering location of the customer. We do not allocate research and development, sales and marketing, or general and administrative expenses to our segments in this internal management system because management does not include the information in our measurement of the performance of the operating segments. In addition, we do not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation settlements and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in our measurement of the performance of the operating segments. Summarized financial information by segment for fiscal 2020, 2019, and 2018 , based on our internal management system and as utilized by our Chief Operating Decision Maker (CODM), is as follows (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Americas $ 29,291 $ 30,927 $ 29,070 EMEA 12,659 13,100 12,425 APJC 7,352 7,877 7,834 Total $ 49,301 $ 51,904 $ 49,330 Gross margin: Americas $ 19,547 $ 20,338 $ 18,792 EMEA 8,304 8,457 7,945 APJC 4,688 4,683 4,726 Segment total 32,538 33,479 31,463 Unallocated corporate items (855 ) (813 ) (857 ) Total $ 31,683 $ 32,666 $ 30,606 Amounts may not sum due to rounding. Revenue in the United States was $26.1 billion , $27.4 billion , and $25.5 billion for fiscal 2020, 2019, and 2018 , respectively. (b) Revenue for Groups of Similar Products and Services We design, manufacture, and sell IP-based networking and other products related to the communications and IT industry and provide services associated with these products and their use. The following table presents revenue for groups of similar products and services (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Infrastructure Platforms $ 27,122 $ 30,099 $ 28,286 Applications 5,568 5,803 5,036 Security 3,154 2,821 2,388 Other Products 135 281 999 Total Product 35,978 39,005 36,709 Services 13,323 12,899 12,621 Total (1) $ 49,301 $ 51,904 $ 49,330 (1) Includes SPVSS business revenue of $168 million and $903 million for fiscal 2019 and 2018 , respectively. Amounts may not sum due to rounding. We have made certain reclassifications to the product revenue amounts for prior years to conform to the current year’s presentation. (c) Additional Segment Information The majority of our assets as of July 25, 2020 and July 27, 2019 were attributable to our U.S. operations. In fiscal 2020, 2019, and 2018 , no single customer accounted for 10% or more of revenue. Our long-lived assets are based on the physical location of the assets. The following table presents our long-lived assets, which consists of property and equipment, net and operating lease right-of-use assets information for geographic areas (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Long-lived assets: United States $ 2,328 $ 2,266 $ 2,487 International 1,046 523 519 Total $ 3,374 $ 2,789 $ 3,006 |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jul. 25, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Net income $ 11,214 $ 11,621 $ 110 Weighted-average shares—basic 4,236 4,419 4,837 Effect of dilutive potential common shares 18 34 44 Weighted-average shares—diluted 4,254 4,453 4,881 Net income per share—basic $ 2.65 $ 2.63 $ 0.02 Net income per share—diluted $ 2.64 $ 2.61 $ 0.02 Antidilutive employee share-based awards, excluded 76 55 61 |
Supplementary Financial Data (U
Supplementary Financial Data (Unaudited) | 12 Months Ended |
Jul. 25, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Supplementary Financial Data (Unaudited) | Supplementary Financial Data (Unaudited) (in millions, except per-share amounts) Quarters Ended July 25, 2020 April 25, 2020 January 25, 2020 October 26, 2019 Revenue $ 12,154 $ 11,983 $ 12,005 $ 13,159 Gross margin $ 7,684 $ 7,771 $ 7,764 $ 8,464 Operating income $ 3,247 $ 3,414 $ 3,380 $ 3,579 Net income $ 2,636 $ 2,774 $ 2,878 $ 2,926 Net income per share - basic $ 0.62 $ 0.66 $ 0.68 $ 0.69 Net income per share - diluted $ 0.62 $ 0.65 $ 0.68 $ 0.68 Cash dividends declared per common share $ 0.36 $ 0.36 $ 0.35 $ 0.35 Cash and cash equivalents and investments $ 29,419 $ 28,574 $ 27,062 $ 28,035 Quarters Ended July 27, 2019 (1) April 27, 2019 January 26, 2019 October 27, 2018 Revenue $ 13,428 $ 12,958 $ 12,446 $ 13,072 Gross margin $ 8,574 $ 8,173 $ 7,773 $ 8,146 Operating income $ 3,690 $ 3,513 $ 3,211 $ 3,805 Net income $ 2,206 $ 3,044 $ 2,822 $ 3,549 Net income per share - basic $ 0.52 $ 0.70 $ 0.63 $ 0.78 Net income per share - diluted $ 0.51 $ 0.69 $ 0.63 $ 0.77 Cash dividends declared per common share $ 0.35 $ 0.35 $ 0.33 $ 0.33 Cash and cash equivalents and investments $ 33,413 $ 34,643 $ 40,383 $ 42,593 (1) In the fourth quarter of fiscal 2019, we recorded an $872 million charge which was the reversal of the previously recorded benefit associated with the U.S. taxation of deemed foreign dividends recorded in fiscal 2018 as a result of a retroactive final U.S. Treasury regulation issued during the quarter. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jul. 25, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation And Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (in millions) July 25, 2020 July 27, 2019 July 28, 2018 Allowance for Doubtful Accounts: Balance at beginning of fiscal year $ 136 $ 129 $ 211 Provisions (benefits) 55 56 (45 ) Recoveries (write-offs), net (48 ) (50 ) (37 ) Foreign exchange and other — 1 — Balance at end of fiscal year $ 143 $ 136 $ 129 Allowance for Financing Receivables: Balance at beginning of fiscal year $ 126 $ 205 $ 295 Provisions (benefits) 38 (16 ) (89 ) Recoveries (write-offs), net (22 ) (42 ) (6 ) Foreign exchange and other (4 ) (21 ) 5 Balance at end of fiscal year $ 138 $ 126 $ 205 Deferred Tax Asset Valuation Allowance: Balance at beginning of fiscal year $ 457 $ 374 $ 244 Additions 279 112 163 Deductions (29 ) (20 ) (7 ) Write-offs (7 ) (8 ) (26 ) Foreign exchange and other — (1 ) — Balance at end of fiscal year $ 700 $ 457 $ 374 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jul. 25, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Period | The fiscal year for Cisco Systems, Inc. (the “Company,” “Cisco,” “we,” “us,” or “our”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2020 , fiscal 2019 and fiscal 2018 |
Basis of Presentation | The Consolidated Financial Statements include the accounts of ours and those of our subsidiaries. All intercompany accounts and transactions have been eliminated. We conduct business globally and are primarily managed on a geographic basis in the following three geographic segments: the Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC). |
Reclassification | Certain reclassifications have been made to the amounts for prior years in order to conform to the current year’s presentation. We have evaluated subsequent events through the date that the financial statements were issued. |
Cash and Cash Equivalents | (a) Cash and Cash Equivalents We consider all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions. |
Available-for-Sale Debt Investments | (b) Available-for-Sale Debt Investments We classify our investments in fixed income securities as available-for-sale debt investments. Our available-for-sale debt investments primarily consist of U.S. government, U.S. government agency, corporate debt, and U.S. agency mortgage-backed securities. These available-for-sale debt investments are primarily held in the custody of a major financial institution. A specific identification method is used to determine the cost basis of available-for-sale debt investments sold. These investments are recorded in the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments, to the extent the investments are unhedged, are included as a separate component of accumulated other comprehensive income (AOCI), net of tax. We classify our investments as current based on the nature of the investments and their availability for use in current operations. (c) Equity Instruments Our equity investments are accounted for as follows: • Marketable equity securities have readily determinable fair value (RDFV) that are measured and recorded at fair value through income. • Non-marketable equity securities do not have RDFV and are measured using a measurement alternative recorded at cost less any impairment, plus or minus changes resulting from qualifying observable price changes. For certain of these securities, we have elected to apply the net asset value (NAV) practical expedient. The NAV is the estimated fair value of these investments. • Equity method investments are securities we do not control, but are able to exert significant influence over the investee. These investments are measured at cost less any impairment, plus or minus our share of equity method investee income or loss. |
Impairments of Investments | (d) Impairments of Investments When the fair value of a debt security is less than its amortized cost, it is deemed impaired, and we will assess whether the impairment is other than temporary. An impairment is considered other than temporary if (i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis, or (iii) we do not expect to recover the entire amortized cost basis of the security. If impairment is considered other than temporary based on condition (i) or (ii) described earlier, the entire difference between the amortized cost and the fair value of the debt security is recognized in earnings. If an impairment is considered other than temporary based on condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security) will be recognized in earnings, and the amount relating to all other factors will be recognized in other comprehensive income (OCI). We hold non-marketable equity and other investments which are included in other assets in the Consolidated Balance Sheets. We monitor these investments for impairments and make reductions in carrying values if we determine that an impairment charge is required based primarily on the financial condition and near-term prospects of these companies. |
Inventories | (e) Inventories |
Allowance for Doubtful Accounts | (f) Allowance for Doubtful Accounts The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. We regularly review the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, economic conditions that may affect a customer’s ability to pay, and expected default frequency rates. Trade receivables are written off at the point when they are considered uncollectible. |
Financing Receivables and Guarantees | (g) Financing Receivables and Guarantees We provide financing arrangements, including leases, financed service contracts, and loans, for certain qualified end-user customers to build, maintain, and upgrade their networks. Lease receivables primarily represent sales-type and direct-financing leases. Leases have on average a four -year term and are usually collateralized by a security interest in the underlying assets. Loan receivables include customers financing purchases of our hardware, software and services and also may include additional funds for other costs associated with network installation and integration of our products and services. Loan receivables have terms of three years on average. Financed service contracts typically have terms of one to three years and primarily relate to technical support services. We determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by us to our customers: lease receivables, loan receivables, and financed service contracts. We assess the allowance for credit loss related to financing receivables on either an individual or a collective basis. We consider various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include our historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer’s ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, are assessed and reserved at the customer level. Our internal credit risk ratings are categorized as 1 through 10 , with the lowest credit risk rating representing the highest quality financing receivables. Typically, we also consider financing receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. We evaluate the remainder of our financing receivables portfolio for impairment on a collective basis and record an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, we use historical default rates and expected default frequency rates published by major third-party credit-rating agencies as well as our own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation. Expected default frequency rates and historical default rates are published quarterly by major third-party credit-rating agencies, and the internal credit risk rating is derived by taking into consideration various customer-specific factors and macroeconomic conditions. These factors, which include the strength of the customer’s business and financial performance, the quality of the customer’s banking relationships, our specific historical experience with the customer, the performance and outlook of the customer’s industry, the customer’s legal and regulatory environment, the potential sovereign risk of the geographic locations in which the customer is operating, and independent third-party evaluations, are updated regularly or when facts and circumstances indicate that an update is deemed necessary. Financing receivables are written off at the point when they are considered uncollectible, and all outstanding balances, including any previously earned but uncollected interest income, will be reversed and charged against the allowance for credit loss. We do not typically have any partially written-off financing receivables. Outstanding financing receivables that are aged 31 days or more from the contractual payment date are considered past due. We do not accrue interest on financing receivables that are considered impaired or more than 120 days past due unless either the receivable has not been collected due to administrative reasons or the receivable is well secured and in the process of collection. Financing receivables may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a financing receivable has been categorized as nonaccrual, interest will be recognized when cash is received. A financing receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and the customer remains current for an appropriate period. We facilitate arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60 to 90 days. In certain instances, these financing arrangements result in a transfer of our receivables to the third party. The receivables are derecognized upon transfer, as these transfers qualify as true sales, and we receive a payment for the receivables from the third party based on our standard payment terms. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, we guarantee a portion of these arrangements. We also provide financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years . We could be called upon to make payments under these guarantees in the event of nonpayment by the channel partners or end-user customers. Deferred revenue relating to these financing arrangements is recorded in accordance with revenue recognition policies or for the fair value of the financing guarantees. |
Leases | (h) Leases We lease real estate, information technology (IT) and other equipment and vehicles. We also have arrangements with certain suppliers and contract manufacturers which includes the leasing of dedicated space and equipment costs. Our leases have the option to extend or terminate the lease when it is reasonably certain that we will exercise that option. As a lessee, we determine if an arrangement is a lease at commencement. Our ROU lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments related to the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use incremental borrowing rates based on information available at the commencement date to determine the present value of our lease payments. Certain of our lease agreements contain variable lease payments. Our variable lease payments can fluctuate depending on the level of activity or the cost of certain services where we have elected to combine lease and non-lease components. While these payments are not included as part of our lease liabilities, they are recognized as variable lease expense in the period they are incurred. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. As a lessor, we determine if an arrangement is a lease at inception. We provide leasing arrangements for our equipment to certain qualified customers. Our lease portfolio primarily consists of sales-type leases. We allocate the consideration in a bundled contract with our customers based on relative standalone selling prices of our lease and non-lease components. The residual value on our leased equipment is determined at the inception of the lease based on an analysis of estimates of the value of equipment, market factors and historical customer behavior. Residual value estimates are reviewed on a periodic basis and other-than-temporary declines are expensed in the period they occur. Our leases generally provide an end-of-term option for the customer to extend the lease under mutually-agreed terms, return the leased equipment, or purchase the equipment for either the then-market value of the equipment or a pre-determined purchase price. If a customer chooses to terminate their lease prior to the original end of term date, the customer is required to pay all remaining lease payments in full. |
Leases | (h) Leases We lease real estate, information technology (IT) and other equipment and vehicles. We also have arrangements with certain suppliers and contract manufacturers which includes the leasing of dedicated space and equipment costs. Our leases have the option to extend or terminate the lease when it is reasonably certain that we will exercise that option. As a lessee, we determine if an arrangement is a lease at commencement. Our ROU lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments related to the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. We use incremental borrowing rates based on information available at the commencement date to determine the present value of our lease payments. Certain of our lease agreements contain variable lease payments. Our variable lease payments can fluctuate depending on the level of activity or the cost of certain services where we have elected to combine lease and non-lease components. While these payments are not included as part of our lease liabilities, they are recognized as variable lease expense in the period they are incurred. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. As a lessor, we determine if an arrangement is a lease at inception. We provide leasing arrangements for our equipment to certain qualified customers. Our lease portfolio primarily consists of sales-type leases. We allocate the consideration in a bundled contract with our customers based on relative standalone selling prices of our lease and non-lease components. The residual value on our leased equipment is determined at the inception of the lease based on an analysis of estimates of the value of equipment, market factors and historical customer behavior. Residual value estimates are reviewed on a periodic basis and other-than-temporary declines are expensed in the period they occur. Our leases generally provide an end-of-term option for the customer to extend the lease under mutually-agreed terms, return the leased equipment, or purchase the equipment for either the then-market value of the equipment or a pre-determined purchase price. If a customer chooses to terminate their lease prior to the original end of term date, the customer is required to pay all remaining lease payments in full. |
Depreciation and Amortization | (i) Depreciation and Amortization Property and equipment are stated at cost, less accumulated depreciation or amortization, whenever applicable. Depreciation and amortization expenses for property and equipment were approximately $0.9 billion , $1.0 billion , and $1.1 billion for fiscal 2020 , 2019 , and 2018 , respectively. Depreciation and amortization are computed using the straight-line method, generally over the following periods: Asset Category Period Buildings 25 years Building improvements 10 years Leasehold improvements Shorter of remaining lease term or up to 10 years Computer equipment and related software 30 to 36 months Production, engineering, and other equipment Up to 5 years Operating lease assets Based on lease term Furniture and fixtures 5 years |
Business Combinations | (j) Business Combinations We allocate the fair value of the purchase consideration of our acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (IPR&D), based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. Acquisition-related expenses and related restructuring costs are recognized separately from the business combination and are expensed as incurred. |
Goodwill and Purchased Intangible Assets | (k) Goodwill and Purchased Intangible Assets Goodwill is tested for impairment on an annual basis in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. When impaired, the carrying value of goodwill is written down to fair value. Identifying a potential impairment consists of comparing the fair value of a reporting unit with its carrying amount, including goodwill. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. See “Long-Lived Assets” for our policy regarding impairment testing of purchased intangible assets with finite lives. Purchased intangible assets with indefinite lives are assessed for potential impairment annually or when events or circumstances indicate that their carrying amounts might be impaired. |
Long-Lived Assets | (l) Long-Lived Assets Long-lived assets that are held and used by us are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of the undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the difference between the fair value of the asset and its carrying value. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell. |
Fair Value | (m) Fair Value Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the principal or most advantageous market in which we would transact, and we also consider assumptions that market participants would use when pricing the asset or liability. The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. We use inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of assets or liabilities. Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair values are determined based on model-based techniques such as discounted cash flow models using inputs that we could not corroborate with market data. Level 1 marketable equity securities are determined by using quoted prices in active markets for identical assets. Level 2 available-for-sale debt investments are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. Our derivative instruments are primarily classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. We did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented. Level 3 assets include certain derivative instruments, the values of which are determined based on discounted cash flow models using inputs that we could not corroborate with market data. The carrying value of our non-marketable equity securities recorded to fair value on a non-recurring basis is adjusted for observable transactions for identical or similar investments of the same issuer or impairment. These securities are classified as Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs such as volatility, rights, and obligations of the securities we hold. |
Derivative Instruments | (n) Derivative Instruments We recognize derivative instruments as either assets or liabilities and measure those instruments at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For a derivative instrument designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For a derivative instrument designated as a net investment hedge of our foreign operations, the gain or loss is recorded in the cumulative translation adjustment within AOCI together with the offsetting loss or gain of the hedged exposure of the underlying foreign operations. Any ineffective portion of the net investment hedges is reported in earnings during the period of change. For derivative instruments that are not designated as accounting hedges, changes in fair value are recognized in earnings in the period of change. We record derivative instruments in the statements of cash flows to operating, investing, or financing activities consistent with the cash flows of the hedged item. We use derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks 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. Management does not expect material losses as a result of defaults by counterparties. |
Foreign Currency Translation | (o) Foreign Currency Translation Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of AOCI. Income and expense accounts are translated at average exchange rates during the year. Remeasurement adjustments are recorded in other income (loss), net. The effect of foreign currency exchange rates on cash and cash equivalents was not material for any of the fiscal years presented. |
Concentrations of Risk | (p) Concentrations of Risk Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. We seek to mitigate our credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties. We perform ongoing credit evaluations of our customers and, with the exception of certain financing transactions, do not require collateral from our customers. We receive certain of our components from sole suppliers. Additionally, we rely on a limited number of contract manufacturers and suppliers to provide manufacturing services for our products. The inability of a contract manufacturer or supplier to fulfill our supply requirements could materially impact future operating results. |
Revenue Recognition | (q) Revenue Recognition We enter into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations. As a result, our contracts may contain multiple performance obligations. We determine whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether our commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. We classify our hardware, perpetual software licenses, and SaaS as distinct performance obligations. Term software licenses represent multiple obligations, which include software licenses and software maintenance. In transactions where we deliver hardware or software, we are typically the principal and we record revenue and costs of goods sold on a gross basis. We refer to our term software licenses, security software licenses, SaaS, and associated service arrangements as subscription offers. We recognize revenue upon transfer of control of promised goods or services in a contract with a customer in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment or once title and risk of loss has transferred to the customer. Transfer of control can also occur over time for software maintenance and services as the customer receives the benefit over the contract term. Our hardware and perpetual software licenses are distinct performance obligations where revenue is recognized upfront upon transfer of control. Term software licenses include multiple performance obligations where the term licenses are recognized upfront upon transfer of control, with the associated software maintenance revenue recognized ratably over the contract term as services and software updates are provided. SaaS arrangements do not include the right for the customer to take possession of the software during the term, and therefore have one distinct performance obligation which is satisfied over time with revenue recognized ratably over the contract term as the customer consumes the services. On our product sales, we record consideration from shipping and handling on a gross basis within net product sales. We record our revenue net of any associated sales taxes. An allowance for future sales returns is established based on historical trends in product return rates. The allowance for future sales returns as of July 25, 2020 and July 27, 2019 was $79 million and $84 million , respectively, and was recorded as a reduction of our accounts receivable and revenue. Significant Judgments Revenue is allocated among these performance obligations in a manner that reflects the consideration that we expect to be entitled to for the promised goods or services based on standalone selling prices (SSP). SSP is estimated for each distinct performance obligation and judgment may be required in their determination. The best evidence of SSP is the observable price of a product or service when we sell the goods separately in similar circumstances and to similar customers. In instances where SSP is not directly observable, we determine SSP using information that may include market conditions and other observable inputs. We apply judgment in determining the transaction price as we may be required to estimate variable consideration when determining the amount of revenue to recognize. Variable consideration includes potential contractual penalties and various rebate, cooperative marketing and other incentive programs that we offer to our distributors, channel partners and customers. When determining the amount of revenue to recognize, we estimate the expected usage of these programs, applying the expected value or most likely estimate and update the estimate at each reporting period as actual utilization becomes available. We also consider the customers' right of return in determining the transaction price, where applicable. We assess certain software licenses, such as for security software, that contain critical updates or upgrades which customers can download throughout the contract term. Without these updates or upgrades, the functionality of the software would diminish over a relatively short time period. These updates or upgrades provide the customer the full functionality of the purchased security software licenses and are required to maintain the security license's utility as the risks and threats in the environment are rapidly changing. In these circumstances, the revenue from these software arrangements is recognized as a single performance obligation satisfied over the contract term. |
Advertising Costs | (r) Advertising Costs |
Share-Based Compensation Expense | (s) Share-Based Compensation Expense We measure and recognize the compensation expense for all share-based awards made to employees and directors, including employee stock options, restricted stock units (RSUs), performance-based restricted stock units (PRSUs), and employee stock purchases related to the Employee Stock Purchase Plan (Employee Stock Purchase Rights) based on estimated fair values. The fair value of employee stock options is estimated on the date of grant using a lattice-binomial option-pricing model (Lattice-Binomial Model) or the Black-Scholes model, and for employee stock purchase rights we estimate the fair value using the Black-Scholes model. The fair value for time-based stock awards and stock awards that are contingent upon the achievement of financial performance metrics is based on the grant date share price reduced by the present value of the expected dividend yield prior to vesting. The fair value of market-based stock awards is estimated using an option-pricing model on the date of grant. Share-based compensation expense is reduced for forfeitures. |
Software Development Costs | (t) Software Development Costs |
Income Taxes | (u) Income Taxes Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized. We account for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We classify the liability for unrecognized tax benefits as current to the extent that we anticipate payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes. |
Computation of Net Income per Share | (v) Computation of Net Income per Share Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Diluted shares outstanding includes the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase shares. Employee equity share options, unvested shares, and similar equity instruments granted and assumed by Cisco are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that has not yet been recognized are collectively assumed to be used to repurchase shares. |
Consolidation of Variable Interest Entities | (w) Consolidation of Variable Interest Entities Our approach in assessing the consolidation requirement for variable interest entities focuses on identifying which enterprise has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. Should we conclude that we are the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in our Consolidated Financial Statements. |
Use of Estimates | (x) Use of Estimates The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for the following, among others: ▪ Revenue recognition ▪ Allowances for accounts receivable, sales returns, and financing receivables ▪ Inventory valuation and liability for purchase commitments with contract manufacturers and suppliers ▪ Loss contingencies and product warranties ▪ Fair value measurements and other-than-temporary impairments ▪ Goodwill and purchased intangible asset impairments ▪ Income taxes The inputs into certain of our judgments, assumptions, and estimates considered the economic implications of the COVID-19 pandemic on our critical and significant accounting estimates. The actual results experienced by us may differ materially from our estimates. As the COVID-19 pandemic continues to develop, many of our estimates could require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve our estimates may change materially in future periods. |
New Accounting Updates Recently Adopted and Recent Accounting Standards or Updates Not Yet Effective as of Fiscal Year End | (y) New Accounting Updates Recently Adopted Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 842, Leases , a new standard requiring lessees to recognize operating and finance lease liabilities on the balance sheet, as well as corresponding right-of-use (ROU) assets. This standard also made some changes to lessor accounting and aligns key aspects of the lessor accounting model with the revenue recognition standard. We adopted this standard at the beginning of fiscal 2020 and applied it at the beginning of the period of adoption and did not restate prior periods. In connection with the adoption of ASC 842, we recognized $1.2 billion of operating lease ROU assets, which was included in other assets and $1.2 billion of operating lease liabilities which was included in other current liabilities and other long-term liabilities. There were no transition adjustments recorded from the adoption of ASC 842 as a lessor. We elected to apply the package of practical expedients permitted under the transition guidance within ASC 842 which does not require reassessment of initial direct costs, classification of a lease and definition of a lease. We also elected additional practical expedients which resulted in: i) allowing us not to reassess the accounting treatment for existing or expired land easements in transition; ii) combining lease and non-lease components and iii) not recording leases with an initial term of less than 12 months on our Consolidated Balance Sheet. (z) Recent Accounting Standards or Updates Not Yet Effective as of Fiscal Year End Credit Losses of Financial Instruments In June 2016, the FASB issued an accounting standard update that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The new standard replaces the incurred loss impairment model. Under this standard, we will be required to use a forward-looking expected credit loss model for accounts receivable, financing receivables, contract assets, and other financial instruments. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. We will adopt this standard at the beginning of our first quarter of fiscal 2021 on a modified retrospective basis with the cumulative effect of adoption recorded as an adjustment to retained earnings. This standard will not have a material impact on our consolidated financial statements at adoption. |
Financing Receivables | Financing receivables primarily consist of lease receivables, loan receivables, and financed service contracts. Lease receivables represent sales-type leases resulting from the sale of Cisco's and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Lease receivables consist of arrangements with terms of four years on average. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services, which may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables have terms of three years on average. Financed service contracts include financing receivables related to technical support and advanced services. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one to three years . |
Offsetting of Derivative Instruments | We present our derivative instruments at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. As of July 25, 2020 and July 27, 2019 , the potential effects of these rights of set-off associated with the derivative contracts would be a reduction to both derivative assets and derivative liabilities of $10 million and $13 million , respectively. |
Hedging Derivatives | (c) Foreign Currency Exchange Risk We conduct business globally in numerous currencies. Therefore, we are exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, we enter into foreign currency contracts. We do not enter into such contracts for speculative purposes. We hedge forecasted foreign currency transactions related to certain revenues, operating expenses and service cost of sales with currency options and forward contracts. These currency options and forward contracts, designated as cash flow hedges, generally have maturities of less than 24 months . The derivative instrument’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. During the fiscal years presented, we did not discontinue any cash flow hedges for which it was probable that a forecasted transaction would not occur. We enter into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, including long-term customer financings, investments, and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances or other current assets, investments, or liabilities denominated in currencies other than the functional currency of the reporting entity. We hedge certain net investments in our foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on our net investment in those foreign subsidiaries. These derivative instruments generally have maturities of up to six months . (d) Interest Rate Risk Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt We hold interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in fiscal 2021 through 2025. Under these interest rate swaps, we receive fixed-rate interest payments and make interest payments based on LIBOR plus a fixed number of basis points. The effect of such swaps is to convert the fixed interest rates of the senior fixed-rate notes to floating interest rates based on LIBOR. The gains and losses related to changes in the fair value of the interest rate swaps are included in interest expense and substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. (e) Equity Price Risk |
Derivatives Not Designated as Hedges | We are also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, we utilize derivatives such as total return swaps to economically hedge this exposure and offset the related compensation expense. |
Commitments and Contingencies | We purchase components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. Certain of these purchase commitments with contract manufacturers and suppliers relate to arrangements to secure long-term pricing for certain product components for multi-year periods. In certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed. |
Indemnifications | In the normal course of business, we indemnify other parties, including customers, lessors, and parties to other transactions with us, with respect to certain matters. We have agreed to indemnify against losses arising from a breach of representations or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. |
Segment Information | We conduct business globally and are primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. Our management makes financial decisions and allocates resources based on the information it receives from our internal management system. Sales are attributed to a segment based on the ordering location of the customer. We do not allocate research and development, sales and marketing, or general and administrative expenses to our segments in this internal management system because management does not include the information in our measurement of the performance of the operating segments. In addition, we do not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation settlements and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in our measurement of the performance of the operating segments. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Accounting Policies [Abstract] | |
Depreciation Period by Type of Assets | Depreciation and amortization are computed using the straight-line method, generally over the following periods: Asset Category Period Buildings 25 years Building improvements 10 years Leasehold improvements Shorter of remaining lease term or up to 10 years Computer equipment and related software 30 to 36 months Production, engineering, and other equipment Up to 5 years Operating lease assets Based on lease term Furniture and fixtures 5 years Property and equipment, net: Gross property and equipment: Land, buildings, and building and leasehold improvements $ 4,252 $ 4,545 Computer equipment and related software 875 922 Production, engineering, and other equipment 5,163 5,711 Operating lease assets 337 485 Furniture, fixtures and other 387 376 Total gross property and equipment 11,014 12,039 Less: accumulated depreciation and amortization (8,561 ) (9,250 ) Total $ 2,453 $ 2,789 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents this disaggregation of revenue (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Infrastructure Platforms $ 27,122 $ 30,099 $ 28,286 Applications 5,568 5,803 5,036 Security 3,154 2,821 2,388 Other Products 135 281 999 Total Product 35,978 39,005 36,709 Services 13,323 12,899 12,621 Total (1) $ 49,301 $ 51,904 $ 49,330 Amounts may not sum due to rounding. We have made certain reclassifications to the product revenue amounts for prior years to conform to the current year’s presentation. (1) During the second quarter of fiscal 2019, we completed the divestiture of the Service Provider Video Software Solutions (SPVSS) business. Total revenue includes SPVSS business revenue of $168 million and $903 million for fiscal 2019 and 2018 , respectively. The following table presents revenue for groups of similar products and services (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Infrastructure Platforms $ 27,122 $ 30,099 $ 28,286 Applications 5,568 5,803 5,036 Security 3,154 2,821 2,388 Other Products 135 281 999 Total Product 35,978 39,005 36,709 Services 13,323 12,899 12,621 Total (1) $ 49,301 $ 51,904 $ 49,330 (1) Includes SPVSS business revenue of $168 million and $903 million for fiscal 2019 and 2018 , respectively. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Business Combinations [Abstract] | |
Summary of Purchase Acquisitions | Allocation of the purchase consideration for acquisitions completed in fiscal 2019 is summarized as follows (in millions): Fiscal 2019 Purchase Consideration Net Tangible Assets Acquired (Liabilities Assumed) Purchased Intangible Assets Goodwill Duo $ 2,025 $ (57 ) $ 342 $ 1,740 Luxtera 596 (19 ) 319 296 Others (three in total) 65 2 11 52 Total $ 2,686 $ (74 ) $ 672 $ 2,088 Fiscal 2020 Purchase Consideration Net Tangible Assets Acquired (Liabilities Assumed) Purchased Intangible Assets Goodwill Total acquisitions (six in total) $ 359 $ (11 ) $ 172 $ 198 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segment | The following tables present the goodwill allocated to our reportable segments as of July 25, 2020 and July 27, 2019 , as well as the changes to goodwill during fiscal 2020 and 2019 (in millions): Balance at July 27, 2019 Acquisitions Foreign Currency Translation and Other Balance at July 25, 2020 Americas $ 21,120 $ 132 $ 52 $ 21,304 EMEA 7,977 44 19 8,040 APJC 4,432 22 8 4,462 Total $ 33,529 $ 198 $ 79 $ 33,806 Balance at July 28, 2018 Acquisitions & Divestitures Foreign Currency Translation and Other Balance at July 27, 2019 Americas $ 19,998 $ 1,240 $ (118 ) $ 21,120 EMEA 7,529 486 (38 ) 7,977 APJC 4,179 274 (21 ) 4,432 Total $ 31,706 $ 2,000 $ (177 ) $ 33,529 |
Schedule of Intangible Assets Acquired Through Business Combinations | The following tables present details of our intangible assets acquired through acquisitions completed during fiscal 2020 and 2019 (in millions, except years): FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER IPR&D Fiscal 2020 Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Amount Amount Total acquisitions (six in total) 4.8 $ 161 4.2 $ 10 1.5 $ 1 $ — $ 172 FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER IPR&D Fiscal 2019 Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Amount Amount Duo 5.0 $ 153 5.0 $ 94 2.5 $ 18 $ 77 $ 342 Luxtera 4.0 2 5.0 58 1.6 3 256 319 Others (three in total) 4.4 11 — — — — — 11 Total $ 166 $ 152 $ 21 $ 333 $ 672 |
Schedule of Intangible Assets Acquired Through Business Combinations | The following tables present details of our intangible assets acquired through acquisitions completed during fiscal 2020 and 2019 (in millions, except years): FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER IPR&D Fiscal 2020 Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Amount Amount Total acquisitions (six in total) 4.8 $ 161 4.2 $ 10 1.5 $ 1 $ — $ 172 FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER RELATIONSHIPS OTHER IPR&D Fiscal 2019 Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Weighted- Average Useful Life (in Years) Amount Amount Amount Duo 5.0 $ 153 5.0 $ 94 2.5 $ 18 $ 77 $ 342 Luxtera 4.0 2 5.0 58 1.6 3 256 319 Others (three in total) 4.4 11 — — — — — 11 Total $ 166 $ 152 $ 21 $ 333 $ 672 |
Schedule of Purchased Intangible Assets | The following tables present details of our purchased intangible assets (in millions): July 25, 2020 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 3,298 $ (2,336 ) $ 962 Customer relationships 760 (365 ) 395 Other 26 (20 ) 6 Total purchased intangible assets with finite lives 4,084 (2,721 ) 1,363 In-process research and development, with indefinite lives 213 — 213 Total $ 4,297 $ (2,721 ) $ 1,576 July 27, 2019 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 3,270 $ (1,933 ) $ 1,337 Customer relationships 840 (331 ) 509 Other 41 (22 ) 19 Total purchased intangible assets with finite lives 4,151 (2,286 ) 1,865 In-process research and development, with indefinite lives 336 — 336 Total $ 4,487 $ (2,286 ) $ 2,201 |
Schedule of Purchased Intangible Assets | The following tables present details of our purchased intangible assets (in millions): July 25, 2020 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 3,298 $ (2,336 ) $ 962 Customer relationships 760 (365 ) 395 Other 26 (20 ) 6 Total purchased intangible assets with finite lives 4,084 (2,721 ) 1,363 In-process research and development, with indefinite lives 213 — 213 Total $ 4,297 $ (2,721 ) $ 1,576 July 27, 2019 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 3,270 $ (1,933 ) $ 1,337 Customer relationships 840 (331 ) 509 Other 41 (22 ) 19 Total purchased intangible assets with finite lives 4,151 (2,286 ) 1,865 In-process research and development, with indefinite lives 336 — 336 Total $ 4,487 $ (2,286 ) $ 2,201 |
Schedule of Amortization of Purchased Intangible Assets | The following table presents the amortization of purchased intangible assets, including impairment charges (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Amortization of purchased intangible assets: Cost of sales $ 659 $ 624 $ 640 Operating expenses 141 150 221 Total $ 800 $ 774 $ 861 |
Schedule of Estimated Future Amortization Expense of Purchased Intangible Assets | The estimated future amortization expense of purchased intangible assets with finite lives as of July 25, 2020 is as follows (in millions): Fiscal Year Amount 2021 $ 633 2022 $ 371 2023 $ 229 2024 $ 118 2025 $ 12 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Restructuring Charges [Abstract] | |
Activities Related to Restructuring and Other Charges | The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions): FISCAL 2018 AND PRIOR PLANS FISCAL 2020 PLAN Employee Severance Other Employee Severance Other Total Liability as of July 29, 2017 $ 74 $ 43 $ — $ — $ 117 Charges 319 39 — — 358 Cash payments (335 ) (37 ) — — (372 ) Non-cash items 2 (32 ) — — (30 ) Liability as of July 28, 2018 60 13 — — 73 Charges 252 70 — — 322 Cash payments (289 ) (10 ) — — (299 ) Non-cash items (1 ) (62 ) — — (63 ) Liability as of July 27, 2019 22 11 — — 33 Charges 209 17 144 111 481 Cash payments (224 ) (3 ) (93 ) (7 ) (327 ) Non-cash items — (23 ) — (92 ) (115 ) Liability as of July 25, 2020 $ 7 $ 2 $ 51 $ 12 $ 72 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | The following tables provide details of selected balance sheet items (in millions): July 25, 2020 July 27, 2019 Cash and cash equivalents $ 11,809 $ 11,750 Restricted cash included in other current assets — 21 Restricted cash included in other assets 3 1 Total cash, cash equivalents, and restricted cash $ 11,812 $ 11,772 |
Cash, Cash Equivalents, and Restricted Cash | The following tables provide details of selected balance sheet items (in millions): July 25, 2020 July 27, 2019 Cash and cash equivalents $ 11,809 $ 11,750 Restricted cash included in other current assets — 21 Restricted cash included in other assets 3 1 Total cash, cash equivalents, and restricted cash $ 11,812 $ 11,772 |
Inventories | Inventories: Raw materials $ 456 $ 374 Work in process 25 10 Finished goods: Deferred cost of sales 59 109 Manufactured finished goods 542 643 Total finished goods 601 752 Service-related spares 184 225 Demonstration systems 16 22 Total $ 1,282 $ 1,383 |
Property and Equipment, Net | Depreciation and amortization are computed using the straight-line method, generally over the following periods: Asset Category Period Buildings 25 years Building improvements 10 years Leasehold improvements Shorter of remaining lease term or up to 10 years Computer equipment and related software 30 to 36 months Production, engineering, and other equipment Up to 5 years Operating lease assets Based on lease term Furniture and fixtures 5 years Property and equipment, net: Gross property and equipment: Land, buildings, and building and leasehold improvements $ 4,252 $ 4,545 Computer equipment and related software 875 922 Production, engineering, and other equipment 5,163 5,711 Operating lease assets 337 485 Furniture, fixtures and other 387 376 Total gross property and equipment 11,014 12,039 Less: accumulated depreciation and amortization (8,561 ) (9,250 ) Total $ 2,453 $ 2,789 |
Deferred Revenue | Deferred revenue: Service $ 12,551 $ 11,709 Product 7,895 6,758 Total $ 20,446 $ 18,467 Reported as: Current $ 11,406 $ 10,668 Noncurrent 9,040 7,799 Total $ 20,446 $ 18,467 |
Remaining Performance Obligations | Remaining Performance Obligations: Product $ 11,261 $ 9,603 Service 17,093 15,702 Total $ 28,354 $ 25,305 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Leases [Abstract] | |
Lease Expenses and Supplemental Information | The components of our lease expenses were as follows (in millions): Year Ended July 25, 2020 Operating lease expense $ 428 Short-term lease expense 69 Variable lease expense 157 Total lease expense $ 654 Supplemental information related to our operating leases is as follows (in millions): Year Ended July 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 413 Right-of-use assets obtained in exchange for operating leases liabilities $ 197 |
Maturities of Operating Leases | The maturities of our operating leases (undiscounted) as of July 25, 2020 are as follows (in millions): Fiscal Year Amount 2021 $ 354 2022 247 2023 192 2024 120 2025 68 Thereafter 52 Total lease payments 1,033 Less interest (31 ) Total $ 1,002 |
Future Minimum Lease Payments, Prior to Adoption of New Leasing Standard | Prior to the adoption of the new leasing standard, future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of July 27, 2019 were as follows (in millions): Fiscal Year Amount 2020 $ 441 2021 299 2022 195 2023 120 2024 70 Thereafter 54 Total $ 1,179 |
Future Minimum Lease Payments on Lease Receivables | Future minimum lease payments on our lease receivables as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 946 2022 590 2023 353 2024 166 2025 72 Total 2,127 Less: Present value of lease payments 2,013 Difference between undiscounted cash flows and discounted cash flows $ 114 |
Future Minimum Lease Payments on Lease Receivables, Prior to Adoption of New Leasing Standard | Prior to the adoption of the new leasing standard, future minimum lease payments on our lease receivables as of July 27, 2019 were summarized as follows (in millions): Fiscal Year Amount 2020 $ 1,028 2021 702 2022 399 2023 185 2024 53 Total $ 2,367 |
Operating Lease Assets | Amounts relating to equipment on operating lease assets held by Cisco and the associated accumulated depreciation are summarized as follows (in millions): July 25, 2020 July 27, 2019 Operating lease assets $ 337 $ 485 Accumulated depreciation (198 ) (306 ) Operating lease assets, net $ 139 $ 179 |
Minimum Future Rentals on Noncancelable Operating Leases | Minimum future rentals on noncancelable operating leases as of July 25, 2020 are summarized as follows (in millions): Fiscal Year Amount 2021 $ 74 2022 27 2023 7 Total $ 108 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Receivables [Abstract] | |
Financing Receivables | A summary of our financing receivables is presented as follows (in millions): July 25, 2020 Lease Receivables Loan Receivables Financed Service Contracts Total Gross $ 2,127 $ 5,937 $ 2,830 $ 10,894 Residual value 123 — — 123 Unearned income (114 ) — — (114 ) Allowance for credit loss (48 ) (81 ) (9 ) (138 ) Total, net $ 2,088 $ 5,856 $ 2,821 $ 10,765 Reported as: Current $ 918 $ 2,692 $ 1,441 $ 5,051 Noncurrent 1,170 3,164 1,380 5,714 Total, net $ 2,088 $ 5,856 $ 2,821 $ 10,765 July 27, 2019 Lease Receivables Loan Receivables Financed Service Contracts Total Gross $ 2,367 $ 5,438 $ 2,369 $ 10,174 Residual value 142 — — 142 Unearned income (137 ) — — (137 ) Allowance for credit loss (46 ) (71 ) (9 ) (126 ) Total, net $ 2,326 $ 5,367 $ 2,360 $ 10,053 Reported as: Current $ 1,029 $ 2,653 $ 1,413 $ 5,095 Noncurrent 1,297 2,714 947 4,958 Total, net $ 2,326 $ 5,367 $ 2,360 $ 10,053 |
Schedule of Internal Credit Risk Rating for Each Portfolio Segment and Class | Gross receivables, excluding residual value, less unearned income categorized by our internal credit risk rating as of July 25, 2020 and July 27, 2019 are summarized as follows (in millions): INTERNAL CREDIT RISK RATING July 25, 2020 1 to 4 5 to 6 7 and Higher Total Lease receivables $ 992 $ 952 $ 69 $ 2,013 Loan receivables 3,808 1,961 168 5,937 Financed service contracts 1,645 1,153 32 2,830 Total $ 6,445 $ 4,066 $ 269 $ 10,780 INTERNAL CREDIT RISK RATING July 27, 2019 1 to 4 5 to 6 7 and Higher Total Lease receivables $ 1,204 $ 991 $ 35 $ 2,230 Loan receivables 3,367 1,920 151 5,438 Financed service contracts 1,413 939 17 2,369 Total $ 5,984 $ 3,850 $ 203 $ 10,037 |
Schedule of Financing Receivables by Portfolio Segment and Class Aging Analysis | The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of July 25, 2020 and July 27, 2019 (in millions): DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) July 25, 2020 31 - 60 61 - 90 91+ Total Past Due Current Total Nonaccrual Financing Receivables Impaired Financing Receivables Lease receivables $ 29 $ 47 $ 48 $ 124 $ 1,889 $ 2,013 $ 43 $ 43 Loan receivables 129 78 78 285 5,652 5,937 65 65 Financed service contracts 69 75 124 268 2,562 2,830 4 4 Total $ 227 $ 200 $ 250 $ 677 $ 10,103 $ 10,780 $ 112 $ 112 DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) July 27, 2019 31 - 60 61 - 90 91+ Total Past Due Current Total Nonaccrual Financing Receivables Impaired Financing Receivables Lease receivables $ 101 $ 42 $ 291 $ 434 $ 1,796 $ 2,230 $ 13 $ 13 Loan receivables 257 67 338 662 4,776 5,438 31 31 Financed service contracts 145 131 271 547 1,822 2,369 3 3 Total $ 503 $ 240 $ 900 $ 1,643 $ 8,394 $ 10,037 $ 47 $ 47 |
Allowance for Credit Loss and Related Financing Receivables | The allowances for credit loss and the related financing receivables are summarized as follows (in millions): CREDIT LOSS ALLOWANCES Lease Receivables Loan Receivables Financed Service Contracts Total Allowance for credit loss as of July 27, 2019 $ 46 $ 71 $ 9 $ 126 Provisions (benefits) 5 32 1 38 Recoveries (write-offs), net (3 ) (19 ) — (22 ) Foreign exchange and other — (3 ) (1 ) (4 ) Allowance for credit loss as of July 25, 2020 $ 48 $ 81 $ 9 $ 138 CREDIT LOSS ALLOWANCES Lease Receivables Loan Receivables Financed Service Contracts Total Allowance for credit loss as of July 28, 2018 $ 135 $ 60 $ 10 $ 205 Provisions (benefits) (54 ) 11 27 (16 ) Recoveries (write-offs), net (14 ) — (28 ) (42 ) Foreign exchange and other (21 ) — — (21 ) Allowance for credit loss as of July 27, 2019 $ 46 $ 71 $ 9 $ 126 CREDIT LOSS ALLOWANCES Lease Receivables Loan Receivables Financed Service Contracts Total Allowance for credit loss as of July 29, 2017 $ 162 $ 103 $ 30 $ 295 Provisions (benefits) (26 ) (43 ) (20 ) (89 ) Recoveries (write-offs), net (1 ) (5 ) — (6 ) Foreign exchange and other — 5 — 5 Allowance for credit loss as of July 28, 2018 $ 135 $ 60 $ 10 $ 205 |
Available-for-Sale Debt and E_2
Available-for-Sale Debt and Equity Investments (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Debt Investments and Equity Investments | The following table summarizes our available-for-sale debt investments and equity investments (in millions): July 25, 2020 July 27, 2019 Available-for-sale debt investments $ 17,610 $ 21,660 Marketable equity securities — 3 Total investments 17,610 21,663 Non-marketable equity securities included in other assets 1,207 1,113 Equity method investments included in other assets 71 87 Total $ 18,888 $ 22,863 |
Summary of Available-for-Sale Investments | The following tables summarize our available-for-sale debt investments (in millions): July 25, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 2,614 $ 71 $ — $ 2,685 U.S. government agency securities 110 — — 110 Corporate debt securities 11,549 334 (6 ) 11,877 U.S. agency mortgage-backed securities 1,987 49 (1 ) 2,035 Commercial paper 727 — — 727 Certificates of deposit 176 — — 176 Total $ 17,163 $ 454 $ (7 ) $ 17,610 July 27, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government securities $ 808 $ 1 $ (1 ) $ 808 U.S. government agency securities 169 — — 169 Corporate debt securities 19,188 103 (29 ) 19,262 U.S. agency mortgage-backed securities 1,425 7 (11 ) 1,421 Total $ 21,590 $ 111 $ (41 ) $ 21,660 |
Gross Realized Gains and Gross Realized Losses Related to Available-for-Sale Investment | The following table presents the gross realized gains and gross realized losses related to available-for-sale debt investments (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Gross realized gains $ 70 $ 17 $ 16 Gross realized losses (28 ) (30 ) (258 ) Total $ 42 $ (13 ) $ (242 ) |
Available-for-Sale Investments with Gross Unrealized Losses | The following tables present the breakdown of the available-for-sale debt investments with gross unrealized losses and the duration that those losses had been unrealized at July 25, 2020 and July 27, 2019 (in millions): UNREALIZED LOSSES LESS THAN 12 MONTHS UNREALIZED LOSSES 12 MONTHS OR GREATER TOTAL July 25, 2020 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. government agency securities $ 33 $ — $ — $ — $ 33 $ — Corporate debt securities 1,060 (6 ) 3 — 1,063 (6 ) U.S. agency mortgage-backed securities 265 (1 ) — — 265 (1 ) Total $ 1,358 $ (7 ) $ 3 $ — $ 1,361 $ (7 ) UNREALIZED LOSSES LESS THAN 12 MONTHS UNREALIZED LOSSES 12 MONTHS OR GREATER TOTAL July 27, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. government securities $ 204 $ — $ 488 $ (1 ) $ 692 $ (1 ) U.S. government agency securities — — 169 — 169 — Corporate debt securities 2,362 (4 ) 5,271 (25 ) 7,633 (29 ) U.S. agency mortgage-backed securities 123 — 847 (11 ) 970 (11 ) Total $ 2,689 $ (4 ) $ 6,775 $ (37 ) $ 9,464 $ (41 ) |
Maturities of Fixed Income Securities | The following table summarizes the maturities of our available-for-sale debt investments as of July 25, 2020 (in millions): Amortized Cost Fair Value Within 1 year $ 5,773 $ 5,812 After 1 year through 5 years 7,360 7,532 After 5 years through 10 years 2,032 2,218 After 10 years 11 13 Mortgage-backed securities with no single maturity 1,987 2,035 Total $ 17,163 $ 17,610 |
Summary of Gains and Losses and Adjustments to Carrying Value of Equity Securities | Gains and losses recognized on our marketable and non-marketable equity securities are summarized below (in millions): July 25, 2020 July 27, 2019 Net gains and losses recognized during the period on equity investments $ 63 $ 58 Less: Net gains and losses recognized on equity investments sold (76 ) (69 ) Net unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date $ (13 ) $ (11 ) We recorded adjustments to the carrying value of our non-marketable equity securities measured using the measurement alternative as follows (in millions): July 25, 2020 July 27, 2019 Adjustments to non-marketable equity securities measured using the measurement alternative: Upward adjustments $ 28 $ 26 Downward adjustments, including impairments (41 ) (57 ) Net adjustments $ (13 ) $ (31 ) |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows (in millions): JULY 25, 2020 JULY 27, 2019 FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS Level 1 Level 2 Level 3 Total Balance Level 1 Level 2 Total Balance Assets: Cash equivalents: Money market funds $ 10,024 $ — $ — $ 10,024 $ 10,083 $ — $ 10,083 Corporate debt securities — 8 — 8 — — — Available-for-sale debt investments: U.S. government securities — 2,685 — 2,685 — 808 808 U.S. government agency securities — 110 — 110 — 169 169 Corporate debt securities — 11,877 — 11,877 — 19,262 19,262 U.S. agency mortgage-backed securities — 2,035 — 2,035 — 1,421 1,421 Commercial paper — 727 — 727 — — — Certificates of deposit — 176 — 176 — — — Equity investments: Marketable equity securities — — — — 3 — 3 Derivative assets — 190 1 191 — 89 89 Total $ 10,024 $ 17,808 $ 1 $ 27,833 $ 10,086 $ 21,749 $ 31,835 Liabilities: Derivative liabilities $ — $ 10 $ — $ 10 $ — $ 15 $ 15 Total $ — $ 10 $ — $ 10 $ — $ 15 $ 15 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | The following table summarizes our short-term debt (in millions, except percentages): July 25, 2020 July 27, 2019 Amount Effective Rate Amount Effective Rate Current portion of long-term debt $ 3,005 2.07 % $ 5,998 3.20 % Commercial paper — — 4,193 2.34 % Total short-term debt $ 3,005 $ 10,191 |
Schedule of Long-Term Debt | The following table summarizes our long-term debt (in millions, except percentages): July 25, 2020 July 27, 2019 Maturity Date Amount Effective Rate Amount Effective Rate Senior notes: Floating-rate notes: Three-month LIBOR plus 0.34% September 20, 2019 $ — — $ 500 2.77% Fixed-rate notes: 1.40% September 20, 2019 — — 1,500 1.48% 4.45% January 15, 2020 — — 2,500 4.72% 2.45% June 15, 2020 — — 1,500 2.54% 2.20% February 28, 2021 2,500 2.30% 2,500 2.30% 2.90% March 4, 2021 500 0.94% 500 3.14% 1.85% September 20, 2021 2,000 1.90% 2,000 1.90% 3.00% June 15, 2022 500 1.21% 500 3.36% 2.60% February 28, 2023 500 2.68% 500 2.68% 2.20% September 20, 2023 750 2.27% 750 2.27% 3.625% March 4, 2024 1,000 1.06% 1,000 3.25% 3.50% June 15, 2025 500 1.37% 500 3.52% 2.95% February 28, 2026 750 3.01% 750 3.01% 2.50% September 20, 2026 1,500 2.55% 1,500 2.55% 5.90% February 15, 2039 2,000 6.11% 2,000 6.11% 5.50% January 15, 2040 2,000 5.67% 2,000 5.67% Total 14,500 20,500 Unaccreted discount/issuance costs (88 ) (100 ) Hedge accounting fair value adjustments 171 73 Total $ 14,583 $ 20,473 Reported as: Short-term debt $ 3,005 $ 5,998 Long-term debt 11,578 14,475 Total $ 14,583 $ 20,473 |
Schedule of Principal Payments for Long-Term Debt | As of July 25, 2020 , future principal payments for long-term debt, including the current portion, are summarized as follows (in millions): Fiscal Year Amount 2021 $ 3,000 2022 2,500 2023 500 2024 1,750 2025 500 Thereafter 6,250 Total $ 14,500 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Recorded at Fair Value | The fair values of our derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions): DERIVATIVE ASSETS DERIVATIVE LIABILITIES Balance Sheet Line Item July 25, 2020 July 27, 2019 Balance Sheet Line Item July 25, 2020 July 27, 2019 Derivatives designated as hedging instruments: Foreign currency derivatives Other current assets $ 7 $ 5 Other current liabilities $ 2 $ 8 Interest rate derivatives Other current assets 6 — Other current liabilities — 1 Interest rate derivatives Other assets 169 75 Other long-term liabilities — — Total 182 80 2 9 Derivatives not designated as hedging instruments: Foreign currency derivatives Other current assets 8 9 Other current liabilities 8 6 Equity derivatives Other assets 1 — Other long-term liabilities — — Total 9 9 8 6 Total $ 191 $ 89 $ 10 $ 15 |
Cumulative Basis Adjustments for Fair Value Hedges | The following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for our fair value hedges (in millions): CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES Balance Sheet Line Item of Hedged Item July 25, July 27, July 25, July 27, Short-term debt $ (506 ) $ (2,000 ) $ (6 ) $ — Long-term debt $ (2,159 ) $ (2,565 ) $ (165 ) $ (73 ) |
Gains and Losses on Derivatives Designated as Cash Flow Hedges | The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value and cash flow hedges is summarized as follows (in millions): July 25, 2020 July 27, 2019 Revenue Cost of sales Operating expenses Interest and other income (loss), net Revenue Cost of sales Operating expenses Interest and other income (loss), net Total amounts presented in the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded $ 49,301 $ 17,618 $ 18,063 $ 350 $ 51,904 $ 19,238 $ 18,447 $ 352 The effects of fair value and cash flow hedging: Gains (losses) on fair value hedging relationships: Interest rate derivatives Hedged items — — — (98 ) — — — (138 ) Derivatives designated as hedging instruments — — — 101 — — — 145 Gains (losses) on cash flow hedging relationships: Foreign currency derivatives Amount of gains (losses) reclassified from AOCI to income (1 ) — — — 2 — 1 — Total gains (losses) $ (1 ) $ — $ — $ 3 $ 2 $ — $ 1 $ 7 |
Effect of Derivative Instruments Not Designated as Fair Value Hedges on Consolidated Statement of Operations Summary | The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions): GAINS (LOSSES) FOR THE YEARS ENDED Derivatives Not Designated as Hedging Instruments Line Item in Statements of Operations July 25, 2020 July 27, 2019 July 28, 2018 Foreign currency derivatives Other income (loss), net $ (5 ) $ (60 ) $ (24 ) Total return swaps—deferred compensation Operating expenses 24 19 50 Cost of sales 1 2 4 Other income (loss), net (10 ) (16 ) (11 ) Equity derivatives Other income (loss), net 9 3 (4 ) Total $ 19 $ (52 ) $ 15 |
Schedule of Notional Amounts of Derivatives Outstanding | The notional amounts of our outstanding derivatives are summarized as follows (in millions): July 25, 2020 July 27, 2019 Derivatives designated as hedging instruments: Foreign currency derivatives—cash flow hedges $ 743 $ 663 Interest rate derivatives 2,500 4,500 Net investment hedging instruments 331 309 Derivatives not designated as hedging instruments: Foreign currency derivatives 3,241 2,708 Total return swaps—deferred compensation 580 574 Total $ 7,395 $ 8,754 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Compensation Expenses Related to Business Combinations | The following table summarizes the compensation expense related to acquisitions (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Compensation expense related to acquisitions $ 214 $ 313 $ 203 |
Schedule of Product Warranty Liability | The following table summarizes the activity related to the product warranty liability (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Balance at beginning of fiscal year $ 342 $ 359 $ 407 Provisions for warranties issued 561 600 582 Adjustments for pre-existing warranties (8 ) (12 ) (38 ) Settlements (564 ) (603 ) (592 ) Acquisitions and divestitures — (2 ) — Balance at end of fiscal year $ 331 $ 342 $ 359 |
Schedule of Guarantor Obligations | The aggregate amounts of financing guarantees outstanding at July 25, 2020 and July 27, 2019 , representing the total maximum potential future payments under financing arrangements with third parties along with the related deferred revenue, are summarized in the following table (in millions): July 25, 2020 July 27, 2019 Maximum potential future payments relating to financing guarantees: Channel partner $ 198 $ 197 End user 9 21 Total $ 207 $ 218 Deferred revenue associated with financing guarantees: Channel partner $ (19 ) $ (62 ) End user (9 ) (15 ) Total $ (28 ) $ (77 ) Total $ 179 $ 141 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Program | A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts): Years Ended Shares Weighted-Average Price per Share Amount July 25, 2020 59 $ 44.36 $ 2,619 July 27, 2019 418 $ 49.22 $ 20,577 July 28, 2018 432 $ 40.88 $ 17,661 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Retirement Benefits [Abstract] | |
Summary of Share-Based Compensation Expense | Share-based compensation expense consists primarily of expenses for stock options, stock purchase rights, restricted stock, and RSUs granted to employees. The following table summarizes share-based compensation expense (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Cost of sales—product $ 93 $ 90 $ 94 Cost of sales—service 144 130 133 Share-based compensation expense in cost of sales 237 220 227 Research and development 592 540 538 Sales and marketing 500 519 555 General and administrative 215 250 246 Restructuring and other charges 25 62 33 Share-based compensation expense in operating expenses 1,332 1,371 1,372 Total share-based compensation expense $ 1,569 $ 1,591 $ 1,599 Income tax benefit for share-based compensation $ 452 $ 542 $ 558 |
Summary of Restricted Stock and Stock Unit Activity | A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts): Restricted Stock/ Stock Units Weighted-Average Grant Date Fair Value per Share Aggregate Fair Value UNVESTED BALANCE AT JULY 29, 2017 141 $ 26.94 Granted 46 35.62 Assumed from acquisitions 1 28.26 Vested (53 ) 26.02 $ 1,909 Canceled/forfeited/other (16 ) 28.37 UNVESTED BALANCE AT JULY 28, 2018 119 30.56 Granted 45 47.71 Vested (50 ) 29.25 $ 2,446 Canceled/forfeited/other (14 ) 32.01 UNVESTED BALANCE AT JULY 27, 2019 100 38.66 Granted 49 42.61 Vested (44 ) 35.20 $ 2,045 Canceled/forfeited/other (9 ) 40.45 UNVESTED BALANCE AT JULY 25, 2020 96 $ 42.03 |
Schedule of Valuation Assumptions for Time-based RSUs and PRSUs | The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows: RESTRICTED STOCK UNITS Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Number of shares granted (in millions) 47 43 43 Grant date fair value per share $ 42.68 $ 47.75 $ 35.81 Weighted-average assumptions/inputs: Expected dividend yield 3.1 % 2.7 % 3.2 % Range of risk-free interest rates 0.0% – 2.0% 0.0% – 2.9% 0.0% – 2.7% PERFORMANCE BASED RESTRICTED STOCK UNITS Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Number of shares granted (in millions) 2 2 3 Grant date fair value per share $ 41.91 $ 47.00 $ 32.69 Weighted-average assumptions/inputs: Expected dividend yield 2.8 % 2.8 % 3.5 % Range of risk-free interest rates 1.7% – 2.0% 2.1% – 3.0% 1.0% – 2.7% Range of expected volatilities for index 13.7% - 69.0% 13.0% - 65.2% 12.5% – 82.8% |
Schedule of Valuation Assumptions for Employee Stock Purchase Rights | The assumptions for the valuation of employee stock purchase rights are summarized as follows: EMPLOYEE STOCK PURCHASE RIGHTS Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Weighted-average assumptions: Expected volatility 22.2 % 20.4 % 22.1 % Risk-free interest rate 1.8 % 1.9 % 1.3 % Expected dividend 3.0 % 3.0 % 3.1 % Expected life (in years) 1.3 1.3 1.3 Weighted-average estimated grant date fair value per share $ 10.20 $ 9.06 $ 7.48 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Equity [Abstract] | |
Components of AOCI, Net of Tax | The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, are summarized as follows (in millions): Net Unrealized Gains (Losses) on Available-for-Sale Investments Net Unrealized Gains (Losses) Cash Flow Hedging Instruments Cumulative Translation Adjustment and Actuarial Gains and Losses Accumulated Other Comprehensive Income (Loss) BALANCE AT JULY 29, 2017 $ 373 $ 32 $ (359 ) $ 46 Other comprehensive income (loss) before reclassifications (543 ) 21 (159 ) (681 ) (Gains) losses reclassified out of AOCI (287 ) (68 ) 7 (348 ) Tax benefit (expense) 93 4 (8 ) 89 Total change for the period (737 ) (43 ) (160 ) (940 ) Effect of adoption of accounting standard 54 — (9 ) 45 BALANCE AT JULY 28, 2018 (310 ) (11 ) (528 ) (849 ) Other comprehensive income (loss) before reclassifications 560 — (267 ) 293 (Gains) losses reclassified out of AOCI 13 (3 ) 2 12 Tax benefit (expense) (95 ) — 15 (80 ) Total change for the period 478 (3 ) (250 ) 225 Effect of adoption of accounting standard (168 ) — — (168 ) BALANCE AT JULY 27, 2019 — (14 ) (778 ) (792 ) Other comprehensive income (loss) before reclassifications 420 7 (51 ) 376 (Gains) losses reclassified out of AOCI (42 ) 1 6 (35 ) Tax benefit (expense) (63 ) — (5 ) (68 ) BALANCE AT JULY 25, 2020 $ 315 $ (6 ) $ (828 ) $ (519 ) |
Reclassifications out of AOCI | The net gains (losses) reclassified out of AOCI into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Comprehensive Income Components Income Before Taxes Line Item in Statements of Operations Net unrealized gains and losses on available-for-sale investments $ 42 $ (13 ) $ 287 Other income (loss), net Net unrealized gains and losses on cash flow hedging instruments Foreign currency derivatives (1 ) 2 — Revenue Foreign currency derivatives — — 16 Cost of sales Foreign currency derivatives — 1 52 Operating expenses (1 ) 3 68 Cumulative translation adjustment and actuarial gains and losses — — (7 ) Operating expenses Cumulative translation adjustment and actuarial gains and losses (6 ) (2 ) — Other income (loss), net Total amounts reclassified out of AOCI $ 35 $ (12 ) $ 348 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes consists of the following (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Federal: Current $ 1,101 $ 1,760 $ 9,900 Deferred (374 ) (84 ) 1,156 727 1,676 11,056 State: Current 264 302 340 Deferred 287 (2 ) (232 ) 551 300 108 Foreign: Current 1,429 1,238 1,789 Deferred 49 (264 ) (24 ) 1,478 974 1,765 Total $ 2,756 $ 2,950 $ 12,929 |
Income Before Provision for Income Taxes | Income before provision for income taxes consists of the following (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 United States $ 7,534 $ 7,611 $ 3,765 International 6,436 6,960 9,274 Total $ 13,970 $ 14,571 $ 13,039 |
Difference Between Income Taxes at Federal Statutory Rate and Provision for Income Taxes | The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following: Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Federal statutory rate 21.0 % 21.0 % 27.0 % Effect of: State taxes, net of federal tax benefit 3.5 2.0 0.6 Foreign income at other than U.S. rates (1.5 ) (4.5 ) (5.2 ) Tax credits (0.9 ) (1.7 ) (2.5 ) Foreign-derived intangible income deduction (2.6 ) (1.3 ) — Domestic manufacturing deduction — — (0.5 ) Stock-based compensation (0.1 ) (0.6 ) (0.1 ) Impact of the Tax Act — 6.1 80.1 Other, net 0.3 (0.8 ) (0.2 ) Total 19.7 % 20.2 % 99.2 % |
Aggregate Changes in Gross Unrecognized Tax Benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Beginning balance $ 1,925 $ 2,000 $ 1,973 Additions based on tax positions related to the current year 188 185 251 Additions for tax positions of prior years 554 84 84 Reductions for tax positions of prior years (136 ) (283 ) (129 ) Settlements (4 ) (38 ) (124 ) Lapse of statute of limitations (9 ) (23 ) (55 ) Ending balance $ 2,518 $ 1,925 $ 2,000 |
Components of Deferred Tax Assets and Liabilities | The following table presents the breakdown for net deferred tax assets (in millions): July 25, 2020 July 27, 2019 Deferred tax assets $ 3,990 $ 4,065 Deferred tax liabilities (81 ) (95 ) Total net deferred tax assets $ 3,909 $ 3,970 The following table presents the components of the deferred tax assets and liabilities (in millions): July 25, 2020 July 27, 2019 ASSETS Allowance for doubtful accounts and returns $ 110 $ 127 Sales-type and direct-financing leases 179 176 Inventory write-downs and capitalization 350 409 Deferred foreign income 253 — IPR&D, goodwill, and purchased intangible assets 1,289 1,427 Deferred revenue 1,182 1,150 Credits and net operating loss carryforwards 1,105 1,241 Share-based compensation expense 135 164 Accrued compensation 353 342 Lease liabilities 240 — Other 571 419 Gross deferred tax assets 5,767 5,455 Valuation allowance (700 ) (457 ) Total deferred tax assets 5,067 4,998 LIABILITIES Purchased intangible assets (577 ) (705 ) Depreciation (179 ) (141 ) Unrealized gains on investments (119 ) (70 ) ROU lease assets (222 ) — Other (61 ) (112 ) Total deferred tax liabilities (1,158 ) (1,028 ) Total net deferred tax assets $ 3,909 $ 3,970 |
Segment Information and Major_2
Segment Information and Major Customers (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments | Summarized financial information by segment for fiscal 2020, 2019, and 2018 , based on our internal management system and as utilized by our Chief Operating Decision Maker (CODM), is as follows (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Americas $ 29,291 $ 30,927 $ 29,070 EMEA 12,659 13,100 12,425 APJC 7,352 7,877 7,834 Total $ 49,301 $ 51,904 $ 49,330 Gross margin: Americas $ 19,547 $ 20,338 $ 18,792 EMEA 8,304 8,457 7,945 APJC 4,688 4,683 4,726 Segment total 32,538 33,479 31,463 Unallocated corporate items (855 ) (813 ) (857 ) Total $ 31,683 $ 32,666 $ 30,606 |
Revenue for Groups of Similar Products and Services | The following table presents this disaggregation of revenue (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Infrastructure Platforms $ 27,122 $ 30,099 $ 28,286 Applications 5,568 5,803 5,036 Security 3,154 2,821 2,388 Other Products 135 281 999 Total Product 35,978 39,005 36,709 Services 13,323 12,899 12,621 Total (1) $ 49,301 $ 51,904 $ 49,330 Amounts may not sum due to rounding. We have made certain reclassifications to the product revenue amounts for prior years to conform to the current year’s presentation. (1) During the second quarter of fiscal 2019, we completed the divestiture of the Service Provider Video Software Solutions (SPVSS) business. Total revenue includes SPVSS business revenue of $168 million and $903 million for fiscal 2019 and 2018 , respectively. The following table presents revenue for groups of similar products and services (in millions): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Revenue: Infrastructure Platforms $ 27,122 $ 30,099 $ 28,286 Applications 5,568 5,803 5,036 Security 3,154 2,821 2,388 Other Products 135 281 999 Total Product 35,978 39,005 36,709 Services 13,323 12,899 12,621 Total (1) $ 49,301 $ 51,904 $ 49,330 (1) Includes SPVSS business revenue of $168 million and $903 million for fiscal 2019 and 2018 , respectively. |
Property and Equipment Information for Geographic Areas | The following table presents our long-lived assets, which consists of property and equipment, net and operating lease right-of-use assets information for geographic areas (in millions): July 25, 2020 July 27, 2019 July 28, 2018 Long-lived assets: United States $ 2,328 $ 2,266 $ 2,487 International 1,046 523 519 Total $ 3,374 $ 2,789 $ 3,006 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income per Share | The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts): Years Ended July 25, 2020 July 27, 2019 July 28, 2018 Net income $ 11,214 $ 11,621 $ 110 Weighted-average shares—basic 4,236 4,419 4,837 Effect of dilutive potential common shares 18 34 44 Weighted-average shares—diluted 4,254 4,453 4,881 Net income per share—basic $ 2.65 $ 2.63 $ 0.02 Net income per share—diluted $ 2.64 $ 2.61 $ 0.02 Antidilutive employee share-based awards, excluded 76 55 61 |
Supplementary Financial Data _2
Supplementary Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jul. 25, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarters Ended July 25, 2020 April 25, 2020 January 25, 2020 October 26, 2019 Revenue $ 12,154 $ 11,983 $ 12,005 $ 13,159 Gross margin $ 7,684 $ 7,771 $ 7,764 $ 8,464 Operating income $ 3,247 $ 3,414 $ 3,380 $ 3,579 Net income $ 2,636 $ 2,774 $ 2,878 $ 2,926 Net income per share - basic $ 0.62 $ 0.66 $ 0.68 $ 0.69 Net income per share - diluted $ 0.62 $ 0.65 $ 0.68 $ 0.68 Cash dividends declared per common share $ 0.36 $ 0.36 $ 0.35 $ 0.35 Cash and cash equivalents and investments $ 29,419 $ 28,574 $ 27,062 $ 28,035 Quarters Ended July 27, 2019 (1) April 27, 2019 January 26, 2019 October 27, 2018 Revenue $ 13,428 $ 12,958 $ 12,446 $ 13,072 Gross margin $ 8,574 $ 8,173 $ 7,773 $ 8,146 Operating income $ 3,690 $ 3,513 $ 3,211 $ 3,805 Net income $ 2,206 $ 3,044 $ 2,822 $ 3,549 Net income per share - basic $ 0.52 $ 0.70 $ 0.63 $ 0.78 Net income per share - diluted $ 0.51 $ 0.69 $ 0.63 $ 0.77 Cash dividends declared per common share $ 0.35 $ 0.35 $ 0.33 $ 0.33 Cash and cash equivalents and investments $ 33,413 $ 34,643 $ 40,383 $ 42,593 (1) In the fourth quarter of fiscal 2019, we recorded an $872 million charge which was the reversal of the previously recorded benefit associated with the U.S. taxation of deemed foreign dividends recorded in fiscal 2018 as a result of a retroactive final U.S. Treasury regulation issued during the quarter. |
Basis of Presentation (Details)
Basis of Presentation (Details) | 12 Months Ended |
Jul. 25, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic segments | 3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Millions | 12 Months Ended | |||
Jul. 25, 2020USD ($)rating | Jul. 27, 2019USD ($) | Jul. 28, 2018USD ($) | Jul. 28, 2019USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Average lease term | 4 years | |||
Loan receivables term | 3 years | |||
Investment credit risk ratings lowest range (credit risk rating) | rating | 1 | |||
Investment credit risk ratings range highest (credit risk rating) | rating | 10 | |||
Rating at or higher when receivables deemed impaired (credit risk rating) | rating | 8 | |||
Threshold for past due receivables | 31 days | |||
Threshold for not accruing interest | 120 days | |||
Depreciation and amortization expenses | $ 900 | $ 1,000 | $ 1,100 | |
Allowance for future sales returns | 79 | 84 | ||
Advertising costs | 187 | $ 204 | $ 166 | |
Right-of-use assets | 921 | |||
Operating lease liabilities | $ 1,002 | |||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||
Accounting Standards Update 2016-02 | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Right-of-use assets | $ 1,200 | |||
Operating lease liabilities | $ 1,200 | |||
Maximum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Loan receivables term | 3 years | |||
Financed service contracts term | 3 years | |||
Channel partners revolving short-term financing payment term | 90 days | |||
End user lease and loan term | 3 years | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Financed service contracts term | 1 year | |||
Channel partners revolving short-term financing payment term | 60 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Depreciation Period by Type of Assets (Details) | 12 Months Ended |
Jul. 25, 2020 | |
Buildings | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 25 years |
Building improvements | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 10 years |
Computer equipment and related software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 36 months |
Computer equipment and related software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 months |
Production, engineering, and other equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 12,154 | $ 11,983 | $ 12,005 | $ 13,159 | $ 13,428 | $ 12,958 | $ 12,446 | $ 13,072 | $ 49,301 | $ 51,904 | $ 49,330 |
Disposed of by sale | SPVSS Business | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 168 | 903 | |||||||||
Product | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 35,978 | 39,005 | 36,709 | ||||||||
Infrastructure Platforms | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 27,122 | 30,099 | 28,286 | ||||||||
Applications | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 5,568 | 5,803 | 5,036 | ||||||||
Security | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3,154 | 2,821 | 2,388 | ||||||||
Other Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 135 | 281 | 999 | ||||||||
Service | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 13,323 | $ 12,899 | $ 12,621 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 25, 2020 | Jul. 27, 2019 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Payment terms | 30 days | |
Accounts receivable, net | $ 5,472 | $ 5,491 |
Deferred revenue | 20,446 | 18,467 |
Revenue recognized | 10,600 | |
Total deferred sales commissions | 732 | 750 |
Amortization of sales commissions, expense | 477 | 471 |
Software and Service Agreements | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Total contract assets | $ 1,200 | $ 860 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jan. 23, 2021USD ($) | Jul. 25, 2020USD ($)acquisition | Jul. 27, 2019USD ($) | Jul. 28, 2018USD ($)acquisitiondivestiture | Oct. 28, 2018USD ($) | |
Divestiture [Line Items] | |||||
Number of business combinations (acquisition) | acquisition | 6 | 8 | |||
Cash and cash equivalents acquired | $ 23 | $ 100 | |||
Total purchase consideration | 359 | 2,686 | $ 3,200 | ||
General and Administrative Expense | |||||
Divestiture [Line Items] | |||||
Total transaction costs | $ 21 | $ 21 | $ 41 | ||
Forecast | Acacia Communications, Inc. | |||||
Divestiture [Line Items] | |||||
Cash payments for acquisition | $ 2,600 | ||||
Disposed of by sale | |||||
Divestiture [Line Items] | |||||
Number of divestitures (divestiture) | divestiture | 2 | ||||
Disposed of by sale | Service Provider Video Software Solutions Business | |||||
Divestiture [Line Items] | |||||
Disposal group, tangible assets | $ 160 | ||||
Disposal group, goodwill and intangible assets | 340 | ||||
Disposal group, liabilities | $ 200 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Summary of Allocation of Total Purchase Consideration (Details) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020USD ($)acquisition | Jul. 27, 2019USD ($)acquisition | Jul. 28, 2018USD ($)acquisition | |
Business Acquisition [Line Items] | |||
Number of business combinations (acquisition) | acquisition | 6 | 8 | |
Purchase Consideration | $ 359 | $ 2,686 | $ 3,200 |
Net Tangible Assets Acquired (Liabilities Assumed) | (11) | (74) | |
Purchased Intangible Assets | 172 | 672 | |
Goodwill | $ 198 | 2,088 | |
Duo | |||
Business Acquisition [Line Items] | |||
Purchase Consideration | 2,025 | ||
Net Tangible Assets Acquired (Liabilities Assumed) | (57) | ||
Purchased Intangible Assets | 342 | ||
Goodwill | 1,740 | ||
Luxtera | |||
Business Acquisition [Line Items] | |||
Purchase Consideration | 596 | ||
Net Tangible Assets Acquired (Liabilities Assumed) | (19) | ||
Purchased Intangible Assets | 319 | ||
Goodwill | $ 296 | ||
Others | |||
Business Acquisition [Line Items] | |||
Number of business combinations (acquisition) | acquisition | 3 | ||
Purchase Consideration | $ 65 | ||
Net Tangible Assets Acquired (Liabilities Assumed) | 2 | ||
Purchased Intangible Assets | 11 | ||
Goodwill | $ 52 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets - Schedule of Goodwill by Reportable Segments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 25, 2020 | Jul. 27, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 33,529 | $ 31,706 |
Acquisitions & Divestitures | 198 | 2,000 |
Foreign Currency Translation and Other | 79 | (177) |
Ending balance | 33,806 | 33,529 |
Americas | ||
Goodwill [Roll Forward] | ||
Beginning balance | 21,120 | 19,998 |
Acquisitions & Divestitures | 132 | 1,240 |
Foreign Currency Translation and Other | 52 | (118) |
Ending balance | 21,304 | 21,120 |
EMEA | ||
Goodwill [Roll Forward] | ||
Beginning balance | 7,977 | 7,529 |
Acquisitions & Divestitures | 44 | 486 |
Foreign Currency Translation and Other | 19 | (38) |
Ending balance | 8,040 | 7,977 |
APJC | ||
Goodwill [Roll Forward] | ||
Beginning balance | 4,432 | 4,179 |
Acquisitions & Divestitures | 22 | 274 |
Foreign Currency Translation and Other | 8 | (21) |
Ending balance | $ 4,462 | $ 4,432 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets - Schedule of Intangible Assets Acquired Through Business Combinations (Details) | 12 Months Ended | ||
Jul. 25, 2020USD ($)acquisition | Jul. 27, 2019USD ($)acquisition | Jul. 28, 2018acquisition | |
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Number of business combinations (acquisition) | acquisition | 6 | 8 | |
Purchased Intangible Assets | $ 172,000,000 | $ 672,000,000 | |
IPR&D | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 0 | 333,000,000 | |
TECHNOLOGY | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 4 years 9 months 18 days | ||
Finite lived intangible assets acquired | $ 161,000,000 | 166,000,000 | |
CUSTOMER RELATIONSHIPS | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 4 years 2 months 12 days | ||
Finite lived intangible assets acquired | $ 10,000,000 | 152,000,000 | |
OTHER | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 1 year 6 months | ||
Finite lived intangible assets acquired | $ 1,000,000 | 21,000,000 | |
Duo | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Purchased Intangible Assets | 342,000,000 | ||
Duo | IPR&D | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 77,000,000 | ||
Duo | TECHNOLOGY | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 5 years | ||
Finite lived intangible assets acquired | $ 153,000,000 | ||
Duo | CUSTOMER RELATIONSHIPS | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 5 years | ||
Finite lived intangible assets acquired | $ 94,000,000 | ||
Duo | OTHER | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 2 years 6 months | ||
Finite lived intangible assets acquired | $ 18,000,000 | ||
Luxtera | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Purchased Intangible Assets | 319,000,000 | ||
Luxtera | IPR&D | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Indefinite-lived intangible assets acquired | $ 256,000,000 | ||
Luxtera | TECHNOLOGY | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 4 years | ||
Finite lived intangible assets acquired | $ 2,000,000 | ||
Luxtera | CUSTOMER RELATIONSHIPS | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 5 years | ||
Finite lived intangible assets acquired | $ 58,000,000 | ||
Luxtera | OTHER | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 1 year 7 months 6 days | ||
Finite lived intangible assets acquired | $ 3,000,000 | ||
Others | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Number of business combinations (acquisition) | acquisition | 3 | ||
Purchased Intangible Assets | $ 11,000,000 | ||
Others | TECHNOLOGY | |||
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items] | |||
Weighted- Average Useful Life (in Years) | 4 years 4 months 24 days | ||
Finite lived intangible assets acquired | $ 11,000,000 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets - Schedule of Purchased Intangible Assets with Finite and Indefinite Lives (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | $ 4,084 | $ 4,151 |
Accumulated Amortization | (2,721) | (2,286) |
Total purchased intangible assets with finite lives, net | 1,363 | 1,865 |
In-process research and development, with indefinite lives | 213 | 336 |
Total finite and indefinite lives intangible assets, gross | 4,297 | 4,487 |
Total finite and indefinite lives intangible assets, net | 1,576 | 2,201 |
Technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 3,298 | 3,270 |
Accumulated Amortization | (2,336) | (1,933) |
Total purchased intangible assets with finite lives, net | 962 | 1,337 |
Customer relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 760 | 840 |
Accumulated Amortization | (365) | (331) |
Total purchased intangible assets with finite lives, net | 395 | 509 |
Other | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross | 26 | 41 |
Accumulated Amortization | (20) | (22) |
Total purchased intangible assets with finite lives, net | $ 6 | $ 19 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangible Assets - Schedule of Amortization of Purchased Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items] | |||
Amortization of purchased intangible assets | $ 141 | $ 150 | $ 221 |
Cost of sales | |||
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items] | |||
Amortization of purchased intangible assets | 659 | 624 | 640 |
Operating expenses | |||
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items] | |||
Amortization of purchased intangible assets | 141 | 150 | 221 |
Total | |||
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items] | |||
Amortization of purchased intangible assets | $ 800 | $ 774 | $ 861 |
Goodwill and Purchased Intang_7
Goodwill and Purchased Intangible Assets - Schedule of Estimated Future Amortization Expense of Purchased Intangible Assets (Details) $ in Millions | Jul. 25, 2020USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2021 | $ 633 |
2022 | 371 |
2023 | 229 |
2024 | 118 |
2025 | $ 12 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | Sep. 03, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 481 | $ 322 | $ 358 | |
Fiscal 2020 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected pretax restructuring charges | 300 | |||
Restructuring charges | $ 255 | |||
Subsequent event | Fiscal 2021 Plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected pretax restructuring charges | $ 900 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Activities Related to Restructuring and Other Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | $ 33 | $ 73 | $ 117 |
Charges | 481 | 322 | 358 |
Cash payments | (327) | (299) | (372) |
Non-cash items | (115) | (63) | (30) |
Liability, end of period | 72 | 33 | 73 |
FISCAL 2018 AND PRIOR PLANS | Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | 22 | 60 | 74 |
Charges | 209 | 252 | 319 |
Cash payments | (224) | (289) | (335) |
Non-cash items | 0 | (1) | 2 |
Liability, end of period | 7 | 22 | 60 |
FISCAL 2018 AND PRIOR PLANS | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | 11 | 13 | 43 |
Charges | 17 | 70 | 39 |
Cash payments | (3) | (10) | (37) |
Non-cash items | (23) | (62) | (32) |
Liability, end of period | 2 | 11 | 13 |
FISCAL 2020 PLAN | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 255 | ||
FISCAL 2020 PLAN | Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | 0 | 0 | 0 |
Charges | 144 | 0 | 0 |
Cash payments | (93) | 0 | 0 |
Non-cash items | 0 | 0 | 0 |
Liability, end of period | 51 | 0 | 0 |
FISCAL 2020 PLAN | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability, beginning of period | 0 | 0 | 0 |
Charges | 111 | 0 | 0 |
Cash payments | (7) | 0 | 0 |
Non-cash items | (92) | 0 | 0 |
Liability, end of period | $ 12 | $ 0 | $ 0 |
Balance Sheet Details (Details)
Balance Sheet Details (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | Jul. 29, 2017 | |
Cash, Cash Equivalents, and Restricted Cash: | ||||
Cash and cash equivalents | $ 11,809 | $ 11,750 | ||
Restricted cash included in other current assets | 0 | 21 | ||
Restricted cash included in other assets | 3 | 1 | ||
Total cash, cash equivalents, and restricted cash | 11,812 | 11,772 | $ 8,993 | $ 11,773 |
Inventories: | ||||
Raw materials | 456 | 374 | ||
Work in process | 25 | 10 | ||
Finished goods: | ||||
Deferred cost of sales | 59 | 109 | ||
Manufactured finished goods | 542 | 643 | ||
Total finished goods | 601 | 752 | ||
Service-related spares | 184 | 225 | ||
Demonstration systems | 16 | 22 | ||
Total | 1,282 | 1,383 | ||
Provision for inventory | 74 | 77 | $ 63 | |
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 11,014 | 12,039 | ||
Less: accumulated depreciation and amortization | (8,561) | (9,250) | ||
Total | 2,453 | 2,789 | ||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue | 20,446 | 18,467 | ||
Current | 11,406 | 10,668 | ||
Noncurrent | 9,040 | 7,799 | ||
Disaggregation of Revenue [Line Items] | ||||
Remaining performance obligation | 28,354 | 25,305 | ||
Service | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue | 12,551 | 11,709 | ||
Disaggregation of Revenue [Line Items] | ||||
Remaining performance obligation | 17,093 | 15,702 | ||
Product | ||||
Deferred Revenue Arrangement [Line Items] | ||||
Deferred revenue | 7,895 | 6,758 | ||
Disaggregation of Revenue [Line Items] | ||||
Remaining performance obligation | 11,261 | 9,603 | ||
Land, buildings, and building and leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 4,252 | 4,545 | ||
Computer equipment and related software | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 875 | 922 | ||
Production, engineering, and other equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 5,163 | 5,711 | ||
Operating lease assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 337 | 485 | ||
Less: accumulated depreciation and amortization | (198) | |||
Total | 139 | |||
Furniture, fixtures and other | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | $ 387 | $ 376 |
Balance Sheet Details - Additio
Balance Sheet Details - Additional Information (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 20,446 | $ 18,467 |
Remaining performance obligation | 28,354 | 25,305 |
Unbilled Contract Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Remaining performance obligation | $ 7,900 | $ 6,800 |
Balance Sheet Details - Remaini
Balance Sheet Details - Remaining Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-26 | Jul. 25, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 54.00% |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 12 Months Ended |
Jul. 25, 2020USD ($) | |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 921 |
Operating lease, right-of-use asset, statement of financial position [Extensible List] | us-gaap:OtherAssets |
Operating lease liabilities | $ 1,002 |
Operating lease liabilities, current | $ 341 |
Operating lease, liability, current, statement of financial position [Extensible List] | us-gaap:OtherLiabilitiesCurrent |
Operating lease liabilities, noncurrent | $ 661 |
Operating lease, liability, noncurrent, statement of financial position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Weighted-average remaining lease term (in years) | 4 years |
Weighted-average discount rate | 1.50% |
Sales-type lease term, on average | 4 years |
Interest income, lease receivables | $ 94 |
Operating lease income | $ 190 |
Leases - Lease expense (Details
Leases - Lease expense (Details) $ in Millions | 12 Months Ended |
Jul. 25, 2020USD ($) | |
Leases [Abstract] | |
Operating lease expense | $ 428 |
Short-term lease expense | 69 |
Variable lease expense | 157 |
Total lease expense | $ 654 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) $ in Millions | 12 Months Ended |
Jul. 25, 2020USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows | $ 413 |
Right-of-use assets obtained in exchange for operating leases liabilities | $ 197 |
Leases - Lessee Arrangements, M
Leases - Lessee Arrangements, Maturities of Operating Leases (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2021 | $ 354 | |
2022 | 247 | |
2023 | 192 | |
2024 | 120 | |
2025 | 68 | |
Thereafter | 52 | |
Total lease payments | 1,033 | |
Less interest | (31) | |
Total | $ 1,002 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2020 | $ 441 | |
2021 | 299 | |
2022 | 195 | |
2023 | 120 | |
2024 | 70 | |
Thereafter | 54 | |
Total | $ 1,179 |
Leases - Lessor Arrangements, F
Leases - Lessor Arrangements, Future Minimum Lease Payments (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Future Minimum Lease Payments, After Topic 842 Adoption [Abstract] | ||
2021 | $ 946 | |
2022 | 590 | |
2023 | 353 | |
2024 | 166 | |
2025 | 72 | |
Total | 2,127 | |
Less: Present value of lease payments | 2,013 | |
Difference between undiscounted cash flows and discounted cash flows | $ 114 | |
Future Minimum Lease Payments, Prior to Topic 842 Adoption [Abstract] | ||
2020 | $ 1,028 | |
2021 | 702 | |
2022 | 399 | |
2023 | 185 | |
2024 | 53 | |
Total | $ 2,367 |
Leases - Operating Lease Assets
Leases - Operating Lease Assets (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Lessor, Lease, Description [Line Items] | ||
Operating lease assets | $ 11,014 | $ 12,039 |
Accumulated depreciation | (8,561) | (9,250) |
Total | 2,453 | 2,789 |
Property Subject to or Available for Operating Lease, Net [Abstract] | ||
Operating lease assets | 485 | |
Accumulated depreciation | (306) | |
Operating lease assets, net | 179 | |
Operating lease assets | ||
Lessor, Lease, Description [Line Items] | ||
Operating lease assets | 337 | $ 485 |
Accumulated depreciation | (198) | |
Total | $ 139 |
Leases - Minimum Future Rental
Leases - Minimum Future Rental Payments (Details) $ in Millions | Jul. 25, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 74 |
2022 | 27 |
2023 | 7 |
Total | $ 108 |
Financing Receivables - Additio
Financing Receivables - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 25, 2020 | Jul. 27, 2019 | |
Financing Receivables And Guarantees [Line Items] | ||
Average lease term | 4 years | |
Loan receivables term | 3 years | |
Threshold for past due receivables | 31 days | |
Financing receivables 91 days past due and still accruing | $ 67 | $ 215 |
Minimum | ||
Financing Receivables And Guarantees [Line Items] | ||
Financed service contracts term | 1 year | |
Maximum | ||
Financing Receivables And Guarantees [Line Items] | ||
Loan receivables term | 3 years | |
Financed service contracts term | 3 years |
Financing Receivables - Schedul
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | Jul. 29, 2017 |
Financing Receivables [Line Items] | ||||
Gross | $ 10,894 | $ 10,174 | ||
Residual value | 123 | |||
Residual value | 142 | |||
Unearned income | (114) | (137) | ||
Allowance for credit loss | (138) | (126) | $ (205) | $ (295) |
Reported as: | ||||
Current | 5,051 | 5,095 | ||
Noncurrent | 5,714 | 4,958 | ||
Total, net | 10,765 | 10,053 | ||
Lease Receivables | ||||
Financing Receivables [Line Items] | ||||
Gross | 2,127 | 2,367 | ||
Residual value | 123 | |||
Residual value | 142 | |||
Unearned income | (114) | (137) | ||
Allowance for credit loss | (48) | (46) | (135) | (162) |
Reported as: | ||||
Current | 918 | 1,029 | ||
Noncurrent | 1,170 | 1,297 | ||
Total, net | 2,088 | 2,326 | ||
Loan Receivables | ||||
Financing Receivables [Line Items] | ||||
Gross | 5,937 | 5,438 | ||
Unearned income | 0 | 0 | ||
Allowance for credit loss | (81) | (71) | (60) | (103) |
Reported as: | ||||
Current | 2,692 | 2,653 | ||
Noncurrent | 3,164 | 2,714 | ||
Total, net | 5,856 | 5,367 | ||
Financed Service Contracts | ||||
Financing Receivables [Line Items] | ||||
Gross | 2,830 | 2,369 | ||
Unearned income | 0 | 0 | ||
Allowance for credit loss | (9) | (9) | $ (10) | $ (30) |
Reported as: | ||||
Current | 1,441 | 1,413 | ||
Noncurrent | 1,380 | 947 | ||
Total, net | $ 2,821 | $ 2,360 |
Financing Receivables - Sched_2
Financing Receivables - Schedule of Financing Receivables Categorized by Internal Credit Risk Rating (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | $ 10,780 | $ 10,037 |
1 to 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 6,445 | 5,984 |
5 to 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 4,066 | 3,850 |
7 and Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 269 | 203 |
Lease receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 2,013 | 2,230 |
Lease receivables | 1 to 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 992 | 1,204 |
Lease receivables | 5 to 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 952 | 991 |
Lease receivables | 7 and Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 69 | 35 |
Loan receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 5,937 | 5,438 |
Loan receivables | 1 to 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 3,808 | 3,367 |
Loan receivables | 5 to 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 1,961 | 1,920 |
Loan receivables | 7 and Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 168 | 151 |
Financed service contracts | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 2,830 | 2,369 |
Financed service contracts | 1 to 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 1,645 | 1,413 |
Financed service contracts | 5 to 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | 1,153 | 939 |
Financed service contracts | 7 and Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross receivables | $ 32 | $ 17 |
Financing Receivables - Sched_3
Financing Receivables - Schedule of Aging Analysis of Financing Receivables (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 677 | $ 1,643 |
Current | 10,103 | 8,394 |
Total | 10,780 | 10,037 |
Nonaccrual Financing Receivables | 112 | 47 |
Impaired Financing Receivables | 112 | 47 |
Past due 31 - 60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 227 | 503 |
Past due 61 -90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 200 | 240 |
Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 250 | 900 |
Lease Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 124 | 434 |
Current | 1,889 | 1,796 |
Total | 2,013 | 2,230 |
Nonaccrual Financing Receivables | 43 | 13 |
Impaired Financing Receivables | 43 | 13 |
Lease Receivables | Past due 31 - 60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 29 | 101 |
Lease Receivables | Past due 61 -90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 47 | 42 |
Lease Receivables | Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 48 | 291 |
Loan Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 285 | 662 |
Current | 5,652 | 4,776 |
Total | 5,937 | 5,438 |
Nonaccrual Financing Receivables | 65 | 31 |
Impaired Financing Receivables | 65 | 31 |
Loan Receivables | Past due 31 - 60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 129 | 257 |
Loan Receivables | Past due 61 -90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 78 | 67 |
Loan Receivables | Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 78 | 338 |
Financed service contracts | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 268 | 547 |
Current | 2,562 | 1,822 |
Total | 2,830 | 2,369 |
Nonaccrual Financing Receivables | 4 | 3 |
Impaired Financing Receivables | 4 | 3 |
Financed service contracts | Past due 31 - 60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 69 | 145 |
Financed service contracts | Past due 61 -90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 75 | 131 |
Financed service contracts | Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 124 | $ 271 |
Financing Receivables - Summary
Financing Receivables - Summary of Allowances for Credit Loss and Related Financing Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit loss, beginning of period | $ 126 | $ 205 | $ 295 |
Provisions (benefits) | 38 | (16) | (89) |
Recoveries (write-offs), net | (22) | (42) | (6) |
Foreign exchange and other | (4) | (21) | 5 |
Allowance for credit loss, end of period | 138 | 126 | 205 |
Lease Receivables | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit loss, beginning of period | 46 | 135 | 162 |
Provisions (benefits) | 5 | (54) | (26) |
Recoveries (write-offs), net | (3) | (14) | (1) |
Foreign exchange and other | 0 | (21) | 0 |
Allowance for credit loss, end of period | 48 | 46 | 135 |
Loan Receivables | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit loss, beginning of period | 71 | 60 | 103 |
Provisions (benefits) | 32 | 11 | (43) |
Recoveries (write-offs), net | (19) | 0 | (5) |
Foreign exchange and other | (3) | 0 | 5 |
Allowance for credit loss, end of period | 81 | 71 | 60 |
Financed Service Contracts | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit loss, beginning of period | 9 | 10 | 30 |
Provisions (benefits) | 1 | 27 | (20) |
Recoveries (write-offs), net | 0 | (28) | 0 |
Foreign exchange and other | (1) | 0 | 0 |
Allowance for credit loss, end of period | $ 9 | $ 9 | $ 10 |
Available-for-Sale Debt and E_3
Available-for-Sale Debt and Equity Investments - Summary of Available-for-sale Debt Investments and Equity Investments (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale debt investments | $ 17,610 | $ 21,660 |
Marketable equity securities | 0 | 3 |
Total investments | 17,610 | 21,663 |
Non-marketable equity securities included in other assets | 1,207 | 1,113 |
Equity method investments included in other assets | 71 | 87 |
Total | $ 18,888 | $ 22,863 |
Available-for-Sale Debt and E_4
Available-for-Sale Debt and Equity Investments - Summary of Available-for-Sale Investments (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Schedule of Investments [Line Items] | ||
Amortized Cost | $ 17,163 | $ 21,590 |
Gross Unrealized Gains | 454 | 111 |
Gross Unrealized Losses | (7) | (41) |
Available-for-sale debt investments | 17,610 | 21,660 |
U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 2,614 | 808 |
Gross Unrealized Gains | 71 | 1 |
Gross Unrealized Losses | 0 | (1) |
Available-for-sale debt investments | 2,685 | 808 |
U.S. government agency securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 110 | 169 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Available-for-sale debt investments | 110 | 169 |
Corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 11,549 | 19,188 |
Gross Unrealized Gains | 334 | 103 |
Gross Unrealized Losses | (6) | (29) |
Available-for-sale debt investments | 11,877 | 19,262 |
U.S. agency mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 1,987 | 1,425 |
Gross Unrealized Gains | 49 | 7 |
Gross Unrealized Losses | (1) | (11) |
Available-for-sale debt investments | 2,035 | $ 1,421 |
Commercial paper | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 727 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Available-for-sale debt investments | 727 | |
Certificates of deposit | ||
Schedule of Investments [Line Items] | ||
Amortized Cost | 176 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Available-for-sale debt investments | $ 176 |
Available-for-Sale Debt and E_5
Available-for-Sale Debt and Equity Investments - Gross Realized Gains and Gross Realized Losses Related to Available-for-Sale Investment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross realized gains | $ 70 | $ 17 | $ 16 |
Gross realized losses | (28) | (30) | (258) |
Total | $ 42 | $ (13) | $ (242) |
Available-for-Sale Debt and E_6
Available-for-Sale Debt and Equity Investments - Available-for-Sale Investments With Gross Unrealized Losses (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Schedule of Investments [Line Items] | ||
Unrealized loss less than 12 months, Fair Value | $ 1,358 | $ 2,689 |
Unrealized loss less than 12 months, Gross Unrealized Losses | (7) | (4) |
Unrealized losses 12 months or greater, Fair Value | 3 | 6,775 |
Unrealized losses 12 months or greater, Gross Unrealized Losses | 0 | (37) |
Total, Fair Value | 1,361 | 9,464 |
Total, Gross Unrealized Losses | (7) | (41) |
U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Unrealized loss less than 12 months, Fair Value | 204 | |
Unrealized loss less than 12 months, Gross Unrealized Losses | 0 | |
Unrealized losses 12 months or greater, Fair Value | 488 | |
Unrealized losses 12 months or greater, Gross Unrealized Losses | (1) | |
Total, Fair Value | 692 | |
Total, Gross Unrealized Losses | (1) | |
U.S. government agency securities | ||
Schedule of Investments [Line Items] | ||
Unrealized loss less than 12 months, Fair Value | 33 | 0 |
Unrealized loss less than 12 months, Gross Unrealized Losses | 0 | 0 |
Unrealized losses 12 months or greater, Fair Value | 0 | 169 |
Unrealized losses 12 months or greater, Gross Unrealized Losses | 0 | 0 |
Total, Fair Value | 33 | 169 |
Total, Gross Unrealized Losses | 0 | 0 |
Corporate debt securities | ||
Schedule of Investments [Line Items] | ||
Unrealized loss less than 12 months, Fair Value | 1,060 | 2,362 |
Unrealized loss less than 12 months, Gross Unrealized Losses | (6) | (4) |
Unrealized losses 12 months or greater, Fair Value | 3 | 5,271 |
Unrealized losses 12 months or greater, Gross Unrealized Losses | 0 | (25) |
Total, Fair Value | 1,063 | 7,633 |
Total, Gross Unrealized Losses | (6) | (29) |
U.S. agency mortgage-backed securities | ||
Schedule of Investments [Line Items] | ||
Unrealized loss less than 12 months, Fair Value | 265 | 123 |
Unrealized loss less than 12 months, Gross Unrealized Losses | (1) | 0 |
Unrealized losses 12 months or greater, Fair Value | 0 | 847 |
Unrealized losses 12 months or greater, Gross Unrealized Losses | 0 | (11) |
Total, Fair Value | 265 | 970 |
Total, Gross Unrealized Losses | $ (1) | $ (11) |
Available-for-Sale Debt and E_7
Available-for-Sale Debt and Equity Investments - Additional Information (Details) | 12 Months Ended | |
Jul. 25, 2020USD ($)entity | Jul. 27, 2019USD ($) | |
Schedule of Investments [Line Items] | ||
Impairment charges of available-for-sale investments | $ 0 | |
Non-marketable equity securities included in other assets | $ 1,207,000,000 | $ 1,113,000,000 |
Number of variable interest entities required to be consolidated (entity) | entity | 0 | |
Investments in privately held companies | $ 1,300,000,000 | |
Funding commitments | 300,000,000 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Schedule of Investments [Line Items] | ||
Investments in privately held companies | 700,000,000 | |
Net Asset Value (NAV) | Private equity funds | ||
Schedule of Investments [Line Items] | ||
Non-marketable equity securities included in other assets | $ 700,000,000 | $ 600,000,000 |
Available-for-Sale Debt and E_8
Available-for-Sale Debt and Equity Investments - Maturities of Fixed Income Securities (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Amortized Cost | ||
Within 1 year | $ 5,773 | |
After 1 year through 5 years | 7,360 | |
After 5 years through 10 years | 2,032 | |
After 10 years | 11 | |
Mortgage-backed securities with no single maturity | 1,987 | |
Amortized Cost | 17,163 | $ 21,590 |
Fair Value | ||
Within 1 year | 5,812 | |
After 1 year through 5 years | 7,532 | |
After 5 years through 10 years | 2,218 | |
After 10 years | 13 | |
Mortgage-backed securities with no single maturity | 2,035 | |
Total | $ 17,610 | $ 21,660 |
Available-for-Sale Debt and E_9
Available-for-Sale Debt and Equity Investments - Summary of Gains and Losses and Adjustments to the Carrying Value of Marketable and Non-marketable Equity Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 25, 2020 | Jul. 27, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains and losses recognized during the period on equity investments | $ 63 | $ 58 |
Less: Net gains and losses recognized on equity investments sold | (76) | (69) |
Net unrealized gains and losses recognized during reporting period on equity securities still held at the reporting date | (13) | (11) |
Adjustments to non-marketable equity securities measured using the measurement alternative: | ||
Upward adjustments | 28 | 26 |
Downward adjustments, including impairments | (41) | (57) |
Net adjustments | $ (13) | $ (31) |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured At Fair Value On Recurring Basis (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Assets: | ||
Available-for-sale debt investments | $ 17,610 | $ 21,660 |
Marketable equity securities | 0 | 3 |
U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments | 2,685 | 808 |
U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments | 110 | 169 |
Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments | 11,877 | 19,262 |
Commercial paper | ||
Assets: | ||
Available-for-sale debt investments | 727 | |
Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments | 176 | |
Recurring | ||
Assets: | ||
Marketable equity securities | 0 | 3 |
Derivative assets | 191 | 89 |
Total | 27,833 | 31,835 |
Liabilities: | ||
Derivative liabilities | 10 | 15 |
Total | 10 | 15 |
Recurring | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments | 2,685 | 808 |
Recurring | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments | 110 | 169 |
Recurring | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments | 11,877 | 19,262 |
Recurring | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments | 2,035 | 1,421 |
Recurring | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments | 727 | 0 |
Recurring | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments | 176 | 0 |
Recurring | Money market funds | ||
Assets: | ||
Cash equivalents | 10,024 | 10,083 |
Recurring | Corporate debt securities | ||
Assets: | ||
Cash equivalents | 8 | 0 |
Recurring | Level 1 | ||
Assets: | ||
Marketable equity securities | 0 | 3 |
Derivative assets | 0 | 0 |
Total | 10,024 | 10,086 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total | 0 | 0 |
Recurring | Level 1 | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | 0 |
Recurring | Level 1 | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | 0 |
Recurring | Level 1 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | 0 |
Recurring | Level 1 | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | 0 |
Recurring | Level 1 | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments | 0 | 0 |
Recurring | Level 1 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents | 10,024 | 10,083 |
Recurring | Level 1 | Corporate debt securities | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Derivative assets | 190 | 89 |
Total | 17,808 | 21,749 |
Liabilities: | ||
Derivative liabilities | 10 | 15 |
Total | 10 | 15 |
Recurring | Level 2 | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments | 2,685 | 808 |
Recurring | Level 2 | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments | 110 | 169 |
Recurring | Level 2 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments | 11,877 | 19,262 |
Recurring | Level 2 | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments | 2,035 | 1,421 |
Recurring | Level 2 | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments | 727 | 0 |
Recurring | Level 2 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments | 176 | 0 |
Recurring | Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | 0 |
Recurring | Level 2 | Corporate debt securities | ||
Assets: | ||
Cash equivalents | 8 | $ 0 |
Recurring | Level 3 | ||
Assets: | ||
Marketable equity securities | 0 | |
Derivative assets | 1 | |
Total | 1 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Total | 0 | |
Recurring | Level 3 | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | |
Recurring | Level 3 | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | |
Recurring | Level 3 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | |
Recurring | Level 3 | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments | 0 | |
Recurring | Level 3 | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments | 0 | |
Recurring | Level 3 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments | 0 | |
Recurring | Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents | 0 | |
Recurring | Level 3 | Corporate debt securities | ||
Assets: | ||
Cash equivalents | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) | 12 Months Ended | |
Jul. 25, 2020 | Jul. 27, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, carrying value | $ 2,453,000,000 | $ 2,789,000,000 |
Long term loan receivables and financed service contracts and others carrying value | 4,500,000,000 | 3,700,000,000 |
Senior notes, carrying value | 14,583,000,000 | 20,473,000,000 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes, fair value | 17,400,000,000 | 22,100,000,000 |
Property Held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, carrying value | 9,000,000 | |
Nonrecurring | Property Held for sale | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment charge | 65,000,000 | |
IPR&D | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Indefinite-lived intangible assets acquired | $ 0 | $ 333,000,000 |
Borrowings - Schedule of Short-
Borrowings - Schedule of Short-Term Debt (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Short-term Debt [Line Items] | ||
Amount | $ 3,005 | $ 10,191 |
Current portion of long-term debt | ||
Short-term Debt [Line Items] | ||
Amount | $ 3,005 | $ 5,998 |
Effective Rate | 2.07% | 3.20% |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Amount | $ 0 | $ 4,193 |
Effective Rate | 0.00% | 2.34% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | May 15, 2020 | May 14, 2020 | Jul. 25, 2020 | Jul. 27, 2019 |
Debt Instrument [Line Items] | ||||
Derivative, notional amount | $ 7,395,000,000 | $ 8,754,000,000 | ||
Unsecured Debt | ||||
Debt Instrument [Line Items] | ||||
Credit facility, term | 364 days | 5 years | ||
Current borrowing capacity | $ 2,750,000,000 | |||
Line of credit facility, amounts outstanding | 0 | |||
Additional credit facility upon agreement | $ 2,000,000,000 | |||
Unsecured Debt | Federal Funds Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Unsecured Debt | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Unsecured Debt | Eurrocurrency Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% | |||
Derivatives designated as hedging instruments | Interest rate derivatives | ||||
Debt Instrument [Line Items] | ||||
Derivative, notional amount | 2,500,000,000 | $ 4,500,000,000 | ||
Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Commercial paper, maximum borrowing limit | $ 10,000,000,000 |
Borrowings - Schedule of Long-T
Borrowings - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 25, 2020 | Jul. 27, 2019 | |
Debt Instrument [Line Items] | ||
Total | $ 14,500 | $ 20,500 |
Unaccreted discount/issuance costs | (88) | (100) |
Hedge accounting fair value adjustments | 171 | 73 |
Total | 14,583 | 20,473 |
Short-term debt | 3,005 | 5,998 |
Long-term debt | 11,578 | 14,475 |
Three-month LIBOR plus 0.34%, Due September 20, 2019 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 0 | $ 500 |
Effective Rate | 0.00% | 2.77% |
FIxed Rate Notes 1.40% Due September 20, 2019 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.40% | |
Senior notes | $ 0 | $ 1,500 |
Effective Rate | 0.00% | 1.48% |
Fixed-Rate Notes, 4.45%, Due January 15, 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 4.45% | |
Senior notes | $ 0 | $ 2,500 |
Effective Rate | 0.00% | 4.72% |
Fixed-Rate Notes, 2.45%, Due June 15, 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.45% | |
Senior notes | $ 0 | $ 1,500 |
Effective Rate | 0.00% | 2.54% |
Fixed-Rate Notes, 2.20%, Due February 28, 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.20% | |
Senior notes | $ 2,500 | $ 2,500 |
Effective Rate | 2.30% | 2.30% |
Fixed-Rate Notes, 2.90%, Due March 4, 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.90% | |
Senior notes | $ 500 | $ 500 |
Effective Rate | 0.94% | 3.14% |
Fixed Rate Notes, 1.85% Due September 20, 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.85% | |
Senior notes | $ 2,000 | $ 2,000 |
Effective Rate | 1.90% | 1.90% |
Fixed-Rate Notes, 3.00%, Due June 15, 2022 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.00% | |
Senior notes | $ 500 | $ 500 |
Effective Rate | 1.21% | 3.36% |
Fixed-Rate Notes, 2.60%, Due February 28, 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.60% | |
Senior notes | $ 500 | $ 500 |
Effective Rate | 2.68% | 2.68% |
Fixed Rate Notes 2.20%, Due September 20, 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.20% | |
Senior notes | $ 750 | $ 750 |
Effective Rate | 2.27% | 2.27% |
Fixed-Rate Notes,3.625%, Due March 4, 2024 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.625% | |
Senior notes | $ 1,000 | $ 1,000 |
Effective Rate | 1.06% | 3.25% |
Fixed-Rate Notes,3.50%, Due June 15, 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.50% | |
Senior notes | $ 500 | $ 500 |
Effective Rate | 1.37% | 3.52% |
Fixed-Rate Notes,2.95%, Due February 28, 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.95% | |
Senior notes | $ 750 | $ 750 |
Effective Rate | 3.01% | 3.01% |
Fixed Rate Notes 2.50%, Due September 20, 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.50% | |
Senior notes | $ 1,500 | $ 1,500 |
Effective Rate | 2.55% | 2.55% |
Fixed-Rate Notes, 5.90%, Due February 15, 2039 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 5.90% | |
Senior notes | $ 2,000 | $ 2,000 |
Effective Rate | 6.11% | 6.11% |
Fixed-Rate Notes, 5.50%, Due January 15, 2040 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 5.50% | |
Senior notes | $ 2,000 | $ 2,000 |
Effective Rate | 5.67% | 5.67% |
LIBOR | Three-month LIBOR plus 0.34%, Due September 20, 2019 | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.34% |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Principal Payments for Long-Term Debt (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2021 | $ 3,000 | |
2022 | 2,500 | |
2023 | 500 | |
2024 | 1,750 | |
2025 | 500 | |
Thereafter | 6,250 | |
Total | $ 14,500 | $ 20,500 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Recorded at Fair Value (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Derivative [Line Items] | ||
DERIVATIVE ASSETS | $ 191 | $ 89 |
DERIVATIVE LIABILITIES | 10 | 15 |
Derivatives designated as hedging instruments: | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 182 | 80 |
DERIVATIVE LIABILITIES | 2 | 9 |
Derivatives designated as hedging instruments: | Foreign currency derivatives | Other current assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 7 | 5 |
Derivatives designated as hedging instruments: | Foreign currency derivatives | Other current liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | 2 | 8 |
Derivatives designated as hedging instruments: | Interest rate derivatives | Other current assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 6 | 0 |
Derivatives designated as hedging instruments: | Interest rate derivatives | Other assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 169 | 75 |
Derivatives designated as hedging instruments: | Interest rate derivatives | Other current liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | 0 | 1 |
Derivatives designated as hedging instruments: | Interest rate derivatives | Other long-term liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | 0 | 0 |
Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 9 | 9 |
DERIVATIVE LIABILITIES | 8 | 6 |
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other current assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 8 | 9 |
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other current liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | 8 | 6 |
Derivatives not designated as hedging instruments: | Equity derivatives | Other assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 1 | 0 |
Derivatives not designated as hedging instruments: | Equity derivatives | Other long-term liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | $ 0 | $ 0 |
Derivative Instruments - Cumula
Derivative Instruments - Cumulative Basis Adjustments for Fair Value Hedges (Details) - Derivatives designated as hedging instruments - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Short-term debt | ||
Derivative [Line Items] | ||
CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) | $ (506) | $ (2,000) |
CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES | (6) | 0 |
Long-term debt | ||
Derivative [Line Items] | ||
CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) | (2,159) | (2,565) |
CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES | $ (165) | $ (73) |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments on the Consolidated Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Derivative [Line Items] | |||||||||||
Revenue | $ 12,154 | $ 11,983 | $ 12,005 | $ 13,159 | $ 13,428 | $ 12,958 | $ 12,446 | $ 13,072 | $ 49,301 | $ 51,904 | $ 49,330 |
Cost of sales | 17,618 | 19,238 | 18,724 | ||||||||
Operating expenses | 18,063 | 18,447 | 18,297 | ||||||||
Interest and other income (loss), net | 350 | 352 | $ 730 | ||||||||
Revenue | |||||||||||
Derivative [Line Items] | |||||||||||
Total gains (losses) | (1) | 2 | |||||||||
Revenue | Interest rate derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged items | 0 | 0 | |||||||||
Derivatives designated as hedging instruments | 0 | 0 | |||||||||
Revenue | Foreign currency derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Amount of gains (losses) reclassified from AOCI to income | (1) | ||||||||||
Amount of gains (losses) reclassified from AOCI to income | 2 | ||||||||||
Cost of sales | |||||||||||
Derivative [Line Items] | |||||||||||
Total gains (losses) | 0 | 0 | |||||||||
Cost of sales | Interest rate derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged items | 0 | 0 | |||||||||
Derivatives designated as hedging instruments | 0 | 0 | |||||||||
Cost of sales | Foreign currency derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Amount of gains (losses) reclassified from AOCI to income | 0 | ||||||||||
Amount of gains (losses) reclassified from AOCI to income | 0 | ||||||||||
Operating expenses | |||||||||||
Derivative [Line Items] | |||||||||||
Total gains (losses) | 0 | 1 | |||||||||
Operating expenses | Interest rate derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged items | 0 | 0 | |||||||||
Derivatives designated as hedging instruments | 0 | 0 | |||||||||
Operating expenses | Foreign currency derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Amount of gains (losses) reclassified from AOCI to income | 0 | ||||||||||
Amount of gains (losses) reclassified from AOCI to income | 1 | ||||||||||
Interest and other income (loss), net | |||||||||||
Derivative [Line Items] | |||||||||||
Total gains (losses) | 3 | 7 | |||||||||
Interest and other income (loss), net | Interest rate derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Hedged items | (98) | (138) | |||||||||
Derivatives designated as hedging instruments | 101 | 145 | |||||||||
Interest and other income (loss), net | Foreign currency derivatives | |||||||||||
Derivative [Line Items] | |||||||||||
Amount of gains (losses) reclassified from AOCI to income | $ 0 | ||||||||||
Amount of gains (losses) reclassified from AOCI to income | $ 0 |
Derivative Instruments - Effe_2
Derivative Instruments - Effect of Derivative Instruments Not Designated as Hedges on Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Operating expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | $ 0 | $ 1 | |
Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | 0 | 0 | |
Derivatives not designated as hedging instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | 19 | (52) | $ 15 |
Derivatives not designated as hedging instruments | Foreign currency derivatives | Other income (loss), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | (5) | (60) | (24) |
Derivatives not designated as hedging instruments | Total return swaps—deferred compensation | Other income (loss), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | (10) | (16) | (11) |
Derivatives not designated as hedging instruments | Total return swaps—deferred compensation | Operating expenses | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | 24 | 19 | 50 |
Derivatives not designated as hedging instruments | Total return swaps—deferred compensation | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | 1 | 2 | 4 |
Derivatives not designated as hedging instruments | Equity derivatives | Other income (loss), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
GAINS (LOSSES) FOR THE YEARS ENDED | $ 9 | $ 3 | $ (4) |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Amounts of Derivatives Outstanding (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Derivative [Line Items] | ||
Derivative, notional amount | $ 7,395 | $ 8,754 |
Derivatives designated as hedging instruments | Foreign currency derivatives | ||
Derivative [Line Items] | ||
Derivative, notional amount | 743 | 663 |
Derivatives designated as hedging instruments | Interest rate derivatives | ||
Derivative [Line Items] | ||
Derivative, notional amount | 2,500 | 4,500 |
Derivatives designated as hedging instruments | Net investment hedging instruments | ||
Derivative [Line Items] | ||
Derivative, notional amount | 331 | 309 |
Derivatives not designated as hedging instruments | Foreign currency derivatives | ||
Derivative [Line Items] | ||
Derivative, notional amount | 3,241 | 2,708 |
Derivatives not designated as hedging instruments | Total return swaps—deferred compensation | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 580 | $ 574 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jul. 25, 2020 | Jul. 27, 2019 | |
Derivative [Line Items] | ||
Right of set-off, reduction in derivative assets | $ 10 | $ 13 |
Right of set-off, reduction in derivative liabilities | 10 | 13 |
Cash collateral | 173 | 76 |
Net derivative asset | $ 8 | $ 2 |
Cash flow hedges | ||
Derivative [Line Items] | ||
Derivative average remaining maturity | 24 months | |
Net investment hedging instruments | ||
Derivative [Line Items] | ||
Derivative average remaining maturity | 6 months |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Apr. 30, 2020patent | Apr. 01, 2020USD ($) | Feb. 13, 2018patent | May 25, 2017USD ($) | Mar. 03, 2017USD ($)patent | Jan. 06, 2017patent | May 12, 2016USD ($) | Sep. 04, 2013patent | Jul. 25, 2020USD ($) | Jul. 27, 2019USD ($) | Jul. 28, 2018USD ($) | Jul. 25, 2020USD ($) | Jan. 25, 2020USD ($) |
Site Contingency [Line Items] | |||||||||||||
Provision for purchase commitment liability | $ 139 | $ 95 | $ 105 | ||||||||||
Future compensation expense & contingent consideration (up to) | 271 | $ 271 | |||||||||||
Commitments and contingencies | |||||||||||||
Volume of channel partner financing | 26,900 | 29,600 | 28,200 | ||||||||||
Balance of the channel partner financing subject to guarantees | 1,100 | 1,400 | 1,100 | ||||||||||
Financing provided by third parties for leases and loans related to end users on which the Company has provided guarantees | 9 | 14 | 35 | ||||||||||
Brazilian Tax Authority | Tax years 2003 through 2007 | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Penalty and interest asserted by the Brazilian federal tax authorities | $ 800 | ||||||||||||
Brazilian authority claim of import tax evasion by importer tax portion | 155 | ||||||||||||
Brazilian authority claim of import tax evasion by importer interest portion | 756 | ||||||||||||
Brazilian authority claim of import tax evasion by importer penalties portion | $ 383 | ||||||||||||
SRI International | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Damages awarded, value | $ 23.7 | ||||||||||||
Pending Litigation | SRI International | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Damages awarded, value | $ 8 | $ 57 | |||||||||||
Number of allegedly infringed patents (patent) | patent | 2 | ||||||||||||
Percentage of royalty awarded | 3.50% | ||||||||||||
Damages paid, value | 28.1 | ||||||||||||
Patent Infringement | Pending Litigation | Sprint Communications Company L.P. vs. Time Warner Cable Inc. | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of patents found infringed (patent) | patent | 5 | ||||||||||||
Damages awarded, value | $ 139.8 | ||||||||||||
Pre and Post judgment interest awarded | $ 10 | ||||||||||||
Patent Infringement | Pending Litigation | Centripetal | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of allegedly infringed patents (patent) | patent | 11 | ||||||||||||
Number of allegedly infringed patents, petitioned (patent) | patent | 9 | ||||||||||||
Patent Infringement | Pending Litigation | Finjan | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of allegedly infringed patents (patent) | patent | 5 | ||||||||||||
Number of allegedly infringed patents, expired (patent) | patent | 4 | ||||||||||||
Patent Indemnification | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Legal and indemnification settlement | $ 127 | ||||||||||||
Patent Infringement, IPR Proceedings | Pending Litigation | Centripetal | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of allegedly infringed patents (patent) | patent | 6 | ||||||||||||
Patent Infringement, Patent Trial and Appeal Board | Pending Litigation | Centripetal | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of allegedly infringed patents (patent) | patent | 7 | ||||||||||||
Patent Infringement, Not subject to IPR Proceedings | Pending Litigation | Centripetal | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of allegedly infringed patents (patent) | patent | 5 | ||||||||||||
Patent Infringement, Not subject to IPR Proceedings and IPR Declined | Pending Litigation | Centripetal | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of allegedly infringed patents (patent) | patent | 3 | ||||||||||||
Patent Infringement, European patents | Pending Litigation | Centripetal | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Number of allegedly infringed patents (patent) | patent | 3 | ||||||||||||
Minimum | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Warranty period for products | 90 days | ||||||||||||
Channel partners revolving short-term financing payment term | 60 days | ||||||||||||
Maximum | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Warranty period for products | 5 years | ||||||||||||
Channel partners revolving short-term financing payment term | 90 days | ||||||||||||
End user lease and loan term | 3 years | ||||||||||||
Non-marketable equity securities and equity method investments | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Commitments and contingencies | $ 300 | 300 | |||||||||||
Inventory | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Purchase commitment | $ 4,400 | 5,000 | |||||||||||
COVID-19 | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Increase in certain channel partners revolving short-term financing payment term | 30 days | ||||||||||||
Inventory | |||||||||||||
Site Contingency [Line Items] | |||||||||||||
Liability for purchase commitments | $ 141 | $ 129 | $ 141 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Other Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Others | |||
Site Contingency [Line Items] | |||
Compensation expense related to acquisitions | $ 214 | $ 313 | $ 203 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance at beginning of fiscal year | $ 342 | $ 359 | $ 407 |
Provisions for warranties issued | 561 | 600 | 582 |
Adjustments for pre-existing warranties | (8) | (12) | (38) |
Settlements | (564) | (603) | (592) |
Acquisitions and divestitures | 0 | (2) | 0 |
Balance at end of fiscal year | $ 331 | $ 342 | $ 359 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Financing Guarantees Outstanding (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Loss Contingencies [Line Items] | ||
Maximum potential future payments relating to financing guarantees: | $ 207 | $ 218 |
Deferred revenue associated with financing guarantees: | (28) | (77) |
Total | 179 | 141 |
Channel partner | ||
Loss Contingencies [Line Items] | ||
Maximum potential future payments relating to financing guarantees: | 198 | 197 |
Deferred revenue associated with financing guarantees: | (19) | (62) |
End user | ||
Loss Contingencies [Line Items] | ||
Maximum potential future payments relating to financing guarantees: | 9 | 21 |
Deferred revenue associated with financing guarantees: | $ (9) | $ (15) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Stockholders' Equity Note [Abstract] | |||||||||||
Cash dividends paid per common share (in dollars per share) | $ 0.36 | $ 0.36 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.33 | $ 0.33 | $ 1.42 | $ 1.36 | $ 1.24 |
Payment of dividends | $ 6,016,000,000 | $ 5,979,000,000 | $ 5,968,000,000 | ||||||||
Remaining authorized repurchase amount | $ 10,800,000,000 | 10,800,000,000 | |||||||||
Stock repurchase program | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock repurchases pending settlement | $ 0 | $ 40,000,000 | $ 0 | $ 40,000,000 | $ 180,000,000 |
Shareholders' Equity - Stock Re
Shareholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Stockholders' Equity Note [Abstract] | |||
Shares (in shares) | 59 | 418 | 432 |
Weighted-Average Price per Share (in dollars per share) | $ 44.36 | $ 49.22 | $ 40.88 |
Amount | $ 2,619 | $ 20,577 | $ 17,661 |
Employee Benefit Plans - Employ
Employee Benefit Plans - Employee Stock Incentive Plans (Details) | Jul. 25, 2020stock_incentive_planshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of stock incentive plans (stock incentive plan) | stock_incentive_plan | 1 |
2005 Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance (in shares) | 694,000,000 |
2005 Plan | Stock awards subsequent to November 12, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares reserved for issuance (in shares) | 183,000,000 |
Reduction in number of shares available for issuance after amendment (in shares) | 1.5 |
Employee Benefit Plans - Empl_2
Employee Benefit Plans - Employee Stock Purchase Plan (Details) - Employee stock purchase plan | 12 Months Ended | ||
Jul. 25, 2020periodshares | Jul. 27, 2019shares | Jul. 28, 2018shares | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Shares reserved for issuance (in shares) | 721,400,000 | ||
Expiration period for stock options and stock appreciation rights | 24 months | ||
Number of purchase periods | period | 4 | ||
Purchase period | 6 months | ||
Shares eligible for employees purchase, percentage of discount | 15.00% | ||
Shares issued under employee purchase plan, shares (in shares) | 18,000,000 | 19,000,000 | 22,000,000 |
ESPP- shares available for issuance (in shares) | 141,000,000 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 1,569 | $ 1,591 | $ 1,599 |
Income tax benefit for share-based compensation | 452 | 542 | 558 |
Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 237 | 220 | 227 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 592 | 540 | 538 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 500 | 519 | 555 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 215 | 250 | 246 |
Restructuring and other charges | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 25 | 62 | 33 |
Share-based compensation expense in operating expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 1,332 | 1,371 | 1,372 |
Product | Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 93 | 90 | 94 |
Service | Cost of sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 144 | $ 130 | $ 133 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information - Summary of Share-Based Compensation Expense (Details) $ in Billions | 12 Months Ended |
Jul. 25, 2020USD ($) | |
Retirement Benefits [Abstract] | |
Total compensation cost related to unvested share-based awards | $ 3.9 |
Expected period of recognition of compensation cost, years | 2 years 8 months 12 days |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Restricted Stock and Stock Unit Awards (Details) - Restricted Stock/Stock Units - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Restricted Stock/ Stock Units | |||
Unvested, Beginning balance (in shares) | 100 | 119 | 141 |
Granted (in shares) | 49 | 45 | 46 |
Assumed from acquisitions (in shares) | 1 | ||
Vested (in shares) | (44) | (50) | (53) |
Canceled/forfeited/other (in shares) | (9) | (14) | (16) |
Unvested, Ending balance (in shares) | 96 | 100 | 119 |
Weighted-Average Grant Date Fair Value per Share | |||
Unvested, Beginning balance (in dollars per share) | $ 38.66 | $ 30.56 | $ 26.94 |
Granted (in dollars per share) | 42.61 | 47.71 | 35.62 |
Assumed from acquisitions (in dollars per share) | 28.26 | ||
Vested (in dollars per share) | 35.20 | 29.25 | 26.02 |
Canceled/forfeited (in dollars per share) | 40.45 | 32.01 | 28.37 |
Unvested, Ending balance (in dollars per share) | $ 42.03 | $ 38.66 | $ 30.56 |
Aggregate Fair Value | |||
Vested | $ 2,045 | $ 2,446 | $ 1,909 |
Employee Benefit Plans - Valuat
Employee Benefit Plans - Valuation of Employee Share-Based Awards - Time-Based Restricted Stock Units (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
RESTRICTED STOCK UNITS | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 47 | 43 | 43 |
Grant date fair value per share (in dollars per share) | $ 42.68 | $ 47.75 | $ 35.81 |
Expected dividend | 3.10% | 2.70% | 3.20% |
Range of risk-free interest rates, minimum | 0.00% | 0.00% | 0.00% |
Range of risk-free interest rates, maximum | 2.00% | 2.90% | 2.70% |
PERFORMANCE BASED RESTRICTED STOCK UNITS | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares granted (in shares) | 2 | 2 | 3 |
Grant date fair value per share (in dollars per share) | $ 41.91 | $ 47 | $ 32.69 |
Expected dividend | 2.80% | 2.80% | 3.50% |
Range of risk-free interest rates, minimum | 1.70% | 2.10% | 1.00% |
Range of risk-free interest rates, maximum | 2.00% | 3.00% | 2.70% |
Range of expected volatilities for index, minimum | 13.70% | 13.00% | 12.50% |
Range of expected volatilities for index, maximum | 69.00% | 65.20% | 82.80% |
Employee Benefit Plans - Addi_2
Employee Benefit Plans - Additional Information - Valuation of Employee Share-Based Awards (Details) - 2005 Plan | 12 Months Ended |
Jul. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award requisite service period | 3 years |
Performance base and Market base RSU | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
PRSU allocation between Financial operating goals and TSR | 50.00% |
Performance base and Market base RSU | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 0.00% |
Performance base and Market base RSU | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 150.00% |
PRSU based on nonfinancial operating goals | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 0.00% |
PRSU based on nonfinancial operating goals | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage | 100.00% |
Employee Benefit Plans - Valu_2
Employee Benefit Plans - Valuation of Employee Share-Based Awards - Employee Stock Purchase Rights (Details) - Employee Stock Purchase Rights - $ / shares | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 22.20% | 20.40% | 22.10% |
Risk-free interest rate | 1.80% | 1.90% | 1.30% |
Expected dividend | 3.00% | 3.00% | 3.10% |
Expected life (in years) | 1 year 3 months 18 days | 1 year 3 months 18 days | 1 year 3 months 18 days |
Weighted-average estimated grant date fair value per share (in dollars per share) | $ 10.20 | $ 9.06 | $ 7.48 |
Employee Benefit Plans - Addi_3
Employee Benefit Plans - Additional Information - Employee 401(k) Plans and Deferred Compensation Plans (Details) - USD ($) | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Deferred Compensation Plans | |||
401(k) and Deferred Compensation Plan [Line Items] | |||
Employer matching contribution | 4.50% | ||
Maximum annual contributions | $ 1,500,000 | ||
Deferred compensation liability | $ 704,000,000 | $ 678,000,000 | |
401(K) Plan | |||
401(k) and Deferred Compensation Plan [Line Items] | |||
Allowed employee contributions (up to) | 75.00% | ||
Employer matching contribution, percentage of the first 4.5% of eligible earnings | 100.00% | ||
Employer matching contribution | 4.50% | ||
Maximum matching contribution | $ 12,825 | ||
Total matching contribution by the Company for the period | $ 295,000,000 | 283,000,000 | $ 269,000,000 |
401(k) Catch Up Contribution | |||
401(k) and Deferred Compensation Plan [Line Items] | |||
Allowed employee contributions (up to) | 75.00% | ||
Total matching contribution by the Company for the period | $ 0 | $ 0 | $ 0 |
Comprehensive Income (Loss) - A
Comprehensive Income (Loss) - AOCI components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 33,571 | $ 43,204 | $ 66,137 |
Other comprehensive income (loss) before reclassifications | 376 | 293 | (681) |
(Gains) losses reclassified out of AOCI | (35) | 12 | (348) |
Tax benefit (expense) | (68) | (80) | 89 |
Other comprehensive income (loss) | 225 | (940) | |
Balance, end of period | 37,920 | 33,571 | 43,204 |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | 0 | (310) | 373 |
Other comprehensive income (loss) before reclassifications | 420 | 560 | (543) |
(Gains) losses reclassified out of AOCI | (42) | 13 | (287) |
Tax benefit (expense) | (63) | (95) | 93 |
Other comprehensive income (loss) | 478 | (737) | |
Balance, end of period | 315 | 0 | (310) |
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | (11) | 32 | |
Other comprehensive income (loss) before reclassifications | 0 | 21 | |
(Gains) losses reclassified out of AOCI | (3) | (68) | |
Tax benefit (expense) | 0 | 4 | |
Other comprehensive income (loss) | (3) | (43) | |
Balance, end of period | (11) | ||
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | (14) | ||
Other comprehensive income (loss) before reclassifications | 7 | ||
(Gains) losses reclassified out of AOCI | 1 | ||
Tax benefit (expense) | 0 | ||
Balance, end of period | (6) | (14) | |
Cumulative Translation Adjustment and Actuarial Gains and Losses | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | (778) | (528) | (359) |
Other comprehensive income (loss) before reclassifications | (51) | (267) | (159) |
(Gains) losses reclassified out of AOCI | 6 | 2 | 7 |
Tax benefit (expense) | (5) | 15 | (8) |
Other comprehensive income (loss) | (250) | (160) | |
Balance, end of period | (828) | (778) | (528) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | (792) | (849) | 46 |
Balance, end of period | $ (519) | (792) | (849) |
Cumulative Effect, Period of Adoption, Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | 3,729 | 9 | |
Balance, end of period | 3,729 | ||
Cumulative Effect, Period of Adoption, Adjustment | Net Unrealized Gains (Losses) on Available-for-Sale Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | (168) | 54 | |
Balance, end of period | (168) | ||
Cumulative Effect, Period of Adoption, Adjustment | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | 0 | 0 | |
Balance, end of period | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | Cumulative Translation Adjustment and Actuarial Gains and Losses | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | 0 | (9) | |
Balance, end of period | 0 | ||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ (168) | 45 | |
Balance, end of period | $ (168) |
Comprehensive Income (Loss) - R
Comprehensive Income (Loss) - Reclassification out of other comprehensive income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other income (loss), net | $ 15 | $ (97) | $ 165 | ||||||||
Revenue | $ 12,154 | $ 11,983 | $ 12,005 | $ 13,159 | $ 13,428 | $ 12,958 | $ 12,446 | $ 13,072 | 49,301 | 51,904 | 49,330 |
Cost of sales | (17,618) | (19,238) | (18,724) | ||||||||
Operating expenses | (18,063) | (18,447) | (18,297) | ||||||||
Total amounts reclassified out of AOCI | 13,970 | 14,571 | 13,039 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Total amounts reclassified out of AOCI | 35 | (12) | 348 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) on Available-for-Sale Investments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other income (loss), net | 42 | (13) | 287 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Revenue | (1) | ||||||||||
Cost of sales | 0 | ||||||||||
Operating expenses | 0 | ||||||||||
Total amounts reclassified out of AOCI | (1) | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Revenue | 2 | 0 | |||||||||
Cost of sales | 0 | 16 | |||||||||
Operating expenses | 1 | 52 | |||||||||
Total amounts reclassified out of AOCI | 3 | 68 | |||||||||
Reclassification out of Accumulated Other Comprehensive Income | Cumulative Translation Adjustment and Actuarial Gains and Losses | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | |||||||||||
Other income (loss), net | (6) | (2) | 0 | ||||||||
Operating expenses | $ 0 | $ 0 | $ (7) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Federal: | |||
Current | $ 1,101 | $ 1,760 | $ 9,900 |
Deferred | (374) | (84) | 1,156 |
Total | 727 | 1,676 | 11,056 |
State: | |||
Current | 264 | 302 | 340 |
Deferred | 287 | (2) | (232) |
Total | 551 | 300 | 108 |
Foreign: | |||
Current | 1,429 | 1,238 | 1,789 |
Deferred | 49 | (264) | (24) |
Total | 1,478 | 974 | 1,765 |
Total | $ 2,756 | $ 2,950 | $ 12,929 |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision For Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 7,534 | $ 7,611 | $ 3,765 |
International | 6,436 | 6,960 | 9,274 |
INCOME BEFORE PROVISION FOR INCOME TAXES | $ 13,970 | $ 14,571 | $ 13,039 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Income Taxes at Federal Statutory Rate and Provision for Income Taxes (Details) | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory rate | 21.00% | 21.00% | 27.00% |
State taxes, net of federal tax benefit | 3.50% | 2.00% | 0.60% |
Foreign income at other than U.S. rates | (1.50%) | (4.50%) | (5.20%) |
Tax credits | (0.90%) | (1.70%) | (2.50%) |
Foreign-derived intangible income deduction | (2.60%) | (1.30%) | 0.00% |
Domestic manufacturing deduction | 0.00% | 0.00% | (0.50%) |
Stock-based compensation | (0.10%) | (0.60%) | (0.10%) |
Impact of the Tax Act | 0.00% | 6.10% | 80.10% |
Other, net | 0.30% | (0.80%) | (0.20%) |
Total | 19.70% | 20.20% | 99.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 24 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | Jul. 27, 2019 | |
Income Tax [Line Items] | ||||
Tax Cuts and Jobs Act, transition tax expense (benefit) | $ 11,300 | |||
Tax Cuts and Jobs Act, tax expense for transition tax on accumulated foreign earnings | 9,000 | |||
Tax Cuts and Jobs Act, tax expense for foreign withholding tax | 1,200 | |||
Tax Cuts and Jobs Act, re-measurement of net deferred tax assets | 1,100 | |||
Undistributed earnings of certain foreign subsidiaries on which tax is not provided | $ 6,800 | |||
Unrecognized deferred income tax liability | 706 | |||
Gross income tax benefit attributable to tax incentives | $ 300 | $ 900 | ||
Gross income tax benefit attributable to tax incentives (in dollars per share) | $ 0.08 | $ 0.19 | ||
Unrecognized tax benefits that would affect the effective tax rate if realized | 2,200 | |||
Net interest expense, reduction related to unrecognized tax benefits | 104 | $ 30 | $ 10 | |
Increase in unrecognized tax benefits for prior year tax positions | 554 | 84 | 84 | |
Accrual for interest and penalties | 340 | $ 220 | $ 180 | $ 220 |
Unrecognized tax benefit that could be reduced in next 12 months | 150 | |||
Domestic Tax Authority | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | 405 | |||
Tax credit carryforward | 10 | |||
State and Local Jurisdiction | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | 1,200 | |||
Tax credit carryforward | 1,200 | |||
Tax credit carryforward, valuation allowance | 541 | |||
Foreign Tax Authority | ||||
Income Tax [Line Items] | ||||
Operating loss carryforwards | 644 | |||
Operating loss carryforwards, valuation allowance | 98 | |||
Tax credit carryforward | 5 | |||
Internal Revenue Service (IRS) | ||||
Income Tax [Line Items] | ||||
Income tax examination, adjustment from settlement | 102 | |||
Internal Revenue Service (IRS) | Interest expense | ||||
Income Tax [Line Items] | ||||
Income tax examination, adjustment from settlement | $ 4 |
Income Taxes - Aggregate Change
Income Taxes - Aggregate Changes in Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 1,925 | $ 2,000 | $ 1,973 |
Additions based on tax positions related to the current year | 188 | 185 | 251 |
Additions for tax positions of prior years | 554 | 84 | 84 |
Reductions for tax positions of prior years | (136) | (283) | (129) |
Settlements | (4) | (38) | (124) |
Lapse of statute of limitations | (9) | (23) | (55) |
Ending balance | $ 2,518 | $ 1,925 | $ 2,000 |
Income Taxes - Breakdown Betwee
Income Taxes - Breakdown Between Current and Noncurrent Net Deferred Tax Assets (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets | $ 3,990 | $ 4,065 |
Deferred tax liabilities | (81) | (95) |
Total net deferred tax assets | $ 3,909 | $ 3,970 |
Income Taxes - Components of De
Income Taxes - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 |
ASSETS | ||
Allowance for doubtful accounts and returns | $ 110 | $ 127 |
Sales-type and direct-financing leases | 179 | 176 |
Inventory write-downs and capitalization | 350 | 409 |
Deferred foreign income | 253 | 0 |
IPR&D, goodwill, and purchased intangible assets | 1,289 | 1,427 |
Deferred revenue | 1,182 | 1,150 |
Credits and net operating loss carryforwards | 1,105 | 1,241 |
Share-based compensation expense | 135 | 164 |
Accrued compensation | 353 | 342 |
Lease liabilities | 240 | |
Other | 571 | 419 |
Gross deferred tax assets | 5,767 | 5,455 |
Valuation allowance | (700) | (457) |
Total deferred tax assets | 5,067 | 4,998 |
LIABILITIES | ||
Purchased intangible assets | (577) | (705) |
Depreciation | (179) | (141) |
Unrealized gains on investments | (119) | (70) |
ROU lease assets | (222) | |
Other | (61) | (112) |
Total deferred tax liabilities | (1,158) | (1,028) |
Total net deferred tax assets | $ 3,909 | $ 3,970 |
Segment Information and Major_3
Segment Information and Major Customers - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020USD ($) | Apr. 25, 2020USD ($) | Jan. 25, 2020USD ($) | Oct. 26, 2019USD ($) | Jul. 27, 2019USD ($) | Apr. 27, 2019USD ($) | Jan. 26, 2019USD ($) | Oct. 27, 2018USD ($) | Jul. 25, 2020USD ($)segment | Jul. 27, 2019USD ($) | Jul. 28, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of geographic segments | segment | 3 | ||||||||||
Revenue | $ 12,154 | $ 11,983 | $ 12,005 | $ 13,159 | $ 13,428 | $ 12,958 | $ 12,446 | $ 13,072 | $ 49,301 | $ 51,904 | $ 49,330 |
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 26,100 | $ 27,400 | $ 25,500 |
Segment Information and Major_4
Segment Information and Major Customers - Summary of Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 12,154 | $ 11,983 | $ 12,005 | $ 13,159 | $ 13,428 | $ 12,958 | $ 12,446 | $ 13,072 | $ 49,301 | $ 51,904 | $ 49,330 |
Gross margin | $ 7,684 | $ 7,771 | $ 7,764 | $ 8,464 | $ 8,574 | $ 8,173 | $ 7,773 | $ 8,146 | 31,683 | 32,666 | 30,606 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross margin | 32,538 | 33,479 | 31,463 | ||||||||
Operating Segments | Americas | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 29,291 | 30,927 | 29,070 | ||||||||
Gross margin | 19,547 | 20,338 | 18,792 | ||||||||
Operating Segments | EMEA | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 12,659 | 13,100 | 12,425 | ||||||||
Gross margin | 8,304 | 8,457 | 7,945 | ||||||||
Operating Segments | APJC | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 7,352 | 7,877 | 7,834 | ||||||||
Gross margin | 4,688 | 4,683 | 4,726 | ||||||||
Unallocated corporate items | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross margin | $ (855) | $ (813) | $ (857) |
Segment Information and Major_5
Segment Information and Major Customers - Summary of Net Revenue for Groups of Similar Products and Services (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 12,154 | $ 11,983 | $ 12,005 | $ 13,159 | $ 13,428 | $ 12,958 | $ 12,446 | $ 13,072 | $ 49,301 | $ 51,904 | $ 49,330 |
Disposed of by sale | SPVSS Business | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 168 | 903 | |||||||||
Product | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 35,978 | 39,005 | 36,709 | ||||||||
Infrastructure Platforms | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 27,122 | 30,099 | 28,286 | ||||||||
Applications | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 5,568 | 5,803 | 5,036 | ||||||||
Security | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 3,154 | 2,821 | 2,388 | ||||||||
Other Products | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | 135 | 281 | 999 | ||||||||
Service | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Revenue | $ 13,323 | $ 12,899 | $ 12,621 |
Segment Information and Major_6
Segment Information and Major Customers - Long-lived Assets by Geographic Areas (Details) - USD ($) $ in Millions | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | $ 3,374 | $ 2,789 | $ 3,006 |
United States | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | 2,328 | 2,266 | 2,487 |
International | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Long-lived assets | $ 1,046 | $ 523 | $ 519 |
Net Income per Share - Calculat
Net Income per Share - Calculation Of Basic And Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 2,636 | $ 2,774 | $ 2,878 | $ 2,926 | $ 2,206 | $ 3,044 | $ 2,822 | $ 3,549 | $ 11,214 | $ 11,621 | $ 110 |
Weighted-average shares—basic (In shares) | 4,236 | 4,419 | 4,837 | ||||||||
Effect of dilutive potential common shares (in shares) | 18 | 34 | 44 | ||||||||
Weighted-average shares—diluted (in shares) | 4,254 | 4,453 | 4,881 | ||||||||
Net income per share—basic (in dollars per share) | $ 0.62 | $ 0.66 | $ 0.68 | $ 0.69 | $ 0.52 | $ 0.70 | $ 0.63 | $ 0.78 | $ 2.65 | $ 2.63 | $ 0.02 |
Net income per share—diluted (in dollars per share) | $ 0.62 | $ 0.65 | $ 0.68 | $ 0.68 | $ 0.51 | $ 0.69 | $ 0.63 | $ 0.77 | $ 2.64 | $ 2.61 | $ 0.02 |
Antidilutive employee share-based awards, excluded (in shares) | 76 | 55 | 61 |
Supplementary Financial Data _3
Supplementary Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 | Apr. 27, 2019 | Jan. 26, 2019 | Oct. 27, 2018 | Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenue | $ 12,154 | $ 11,983 | $ 12,005 | $ 13,159 | $ 13,428 | $ 12,958 | $ 12,446 | $ 13,072 | $ 49,301 | $ 51,904 | $ 49,330 |
Gross margin | 7,684 | 7,771 | 7,764 | 8,464 | 8,574 | 8,173 | 7,773 | 8,146 | 31,683 | 32,666 | 30,606 |
Operating income | 3,247 | 3,414 | 3,380 | 3,579 | 3,690 | 3,513 | 3,211 | 3,805 | 13,620 | 14,219 | 12,309 |
Net income | $ 2,636 | $ 2,774 | $ 2,878 | $ 2,926 | $ 2,206 | $ 3,044 | $ 2,822 | $ 3,549 | $ 11,214 | $ 11,621 | $ 110 |
Net income per share—basic (in dollars per share) | $ 0.62 | $ 0.66 | $ 0.68 | $ 0.69 | $ 0.52 | $ 0.70 | $ 0.63 | $ 0.78 | $ 2.65 | $ 2.63 | $ 0.02 |
Net income per share—diluted (in dollars per share) | 0.62 | 0.65 | 0.68 | 0.68 | 0.51 | 0.69 | 0.63 | 0.77 | 2.64 | 2.61 | 0.02 |
Cash dividends declared per common share (in dollars per share) | $ 0.36 | $ 0.36 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.33 | $ 0.33 | $ 1.42 | $ 1.36 | $ 1.24 |
Cash and cash equivalents and investments | $ 29,419 | $ 28,574 | $ 27,062 | $ 28,035 | $ 33,413 | $ 34,643 | $ 40,383 | $ 42,593 | $ 29,419 | $ 33,413 | |
Tax Cuts and Jobs Act, reversal of previously reported benefit | $ 872 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jul. 25, 2020 | Jul. 27, 2019 | Jul. 28, 2018 | |
Allowance for Doubtful Accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of fiscal year | $ 136 | $ 129 | $ 211 |
Provisions (benefits) | 55 | 56 | (45) |
Recoveries (write-offs), net | (48) | (50) | (37) |
Foreign exchange and other | 0 | 1 | 0 |
Balance at end of fiscal year | 143 | 136 | 129 |
Allowance for Financing Receivables | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of fiscal year | 126 | 205 | 295 |
Provisions (benefits) | 38 | (16) | (89) |
Recoveries (write-offs), net | (22) | (42) | (6) |
Foreign exchange and other | (4) | (21) | 5 |
Balance at end of fiscal year | 138 | 126 | 205 |
Deferred Tax Asset Valuation Allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of fiscal year | 457 | 374 | 244 |
Provisions (benefits) | 279 | 112 | 163 |
Recoveries (write-offs), net | (29) | (20) | (7) |
Write-offs | (7) | (8) | (26) |
Foreign exchange and other | 0 | (1) | 0 |
Balance at end of fiscal year | $ 700 | $ 457 | $ 374 |