Cover Page
Cover Page - shares | 6 Months Ended | |
Jan. 23, 2021 | Feb. 11, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 23, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39940 | |
Entity Registrant Name | CISCO SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
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 | |
City Area Code | 408 | |
Local Phone Number | 526-4000 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | CSCO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 4,221,785,547 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Entity Central Index Key | 0000858877 | |
Current Fiscal Year End Date | --07-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 11,793 | $ 11,809 |
Investments | 18,795 | 17,610 |
Accounts receivable, net of allowance for doubtful accounts of $102 at January 23, 2021 and $143 at July 25, 2020 | 4,307 | 5,472 |
Inventories | 1,436 | 1,282 |
Financing receivables, net | 5,027 | 5,051 |
Other current assets | 2,553 | 2,349 |
Total current assets | 43,911 | 43,573 |
Property and equipment, net | 2,386 | 2,453 |
Financing receivables, net | 5,100 | 5,714 |
Goodwill | 34,733 | 33,806 |
Purchased intangible assets, net | 1,462 | 1,576 |
Deferred tax assets | 4,109 | 3,990 |
Other assets | 3,900 | 3,741 |
TOTAL ASSETS | 95,601 | 94,853 |
Current liabilities: | ||
Short-term debt | 5,000 | 3,005 |
Accounts payable | 1,867 | 2,218 |
Income taxes payable | 763 | 839 |
Accrued compensation | 3,295 | 3,122 |
Deferred revenue | 11,552 | 11,406 |
Other current liabilities | 4,791 | 4,741 |
Total current liabilities | 27,268 | 25,331 |
Long-term debt | 9,554 | 11,578 |
Income taxes payable | 8,084 | 8,837 |
Deferred revenue | 9,294 | 9,040 |
Other long-term liabilities | 2,280 | 2,147 |
Total liabilities | 56,480 | 56,933 |
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; 4,221 and 4,237 shares issued and outstanding at January 23, 2021 and July 25, 2020, respectively | 41,690 | 41,202 |
Accumulated deficit | (2,351) | (2,763) |
Accumulated other comprehensive loss | (218) | (519) |
Total equity | 39,121 | 37,920 |
TOTAL LIABILITIES AND EQUITY | $ 95,601 | $ 94,853 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 102 | $ 143 |
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) | 4,221,000,000 | 4,237,000,000 |
Common stock, shares outstanding (in shares) | 4,221,000,000 | 4,237,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
REVENUE: | ||||
Total revenue | $ 11,960 | $ 12,005 | $ 23,889 | $ 25,164 |
COST OF SALES: | ||||
Total cost of sales | 4,176 | 4,241 | 8,524 | 8,936 |
GROSS MARGIN | 7,784 | 7,764 | 15,365 | 16,228 |
OPERATING EXPENSES: | ||||
Research and development | 1,527 | 1,570 | 3,139 | 3,236 |
Sales and marketing | 2,277 | 2,279 | 4,494 | 4,759 |
General and administrative | 484 | 455 | 1,028 | 974 |
Amortization of purchased intangible assets | 39 | 38 | 75 | 74 |
Restructuring and other charges | 234 | 42 | 836 | 226 |
Total operating expenses | 4,561 | 4,384 | 9,572 | 9,269 |
OPERATING INCOME | 3,223 | 3,380 | 5,793 | 6,959 |
Interest income | 161 | 242 | 335 | 515 |
Interest expense | (113) | (158) | (225) | (336) |
Other income (loss), net | (16) | 70 | 33 | 82 |
Interest and other income (loss), net | 32 | 154 | 143 | 261 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 3,255 | 3,534 | 5,936 | 7,220 |
Provision for income taxes | 710 | 656 | 1,217 | 1,416 |
NET INCOME | $ 2,545 | $ 2,878 | $ 4,719 | $ 5,804 |
Net income per share: | ||||
Basic (in dollars per share) | $ 0.60 | $ 0.68 | $ 1.12 | $ 1.37 |
Diluted (in dollars per share) | $ 0.60 | $ 0.68 | $ 1.11 | $ 1.36 |
Shares used in per-share calculation: | ||||
Basic (in shares) | 4,223 | 4,242 | 4,227 | 4,244 |
Diluted (in shares) | 4,234 | 4,260 | 4,239 | 4,265 |
Product | ||||
REVENUE: | ||||
Total revenue | $ 8,572 | $ 8,671 | $ 17,159 | $ 18,549 |
COST OF SALES: | ||||
Total cost of sales | 3,044 | 3,126 | 6,250 | 6,650 |
Services | ||||
REVENUE: | ||||
Total revenue | 3,388 | 3,334 | 6,730 | 6,615 |
COST OF SALES: | ||||
Total cost of sales | $ 1,132 | $ 1,115 | $ 2,274 | $ 2,286 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,545 | $ 2,878 | $ 4,719 | $ 5,804 |
Available-for-sale investments: | ||||
Change in net unrealized gains and losses, net of tax benefit (expense) of $0 and $17 for the second quarter and first six months of fiscal 2021, respectively, and $(15) and $(29) for the corresponding periods of fiscal 2020, respectively | 6 | 66 | (18) | 139 |
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $2 and $7 for the second quarter and first six months of fiscal 2021, respectively and $7 and $12 for the corresponding periods of fiscal 2020, respectively | (7) | (4) | (17) | (9) |
Total- Available-for-sale investments | (1) | 62 | (35) | 130 |
Cash flow hedging instruments: | ||||
Change in unrealized gains and losses, net of tax benefit (expense) of $1 for each of the second quarter and first six months of fiscal 2021, and $0 and $1 for the corresponding periods of fiscal 2020, respectively | (2) | 1 | (4) | 1 |
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $0 and $1 for the second quarter and first six months of fiscal 2021, respectively, and $0 for each of the corresponding periods of fiscal 2020 | (3) | 2 | (4) | 2 |
Total- Cash flow hedging instruments | (5) | 3 | (8) | 3 |
Net change in cumulative translation adjustment and actuarial gains and losses net of tax benefit (expense) of $(2) and $(3) for the second quarter and first six months of fiscal 2021, respectively, and $(1) for each of the corresponding periods of fiscal 2020 | 235 | 50 | 344 | (41) |
Other comprehensive income | 229 | 115 | 301 | 92 |
Comprehensive income | $ 2,774 | $ 2,993 | $ 5,020 | $ 5,896 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Change in net unrealized gains, tax benefit (expense) | $ 0 | $ (15) | $ 17 | $ (29) |
Net (gains) losses reclassified into earnings, tax (benefit) expense | 2 | 7 | 7 | 12 |
Change in unrealized gains and losses, tax benefit (expense) | 1 | 0 | 1 | 1 |
Net (gains) losses reclassified into earnings, tax (benefit) expense | 0 | 0 | 1 | 0 |
Net change in cumulative translation adjustment and actuarial gains and losses, tax benefit (expense) | $ (2) | $ (1) | $ (3) | $ (1) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jan. 23, 2021 | Jan. 25, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 4,719 | $ 5,804 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and other | 887 | 918 |
Share-based compensation expense | 874 | 779 |
Provision (benefit) for receivables | (10) | 46 |
Deferred income taxes | (91) | 128 |
(Gains) losses on divestitures, investments and other, net | (86) | (162) |
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||
Accounts receivable | 1,245 | 1,084 |
Inventories | (145) | 25 |
Financing receivables | 748 | 408 |
Other assets | (212) | 130 |
Accounts payable | (358) | (126) |
Income taxes, net | (836) | (1,007) |
Accrued compensation | 125 | (521) |
Deferred revenue | 226 | 236 |
Other liabilities | (16) | (355) |
Net cash provided by operating activities | 7,070 | 7,387 |
Cash flows from investing activities: | ||
Purchases of investments | (6,025) | (4,250) |
Proceeds from sales of investments | 1,374 | 3,410 |
Proceeds from maturities of investments | 3,373 | 4,044 |
Acquisitions and divestitures | (860) | (163) |
Purchases of investments in privately held companies | (95) | (97) |
Return of investments in privately held companies | 58 | 91 |
Acquisition of property and equipment | (358) | (391) |
Proceeds from sales of property and equipment | 9 | 131 |
Other | (4) | (10) |
Net cash (used in) provided by investing activities | (2,528) | 2,765 |
Cash flows from financing activities: | ||
Issuances of common stock | 306 | 334 |
Repurchases of common stock—repurchase program | (1,569) | (1,648) |
Shares repurchased for tax withholdings on vesting of restricted stock units | (317) | (437) |
Short-term borrowings, original maturities of 90 days or less, net | 0 | (3,470) |
Repayments of debt | 0 | (5,220) |
Dividends paid | (3,041) | (2,972) |
Other | 70 | (12) |
Net cash used in financing activities | (4,551) | (13,425) |
Net decrease in cash, cash equivalents, and restricted cash | (9) | (3,273) |
Cash, cash equivalents, and restricted cash, beginning of period | 11,812 | 11,772 |
Cash, cash equivalents, and restricted cash, end of period | 11,803 | 8,499 |
Supplemental cash flow information: | ||
Cash paid for interest | 220 | 349 |
Cash paid for income taxes, net | $ 2,142 | $ 2,295 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Shares of Common Stock | Common Stock and Additional Paid-In Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Jul. 27, 2019 | 4,250 | ||||||
Beginning balance at Jul. 27, 2019 | $ 33,571 | $ 40,266 | $ (5,903) | $ (792) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of common stock (in shares) | (16) | ||||||
Ending balance (in shares) at Oct. 26, 2019 | 4,241 | ||||||
Ending balance at Oct. 26, 2019 | $ 34,423 | 40,321 | (5,083) | (815) | |||
Beginning balance (in shares) at Jul. 27, 2019 | 4,250 | ||||||
Beginning balance at Jul. 27, 2019 | 33,571 | 40,266 | (5,903) | (792) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 5,804 | 5,804 | |||||
Other comprehensive income | 92 | 92 | |||||
Issuance of common stock (in shares) | 34 | ||||||
Issuance of common stock | 334 | 334 | |||||
Repurchase of common stock (in shares) | (34) | ||||||
Repurchase of common stock | (1,638) | (325) | (1,313) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (9) | ||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (437) | (437) | |||||
Cash dividends declared | (2,972) | (2,972) | |||||
Share-based compensation | 779 | 779 | |||||
Ending balance (in shares) at Jan. 25, 2020 | 4,241 | ||||||
Ending balance at Jan. 25, 2020 | 35,533 | 40,617 | (4,384) | (700) | |||
Beginning balance (in shares) at Oct. 26, 2019 | 4,241 | ||||||
Beginning balance at Oct. 26, 2019 | 34,423 | 40,321 | (5,083) | (815) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,878 | 2,878 | |||||
Other comprehensive income | 115 | 115 | |||||
Issuance of common stock (in shares) | 23 | ||||||
Issuance of common stock | $ 332 | 332 | |||||
Repurchase of common stock (in shares) | (18) | (18) | |||||
Repurchase of common stock | $ (870) | (177) | (693) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (5) | ||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (243) | (243) | |||||
Cash dividends declared | (1,486) | (1,486) | |||||
Share-based compensation | 384 | 384 | |||||
Ending balance (in shares) at Jan. 25, 2020 | 4,241 | ||||||
Ending balance at Jan. 25, 2020 | 35,533 | 40,617 | (4,384) | (700) | |||
Beginning balance (in shares) at Jul. 25, 2020 | 4,237 | ||||||
Beginning balance at Jul. 25, 2020 | $ 37,920 | $ (38) | 41,202 | (2,763) | $ (38) | (519) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of common stock (in shares) | (20) | ||||||
Ending balance (in shares) at Oct. 24, 2020 | 4,222 | ||||||
Ending balance at Oct. 24, 2020 | $ 38,157 | 41,360 | (2,756) | (447) | |||
Beginning balance (in shares) at Jul. 25, 2020 | 4,237 | ||||||
Beginning balance at Jul. 25, 2020 | 37,920 | $ (38) | 41,202 | (2,763) | $ (38) | (519) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 4,719 | 4,719 | |||||
Other comprehensive income | 301 | 301 | |||||
Issuance of common stock (in shares) | 31 | ||||||
Issuance of common stock | 306 | 306 | |||||
Repurchase of common stock (in shares) | (39) | ||||||
Repurchase of common stock | (1,601) | (375) | (1,226) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (8) | ||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (317) | (317) | |||||
Cash dividends declared | (3,043) | (3,043) | |||||
Share-based compensation | 874 | 874 | |||||
Ending balance (in shares) at Jan. 23, 2021 | 4,221 | ||||||
Ending balance at Jan. 23, 2021 | 39,121 | 41,690 | (2,351) | (218) | |||
Beginning balance (in shares) at Oct. 24, 2020 | 4,222 | ||||||
Beginning balance at Oct. 24, 2020 | 38,157 | 41,360 | (2,756) | (447) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 2,545 | 2,545 | |||||
Other comprehensive income | 229 | 229 | |||||
Issuance of common stock (in shares) | 24 | ||||||
Issuance of common stock | $ 305 | 305 | |||||
Repurchase of common stock (in shares) | (19) | (19) | |||||
Repurchase of common stock | $ (801) | (183) | (618) | ||||
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) | (6) | ||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (228) | (228) | |||||
Cash dividends declared | (1,522) | (1,522) | |||||
Share-based compensation | 436 | 436 | |||||
Ending balance (in shares) at Jan. 23, 2021 | 4,221 | ||||||
Ending balance at Jan. 23, 2021 | $ 39,121 | $ 41,690 | $ (2,351) | $ (218) |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.72 | $ 0.70 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Jan. 23, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and 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 2021 is a 53-week fiscal year and fiscal 2020 was a 52-week fiscal year. The Consolidated Financial Statements include our accounts 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). At our annual meeting of shareholders held on December 10, 2020, shareholders voted to approve changing the state of incorporation from California to Delaware. The reincorporation became effective January 25, 2021. We have prepared the accompanying financial data as of January 23, 2021 and for the second quarter and first six months of fiscal 2021 and 2020, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The July 25, 2020 Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. However, we believe that the disclosures are adequate to make the information presented not misleading. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 25, 2020. The preparation of financial statements and related disclosures in conformity with GAAP requires us to make judgments, assumptions, and estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. 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 that we experience 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. In the opinion of management, all normal recurring adjustments necessary to present fairly the consolidated balance sheet as of January 23, 2021, the results of operations, the statements of comprehensive income (loss) and the statements of equity for the second quarter and first six months of fiscal 2021 and 2020, and the statements of cash flows for the first six months of fiscal 2021 and 2020, as applicable, have been made. The results of operations for the second quarter and first six months of fiscal 2021 are not necessarily indicative of the operating results for the full fiscal year or any future periods. 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 in prior periods in order to conform to the current period’s presentation. We have evaluated subsequent events through the date that the financial statements were issued. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jan. 23, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements (a) New Accounting Updates Recently Adopted 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. We adopted this standard at the beginning of our first quarter of fiscal 2021, applied it at the beginning of the period of adoption and did not restate prior periods. The standard primarily impacts our financial assets measured at amortized cost and available-for-sale debt securities. The standard did not have a material impact on our consolidated financial statements upon adoption. Our significant accounting policies have been updated as a result of adopting this standard are as follows: Allowance for Accounts Receivable, Contract Assets and Financing Receivables We estimate our allowances for credit losses using relevant available information from internal and external sources, related to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. When assessing for credit losses, we determine collectibility by pooling our assets with similar characteristics. The allowances for credit losses are each measured on a collective basis when similar risk characteristics exist. Our internal credit risk ratings are categorized as 1 through 10, with the lowest credit risk rating representing the highest quality. Our assets within each internal credit risk rating share similar risk characteristics and therefore are assessed as one portfolio segment for credit loss. Assets that do not share risk characteristics are evaluated on an individual basis. The allowances for credit losses are each measured by multiplying the exposure probability of default, the probability the asset will default within a given time frame, by the loss given default rate, the percentage of the asset not expected to be collected due to default, based on the pool of assets. Probability of default rates are published quarterly by third-party credit agencies. Adjustments to our internal credit risk ratings may take into account including, but not limited to, various customer-specific factors, the potential sovereign risk of the geographic locations in which the customer is operating and macroeconomic conditions. These factors are updated regularly or when facts and circumstances indicate that an update is deemed necessary. Available-for-Sale Debt Investments For our available-for-sale debt securities in an unrealized loss position, we determine whether a credit loss exists. In this assessment, we consider the extent to which the fair value is less than the amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If factors indicate a credit loss exists, an allowance for credit loss is recorded to other income (loss), net, limited by the amount that the fair value is less than the amortized cost basis. The amount of fair value change relating to all other factors will be recognized in other comprehensive income (OCI). |
Revenue
Revenue | 6 Months Ended |
Jan. 23, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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 software-as-a-service (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 January 23, 2021 and July 25, 2020 was $73 million and $79 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. (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): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Revenue: Infrastructure Platforms $ 6,391 $ 6,567 $ 12,732 $ 14,120 Applications 1,354 1,349 2,734 2,847 Security 822 749 1,684 1,565 Other Products 4 7 9 17 Total Product 8,572 8,671 17,159 18,549 Services 3,388 3,334 6,730 6,615 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 Amounts may not sum due to rounding. We have made certain reclassifications to the product revenue amounts for prior period to conform to the current year presentation. 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 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 includes our cloud and system management products. 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 $4.3 billion as of January 23, 2021 compared to $5.5 billion as of July 25, 2020, as reported on the Consolidated Balance Sheets. 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. Our contract assets for these unbilled receivables, net of allowances, were $1.3 billion and $1.2 billion as of January 23, 2021 and July 25, 2020, respectively, and were included in other current assets and other assets. Gross contract assets by our internal risk ratings are summarized as follows (in millions): January 23, 1 to 4 $ 426 5 to 6 783 7 and Higher 98 Total $ 1,307 Contract liabilities consist of deferred revenue. Deferred revenue was $20.8 billion as of January 23, 2021 compared to $20.4 billion as of July 25, 2020. We recognized approximately $3.0 billion and $6.9 billion of revenue during the second quarter and first six months of fiscal 2021, respectively, that was included in the deferred revenue balance at July 25, 2020. (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 $817 million and $732 million as of January 23, 2021 and July 25, 2020, respectively, and were included in other current assets and other assets. The amortization expense associated with these costs was $129 million and $252 million for the second quarter and first six months of fiscal 2021, respectively, and |
Acquisitions and Divestitures
Acquisitions and Divestitures | 6 Months Ended |
Jan. 23, 2021 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures We completed five acquisitions during the first six months of fiscal 2021. A summary of the allocation of the total purchase consideration is presented as follows (in millions): Purchase Consideration Net Tangible Assets Acquired (Liabilities Assumed) Purchased Intangible Assets Goodwill Total acquisitions (five in total) $ 958 $ 2 $ 228 $ 728 The total purchase consideration related to our acquisitions completed during the first six months of fiscal 2021 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $35 million. Total transaction costs related to acquisition and divestiture activities were $10 million and $9 million for the first six months of fiscal 2021 and 2020, respectively. These transaction costs were expensed as incurred in general and administrative expenses (“G&A”) in the Consolidated Statements of Operations. The goodwill generated from acquisitions completed during the first six months of fiscal 2021 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 and the revenue and net income subsequent to the acquisition date for the acquisitions completed during the first six months of fiscal 2021 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to our financial results. Pending Acquisition of Acacia Communications 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. On January 14, 2021, Cisco and Acacia announced an amendment to the definitive merger agreement under which we had previously agreed to acquire Acacia. Under the terms of the amended agreement, we have agreed to acquire Acacia for $115 per share in cash, or approximately $4.5 billion on a fully diluted basis, net of cash and marketable securities. The acquisition is expected to close during the third quarter of fiscal 2021, subject to customary closing conditions, including Acacia stockholder approval. All required regulatory approvals have been received. Upon close of the acquisition, revenue from Acacia will be included in our Infrastructure Platforms product category. |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets | 6 Months Ended |
Jan. 23, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets (a) Goodwill The following table presents the goodwill allocated to our reportable segments as of January 23, 2021 and during the first six months of fiscal 2021 (in millions): Balance at July 25, 2020 Acquisitions & Divestitures Foreign Currency Translation and Other Balance at January 23, 2021 Americas $ 21,304 $ 415 $ 135 $ 21,854 EMEA 8,040 198 51 8,289 APJC 4,462 100 28 4,590 Total $ 33,806 $ 713 $ 214 $ 34,733 (b) Purchased Intangible Assets The following table presents details of our intangible assets acquired through acquisitions completed during the first six months of fiscal 2021 (in millions, except years): FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER OTHER IPR&D Weighted- Amount Weighted- Amount Weighted- Amount Amount Amount Total acquisitions (five in total) 3.8 $ 179 4.0 $ 43 2.0 $ 6 — $ 228 The following tables present details of our purchased intangible assets (in millions): January 23, 2021 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 2,625 $ (1,700) $ 925 Customer relationships 773 (404) 369 Other 13 (5) 8 Total purchased intangible assets with finite lives 3,411 (2,109) 1,302 In-process research and development, with indefinite lives 160 — 160 Total $ 3,571 $ (2,109) $ 1,462 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 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): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Amortization of purchased intangible assets: Cost of sales $ 156 $ 165 $ 326 $ 331 Operating expenses 39 38 75 74 Total $ 195 $ 203 $ 401 $ 405 The estimated future amortization expense of purchased intangible assets with finite lives as of January 23, 2021 is as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 311 2022 $ 453 2023 $ 308 2024 $ 188 2025 $ 31 Thereafter $ 11 |
Restructuring and Other Charges
Restructuring and Other Charges | 6 Months Ended |
Jan. 23, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring and Other Charges | Restructuring and Other Charges We initiated a restructuring plan in the first quarter of fiscal 2021 (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. The total pretax charges are estimated to be approximately $900 million. In connection with the Fiscal 2021 Plan, we incurred charges of $232 million and $834 million for the second quarter and first six months of fiscal 2021, respectively. We initiated a restructuring plan in 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. In connection with the Fiscal 2020 Plan, we have incurred cumulative charges of $257 million. The aggregate pretax charges related to these plans are primarily cash-based and consist of severance and other one-time termination benefits, and other costs. We expect to substantially complete both plans in fiscal 2021. The following tables summarize the activities related to the restructuring and other charges (in millions): FISCAL 2020 AND PRIOR PLANS FISCAL 2021 PLAN Employee Other Employee Other Total Liability as of July 25, 2020 $ 58 $ 14 $ — $ — $ 72 Charges — 2 804 30 836 Cash payments (58) (3) (703) (3) (767) Non-cash items — — — (21) (21) Liability as of January 23, 2021 $ — $ 13 $ 101 $ 6 $ 120 FISCAL 2018 AND PRIOR PLANS Employee Other Total Liability as of July 27, 2019 $ 22 $ 11 $ 33 Charges 209 17 226 Cash payments (202) (1) (203) Non-cash items — (23) (23) Liability as of January 25, 2020 $ 29 $ 4 $ 33 |
Balance Sheet and Other Details
Balance Sheet and Other Details | 6 Months Ended |
Jan. 23, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet and Other Details | Balance Sheet and Other Details The following tables provide details of selected balance sheet and other items (in millions): January 23, July 25, Cash and cash equivalents $ 11,793 $ 11,809 Restricted cash included in other current assets 7 — Restricted cash included in other assets 3 3 Total cash, cash equivalents, and restricted cash $ 11,803 $ 11,812 Inventories: Raw materials $ 527 $ 456 Work in process 30 25 Finished goods: Deferred cost of sales 74 59 Manufactured finished goods 600 542 Total finished goods 674 601 Service-related spares 191 184 Demonstration systems 14 16 Total $ 1,436 $ 1,282 Our provision for inventory was $65 million and $30 million for the first six months of fiscal 2021 and 2020, respectively. Property and equipment, net: Gross property and equipment: Land, buildings, and building and leasehold improvements $ 4,291 $ 4,252 Computer equipment and related software 864 875 Production, engineering, and other equipment 5,193 5,163 Operating lease assets 343 337 Furniture, fixtures and other 375 387 Total gross property and equipment 11,066 11,014 Less: accumulated depreciation and amortization (8,680) (8,561) Total $ 2,386 $ 2,453 Deferred revenue: Product $ 8,332 $ 7,895 Service 12,514 12,551 Total $ 20,846 $ 20,446 Reported as: Current $ 11,552 $ 11,406 Noncurrent 9,294 9,040 Total $ 20,846 $ 20,446 Remaining Performance Obligations: Product $ 11,666 $ 11,261 Service 16,512 17,093 Total $ 28,178 $ 28,354 Remaining Performance Obligations (RPO) are comprised of deferred revenue plus unbilled contract revenue. As of January 23, 2021, the aggregate amount of RPO was comprised of $20.8 billion of deferred revenue and $7.3 billion of unbilled contract revenue. We expect approximately 54% of this amount of be recognized as revenue over the next 12 months. 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. 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 | 6 Months Ended |
Jan. 23, 2021 | |
Leases [Abstract] | |
Leases | Leases (a) Lessee Arrangements The following table presents our operating lease balances (in millions): Balance Sheet Line Item January 23, 2021 July 25, 2020 Operating lease right-of-use assets Other assets $ 974 $ 921 Operating lease liabilities Other current liabilities $ 366 $ 341 Operating lease liabilities Other long-term liabilities 688 661 Total operating lease liabilities $ 1,054 $ 1,002 The components of our lease expenses were as follows (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Operating lease expense $ 103 $ 101 $ 201 $ 214 Short-term lease expense 17 16 35 33 Variable lease expense 43 39 89 79 Total lease expense $ 163 $ 156 $ 325 $ 326 Supplemental information related to our operating leases is as follows (in millions): Six Months Ended January 23, 2021 January 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 201 $ 206 Right-of-use assets obtained in exchange for operating leases liabilities $ 218 $ 77 The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively. The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 193 2022 304 2023 232 2024 151 2025 92 Thereafter 104 Total lease payments 1,076 Less interest (22) Total $ 1,054 (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 the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 2020, respectively, 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 January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 330 2022 685 2023 455 2024 237 2025 130 Thereafter 28 Total 1,865 Less: Present value of lease payments 1,768 Unearned income $ 97 Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults. 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): January 23, 2021 July 25, 2020 Operating lease assets $ 343 $ 337 Accumulated depreciation (201) (198) Operating lease assets, net $ 142 $ 139 Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 38 2022 44 2023 20 2024 4 Total $ 106 |
Leases | Leases (a) Lessee Arrangements The following table presents our operating lease balances (in millions): Balance Sheet Line Item January 23, 2021 July 25, 2020 Operating lease right-of-use assets Other assets $ 974 $ 921 Operating lease liabilities Other current liabilities $ 366 $ 341 Operating lease liabilities Other long-term liabilities 688 661 Total operating lease liabilities $ 1,054 $ 1,002 The components of our lease expenses were as follows (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Operating lease expense $ 103 $ 101 $ 201 $ 214 Short-term lease expense 17 16 35 33 Variable lease expense 43 39 89 79 Total lease expense $ 163 $ 156 $ 325 $ 326 Supplemental information related to our operating leases is as follows (in millions): Six Months Ended January 23, 2021 January 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 201 $ 206 Right-of-use assets obtained in exchange for operating leases liabilities $ 218 $ 77 The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively. The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 193 2022 304 2023 232 2024 151 2025 92 Thereafter 104 Total lease payments 1,076 Less interest (22) Total $ 1,054 (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 the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 2020, respectively, 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 January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 330 2022 685 2023 455 2024 237 2025 130 Thereafter 28 Total 1,865 Less: Present value of lease payments 1,768 Unearned income $ 97 Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults. 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): January 23, 2021 July 25, 2020 Operating lease assets $ 343 $ 337 Accumulated depreciation (201) (198) Operating lease assets, net $ 142 $ 139 Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 38 2022 44 2023 20 2024 4 Total $ 106 |
Leases | Leases (a) Lessee Arrangements The following table presents our operating lease balances (in millions): Balance Sheet Line Item January 23, 2021 July 25, 2020 Operating lease right-of-use assets Other assets $ 974 $ 921 Operating lease liabilities Other current liabilities $ 366 $ 341 Operating lease liabilities Other long-term liabilities 688 661 Total operating lease liabilities $ 1,054 $ 1,002 The components of our lease expenses were as follows (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Operating lease expense $ 103 $ 101 $ 201 $ 214 Short-term lease expense 17 16 35 33 Variable lease expense 43 39 89 79 Total lease expense $ 163 $ 156 $ 325 $ 326 Supplemental information related to our operating leases is as follows (in millions): Six Months Ended January 23, 2021 January 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 201 $ 206 Right-of-use assets obtained in exchange for operating leases liabilities $ 218 $ 77 The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively. The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 193 2022 304 2023 232 2024 151 2025 92 Thereafter 104 Total lease payments 1,076 Less interest (22) Total $ 1,054 (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 the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 2020, respectively, 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 January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 330 2022 685 2023 455 2024 237 2025 130 Thereafter 28 Total 1,865 Less: Present value of lease payments 1,768 Unearned income $ 97 Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults. 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): January 23, 2021 July 25, 2020 Operating lease assets $ 343 $ 337 Accumulated depreciation (201) (198) Operating lease assets, net $ 142 $ 139 Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 38 2022 44 2023 20 2024 4 Total $ 106 |
Financing Receivables
Financing Receivables | 6 Months Ended |
Jan. 23, 2021 | |
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 year to three years. A summary of our financing receivables is presented as follows (in millions): January 23, 2021 Lease Loan Financed Service Total Gross $ 1,865 $ 5,817 $ 2,575 $ 10,257 Residual value 115 — — 115 Unearned income (97) — — (97) Allowance for credit loss (43) (96) (9) (148) Total, net $ 1,840 $ 5,721 $ 2,566 $ 10,127 Reported as: Current $ 868 $ 2,746 $ 1,413 $ 5,027 Noncurrent 972 2,975 1,153 5,100 Total, net $ 1,840 $ 5,721 $ 2,566 $ 10,127 July 25, 2020 Lease Loan Financed Service 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 (b) Credit Quality of Financing Receivables Gross financing receivables (1) categorized by our internal credit risk rating by period of origination as of January 23, 2021 are summarized as follows (in millions): Fiscal Year Six Months Ended Internal Credit Risk Rating Prior July 29, 2017 July 28, 2018 July 27, 2019 July 25, 2020 January 23, 2021 Total Lease Receivables: 1 to 4 $ 10 $ 49 $ 153 $ 248 $ 331 $ 16 $ 807 5 to 6 15 48 121 270 360 98 912 7 and Higher 3 2 6 14 20 4 49 Total Lease Receivables $ 28 $ 99 $ 280 $ 532 $ 711 $ 118 $ 1,768 Loan Receivables: 1 to 4 $ 16 $ 141 $ 387 $ 774 $ 1,302 $ 1,053 $ 3,673 5 to 6 5 60 145 362 745 672 1,989 7 and Higher 2 3 8 65 58 19 155 Total Loan Receivables $ 23 $ 204 $ 540 $ 1,201 $ 2,105 $ 1,744 $ 5,817 Financed Service Contracts: 1 to 4 $ 2 $ 49 $ 51 $ 213 $ 455 $ 742 $ 1,512 5 to 6 1 21 57 235 412 305 1,031 7 and Higher — — 2 15 12 3 32 Total Financed Service Contracts $ 3 $ 70 $ 110 $ 463 $ 879 $ 1,050 $ 2,575 Total $ 54 $ 373 $ 930 $ 2,196 $ 3,695 $ 2,912 $ 10,160 (1) Lease receivables calculated as gross lease receivables, excluding residual value, less unearned income The following table summarizes our gross receivables categorized by our internal credit risk rating as of July 25, 2020 and was not restated to reflect the impact of adoption of the accounting standards update on Credit Losses on Financial Instruments : 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 The following tables present the aging analysis of gross receivables as of January 23, 2021 and July 25, 2020 (in millions): DAYS PAST DUE January 23, 2021 31-60 61-90 91+ Total Current Total 120+ Still Accruing Nonaccrual Impaired Lease receivables $ 68 $ 13 $ 83 $ 164 $ 1,604 $ 1,768 $ 2 $ 33 $ 33 Loan receivables 109 30 73 212 5,605 5,817 15 50 50 Financed service contracts 40 11 101 152 2,423 2,575 31 4 4 Total $ 217 $ 54 $ 257 $ 528 $ 9,632 $ 10,160 $ 48 $ 87 $ 87 DAYS PAST DUE July 25, 2020 31-60 61-90 91+ Total Current Total Nonaccrual Impaired 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 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. (c) Allowance for Credit Loss Rollforward The allowances for credit loss and the related financing receivables are summarized as follows (in millions): Three months ended January 23, 2021 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of October 24, 2020 $ 46 $ 101 $ 7 $ 154 Provisions (benefits) (4) (6) 2 (8) Other 1 1 — 2 Allowance for credit loss as of January 23, 2021 $ 43 $ 96 $ 9 $ 148 Six months ended January 23, 2021 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of July 25, 2020 $ 48 $ 81 $ 9 $ 138 Provisions (benefits) (7) (3) 1 (9) Other 2 18 (1) 19 Allowance for credit loss as of January 23, 2021 $ 43 $ 96 $ 9 $ 148 Three months ended January 25, 2020 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of October 26, 2019 $ 43 $ 81 $ 9 $ 133 Provisions (benefits) (1) 15 — 14 Recoveries (write-offs), net (1) (1) — (2) Foreign exchange and other 1 — (1) — Allowance for credit loss as of January 25, 2020 $ 42 $ 95 $ 8 $ 145 Six months ended January 25, 2020 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of July 27, 2019 $ 46 $ 71 $ 9 $ 126 Provisions (benefits) (4) 42 — 38 Recoveries (write-offs), net (1) (17) — (18) Foreign exchange and other 1 (1) (1) (1) Allowance for credit loss as of January 25, 2020 $ 42 $ 95 $ 8 $ 145 |
Available-for-Sale Debt and Equ
Available-for-Sale Debt and Equity Investments | 6 Months Ended |
Jan. 23, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-Sale Debt and Equity Investments | Available-for-Sale Debt and Equity Investments (a) Summary of Available-for-Sale Debt Investments The following tables summarize our available-for-sale debt investments (in millions): January 23, 2021 Amortized Gross Gross Fair U.S. government securities $ 2,613 $ 50 $ — $ 2,663 U.S. government agency securities 168 — — 168 Corporate debt securities 10,516 296 (26) 10,786 U.S. agency mortgage-backed securities 2,796 47 (3) 2,840 Commercial paper 1,730 — — 1,730 Certificates of deposit 603 — — 603 Total (1) $ 18,426 $ 393 $ (29) $ 18,790 July 25, 2020 Amortized Gross Gross Fair 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 (1) Net unsettled investment sales were $39 million as of January 23, 2021 and were included in other current assets. The following table presents the gross realized gains and gross realized losses related to available-for-sale debt investments (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Gross realized gains $ 9 $ 13 $ 24 $ 25 Gross realized losses — (2) — (4) Total $ 9 $ 11 $ 24 $ 21 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 January 23, 2021 and July 25, 2020 (in millions): UNREALIZED LOSSES UNREALIZED LOSSES TOTAL January 23, 2021 Fair Value Gross Fair Value Gross Fair Value Gross U.S. government securities $ 109 $ — $ — $ — $ 109 $ — U.S. government agency securities 36 — — — 36 — Corporate debt securities 663 (1) — — 663 (1) U.S. agency mortgage-backed securities 698 (3) — — 698 (3) Certificates of deposit 15 — — — 15 — Total $ 1,521 $ (4) $ — $ — $ 1,521 $ (4) UNREALIZED LOSSES UNREALIZED LOSSES TOTAL July 25, 2020 Fair Value Gross Fair Value Gross Fair Value Gross 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) The following table summarizes the maturities of our available-for-sale debt investments as of January 23, 2021 (in millions): Amortized Cost Fair Value Within 1 year $ 6,674 $ 6,679 After 1 year through 5 years 7,035 7,201 After 5 years through 10 years 1,913 2,060 After 10 years 8 10 Mortgage-backed securities with no single maturity 2,796 2,840 Total $ 18,426 $ 18,790 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 Our net unrealized gains recognized during the reporting period on our marketable and non-marketable equity securities still held as of January 23, 2021 was $4 million for each of the second quarter and first six months of fiscal 2021, and a net gain of $3 million for the corresponding periods of fiscal 2020. Our net adjustments to non-marketable equity securities measured using the measurement alternative was a net gain of $3 million and $4 million for the second quarter and first six months of fiscal 2021, respectively. These adjustments were net gains of $3 million for each of the corresponding periods of fiscal 2020. We held equity interests in certain private equity funds of $0.7 billion as of each of January 23, 2021 and July 25, 2020, which are accounted for under the NAV practical expedient. 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 January 23, 2021, except as disclosed herein, there were no significant variable interest or voting interest entities required to be consolidated in our Consolidated Financial Statements. The carrying value of our investments in privately held companies was $1.3 billion as of each of January 23, 2021 and July 25, 2020. Of the total carrying value of our investments in privately held companies as of January 23, 2021, $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 related to privately held investments, some of which may be based on the achievement of certain agreed-upon milestones, and some of which are required to be funded on demand. The carrying value of these investments and the additional funding commitments collectively represent our maximum exposure related to privately held investments. |
Fair Value
Fair Value | 6 Months Ended |
Jan. 23, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 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. (a) Fair Value Hierarchy 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. 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. (b) 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): JANUARY 23, 2021 JULY 25, 2020 FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 8,515 $ — $ — $ 8,515 $ 10,024 $ — $ — $ 10,024 Corporate debt securities — 9 — 9 — 8 — 8 Certificates of deposit — 161 — 161 — — — — Commercial paper — 902 — 902 — — — — Available-for-sale debt investments: U.S. government securities — 2,663 — 2,663 — 2,685 — 2,685 U.S. government agency securities — 168 — 168 — 110 — 110 Corporate debt securities — 10,786 — 10,786 — 11,877 — 11,877 U.S. agency mortgage-backed securities — 2,840 — 2,840 — 2,035 — 2,035 Commercial paper — 1,730 — 1,730 — 727 — 727 Certificates of deposit — 603 — 603 — 176 — 176 Equity investments: Marketable equity securities 5 — — 5 — — — — Assets: Derivative assets — 165 6 171 — 190 1 191 Total $ 8,520 $ 20,027 $ 6 $ 28,553 $ 10,024 $ 17,808 $ 1 $ 27,833 Liabilities: Derivative liabilities $ — $ 26 $ — $ 26 $ — $ 10 $ — $ 10 Total $ — $ 26 $ — $ 26 $ — $ 10 $ — $ 10 Level 1 marketable 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. 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 these assets and liabilities. We use such pricing data as the primary input to make our assessments and determinations as to the ultimate valuation of our investment portfolio and have not made, during the periods presented, any material adjustments to such inputs. We are ultimately responsible for the financial statements and underlying estimates. 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. (c) 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. (d) 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 January 23, 2021 and July 25, 2020 was $4.1 billion and $4.5 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. |
Borrowings
Borrowings | 6 Months Ended |
Jan. 23, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings (a) Short-Term Debt The following table summarizes our short-term debt (in millions, except percentages): January 23, 2021 July 25, 2020 Amount Effective Rate Amount Effective Rate Current portion of long-term debt $ 5,000 2.00 % $ 3,005 2.07 % 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): January 23, 2021 July 25, 2020 Maturity Date Amount Effective Rate Amount Effective Rate Senior notes: Fixed-rate notes: 2.20% February 28, 2021 $ 2,500 2.30% $ 2,500 2.30% 2.90% March 4, 2021 500 0.92% 500 0.94% 1.85% September 20, 2021 2,000 1.90% 2,000 1.90% 3.00% June 15, 2022 500 1.17% 500 1.21% 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 1.04% 1,000 1.06% 3.50% June 15, 2025 500 1.33% 500 1.37% 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 14,500 Unaccreted discount/issuance costs (84) (88) Hedge accounting fair value adjustments 138 171 Total $ 14,554 $ 14,583 Reported as: Current portion of long-term debt $ 5,000 $ 3,005 Long-term debt 9,554 11,578 Total $ 14,554 $ 14,583 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 may be issued in the future pursuant to our short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of January 23, 2021, we were in compliance with all debt covenants. As of January 23, 2021, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 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. On January 25, 2021, we entered into an amendment to the credit facility to obtain consent of the lenders to our reincorporation to Delaware. 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 January 23, 2021, we were in compliance with the required interest coverage ratio and the other covenants, and we had not borrowed any funds under the credit facility. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jan. 23, 2021 | |
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 and requiring collateral in certain cases. 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 January 23, July 25, Balance Sheet Line Item January 23, July 25, Derivatives designated as hedging instruments: Foreign currency derivatives Other current assets $ 7 $ 7 Other current liabilities $ 14 $ 2 Interest rate derivatives Other current assets 1 6 Other current liabilities — — Interest rate derivatives Other assets 140 169 Other long-term liabilities — — Total 148 182 14 2 Derivatives not designated as hedging instruments: Foreign currency derivatives Other current assets 17 8 Other current liabilities 12 8 Equity derivatives Other assets 6 1 Other long-term liabilities — — Total 23 9 12 8 Total $ 171 $ 191 $ 26 $ 10 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 January 23, July 25, January 23, July 25, Short-term debt $ (501) $ (506) $ (1) $ (6) Long-term debt $ (2,132) $ (2,159) $ (137) $ (165) The effect of derivative instruments designated as fair value hedges, recognized in interest and other income (loss), net is summarized as follows (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Interest rate derivatives: Hedged items $ 14 $ 7 $ 33 $ (14) Derivatives designated as hedging instruments (14) (6) (34) 16 Total $ — $ 1 $ (1) $ 2 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 GAINS (LOSSES) FOR THE Derivatives Not Designated as Line Item in Statements of Operations January 23, January 25, January 23, January 25, Foreign currency derivatives Other income (loss), net $ 33 $ (2) $ 47 $ (9) Total return swaps—deferred compensation Operating expenses and other 76 41 99 41 Equity derivatives Other income (loss), net 9 3 14 5 Total $ 118 $ 42 $ 160 $ 37 The notional amounts of our outstanding derivatives are summarized as follows (in millions): January 23, July 25, Foreign currency derivatives $ 4,839 $ 4,315 Interest rate derivatives 2,500 2,500 Total return swaps—deferred compensation 689 580 Total $ 8,028 $ 7,395 (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 January 23, 2021 and July 25, 2020, 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 $22 million and $10 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 January 23, 2021 and July 25, 2020 was $141 million and $173 million, respectively. Including the effects of collateral, this results in a net derivative asset of $4 million and $8 million as of January 23, 2021 and July 25, 2020, 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 accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings when the hedged exposure affects earnings. During the periods 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 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, other current assets, 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 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 | 6 Months Ended |
Jan. 23, 2021 | |
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 January 23, 2021 and July 25, 2020, we had total purchase commitments for inventory of $4.6 billion and $4.4 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 January 23, 2021 and July 25, 2020, the liability for these purchase commitments was $152 million and $141 million, respectively, and was included in other current liabilities. The provision for the liability related to purchase commitments with contract manufacturers and suppliers was $44 million and $67 million for the first six months of fiscal 2021 and 2020, 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): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Compensation expense related to acquisitions $ 59 $ 50 $ 116 $ 111 As of January 23, 2021, we estimated that future cash compensation expense of up to $452 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 January 23, 2021 and July 25, 2020. (c) Product Warranties The following table summarizes the activity related to the product warranty liability (in millions): Six Months Ended January 23, January 25, Balance at beginning of period $ 331 $ 342 Provisions for warranties issued 247 283 Adjustments for pre-existing warranties 4 (3) Settlements (249) (291) Balance at end of period $ 333 $ 331 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. 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 $6.7 billion and $6.6 billion for the second quarter of fiscal 2021 and 2020, respectively, and was $12.8 billion and $14.2 billion for the first six months of fiscal 2021 and 2020, respectively. The balance of the channel partner financing subject to guarantees was $1.3 billion and $1.1 billion as of January 23, 2021 and July 25, 2020, 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 $3 million and $1 million for the second quarter of fiscal 2021 and 2020, respectively, and was $8 million and $6 million for the first six months of fiscal 2021 and 2020, respectively. Financing Guarantee Summary The aggregate amounts of financing guarantees outstanding at January 23, 2021 and July 25, 2020, 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): January 23, July 25, Maximum potential future payments relating to financing guarantees: Channel partner $ 205 $ 198 End user 8 9 Total $ 213 $ 207 Deferred revenue associated with financing guarantees: Channel partner $ (19) $ (19) End user (8) (9) Total $ (27) $ (28) Total $ 186 $ 179 (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. We resolved Charter’s indemnity claim effective February 4, 2021 for an amount that does not have a material effect on our financial position. 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 and injunctive relief against the service provider customers, although two of the asserted patents expire on June 19, 2021, and the third expires on September 17, 2021. On October 13, 2020, the Court set Chanbond’s case against Cox for trial on May 17, 2021. The other cases against the remaining service provider defendants have not yet been set for trial. We believe that the service provider defendants have strong non-infringement, invalidity and other defenses and that Chanbond will not be able to meet its burden required for injunctive relief. 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. 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. The asserted claims by Brazilian federal tax authorities 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 asserted claims by Brazilian state and federal tax authorities aggregate to $148 million for the alleged evasion of import and other taxes, $728 million for interest, and $366 million for various penalties, all determined using an exchange rate as of January 23, 2021. We have completed a thorough review of the matters and believe the 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. China The Company is investigating allegations of a self-enrichment scheme involving now-former employees in China. Some of those employees are also alleged to have made or directed payments from the funds they received to various third parties, including employees of state-owned enterprises. The Company voluntarily disclosed this investigation to the Department of Justice (“DOJ”) and Securities and Exchange Commission (“SEC”). We take such allegations very seriously and we are providing results of our investigation to the DOJ and SEC. While the outcome of our investigation is currently not determinable, we do not expect that it will have a material adverse effect on our consolidated financial position, results of operations, or cash flows. 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. Centripetal has appealed the PTAB’s findings of unpatentability to the United States Court of Appeals for the Federal Circuit. 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 sought damages, enhanced damages for willful infringement, and broad injunctive relief. On October 5, 2020, the District Court issued a judgment finding validity and willful infringement of four of the asserted patents and non-infringement of the fifth patent. The Court awarded Centripetal $1.9 billion, comprised of $755.8 million in damages, $1.1 billion in enhanced damages for willful infringement, and pre-judgment interest in the amount of $13.7 million. The Court declined to issue an injunction but, instead, awarded Centripetal a running royalty against revenue from the products found to infringe for an initial three-year term at a rate of 10%, with a minimum annual royalty of $167.7 million and a maximum annual royalty of $300.1 million, and for a second three-year term at a rate of 5%, with a minimum annual royalty of $83.9 million and a maximum annual royalty of $150.0 million. We believe that the District Court’s findings of validity, infringement, and willful infringement, its award of damages, including enhanced damages, and its award of an ongoing royalty are not supported by either the law or the evidence presented at trial. We intend to appeal the District Court’s judgment when it becomes final as to the four patents found valid and infringed to the United States Court of Appeals for the Federal Circuit, and we believe that any relief ultimately awarded would not be material. On October 28, 2020, by agreement of the parties, the District Court stayed execution of the judgment until after resolution of any appeal in the matter and waived the requirement of any bond or security; accordingly, no money is currently due under the judgment. 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 believe we have strong defenses. 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. 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, originally 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 now expired such that no injunctive relief is available on those patents. 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 (instead of injunctive relief) until its expiration on December 12, 2025. The case is currently set for jury trial starting June 4, 2021. 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. Ramot On June 12, 2019, Ramot at Tel Aviv University Ltd. (“Ramot”) asserted patent infringement claims against us in the U.S. District Court for the Eastern District of Texas, seeking damages, including enhanced damages for allegations of willful infringement, and a running royalty on future sales. Ramot alleges that certain Cisco optical transceiver modules and line cards infringe three U.S. patents. As of November 27, 2020, the U.S. Patent & Trademark Office preliminarily found all asserted claims unpatentable in ex parte reexamination proceedings. On January 13, 2021, the Court entered an order staying the case pending the conclusion of the ex parte reexamination proceedings. While we believe that we have strong non-infringement and invalidity arguments, and that Ramot’s damages theories are not supported by prevailing law, 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 |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jan. 23, 2021 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity (a) Cash Dividends on Shares of Common Stock We declared and paid cash dividends of $0.36 and $0.35 per common share, or $1.5 billion, on our outstanding common stock for each of the second quarters of fiscal 2021 and 2020. We declared and paid cash dividends of $0.72 and $0.70 per common share, or $3.0 billion, on our outstanding common stock for each of the first six months of fiscal 2021 and 2020. On February 9, 2021, our Board of Directors declared a quarterly dividend of $0.37 per common share to be paid on April 28, 2021 to all stockholders of record as of the close of business on April 6, 2021. 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 January 23, 2021, the remaining authorized amount for stock repurchases under this program was approximately $9.2 billion with no termination date. A summary of the stock repurchase activity for fiscal 2021 and 2020 under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts): Quarter Ended Shares Weighted-Average Price per Share Amount Fiscal 2021 January 23, 2021 19 $ 42.82 $ 801 October 24, 2020 20 $ 40.44 $ 800 Fiscal 2020 July 25, 2020 — $ — $ — April 25, 2020 25 $ 39.71 $ 981 January 25, 2020 18 $ 46.71 $ 870 October 26, 2019 16 $ 48.91 $ 768 There were $32 million stock repurchases that were pending settlement as of January 23, 2021. There were no stock repurchases that were pending settlement as of July 25, 2020. 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 | 6 Months Ended |
Jan. 23, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans (a) Employee Stock Incentive Plans Stock Incentive Plan Program Description As of January 23, 2021, 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. On December 10, 2020, the 2005 Plan was amended to extend the term for nine years, and increase the number of shares authorized for issuance by approximately 96 million, among other items. As of January 23, 2021, the maximum number of shares issuable under the 2005 Plan over its term was increased to 790 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 2030 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. 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 January 23, 2021, 253 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 million shares of our common stock have been reserved for issuance as of January 23, 2021. 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. Under the Employee Stock Purchase Plan, we issued 8 million shares during the second quarter and first six months of fiscal 2021 and 9 million shares during the corresponding periods of fiscal 2020. As of January 23, 2021, 133 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): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Cost of sales—product $ 25 $ 23 $ 49 $ 46 Cost of sales—service 43 36 84 70 Share-based compensation expense in cost of sales 68 59 133 116 Research and development 171 146 338 292 Sales and marketing 128 119 262 246 General and administrative 59 55 120 115 Restructuring and other charges 10 5 21 13 Share-based compensation expense in operating expenses 368 325 741 666 Total share-based compensation expense $ 436 $ 384 $ 874 $ 782 Income tax benefit for share-based compensation $ 95 $ 109 $ 176 $ 240 As of January 23, 2021, the total compensation cost related to unvested share-based awards not yet recognized was $4.0 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/ Weighted-Average Aggregate Fair Value Unvested balance at July 27, 2019 100 $ 38.66 Granted and assumed 49 42.61 Vested (44) 35.20 $ 2,045 Canceled/forfeited/other (9) 40.45 Unvested balance at July 25, 2020 96 42.03 Granted and assumed 33 37.90 Vested (21) 39.05 $ 908 Canceled/forfeited/other (9) 41.63 Unvested balance at January 23, 2021 99 $ 41.35 |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 6 Months Ended |
Jan. 23, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The components of AOCI, net of tax, and the other comprehensive income (loss), for the first six months of fiscal 2021 and 2020 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 (Losses) Accumulated Other Comprehensive Income (Loss) Balance at July 25, 2020 $ 315 $ (6) $ (828) $ (519) Other comprehensive income (loss) before reclassifications (35) (5) 345 305 (Gains) losses reclassified out of AOCI (24) (5) 2 (27) Tax benefit (expense) 24 2 (3) 23 Balance at January 23, 2021 $ 280 $ (14) $ (484) $ (218) Net Unrealized Gains (Losses) on Available-for-Sale Investments Net Unrealized Gains (Losses) Cash Flow Hedging Instruments Cumulative Translation Adjustment and Actuarial Gains (Losses) Accumulated Other Comprehensive Income (Loss) Balance at July 27, 2019 $ — $ (14) $ (778) $ (792) Other comprehensive income (loss) before reclassifications 168 — (42) 126 (Gains) losses reclassified out of AOCI (21) 2 2 (17) Tax benefit (expense) (17) 1 (1) (17) Balance at January 25, 2020 $ 130 $ (11) $ (819) $ (700) |
Income Taxes
Income Taxes | 6 Months Ended |
Jan. 23, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table provides details of income taxes (in millions, except percentages): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Income before provision for income taxes $ 3,255 $ 3,534 $ 5,936 $ 7,220 Provision for income taxes $ 710 $ 656 $ 1,217 $ 1,416 Effective tax rate 21.8 % 18.6 % 20.5 % 19.6 % As of January 23, 2021, we had $2.5 billion of unrecognized tax benefits, of which $2.1 billion, if recognized, would favorably impact the effective tax rate. 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. |
Segment Information and Major C
Segment Information and Major Customers | 6 Months Ended |
Jan. 23, 2021 | |
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 the second quarter and first six months of fiscal 2021 and 2020, based on our internal management system and as utilized by our Chief Operating Decision Maker (“CODM”), is as follows (in millions): Three Months Ended Six Months Ended January 23, January 25, January 23, 2021 January 25, 2020 Revenue: Americas $ 6,969 $ 7,013 $ 14,168 $ 14,990 EMEA 3,207 3,134 6,171 6,417 APJC 1,784 1,859 3,551 3,758 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 Gross margin: Americas $ 4,705 $ 4,692 $ 9,552 $ 10,008 EMEA 2,145 2,062 4,038 4,229 APJC 1,155 1,219 2,268 2,413 Segment total 8,005 7,974 15,858 16,650 Unallocated corporate items (221) (210) (493) (422) Total $ 7,784 $ 7,764 $ 15,365 $ 16,228 Amounts may not sum and percentages may not recalculate due to rounding. Revenue in the United States was $6.2 billion for each of the second quarters of fiscal 2021 and 2020 and $12.7 billion and $13.3 billion for the first six months of fiscal 2021 and 2020, respectively. (b) Revenue for Groups of Similar Products and Services We design, manufacture, and sell Internet Protocol (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): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Revenue: Infrastructure Platforms $ 6,391 $ 6,567 $ 12,732 $ 14,120 Applications 1,354 1,349 2,734 2,847 Security 822 749 1,684 1,565 Other Products 4 7 9 17 Total Product 8,572 8,671 17,159 18,549 Services 3,388 3,334 6,730 6,615 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 Amounts may not sum due to rounding. We have made certain reclassifications to the product revenue amounts for prior period to conform to the current year presentation. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Jan. 23, 2021 | |
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): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Net income $ 2,545 $ 2,878 $ 4,719 $ 5,804 Weighted-average shares—basic 4,223 4,242 4,227 4,244 Effect of dilutive potential common shares 11 18 12 21 Weighted-average shares—diluted 4,234 4,260 4,239 4,265 Net income per share—basic $ 0.60 $ 0.68 $ 1.12 $ 1.37 Net income per share—diluted $ 0.60 $ 0.68 $ 1.11 $ 1.36 Antidilutive employee share-based awards, excluded 49 29 56 32 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. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jan. 23, 2021 | |
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 2021 is a 53-week fiscal year and fiscal 2020 was a 52-week fiscal year. |
Basis of Presentation | The Consolidated Financial Statements include our accounts 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). At our annual meeting of shareholders held on December 10, 2020, shareholders voted to approve changing the state of incorporation from California to Delaware. The reincorporation became effective January 25, 2021. We have prepared the accompanying financial data as of January 23, 2021 and for the second quarter and first six months of fiscal 2021 and 2020, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The July 25, 2020 Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. However, we believe that the disclosures are adequate to make the information presented not misleading. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our Annual Report on Form 10-K for the fiscal year ended July 25, 2020. The preparation of financial statements and related disclosures in conformity with GAAP requires us to make judgments, assumptions, and estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. 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 that we experience 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. In the opinion of management, all normal recurring adjustments necessary to present fairly the consolidated balance sheet as of January 23, 2021, the results of operations, the statements of comprehensive income (loss) and the statements of equity for the second quarter and first six months of fiscal 2021 and 2020, and the statements of cash flows for the first six months of fiscal 2021 and 2020, as applicable, have been made. The results of operations for the second quarter and first six months of fiscal 2021 are not necessarily indicative of the operating results for the full fiscal year or any future periods. 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. |
Reclassifications | Certain reclassifications have been made to the amounts in prior periods in order to conform to the current period’s presentation. We have evaluated subsequent events through the date that the financial statements were issued. |
New Accounting Updates Recently Adopted | New Accounting Updates Recently Adopted 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. We adopted this standard at the beginning of our first quarter of fiscal 2021, applied it at the beginning of the period of adoption and did not restate prior periods. The standard primarily impacts our financial assets measured at amortized cost and available-for-sale debt securities. The standard did not have a material impact on our consolidated financial statements upon adoption. |
Allowance for Accounts Receivable, Contract Assets, and Financing Receivables and Available-for-Sale Debt Investments | Allowance for Accounts Receivable, Contract Assets and Financing Receivables We estimate our allowances for credit losses using relevant available information from internal and external sources, related to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. When assessing for credit losses, we determine collectibility by pooling our assets with similar characteristics. The allowances for credit losses are each measured on a collective basis when similar risk characteristics exist. Our internal credit risk ratings are categorized as 1 through 10, with the lowest credit risk rating representing the highest quality. Our assets within each internal credit risk rating share similar risk characteristics and therefore are assessed as one portfolio segment for credit loss. Assets that do not share risk characteristics are evaluated on an individual basis. The allowances for credit losses are each measured by multiplying the exposure probability of default, the probability the asset will default within a given time frame, by the loss given default rate, the percentage of the asset not expected to be collected due to default, based on the pool of assets. Probability of default rates are published quarterly by third-party credit agencies. Adjustments to our internal credit risk ratings may take into account including, but not limited to, various customer-specific factors, the potential sovereign risk of the geographic locations in which the customer is operating and macroeconomic conditions. These factors are updated regularly or when facts and circumstances indicate that an update is deemed necessary. Available-for-Sale Debt Investments For our available-for-sale debt securities in an unrealized loss position, we determine whether a credit loss exists. In this assessment, we consider the extent to which the fair value is less than the amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If factors indicate a credit loss exists, an allowance for credit loss is recorded to other income (loss), net, limited by the amount that the fair value is less than the amortized cost basis. The amount of fair value change relating to all other factors will be recognized in other comprehensive income (OCI). |
Revenue | 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 software-as-a-service (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 January 23, 2021 and July 25, 2020 was $73 million and $79 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. 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 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 includes our cloud and system management products. 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. |
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 year to three years. |
Fair Value Measurement | 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. (a) Fair Value Hierarchy 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. 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. |
Fair Value of Financial Instruments | Level 1 marketable 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. 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 these assets and liabilities. We use such pricing data as the primary input to make our assessments and determinations as to the ultimate valuation of our investment portfolio and have not made, during the periods presented, any material adjustments to such inputs. We are ultimately responsible for the financial statements and underlying estimates. 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. |
Derivatives | 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 and requiring collateral in certain cases. 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. |
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 January 23, 2021 and July 25, 2020, 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 $22 million and $10 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. |
Hedging Derivatives | 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 accumulated other comprehensive income (“AOCI”) and subsequently reclassified into earnings when the hedged exposure affects earnings. During the periods 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 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, other current assets, 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.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. |
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. |
Net Income per Share | 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. |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents this disaggregation of revenue (in millions): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Revenue: Infrastructure Platforms $ 6,391 $ 6,567 $ 12,732 $ 14,120 Applications 1,354 1,349 2,734 2,847 Security 822 749 1,684 1,565 Other Products 4 7 9 17 Total Product 8,572 8,671 17,159 18,549 Services 3,388 3,334 6,730 6,615 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 The following table presents revenue for groups of similar products and services (in millions): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Revenue: Infrastructure Platforms $ 6,391 $ 6,567 $ 12,732 $ 14,120 Applications 1,354 1,349 2,734 2,847 Security 822 749 1,684 1,565 Other Products 4 7 9 17 Total Product 8,572 8,671 17,159 18,549 Services 3,388 3,334 6,730 6,615 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 |
Schedule of Gross Contract Assets by Internal Risk Ratings | Gross contract assets by our internal risk ratings are summarized as follows (in millions): January 23, 1 to 4 $ 426 5 to 6 783 7 and Higher 98 Total $ 1,307 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Business Combinations [Abstract] | |
Summary of Allocation of Total Purchase Consideration | A summary of the allocation of the total purchase consideration is presented as follows (in millions): Purchase Consideration Net Tangible Assets Acquired (Liabilities Assumed) Purchased Intangible Assets Goodwill Total acquisitions (five in total) $ 958 $ 2 $ 228 $ 728 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill by Reportable Segment | The following table presents the goodwill allocated to our reportable segments as of January 23, 2021 and during the first six months of fiscal 2021 (in millions): Balance at July 25, 2020 Acquisitions & Divestitures Foreign Currency Translation and Other Balance at January 23, 2021 Americas $ 21,304 $ 415 $ 135 $ 21,854 EMEA 8,040 198 51 8,289 APJC 4,462 100 28 4,590 Total $ 33,806 $ 713 $ 214 $ 34,733 |
Schedule of Intangible Assets Acquired Through Business Combinations | The following table presents details of our intangible assets acquired through acquisitions completed during the first six months of fiscal 2021 (in millions, except years): FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER OTHER IPR&D Weighted- Amount Weighted- Amount Weighted- Amount Amount Amount Total acquisitions (five in total) 3.8 $ 179 4.0 $ 43 2.0 $ 6 — $ 228 |
Schedule of Intangible Assets Acquired Through Business Combinations | The following table presents details of our intangible assets acquired through acquisitions completed during the first six months of fiscal 2021 (in millions, except years): FINITE LIVES INDEFINITE LIVES TOTAL TECHNOLOGY CUSTOMER OTHER IPR&D Weighted- Amount Weighted- Amount Weighted- Amount Amount Amount Total acquisitions (five in total) 3.8 $ 179 4.0 $ 43 2.0 $ 6 — $ 228 |
Schedule of Purchased Intangible Assets | The following tables present details of our purchased intangible assets (in millions): January 23, 2021 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 2,625 $ (1,700) $ 925 Customer relationships 773 (404) 369 Other 13 (5) 8 Total purchased intangible assets with finite lives 3,411 (2,109) 1,302 In-process research and development, with indefinite lives 160 — 160 Total $ 3,571 $ (2,109) $ 1,462 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 |
Schedule of Purchased Intangible Assets | The following tables present details of our purchased intangible assets (in millions): January 23, 2021 Gross Accumulated Amortization Net Purchased intangible assets with finite lives: Technology $ 2,625 $ (1,700) $ 925 Customer relationships 773 (404) 369 Other 13 (5) 8 Total purchased intangible assets with finite lives 3,411 (2,109) 1,302 In-process research and development, with indefinite lives 160 — 160 Total $ 3,571 $ (2,109) $ 1,462 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 |
Schedule of Amortization of Purchased Intangible Assets | The following table presents the amortization of purchased intangible assets, including impairment charges (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Amortization of purchased intangible assets: Cost of sales $ 156 $ 165 $ 326 $ 331 Operating expenses 39 38 75 74 Total $ 195 $ 203 $ 401 $ 405 |
Schedule of Estimated Future Amortization Expense of Purchased Intangible Assets | The estimated future amortization expense of purchased intangible assets with finite lives as of January 23, 2021 is as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 311 2022 $ 453 2023 $ 308 2024 $ 188 2025 $ 31 Thereafter $ 11 |
Restructuring and Other Charg_2
Restructuring and Other Charges (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Restructuring Charges [Abstract] | |
Liabilities Related to Restructuring and Other Charges | The following tables summarize the activities related to the restructuring and other charges (in millions): FISCAL 2020 AND PRIOR PLANS FISCAL 2021 PLAN Employee Other Employee Other Total Liability as of July 25, 2020 $ 58 $ 14 $ — $ — $ 72 Charges — 2 804 30 836 Cash payments (58) (3) (703) (3) (767) Non-cash items — — — (21) (21) Liability as of January 23, 2021 $ — $ 13 $ 101 $ 6 $ 120 FISCAL 2018 AND PRIOR PLANS Employee Other Total Liability as of July 27, 2019 $ 22 $ 11 $ 33 Charges 209 17 226 Cash payments (202) (1) (203) Non-cash items — (23) (23) Liability as of January 25, 2020 $ 29 $ 4 $ 33 |
Balance Sheet and Other Detai_2
Balance Sheet and Other Details (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | The following tables provide details of selected balance sheet and other items (in millions): January 23, July 25, Cash and cash equivalents $ 11,793 $ 11,809 Restricted cash included in other current assets 7 — Restricted cash included in other assets 3 3 Total cash, cash equivalents, and restricted cash $ 11,803 $ 11,812 |
Cash, Cash Equivalents, and Restricted Cash | The following tables provide details of selected balance sheet and other items (in millions): January 23, July 25, Cash and cash equivalents $ 11,793 $ 11,809 Restricted cash included in other current assets 7 — Restricted cash included in other assets 3 3 Total cash, cash equivalents, and restricted cash $ 11,803 $ 11,812 |
Inventories | Inventories: Raw materials $ 527 $ 456 Work in process 30 25 Finished goods: Deferred cost of sales 74 59 Manufactured finished goods 600 542 Total finished goods 674 601 Service-related spares 191 184 Demonstration systems 14 16 Total $ 1,436 $ 1,282 |
Property and Equipment, Net | Property and equipment, net: Gross property and equipment: Land, buildings, and building and leasehold improvements $ 4,291 $ 4,252 Computer equipment and related software 864 875 Production, engineering, and other equipment 5,193 5,163 Operating lease assets 343 337 Furniture, fixtures and other 375 387 Total gross property and equipment 11,066 11,014 Less: accumulated depreciation and amortization (8,680) (8,561) Total $ 2,386 $ 2,453 |
Deferred Revenue | Deferred revenue: Product $ 8,332 $ 7,895 Service 12,514 12,551 Total $ 20,846 $ 20,446 Reported as: Current $ 11,552 $ 11,406 Noncurrent 9,294 9,040 Total $ 20,846 $ 20,446 |
Remaining Performance Obligations | Remaining Performance Obligations: Product $ 11,666 $ 11,261 Service 16,512 17,093 Total $ 28,178 $ 28,354 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Leases [Abstract] | |
Operating Lease Balances | The following table presents our operating lease balances (in millions): Balance Sheet Line Item January 23, 2021 July 25, 2020 Operating lease right-of-use assets Other assets $ 974 $ 921 Operating lease liabilities Other current liabilities $ 366 $ 341 Operating lease liabilities Other long-term liabilities 688 661 Total operating lease liabilities $ 1,054 $ 1,002 |
Lease Expenses and Supplemental Information | The components of our lease expenses were as follows (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Operating lease expense $ 103 $ 101 $ 201 $ 214 Short-term lease expense 17 16 35 33 Variable lease expense 43 39 89 79 Total lease expense $ 163 $ 156 $ 325 $ 326 Supplemental information related to our operating leases is as follows (in millions): Six Months Ended January 23, 2021 January 25, 2020 Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 201 $ 206 Right-of-use assets obtained in exchange for operating leases liabilities $ 218 $ 77 |
Maturities of Operating Leases | The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 193 2022 304 2023 232 2024 151 2025 92 Thereafter 104 Total lease payments 1,076 Less interest (22) Total $ 1,054 |
Future Minimum Lease Payments on Lease Receivables | Future minimum lease payments on our lease receivables as of January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 330 2022 685 2023 455 2024 237 2025 130 Thereafter 28 Total 1,865 Less: Present value of lease payments 1,768 Unearned income $ 97 |
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): January 23, 2021 July 25, 2020 Operating lease assets $ 343 $ 337 Accumulated depreciation (201) (198) Operating lease assets, net $ 142 $ 139 |
Minimum Future Rentals on Noncancelable Operating Leases | Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 38 2022 44 2023 20 2024 4 Total $ 106 |
Financing Receivables (Tables)
Financing Receivables (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Receivables [Abstract] | |
Summary of Financing Receivables | A summary of our financing receivables is presented as follows (in millions): January 23, 2021 Lease Loan Financed Service Total Gross $ 1,865 $ 5,817 $ 2,575 $ 10,257 Residual value 115 — — 115 Unearned income (97) — — (97) Allowance for credit loss (43) (96) (9) (148) Total, net $ 1,840 $ 5,721 $ 2,566 $ 10,127 Reported as: Current $ 868 $ 2,746 $ 1,413 $ 5,027 Noncurrent 972 2,975 1,153 5,100 Total, net $ 1,840 $ 5,721 $ 2,566 $ 10,127 July 25, 2020 Lease Loan Financed Service 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 |
Schedule of Financing Receivables by Internal Credit Risk Rating by Period of Origination | Gross financing receivables (1) categorized by our internal credit risk rating by period of origination as of January 23, 2021 are summarized as follows (in millions): Fiscal Year Six Months Ended Internal Credit Risk Rating Prior July 29, 2017 July 28, 2018 July 27, 2019 July 25, 2020 January 23, 2021 Total Lease Receivables: 1 to 4 $ 10 $ 49 $ 153 $ 248 $ 331 $ 16 $ 807 5 to 6 15 48 121 270 360 98 912 7 and Higher 3 2 6 14 20 4 49 Total Lease Receivables $ 28 $ 99 $ 280 $ 532 $ 711 $ 118 $ 1,768 Loan Receivables: 1 to 4 $ 16 $ 141 $ 387 $ 774 $ 1,302 $ 1,053 $ 3,673 5 to 6 5 60 145 362 745 672 1,989 7 and Higher 2 3 8 65 58 19 155 Total Loan Receivables $ 23 $ 204 $ 540 $ 1,201 $ 2,105 $ 1,744 $ 5,817 Financed Service Contracts: 1 to 4 $ 2 $ 49 $ 51 $ 213 $ 455 $ 742 $ 1,512 5 to 6 1 21 57 235 412 305 1,031 7 and Higher — — 2 15 12 3 32 Total Financed Service Contracts $ 3 $ 70 $ 110 $ 463 $ 879 $ 1,050 $ 2,575 Total $ 54 $ 373 $ 930 $ 2,196 $ 3,695 $ 2,912 $ 10,160 (1) Lease receivables calculated as gross lease receivables, excluding residual value, less unearned income The following table summarizes our gross receivables categorized by our internal credit risk rating as of July 25, 2020 and was not restated to reflect the impact of adoption of the accounting standards update on Credit Losses on Financial Instruments : 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 |
Schedule of Aging Analysis of Financing Receivables | The following tables present the aging analysis of gross receivables as of January 23, 2021 and July 25, 2020 (in millions): DAYS PAST DUE January 23, 2021 31-60 61-90 91+ Total Current Total 120+ Still Accruing Nonaccrual Impaired Lease receivables $ 68 $ 13 $ 83 $ 164 $ 1,604 $ 1,768 $ 2 $ 33 $ 33 Loan receivables 109 30 73 212 5,605 5,817 15 50 50 Financed service contracts 40 11 101 152 2,423 2,575 31 4 4 Total $ 217 $ 54 $ 257 $ 528 $ 9,632 $ 10,160 $ 48 $ 87 $ 87 DAYS PAST DUE July 25, 2020 31-60 61-90 91+ Total Current Total Nonaccrual Impaired 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 |
Schedule of Allowance for Credit Loss and Related Financing Receivables | The allowances for credit loss and the related financing receivables are summarized as follows (in millions): Three months ended January 23, 2021 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of October 24, 2020 $ 46 $ 101 $ 7 $ 154 Provisions (benefits) (4) (6) 2 (8) Other 1 1 — 2 Allowance for credit loss as of January 23, 2021 $ 43 $ 96 $ 9 $ 148 Six months ended January 23, 2021 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of July 25, 2020 $ 48 $ 81 $ 9 $ 138 Provisions (benefits) (7) (3) 1 (9) Other 2 18 (1) 19 Allowance for credit loss as of January 23, 2021 $ 43 $ 96 $ 9 $ 148 Three months ended January 25, 2020 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of October 26, 2019 $ 43 $ 81 $ 9 $ 133 Provisions (benefits) (1) 15 — 14 Recoveries (write-offs), net (1) (1) — (2) Foreign exchange and other 1 — (1) — Allowance for credit loss as of January 25, 2020 $ 42 $ 95 $ 8 $ 145 Six months ended January 25, 2020 CREDIT LOSS ALLOWANCES Lease Loan Financed Service Total Allowance for credit loss as of July 27, 2019 $ 46 $ 71 $ 9 $ 126 Provisions (benefits) (4) 42 — 38 Recoveries (write-offs), net (1) (17) — (18) Foreign exchange and other 1 (1) (1) (1) Allowance for credit loss as of January 25, 2020 $ 42 $ 95 $ 8 $ 145 |
Available-for-Sale Debt and E_2
Available-for-Sale Debt and Equity Investments (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Debt Investments | The following tables summarize our available-for-sale debt investments (in millions): January 23, 2021 Amortized Gross Gross Fair U.S. government securities $ 2,613 $ 50 $ — $ 2,663 U.S. government agency securities 168 — — 168 Corporate debt securities 10,516 296 (26) 10,786 U.S. agency mortgage-backed securities 2,796 47 (3) 2,840 Commercial paper 1,730 — — 1,730 Certificates of deposit 603 — — 603 Total (1) $ 18,426 $ 393 $ (29) $ 18,790 July 25, 2020 Amortized Gross Gross Fair 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 (1) Net unsettled investment sales were $39 million as of January 23, 2021 and were included in other current assets. |
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): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Gross realized gains $ 9 $ 13 $ 24 $ 25 Gross realized losses — (2) — (4) Total $ 9 $ 11 $ 24 $ 21 |
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 January 23, 2021 and July 25, 2020 (in millions): UNREALIZED LOSSES UNREALIZED LOSSES TOTAL January 23, 2021 Fair Value Gross Fair Value Gross Fair Value Gross U.S. government securities $ 109 $ — $ — $ — $ 109 $ — U.S. government agency securities 36 — — — 36 — Corporate debt securities 663 (1) — — 663 (1) U.S. agency mortgage-backed securities 698 (3) — — 698 (3) Certificates of deposit 15 — — — 15 — Total $ 1,521 $ (4) $ — $ — $ 1,521 $ (4) UNREALIZED LOSSES UNREALIZED LOSSES TOTAL July 25, 2020 Fair Value Gross Fair Value Gross Fair Value Gross 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) |
Maturities of Available-for-Sale Debt Investments | The following table summarizes the maturities of our available-for-sale debt investments as of January 23, 2021 (in millions): Amortized Cost Fair Value Within 1 year $ 6,674 $ 6,679 After 1 year through 5 years 7,035 7,201 After 5 years through 10 years 1,913 2,060 After 10 years 8 10 Mortgage-backed securities with no single maturity 2,796 2,840 Total $ 18,426 $ 18,790 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis were as follows (in millions): JANUARY 23, 2021 JULY 25, 2020 FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 8,515 $ — $ — $ 8,515 $ 10,024 $ — $ — $ 10,024 Corporate debt securities — 9 — 9 — 8 — 8 Certificates of deposit — 161 — 161 — — — — Commercial paper — 902 — 902 — — — — Available-for-sale debt investments: U.S. government securities — 2,663 — 2,663 — 2,685 — 2,685 U.S. government agency securities — 168 — 168 — 110 — 110 Corporate debt securities — 10,786 — 10,786 — 11,877 — 11,877 U.S. agency mortgage-backed securities — 2,840 — 2,840 — 2,035 — 2,035 Commercial paper — 1,730 — 1,730 — 727 — 727 Certificates of deposit — 603 — 603 — 176 — 176 Equity investments: Marketable equity securities 5 — — 5 — — — — Assets: Derivative assets — 165 6 171 — 190 1 191 Total $ 8,520 $ 20,027 $ 6 $ 28,553 $ 10,024 $ 17,808 $ 1 $ 27,833 Liabilities: Derivative liabilities $ — $ 26 $ — $ 26 $ — $ 10 $ — $ 10 Total $ — $ 26 $ — $ 26 $ — $ 10 $ — $ 10 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Debt | The following table summarizes our short-term debt (in millions, except percentages): January 23, 2021 July 25, 2020 Amount Effective Rate Amount Effective Rate Current portion of long-term debt $ 5,000 2.00 % $ 3,005 2.07 % |
Schedule of Long-Term Debt | The following table summarizes our long-term debt (in millions, except percentages): January 23, 2021 July 25, 2020 Maturity Date Amount Effective Rate Amount Effective Rate Senior notes: Fixed-rate notes: 2.20% February 28, 2021 $ 2,500 2.30% $ 2,500 2.30% 2.90% March 4, 2021 500 0.92% 500 0.94% 1.85% September 20, 2021 2,000 1.90% 2,000 1.90% 3.00% June 15, 2022 500 1.17% 500 1.21% 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 1.04% 1,000 1.06% 3.50% June 15, 2025 500 1.33% 500 1.37% 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 14,500 Unaccreted discount/issuance costs (84) (88) Hedge accounting fair value adjustments 138 171 Total $ 14,554 $ 14,583 Reported as: Current portion of long-term debt $ 5,000 $ 3,005 Long-term debt 9,554 11,578 Total $ 14,554 $ 14,583 |
Schedule of Future Principal Payments for Long-Term Debt | As of January 23, 2021, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions): Fiscal Year Amount 2021 (remaining six months) $ 3,000 2022 2,500 2023 500 2024 1,750 2025 500 Thereafter 6,250 Total $ 14,500 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments by Balance Sheet Line Item | 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 January 23, July 25, Balance Sheet Line Item January 23, July 25, Derivatives designated as hedging instruments: Foreign currency derivatives Other current assets $ 7 $ 7 Other current liabilities $ 14 $ 2 Interest rate derivatives Other current assets 1 6 Other current liabilities — — Interest rate derivatives Other assets 140 169 Other long-term liabilities — — Total 148 182 14 2 Derivatives not designated as hedging instruments: Foreign currency derivatives Other current assets 17 8 Other current liabilities 12 8 Equity derivatives Other assets 6 1 Other long-term liabilities — — Total 23 9 12 8 Total $ 171 $ 191 $ 26 $ 10 |
Cumulative Basis Adjustment 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 January 23, July 25, January 23, July 25, Short-term debt $ (501) $ (506) $ (1) $ (6) Long-term debt $ (2,132) $ (2,159) $ (137) $ (165) |
Effect on Derivative Instruments Designated as Fair Value Hedges | The effect of derivative instruments designated as fair value hedges, recognized in interest and other income (loss), net is summarized as follows (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Interest rate derivatives: Hedged items $ 14 $ 7 $ 33 $ (14) Derivatives designated as hedging instruments (14) (6) (34) 16 Total $ — $ 1 $ (1) $ 2 |
Effect of Derivative Instruments Not Designated as Fair Value Hedges on Consolidated Statements of Operations | 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 GAINS (LOSSES) FOR THE Derivatives Not Designated as Line Item in Statements of Operations January 23, January 25, January 23, January 25, Foreign currency derivatives Other income (loss), net $ 33 $ (2) $ 47 $ (9) Total return swaps—deferred compensation Operating expenses and other 76 41 99 41 Equity derivatives Other income (loss), net 9 3 14 5 Total $ 118 $ 42 $ 160 $ 37 |
Schedule of Notional Amounts of Derivatives Outstanding | The notional amounts of our outstanding derivatives are summarized as follows (in millions): January 23, July 25, Foreign currency derivatives $ 4,839 $ 4,315 Interest rate derivatives 2,500 2,500 Total return swaps—deferred compensation 689 580 Total $ 8,028 $ 7,395 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Compensation Expense Related to Business Acquisitions | The following table summarizes the compensation expense related to acquisitions (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Compensation expense related to acquisitions $ 59 $ 50 $ 116 $ 111 |
Schedule of Product Warranty Liability | The following table summarizes the activity related to the product warranty liability (in millions): Six Months Ended January 23, January 25, Balance at beginning of period $ 331 $ 342 Provisions for warranties issued 247 283 Adjustments for pre-existing warranties 4 (3) Settlements (249) (291) Balance at end of period $ 333 $ 331 |
Schedule of Guarantor Obligations | The aggregate amounts of financing guarantees outstanding at January 23, 2021 and July 25, 2020, 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): January 23, July 25, Maximum potential future payments relating to financing guarantees: Channel partner $ 205 $ 198 End user 8 9 Total $ 213 $ 207 Deferred revenue associated with financing guarantees: Channel partner $ (19) $ (19) End user (8) (9) Total $ (27) $ (28) Total $ 186 $ 179 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Program | A summary of the stock repurchase activity for fiscal 2021 and 2020 under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts): Quarter Ended Shares Weighted-Average Price per Share Amount Fiscal 2021 January 23, 2021 19 $ 42.82 $ 801 October 24, 2020 20 $ 40.44 $ 800 Fiscal 2020 July 25, 2020 — $ — $ — April 25, 2020 25 $ 39.71 $ 981 January 25, 2020 18 $ 46.71 $ 870 October 26, 2019 16 $ 48.91 $ 768 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Retirement Benefits [Abstract] | |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense (in millions): Three Months Ended Six Months Ended January 23, 2021 January 25, 2020 January 23, 2021 January 25, 2020 Cost of sales—product $ 25 $ 23 $ 49 $ 46 Cost of sales—service 43 36 84 70 Share-based compensation expense in cost of sales 68 59 133 116 Research and development 171 146 338 292 Sales and marketing 128 119 262 246 General and administrative 59 55 120 115 Restructuring and other charges 10 5 21 13 Share-based compensation expense in operating expenses 368 325 741 666 Total share-based compensation expense $ 436 $ 384 $ 874 $ 782 Income tax benefit for share-based compensation $ 95 $ 109 $ 176 $ 240 |
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/ Weighted-Average Aggregate Fair Value Unvested balance at July 27, 2019 100 $ 38.66 Granted and assumed 49 42.61 Vested (44) 35.20 $ 2,045 Canceled/forfeited/other (9) 40.45 Unvested balance at July 25, 2020 96 42.03 Granted and assumed 33 37.90 Vested (21) 39.05 $ 908 Canceled/forfeited/other (9) 41.63 Unvested balance at January 23, 2021 99 $ 41.35 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Equity [Abstract] | |
Components of AOCI, Net of Tax | The components of AOCI, net of tax, and the other comprehensive income (loss), for the first six months of fiscal 2021 and 2020 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 (Losses) Accumulated Other Comprehensive Income (Loss) Balance at July 25, 2020 $ 315 $ (6) $ (828) $ (519) Other comprehensive income (loss) before reclassifications (35) (5) 345 305 (Gains) losses reclassified out of AOCI (24) (5) 2 (27) Tax benefit (expense) 24 2 (3) 23 Balance at January 23, 2021 $ 280 $ (14) $ (484) $ (218) Net Unrealized Gains (Losses) on Available-for-Sale Investments Net Unrealized Gains (Losses) Cash Flow Hedging Instruments Cumulative Translation Adjustment and Actuarial Gains (Losses) Accumulated Other Comprehensive Income (Loss) Balance at July 27, 2019 $ — $ (14) $ (778) $ (792) Other comprehensive income (loss) before reclassifications 168 — (42) 126 (Gains) losses reclassified out of AOCI (21) 2 2 (17) Tax benefit (expense) (17) 1 (1) (17) Balance at January 25, 2020 $ 130 $ (11) $ (819) $ (700) |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | The following table provides details of income taxes (in millions, except percentages): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Income before provision for income taxes $ 3,255 $ 3,534 $ 5,936 $ 7,220 Provision for income taxes $ 710 $ 656 $ 1,217 $ 1,416 Effective tax rate 21.8 % 18.6 % 20.5 % 19.6 % |
Segment Information and Major_2
Segment Information and Major Customers (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
Segment Reporting [Abstract] | |
Reportable Segments | Summarized financial information by segment for the second quarter and first six months of fiscal 2021 and 2020, based on our internal management system and as utilized by our Chief Operating Decision Maker (“CODM”), is as follows (in millions): Three Months Ended Six Months Ended January 23, January 25, January 23, 2021 January 25, 2020 Revenue: Americas $ 6,969 $ 7,013 $ 14,168 $ 14,990 EMEA 3,207 3,134 6,171 6,417 APJC 1,784 1,859 3,551 3,758 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 Gross margin: Americas $ 4,705 $ 4,692 $ 9,552 $ 10,008 EMEA 2,145 2,062 4,038 4,229 APJC 1,155 1,219 2,268 2,413 Segment total 8,005 7,974 15,858 16,650 Unallocated corporate items (221) (210) (493) (422) Total $ 7,784 $ 7,764 $ 15,365 $ 16,228 |
Net Sales for Groups of Similar Products and Services | The following table presents this disaggregation of revenue (in millions): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Revenue: Infrastructure Platforms $ 6,391 $ 6,567 $ 12,732 $ 14,120 Applications 1,354 1,349 2,734 2,847 Security 822 749 1,684 1,565 Other Products 4 7 9 17 Total Product 8,572 8,671 17,159 18,549 Services 3,388 3,334 6,730 6,615 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 The following table presents revenue for groups of similar products and services (in millions): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Revenue: Infrastructure Platforms $ 6,391 $ 6,567 $ 12,732 $ 14,120 Applications 1,354 1,349 2,734 2,847 Security 822 749 1,684 1,565 Other Products 4 7 9 17 Total Product 8,572 8,671 17,159 18,549 Services 3,388 3,334 6,730 6,615 Total $ 11,960 $ 12,005 $ 23,889 $ 25,164 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Jan. 23, 2021 | |
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): Three Months Ended Six Months Ended January 23, January 25, January 23, January 25, Net income $ 2,545 $ 2,878 $ 4,719 $ 5,804 Weighted-average shares—basic 4,223 4,242 4,227 4,244 Effect of dilutive potential common shares 11 18 12 21 Weighted-average shares—diluted 4,234 4,260 4,239 4,265 Net income per share—basic $ 0.60 $ 0.68 $ 1.12 $ 1.37 Net income per share—diluted $ 0.60 $ 0.68 $ 1.11 $ 1.36 Antidilutive employee share-based awards, excluded 49 29 56 32 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) | 6 Months Ended |
Jan. 23, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographic segments | 3 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | Jul. 25, 2020 | |
Disaggregation of Revenue [Line Items] | |||||
Allowance for future sales returns | $ 73 | $ 73 | $ 79 | ||
Payment terms | 30 days | ||||
Accounts receivable, net | 4,307 | $ 4,307 | 5,472 | ||
Deferred revenue | 20,846 | 20,846 | 20,446 | ||
Revenue recognized | 3,000 | 6,900 | |||
Total deferred sales commissions | 817 | 817 | 732 | ||
Amortization of sales commissions, expense | 129 | $ 122 | 252 | $ 238 | |
Software and Service Agreements | |||||
Disaggregation of Revenue [Line Items] | |||||
Contract assets, net of allowances | $ 1,300 | $ 1,300 | $ 1,200 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 11,960 | $ 12,005 | $ 23,889 | $ 25,164 |
Product | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,572 | 8,671 | 17,159 | 18,549 |
Infrastructure Platforms | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 6,391 | 6,567 | 12,732 | 14,120 |
Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,354 | 1,349 | 2,734 | 2,847 |
Security | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 822 | 749 | 1,684 | 1,565 |
Other Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4 | 7 | 9 | 17 |
Services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 3,388 | $ 3,334 | $ 6,730 | $ 6,615 |
Revenue - Schedule of Internal
Revenue - Schedule of Internal Risk Ratings for Contract Assets (Details) $ in Millions | Jan. 23, 2021USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Contract asset, gross | $ 1,307 |
1 to 4 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Contract asset, gross | 426 |
5 to 6 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Contract asset, gross | 783 |
7 and Higher | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Contract asset, gross | $ 98 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |
May 01, 2021USD ($)$ / shares | Jan. 23, 2021USD ($)acquisition | Jan. 25, 2020USD ($) | |
Business Acquisition [Line Items] | |||
Number of acquisitions | acquisition | 5 | ||
Acquired cash and cash equivalents | $ 35,000,000 | ||
Goodwill, expected tax deductible | 0 | ||
Acacia Communications, Inc. | Forecast | |||
Business Acquisition [Line Items] | |||
Acqusition price (in dollars per share) | $ / shares | $ 115 | ||
Payment consideration to acquire business, net of cash and marketable securities | $ 4,500,000,000 | ||
General and administrative | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 10,000,000 | $ 9,000,000 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Summary of Allocation of Total Purchase Consideration (Details) $ in Millions | 6 Months Ended |
Jan. 23, 2021USD ($)acquisition | |
Business Combinations [Abstract] | |
Number of acquisitions | acquisition | 5 |
Purchase Consideration | $ 958 |
Net Tangible Assets Acquired (Liabilities Assumed) | 2 |
Purchased Intangible Assets | 228 |
Goodwill | $ 728 |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets - Schedule of Goodwill by Reportable Segments (Details) $ in Millions | 6 Months Ended |
Jan. 23, 2021USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 33,806 |
Acquisitions & Divestitures | 713 |
Foreign Currency Translation and Other | 214 |
Ending Balance | 34,733 |
Americas | |
Goodwill [Roll Forward] | |
Beginning Balance | 21,304 |
Acquisitions & Divestitures | 415 |
Foreign Currency Translation and Other | 135 |
Ending Balance | 21,854 |
EMEA | |
Goodwill [Roll Forward] | |
Beginning Balance | 8,040 |
Acquisitions & Divestitures | 198 |
Foreign Currency Translation and Other | 51 |
Ending Balance | 8,289 |
APJC | |
Goodwill [Roll Forward] | |
Beginning Balance | 4,462 |
Acquisitions & Divestitures | 100 |
Foreign Currency Translation and Other | 28 |
Ending Balance | $ 4,590 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets - Schedule of Intangible Assets Acquired Through Business Combinations (Details) $ in Millions | 6 Months Ended |
Jan. 23, 2021USD ($)acquisition | |
Intangible Assets Acquired Through Business Combinations | |
Number of acquisitions | acquisition | 5 |
Total, amount | $ 228 |
IPR&D | |
Intangible Assets Acquired Through Business Combinations | |
Indefinite lives, amount | $ 0 |
TECHNOLOGY | |
Intangible Assets Acquired Through Business Combinations | |
Weighted- Average Useful Life (in Years) | 3 years 9 months 18 days |
Finite lives, amount | $ 179 |
CUSTOMER RELATIONSHIPS | |
Intangible Assets Acquired Through Business Combinations | |
Weighted- Average Useful Life (in Years) | 4 years |
Finite lives, amount | $ 43 |
OTHER | |
Intangible Assets Acquired Through Business Combinations | |
Weighted- Average Useful Life (in Years) | 2 years |
Finite lives, amount | $ 6 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets - Schedule of Purchased Intangible Assets With Finite and Indefinite Lives (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Purchased intangible assets with finite lives: | ||
Gross | $ 3,411 | $ 4,084 |
Accumulated Amortization | (2,109) | (2,721) |
Total purchased intangible assets with finite lives, net | 1,302 | 1,363 |
In-process research and development, with indefinite lives | 160 | 213 |
Total finite and indefinite lives intangible assets, gross | 3,571 | 4,297 |
Total finite and indefinite lives intangible assets, net | 1,462 | 1,576 |
Technology | ||
Purchased intangible assets with finite lives: | ||
Gross | 2,625 | 3,298 |
Accumulated Amortization | (1,700) | (2,336) |
Total purchased intangible assets with finite lives, net | 925 | 962 |
Customer relationships | ||
Purchased intangible assets with finite lives: | ||
Gross | 773 | 760 |
Accumulated Amortization | (404) | (365) |
Total purchased intangible assets with finite lives, net | 369 | 395 |
Other | ||
Purchased intangible assets with finite lives: | ||
Gross | 13 | 26 |
Accumulated Amortization | (5) | (20) |
Total purchased intangible assets with finite lives, net | $ 8 | $ 6 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangible Assets - Schedule of Amortization of Purchased Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | $ 39 | $ 38 | $ 75 | $ 74 |
Total | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | 195 | 203 | 401 | 405 |
Cost of sales | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | 156 | 165 | 326 | 331 |
Operating expenses | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of purchased intangible assets | $ 39 | $ 38 | $ 75 | $ 74 |
Goodwill and Purchased Intang_7
Goodwill and Purchased Intangible Assets - Schedule of Estimated Future Amortization Expense of Purchased Intangible Assets (Details) $ in Millions | Jan. 23, 2021USD ($) |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | |
2021 (remaining six months) | $ 311 |
2022 | 453 |
2023 | 308 |
2024 | 188 |
2025 | 31 |
Thereafter | $ 11 |
Restructuring and Other Charg_3
Restructuring and Other Charges - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jan. 23, 2021 | Jan. 23, 2021 | Jan. 25, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 836 | $ 226 | |
Fiscal 2021 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges | $ 900 | 900 | |
Restructuring charges | 232 | 834 | |
Fiscal 2020 Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected restructuring charges | 300 | 300 | |
Cumulative restructuring charges incurred | $ 257 | $ 257 |
Restructuring and Other Charg_4
Restructuring and Other Charges - Schedule of Activities Related to Restructuring and Other Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jan. 23, 2021 | Jan. 23, 2021 | Jan. 25, 2020 | |
Restructuring Reserve [Roll Forward] | |||
Liability as of beginning period | $ 72 | $ 33 | |
Charges | 836 | 226 | |
Cash payments | (767) | (203) | |
Non-cash items | (21) | (23) | |
Liability as of ending period | $ 120 | 120 | 33 |
FISCAL 2020 AND PRIOR PLANS | Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Liability as of beginning period | 58 | ||
Charges | 0 | ||
Cash payments | (58) | ||
Non-cash items | 0 | ||
Liability as of ending period | 0 | 0 | |
FISCAL 2020 AND PRIOR PLANS | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability as of beginning period | 14 | ||
Charges | 2 | ||
Cash payments | (3) | ||
Non-cash items | 0 | ||
Liability as of ending period | 13 | 13 | |
FISCAL 2021 PLAN | |||
Restructuring Reserve [Roll Forward] | |||
Charges | 232 | 834 | |
FISCAL 2021 PLAN | Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Liability as of beginning period | 0 | ||
Charges | 804 | ||
Cash payments | (703) | ||
Non-cash items | 0 | ||
Liability as of ending period | 101 | 101 | |
FISCAL 2021 PLAN | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability as of beginning period | 0 | ||
Charges | 30 | ||
Cash payments | (3) | ||
Non-cash items | (21) | ||
Liability as of ending period | $ 6 | $ 6 | |
FISCAL 2018 AND PRIOR PLANS | Employee Severance | |||
Restructuring Reserve [Roll Forward] | |||
Liability as of beginning period | 22 | ||
Charges | 209 | ||
Cash payments | (202) | ||
Non-cash items | 0 | ||
Liability as of ending period | 29 | ||
FISCAL 2018 AND PRIOR PLANS | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability as of beginning period | 11 | ||
Charges | 17 | ||
Cash payments | (1) | ||
Non-cash items | (23) | ||
Liability as of ending period | $ 4 |
Balance Sheet and Other Detai_3
Balance Sheet and Other Details (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 | Jan. 25, 2020 | Jul. 27, 2019 |
Cash, cash equivalents, and restricted cash: | ||||
Cash and cash equivalents | $ 11,793 | $ 11,809 | ||
Restricted cash included in other current assets | 7 | 0 | ||
Restricted cash included in other assets | 3 | 3 | ||
Total cash, cash equivalents, and restricted cash | 11,803 | 11,812 | $ 8,499 | $ 11,772 |
Inventories: | ||||
Raw materials | 527 | 456 | ||
Work in process | 30 | 25 | ||
Finished goods: | ||||
Deferred cost of sales | 74 | 59 | ||
Manufactured finished goods | 600 | 542 | ||
Total finished goods | 674 | 601 | ||
Service-related spares | 191 | 184 | ||
Demonstration systems | 14 | 16 | ||
Total | 1,436 | 1,282 | ||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 11,066 | 11,014 | ||
Less: accumulated depreciation and amortization | (8,680) | (8,561) | ||
Total | 2,386 | 2,453 | ||
Deferred revenue: | ||||
Deferred revenue: | 20,846 | 20,446 | ||
Current | 11,552 | 11,406 | ||
Noncurrent | 9,294 | 9,040 | ||
Remaining Performance Obligations: | ||||
Remaining performance obligation | 28,178 | 28,354 | ||
Product | ||||
Deferred revenue: | ||||
Deferred revenue: | 8,332 | 7,895 | ||
Remaining Performance Obligations: | ||||
Remaining performance obligation | 11,666 | 11,261 | ||
Service | ||||
Deferred revenue: | ||||
Deferred revenue: | 12,514 | 12,551 | ||
Remaining Performance Obligations: | ||||
Remaining performance obligation | 16,512 | 17,093 | ||
Land, buildings, and building and leasehold improvements | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 4,291 | 4,252 | ||
Computer equipment and related software | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 864 | 875 | ||
Production, engineering, and other equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 5,193 | 5,163 | ||
Operating lease assets | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | 343 | 337 | ||
Less: accumulated depreciation and amortization | (201) | (198) | ||
Total | 142 | 139 | ||
Furniture, fixtures and other | ||||
Property, Plant and Equipment [Line Items] | ||||
Total gross property and equipment | $ 375 | $ 387 |
Balance Sheet and Other Detai_4
Balance Sheet and Other Details - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jul. 25, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Provision for inventory | $ 65 | $ 30 | |
Deferred revenue | 20,846 | $ 20,446 | |
Remaining performance obligation | 28,178 | 28,354 | |
Unbilled Contract Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation | $ 7,300 | $ 7,900 |
Balance Sheet and Other Detai_5
Balance Sheet and Other Details - Remaining Performance Obligation (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-24 | Jan. 23, 2021 |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, percentage | 54.00% |
Leases - Operating Lease Balanc
Leases - Operating Lease Balances (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating lease right-of-use assets | $ 974 | $ 921 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Operating lease liabilities | $ 366 | $ 341 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Operating lease liabilities | $ 688 | $ 661 |
Total operating lease liabilities | $ 1,054 | $ 1,002 |
Leases - Lease Expenses (Detail
Leases - Lease Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Leases [Abstract] | ||||
Operating lease expense | $ 103 | $ 101 | $ 201 | $ 214 |
Short-term lease expense | 17 | 16 | 35 | 33 |
Variable lease expense | 43 | 39 | 89 | 79 |
Total lease expense | $ 163 | $ 156 | $ 325 | $ 326 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 23, 2021 | Jan. 25, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows | $ 201 | $ 206 |
Right-of-use assets obtained in exchange for operating leases liabilities | $ 218 | $ 77 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | Jul. 25, 2020 | |
Leases [Abstract] | |||||
Weighted-average remaining lease term (in years) | 4 years 2 months 12 days | 4 years 2 months 12 days | 4 years | ||
Weighted-average discount rate | 1.00% | 1.00% | 1.50% | ||
Sales-type lease terms, on average | 4 years | 4 years | |||
Interest income, lease receivables | $ 19 | $ 23 | $ 40 | $ 49 | |
Operating lease income | $ 40 | $ 50 | $ 83 | $ 94 |
Leases - Lessee, Maturities of
Leases - Lessee, Maturities of Operating Leases (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Leases [Abstract] | ||
2021 (remaining six months) | $ 193 | |
2022 | 304 | |
2023 | 232 | |
2024 | 151 | |
2025 | 92 | |
Thereafter | 104 | |
Total lease payments | 1,076 | |
Less interest | (22) | |
Total | $ 1,054 | $ 1,002 |
Leases - Lessor, Future Minimum
Leases - Lessor, Future Minimum Lease Payments on Lease Receivables (Details) $ in Millions | Jan. 23, 2021USD ($) |
Leases [Abstract] | |
2021 (remaining six months) | $ 330 |
2022 | 685 |
2023 | 455 |
2024 | 237 |
2025 | 130 |
Thereafter | 28 |
Total | 1,865 |
Less: Present value of lease payments | 1,768 |
Unearned income | $ 97 |
Leases - Operating Lease Assets
Leases - Operating Lease Assets (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Lessor, Lease, Description [Line Items] | ||
Operating lease assets | $ 11,066 | $ 11,014 |
Accumulated depreciation | (8,680) | (8,561) |
Total | 2,386 | 2,453 |
Operating lease assets | ||
Lessor, Lease, Description [Line Items] | ||
Operating lease assets | 343 | 337 |
Accumulated depreciation | (201) | (198) |
Total | $ 142 | $ 139 |
Leases - Lessor, Minimum Future
Leases - Lessor, Minimum Future Rentals on Noncancelable operating leases (Details) $ in Millions | Jan. 23, 2021USD ($) |
Leases [Abstract] | |
2021 (remaining six months) | $ 38 |
2022 | 44 |
2023 | 20 |
2024 | 4 |
Total | $ 106 |
Financing Receivables - Additio
Financing Receivables - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 23, 2021 | Jul. 25, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Lease receivables terms, on average | 4 years | |
Loan receivables term | 3 years | |
Threshold for past due receivables | 31 days | |
Financing receivable, 120 days plus past due but on accrual status | $ 48 | $ 67 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financed service contracts term | 1 year | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financed service contracts term | 3 years |
Financing Receivables - Schedul
Financing Receivables - Schedule of Financing Receivables (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Oct. 24, 2020 | Jul. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | Jul. 27, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross | $ 10,257 | $ 10,894 | ||||
Residual value | 115 | 123 | ||||
Unearned income | (97) | (114) | ||||
Allowance for credit loss | (148) | $ (154) | (138) | $ (145) | $ (133) | $ (126) |
Total, net | 10,127 | 10,765 | ||||
Current | 5,027 | 5,051 | ||||
Noncurrent | 5,100 | 5,714 | ||||
Lease Receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross | 1,865 | 2,127 | ||||
Residual value | 115 | 123 | ||||
Unearned income | (97) | (114) | ||||
Allowance for credit loss | (43) | (46) | (48) | (42) | (43) | (46) |
Total, net | 1,840 | 2,088 | ||||
Current | 868 | 918 | ||||
Noncurrent | 972 | 1,170 | ||||
Loan Receivables | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross | 5,817 | 5,937 | ||||
Unearned income | 0 | 0 | ||||
Allowance for credit loss | (96) | (101) | (81) | (95) | (81) | (71) |
Total, net | 5,721 | 5,856 | ||||
Current | 2,746 | 2,692 | ||||
Noncurrent | 2,975 | 3,164 | ||||
Financed Service Contracts | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross | 2,575 | 2,830 | ||||
Unearned income | 0 | 0 | ||||
Allowance for credit loss | (9) | $ (7) | (9) | $ (8) | $ (9) | $ (9) |
Total, net | 2,566 | 2,821 | ||||
Current | 1,413 | 1,441 | ||||
Noncurrent | $ 1,153 | $ 1,380 |
Financing Receivables - Sched_2
Financing Receivables - Schedule of Financing Receivables Categorized by Internal Credit Risk Rating (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | $ 54 | |
Origination year - Fiscal Year 2017 | 373 | |
Origination year - Fiscal Year 2018 | 930 | |
Origination year - Fiscal Year 2019 | 2,196 | |
Origination year - Fiscal Year 2020 | 3,695 | |
Origination year - Fiscal Year 2021 | 2,912 | |
Gross | 10,160 | $ 10,780 |
Lease Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 28 | |
Origination year - Fiscal Year 2017 | 99 | |
Origination year - Fiscal Year 2018 | 280 | |
Origination year - Fiscal Year 2019 | 532 | |
Origination year - Fiscal Year 2020 | 711 | |
Origination year - Fiscal Year 2021 | 118 | |
Gross | 1,768 | 2,013 |
Loan Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 23 | |
Origination year - Fiscal Year 2017 | 204 | |
Origination year - Fiscal Year 2018 | 540 | |
Origination year - Fiscal Year 2019 | 1,201 | |
Origination year - Fiscal Year 2020 | 2,105 | |
Origination year - Fiscal Year 2021 | 1,744 | |
Gross | 5,817 | 5,937 |
Financed Service Contracts | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 3 | |
Origination year - Fiscal Year 2017 | 70 | |
Origination year - Fiscal Year 2018 | 110 | |
Origination year - Fiscal Year 2019 | 463 | |
Origination year - Fiscal Year 2020 | 879 | |
Origination year - Fiscal Year 2021 | 1,050 | |
Gross | 2,575 | 2,830 |
1 to 4 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross | 6,445 | |
1 to 4 | Lease Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 10 | |
Origination year - Fiscal Year 2017 | 49 | |
Origination year - Fiscal Year 2018 | 153 | |
Origination year - Fiscal Year 2019 | 248 | |
Origination year - Fiscal Year 2020 | 331 | |
Origination year - Fiscal Year 2021 | 16 | |
Gross | 807 | 992 |
1 to 4 | Loan Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 16 | |
Origination year - Fiscal Year 2017 | 141 | |
Origination year - Fiscal Year 2018 | 387 | |
Origination year - Fiscal Year 2019 | 774 | |
Origination year - Fiscal Year 2020 | 1,302 | |
Origination year - Fiscal Year 2021 | 1,053 | |
Gross | 3,673 | 3,808 |
1 to 4 | Financed Service Contracts | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 2 | |
Origination year - Fiscal Year 2017 | 49 | |
Origination year - Fiscal Year 2018 | 51 | |
Origination year - Fiscal Year 2019 | 213 | |
Origination year - Fiscal Year 2020 | 455 | |
Origination year - Fiscal Year 2021 | 742 | |
Gross | 1,512 | 1,645 |
5 to 6 | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross | 4,066 | |
5 to 6 | Lease Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 15 | |
Origination year - Fiscal Year 2017 | 48 | |
Origination year - Fiscal Year 2018 | 121 | |
Origination year - Fiscal Year 2019 | 270 | |
Origination year - Fiscal Year 2020 | 360 | |
Origination year - Fiscal Year 2021 | 98 | |
Gross | 912 | 952 |
5 to 6 | Loan Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 5 | |
Origination year - Fiscal Year 2017 | 60 | |
Origination year - Fiscal Year 2018 | 145 | |
Origination year - Fiscal Year 2019 | 362 | |
Origination year - Fiscal Year 2020 | 745 | |
Origination year - Fiscal Year 2021 | 672 | |
Gross | 1,989 | 1,961 |
5 to 6 | Financed Service Contracts | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 1 | |
Origination year - Fiscal Year 2017 | 21 | |
Origination year - Fiscal Year 2018 | 57 | |
Origination year - Fiscal Year 2019 | 235 | |
Origination year - Fiscal Year 2020 | 412 | |
Origination year - Fiscal Year 2021 | 305 | |
Gross | 1,031 | 1,153 |
7 and Higher | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross | 269 | |
7 and Higher | Lease Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 3 | |
Origination year - Fiscal Year 2017 | 2 | |
Origination year - Fiscal Year 2018 | 6 | |
Origination year - Fiscal Year 2019 | 14 | |
Origination year - Fiscal Year 2020 | 20 | |
Origination year - Fiscal Year 2021 | 4 | |
Gross | 49 | 69 |
7 and Higher | Loan Receivables | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 2 | |
Origination year - Fiscal Year 2017 | 3 | |
Origination year - Fiscal Year 2018 | 8 | |
Origination year - Fiscal Year 2019 | 65 | |
Origination year - Fiscal Year 2020 | 58 | |
Origination year - Fiscal Year 2021 | 19 | |
Gross | 155 | 168 |
7 and Higher | Financed Service Contracts | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Origination year - Prior | 0 | |
Origination year - Fiscal Year 2017 | 0 | |
Origination year - Fiscal Year 2018 | 2 | |
Origination year - Fiscal Year 2019 | 15 | |
Origination year - Fiscal Year 2020 | 12 | |
Origination year - Fiscal Year 2021 | 3 | |
Gross | $ 32 | $ 32 |
Financing Receivables - Sched_3
Financing Receivables - Schedule of Aging Analysis of Financing Receivables (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 528 | $ 677 |
Current | 9,632 | 10,103 |
Gross | 10,160 | 10,780 |
120+ Still Accruing | 48 | 67 |
Nonaccrual Financing Receivables | 87 | 112 |
Impaired Financing Receivables | 87 | 112 |
Past due 31-60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 217 | 227 |
Past due 61-90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 54 | 200 |
Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 257 | 250 |
Lease Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 164 | 124 |
Current | 1,604 | 1,889 |
Gross | 1,768 | 2,013 |
120+ Still Accruing | 2 | |
Nonaccrual Financing Receivables | 33 | 43 |
Impaired Financing Receivables | 33 | 43 |
Lease Receivables | Past due 31-60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 68 | 29 |
Lease Receivables | Past due 61-90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13 | 47 |
Lease Receivables | Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 83 | 48 |
Loan Receivables | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 212 | 285 |
Current | 5,605 | 5,652 |
Gross | 5,817 | 5,937 |
120+ Still Accruing | 15 | |
Nonaccrual Financing Receivables | 50 | 65 |
Impaired Financing Receivables | 50 | 65 |
Loan Receivables | Past due 31-60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 109 | 129 |
Loan Receivables | Past due 61-90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 30 | 78 |
Loan Receivables | Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 73 | 78 |
Financed Service Contracts | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 152 | 268 |
Current | 2,423 | 2,562 |
Gross | 2,575 | 2,830 |
120+ Still Accruing | 31 | |
Nonaccrual Financing Receivables | 4 | 4 |
Impaired Financing Receivables | 4 | 4 |
Financed Service Contracts | Past due 31-60 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 40 | 69 |
Financed Service Contracts | Past due 61-90 days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11 | 75 |
Financed Service Contracts | Past due 91 or above days | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 101 | $ 124 |
Financing Receivables - Summary
Financing Receivables - Summary of Allowances for Credit Loss and Related Financing Receivables (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss as of beginning of period | $ 154 | $ 133 | $ 138 | $ 126 |
Provisions (benefits) | (8) | 14 | (9) | 38 |
Recoveries (write-offs), net | (2) | (18) | ||
Foreign exchange and other | 2 | 0 | 19 | (1) |
Allowance for credit loss as of end of period | 148 | 145 | 148 | 145 |
Lease Receivables | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss as of beginning of period | 46 | 43 | 48 | 46 |
Provisions (benefits) | (4) | (1) | (7) | (4) |
Recoveries (write-offs), net | (1) | (1) | ||
Foreign exchange and other | 1 | 1 | 2 | 1 |
Allowance for credit loss as of end of period | 43 | 42 | 43 | 42 |
Loan Receivables | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss as of beginning of period | 101 | 81 | 81 | 71 |
Provisions (benefits) | (6) | 15 | (3) | 42 |
Recoveries (write-offs), net | (1) | (17) | ||
Foreign exchange and other | 1 | 0 | 18 | (1) |
Allowance for credit loss as of end of period | 96 | 95 | 96 | 95 |
Financed Service Contracts | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss as of beginning of period | 7 | 9 | 9 | 9 |
Provisions (benefits) | 2 | 0 | 1 | 0 |
Recoveries (write-offs), net | 0 | 0 | ||
Foreign exchange and other | 0 | (1) | (1) | (1) |
Allowance for credit loss as of end of period | $ 9 | $ 8 | $ 9 | $ 8 |
Available-for-Sale Debt and E_3
Available-for-Sale Debt and Equity Investments - Summary of Available-for-Sale Debt Investments (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 18,426 | $ 17,163 |
Gross Unrealized Gains | 393 | 454 |
Gross Unrealized and Credit Losses | (29) | |
Gross Unrealized Losses | (7) | |
Fair Value | 18,790 | 17,610 |
Net unsettled investment sales | 39 | |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,613 | 2,614 |
Gross Unrealized Gains | 50 | 71 |
Gross Unrealized and Credit Losses | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 2,663 | 2,685 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 168 | 110 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized and Credit Losses | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 168 | 110 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,516 | 11,549 |
Gross Unrealized Gains | 296 | 334 |
Gross Unrealized and Credit Losses | (26) | |
Gross Unrealized Losses | (6) | |
Fair Value | 10,786 | 11,877 |
U.S. agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,796 | 1,987 |
Gross Unrealized Gains | 47 | 49 |
Gross Unrealized and Credit Losses | (3) | |
Gross Unrealized Losses | (1) | |
Fair Value | 2,840 | 2,035 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,730 | 727 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized and Credit Losses | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,730 | 727 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 603 | 176 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized and Credit Losses | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 603 | $ 176 |
Available-for-Sale Debt and E_4
Available-for-Sale Debt and Equity Investments - Gross Realized Gains and Gross Realized Losses Related to Available-for-Sale Investment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Gross realized gains | $ 9 | $ 13 | $ 24 | $ 25 |
Gross realized losses | 0 | (2) | 0 | (4) |
Total | $ 9 | $ 11 | $ 24 | $ 21 |
Available-for-Sale Debt and E_5
Available-for-Sale Debt and Equity Investments - Available-for-Sale Investments With Gross Unrealized Losses (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value | $ 1,521 | $ 1,358 |
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses | (4) | (7) |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value | 0 | 3 |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses | 0 | 0 |
TOTAL, Fair Value | 1,521 | 1,361 |
TOTAL, Gross Unrealized Losses | (4) | (7) |
U.S. government securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value | 109 | |
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses | 0 | |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value | 0 | |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses | 0 | |
TOTAL, Fair Value | 109 | |
TOTAL, Gross Unrealized Losses | 0 | |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value | 36 | 33 |
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses | 0 | 0 |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value | 0 | 0 |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses | 0 | 0 |
TOTAL, Fair Value | 36 | 33 |
TOTAL, Gross Unrealized Losses | 0 | 0 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value | 663 | 1,060 |
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses | (1) | (6) |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value | 0 | 3 |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses | 0 | 0 |
TOTAL, Fair Value | 663 | 1,063 |
TOTAL, Gross Unrealized Losses | (1) | (6) |
U.S. agency mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value | 698 | 265 |
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses | (3) | (1) |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value | 0 | 0 |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses | 0 | 0 |
TOTAL, Fair Value | 698 | 265 |
TOTAL, Gross Unrealized Losses | (3) | $ (1) |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value | 15 | |
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses | 0 | |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value | 0 | |
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses | 0 | |
TOTAL, Fair Value | 15 | |
TOTAL, Gross Unrealized Losses | $ 0 |
Available-for-Sale Debt and E_6
Available-for-Sale Debt and Equity Investments - Maturities of Available-for-Sale Debt Investments (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Amortized Cost | ||
Within 1 year | $ 6,674 | |
After 1 year through 5 years | 7,035 | |
After 5 years through 10 years | 1,913 | |
After 10 years | 8 | |
Mortgage-backed securities with no single maturity | 2,796 | |
Amortized Cost | 18,426 | $ 17,163 |
Fair Value | ||
Within 1 year | 6,679 | |
After 1 year through 5 years | 7,201 | |
After 5 years through 10 years | 2,060 | |
After 10 years | 10 | |
Mortgage-backed securities with no single maturity | 2,840 | |
Total | $ 18,790 | $ 17,610 |
Available-for-Sale Debt and E_7
Available-for-Sale Debt and Equity Investments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | Jul. 25, 2020 | |
Schedule of Investments [Line Items] | |||||
Unrealized gains on equity securities | $ 4 | $ 3 | $ 4 | $ 3 | |
Net gain on non-marketable equity securities measured using the measurement alternative | 3 | $ 3 | 4 | $ 3 | |
Investments in privately held companies | 1,300 | 1,300 | $ 1,300 | ||
Funding commitments | 300 | 300 | |||
Variable Interest Entity, Not Primary Beneficiary | |||||
Schedule of Investments [Line Items] | |||||
Investments in privately held companies | 700 | 700 | |||
Private equity funds | Fair value measured at NAV per share | |||||
Schedule of Investments [Line Items] | |||||
Equity interests held in certain private equity funds | $ 700 | $ 700 | $ 700 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Assets: | ||
Available-for-sale debt investments: | $ 18,790 | $ 17,610 |
U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments: | 2,663 | 2,685 |
U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments: | 168 | 110 |
Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments: | 10,786 | 11,877 |
Commercial paper | ||
Assets: | ||
Available-for-sale debt investments: | 1,730 | 727 |
Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments: | 603 | 176 |
Fair value, measurements, recurring | ||
Assets: | ||
Marketable equity securities | 5 | 0 |
Derivative assets | 171 | 191 |
Total | 28,553 | 27,833 |
Liabilities: | ||
Derivative liabilities | 26 | 10 |
Total | 26 | 10 |
Fair value, measurements, recurring | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments: | 2,663 | 2,685 |
Fair value, measurements, recurring | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments: | 168 | 110 |
Fair value, measurements, recurring | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments: | 10,786 | 11,877 |
Fair value, measurements, recurring | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments: | 2,840 | 2,035 |
Fair value, measurements, recurring | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments: | 1,730 | 727 |
Fair value, measurements, recurring | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments: | 603 | 176 |
Fair value, measurements, recurring | Money market funds | ||
Assets: | ||
Cash equivalents: | 8,515 | 10,024 |
Fair value, measurements, recurring | Corporate debt securities | ||
Assets: | ||
Cash equivalents: | 9 | 8 |
Fair value, measurements, recurring | Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 161 | 0 |
Fair value, measurements, recurring | Commercial paper | ||
Assets: | ||
Cash equivalents: | 902 | 0 |
Fair value, measurements, recurring | Level 1 | ||
Assets: | ||
Marketable equity securities | 5 | 0 |
Derivative assets | 0 | 0 |
Total | 8,520 | 10,024 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total | 0 | 0 |
Fair value, measurements, recurring | Level 1 | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Money market funds | ||
Assets: | ||
Cash equivalents: | 8,515 | 10,024 |
Fair value, measurements, recurring | Level 1 | Corporate debt securities | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements, recurring | Level 1 | Commercial paper | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements, recurring | Level 2 | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Derivative assets | 165 | 190 |
Total | 20,027 | 17,808 |
Liabilities: | ||
Derivative liabilities | 26 | 10 |
Total | 26 | 10 |
Fair value, measurements, recurring | Level 2 | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments: | 2,663 | 2,685 |
Fair value, measurements, recurring | Level 2 | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments: | 168 | 110 |
Fair value, measurements, recurring | Level 2 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments: | 10,786 | 11,877 |
Fair value, measurements, recurring | Level 2 | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments: | 2,840 | 2,035 |
Fair value, measurements, recurring | Level 2 | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments: | 1,730 | 727 |
Fair value, measurements, recurring | Level 2 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments: | 603 | 176 |
Fair value, measurements, recurring | Level 2 | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements, recurring | Level 2 | Corporate debt securities | ||
Assets: | ||
Cash equivalents: | 9 | 8 |
Fair value, measurements, recurring | Level 2 | Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 161 | 0 |
Fair value, measurements, recurring | Level 2 | Commercial paper | ||
Assets: | ||
Cash equivalents: | 902 | 0 |
Fair value, measurements, recurring | Level 3 | ||
Assets: | ||
Marketable equity securities | 0 | 0 |
Derivative assets | 6 | 1 |
Total | 6 | 1 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total | 0 | 0 |
Fair value, measurements, recurring | Level 3 | U.S. government securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | U.S. government agency securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Corporate debt securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | U.S. agency mortgage-backed securities | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Commercial paper | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Certificates of deposit | ||
Assets: | ||
Available-for-sale debt investments: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Money market funds | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Corporate debt securities | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Certificates of deposit | ||
Assets: | ||
Cash equivalents: | 0 | 0 |
Fair value, measurements, recurring | Level 3 | Commercial paper | ||
Assets: | ||
Cash equivalents: | $ 0 | $ 0 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Fair Value Measurements [Line Items] | ||
Long term loan receivables and financed service contracts and others carrying value | $ 4,100 | $ 4,500 |
Borrowings, carrying value | 14,554 | 14,583 |
Level 2 | ||
Fair Value Measurements [Line Items] | ||
Borrowings, fair value | $ 16,800 | $ 17,400 |
Borrowings - Schedule of Short-
Borrowings - Schedule of Short-Term Debt (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Short-term Debt [Line Items] | ||
Amount | $ 5,000 | $ 3,005 |
Current portion of long-term debt | ||
Short-term Debt [Line Items] | ||
Amount | $ 5,000 | $ 3,005 |
Effective Rate | 2.00% | 2.07% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | May 15, 2020 | May 14, 2020 | Jan. 23, 2021 | Jul. 25, 2020 |
Debt Instrument [Line Items] | ||||
Derivative, notional amount | $ 8,028,000,000 | $ 7,395,000,000 | ||
Unsecured revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Credit facility, term | 364 days | 5 years | ||
Current borrowing capacity | $ 2,750,000,000 | |||
Line of credit facility, amount outstanding | 0 | |||
Additional credit facility upon agreement (up to) | $ 2,000,000,000 | |||
Unsecured revolving credit facility | Federal Funds rate | ||||
Debt Instrument [Line Items] | ||||
Interest rate based on % above pre-defined variable rate | 0.50% | |||
Unsecured revolving credit facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Interest rate based on % above pre-defined variable rate | 1.00% | |||
Unsecured revolving credit facility | Eurodollar | ||||
Debt Instrument [Line Items] | ||||
Interest rate based on % above pre-defined variable rate | 0.25% | |||
Interest rate swaps | Fair Value Hedge | Derivatives designated as hedging instruments: | ||||
Debt Instrument [Line Items] | ||||
Derivative, notional amount | 2,500,000,000 | |||
Commercial paper | ||||
Debt Instrument [Line Items] | ||||
Commercial paper, maximum borrowing limit (up to) | $ 10,000,000,000 |
Borrowings - Schedule of Long-T
Borrowings - Schedule of Long-Term Debt (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Debt Instrument [Line Items] | ||
Total | $ 14,500 | $ 14,500 |
Unaccreted discount/issuance costs | (84) | (88) |
Hedge accounting fair value adjustments | 138 | 171 |
Total | 14,554 | 14,583 |
Current portion of long-term debt | 5,000 | 3,005 |
Long-term debt | $ 9,554 | 11,578 |
Fixed-Rate Notes, 2.20%, Due February 28, 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.20% | |
Amount | $ 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% | |
Amount | $ 500 | $ 500 |
Effective Rate | 0.92% | 0.94% |
Fixed-Rate Notes, 1.85%, Due September 20, 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 1.85% | |
Amount | $ 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% | |
Amount | $ 500 | $ 500 |
Effective Rate | 1.17% | 1.21% |
Fixed-Rate Notes, 2.60%, Due February 28, 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.60% | |
Amount | $ 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% | |
Amount | $ 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% | |
Amount | $ 1,000 | $ 1,000 |
Effective Rate | 1.04% | 1.06% |
Fixed-Rate Notes, 3.50%, Due June 15, 2025 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.50% | |
Amount | $ 500 | $ 500 |
Effective Rate | 1.33% | 1.37% |
Fixed-Rate Notes, 2.95%, Due February 28, 2026 | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 2.95% | |
Amount | $ 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% | |
Amount | $ 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% | |
Amount | $ 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% | |
Amount | $ 2,000 | $ 2,000 |
Effective Rate | 5.67% | 5.67% |
Borrowings - Schedule of Future
Borrowings - Schedule of Future Principal Payments for Long-Term Debt (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Debt Disclosure [Abstract] | ||
2021 (remaining six months) | $ 3,000 | |
2022 | 2,500 | |
2023 | 500 | |
2024 | 1,750 | |
2025 | 500 | |
Thereafter | 6,250 | |
Total | $ 14,500 | $ 14,500 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value of Derivatives Derivative Instruments by Balance Sheet Line Item (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Derivative [Line Items] | ||
DERIVATIVE ASSETS | $ 171 | $ 191 |
DERIVATIVE LIABILITIES | 26 | 10 |
Derivatives designated as hedging instruments: | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 148 | 182 |
DERIVATIVE LIABILITIES | 14 | 2 |
Derivatives designated as hedging instruments: | Foreign currency derivatives | Other current assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 7 | 7 |
Derivatives designated as hedging instruments: | Foreign currency derivatives | Other current liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | 14 | 2 |
Derivatives designated as hedging instruments: | Interest rate derivatives | Other current assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 1 | 6 |
Derivatives designated as hedging instruments: | Interest rate derivatives | Other assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 140 | 169 |
Derivatives designated as hedging instruments: | Interest rate derivatives | Other current liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | 0 | 0 |
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 | 23 | 9 |
DERIVATIVE LIABILITIES | 12 | 8 |
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other current assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 17 | 8 |
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other current liabilities | ||
Derivative [Line Items] | ||
DERIVATIVE LIABILITIES | 12 | 8 |
Derivatives not designated as hedging instruments: | Equity derivatives | Other assets | ||
Derivative [Line Items] | ||
DERIVATIVE ASSETS | 6 | 1 |
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 | Jan. 23, 2021 | Jul. 25, 2020 |
Short-term debt | ||
Derivative [Line Items] | ||
CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) | $ (501) | $ (506) |
CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES | (1) | (6) |
Long-term debt | ||
Derivative [Line Items] | ||
CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) | (2,132) | (2,159) |
CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES | $ (137) | $ (165) |
Derivative Instruments - Effect
Derivative Instruments - Effect of Derivative Instruments Designated as Fair Value Hedges (Details) - Interest and other income (loss), net - Interest rate derivatives - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Derivative [Line Items] | ||||
Hedged items | $ 14 | $ 7 | $ 33 | $ (14) |
Derivatives designated as hedging instruments | (14) | (6) | (34) | 16 |
Total | $ 0 | $ 1 | $ (1) | $ 2 |
Derivative Instruments - Effe_2
Derivative Instruments - Effect of Derivative Instruments Not Designated as Hedges on Consolidated Statements of Operations (Details) - Derivatives not designated as hedging instruments: - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) | $ 118 | $ 42 | $ 160 | $ 37 |
Foreign currency derivatives | Other income (loss), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) | 33 | (2) | 47 | (9) |
Total return swaps—deferred compensation | Operating expenses and other | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) | 76 | 41 | 99 | 41 |
Equity derivatives | Other income (loss), net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gains (losses) | $ 9 | $ 3 | $ 14 | $ 5 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Notional Amounts of Derivatives Outstanding (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Derivative [Line Items] | ||
Derivatives | $ 8,028 | $ 7,395 |
Foreign currency derivatives | ||
Derivative [Line Items] | ||
Derivatives | 4,839 | 4,315 |
Interest rate derivatives | ||
Derivative [Line Items] | ||
Derivatives | 2,500 | 2,500 |
Total return swaps—deferred compensation | ||
Derivative [Line Items] | ||
Derivatives | $ 689 | $ 580 |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 23, 2021 | Jul. 25, 2020 | |
Derivative [Line Items] | ||
Right of set-off, reduction in derivative liabilities | $ 22 | $ 10 |
Right of set-off, reduction in derivative assets | 22 | 10 |
Cash collateral, assets | 141 | 173 |
Net derivative asset | $ 4 | $ 8 |
Cash flow hedges | ||
Derivative [Line Items] | ||
Derivative average remaining maturity | 24 months | |
Net investment hedges | ||
Derivative [Line Items] | ||
Derivative average remaining maturity | 6 months |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Millions | Oct. 05, 2020USD ($)patent | Apr. 30, 2020patent | Apr. 01, 2020USD ($) | Jun. 12, 2019patent | Feb. 13, 2018patent | May 25, 2017USD ($) | Mar. 03, 2017USD ($)patent | Jan. 06, 2017patent | May 12, 2016USD ($) | Sep. 21, 2015patentcompany | Sep. 04, 2013patent | Jan. 23, 2021USD ($) | Jan. 25, 2020USD ($) | Jan. 23, 2021USD ($) | Jan. 25, 2020USD ($) | Jul. 25, 2020USD ($) | Jan. 23, 2021USD ($) |
Contingency [Line Items] | |||||||||||||||||
Provision for purchase commitment liability | $ 44 | $ 67 | |||||||||||||||
Future compensation expense & contingent consideration (up to) | $ 452 | 452 | $ 452 | ||||||||||||||
Commitments and contingencies | |||||||||||||||||
Volume of channel partner financing | 6,700 | $ 6,600 | 12,800 | 14,200 | |||||||||||||
Balance of the channel partner financing subject to guarantees | 1,300 | 1,300 | 1,100 | 1,300 | |||||||||||||
Financing provided by third parties for leases and loans on which the Company has provided guarantees | 3 | $ 1 | $ 8 | $ 6 | |||||||||||||
Chanbond | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of service provider companies | company | 13 | ||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 3 | ||||||||||||||||
SRI International | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Damages awarded, value | $ 8 | $ 57 | $ 23.7 | ||||||||||||||
Number of allegedly infringed patents (patent) | patent | 2 | ||||||||||||||||
Percentage of royalty awarded | 3.50% | ||||||||||||||||
Payment | 28.1 | ||||||||||||||||
Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Damages awarded, value | $ 1,900 | ||||||||||||||||
Damages awarded, initial value | 755.8 | ||||||||||||||||
Damages awarded, enhanced damages for willful infringement | 1,100 | ||||||||||||||||
Damages awarded, pre-judgement interest | $ 13.7 | ||||||||||||||||
Royalty awarded against revenue, first three-year term, percentage | 10.00% | ||||||||||||||||
Royalty awarded against revenue, second three-year term, percentage | 5.00% | ||||||||||||||||
Patent Infringement | Sprint Communications Company, L.P. vs. Time Warner Cable, Inc. | Litigation resolved | |||||||||||||||||
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 | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of patents found infringed (patent) | patent | 4 | ||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 11 | ||||||||||||||||
Number of allegedly infringed patents, petitioned (patent) | patent | 9 | ||||||||||||||||
Number of allegedly infringed patents, unpatentable (patent) | patent | 5 | ||||||||||||||||
Patent Infringement | Finjan | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 5 | ||||||||||||||||
Number of allegedly infringed patents, expired (patent) | patent | 4 | ||||||||||||||||
Patent Infringement | Ramot | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 3 | ||||||||||||||||
Patent Infringement, IPR Proceedings | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 6 | ||||||||||||||||
Patent Infringement, Patent Trial and Appeal Board | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 7 | ||||||||||||||||
Patent Infringement, Not Subject to IPR Proceedings | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 5 | ||||||||||||||||
Patent Infringement, Not Subject To IPR Proceedings and IPR Declined | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 3 | ||||||||||||||||
Patent Infringement, European Patents | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Number of allegedly infringed patents (patent) | patent | 3 | ||||||||||||||||
Minimum | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Warranty period for products | 90 days | ||||||||||||||||
Channel partners revolving short-term financing payment term | 60 days | ||||||||||||||||
Minimum | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Annual royalty awarded against revenue, first three-year term | $ 167.7 | ||||||||||||||||
Annual royalty awarded against revenue, second three-year term | 83.9 | ||||||||||||||||
Maximum | |||||||||||||||||
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 | ||||||||||||||||
Maximum | Centripetal | Pending litigation | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Annual royalty awarded against revenue, first three-year term | 300.1 | ||||||||||||||||
Annual royalty awarded against revenue, second three-year term | $ 150 | ||||||||||||||||
Tax Year 2003 - 2007 | Brazilian tax authority | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Income tax examination, tax | $ 148 | ||||||||||||||||
Income tax examination, interest | 728 | ||||||||||||||||
Income tax examination, penalties | $ 366 | ||||||||||||||||
COVID-19 | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Increase in certain channel partners revolving short-term financing payment term | 30 days | ||||||||||||||||
Investments in privately held companies | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Commitments and contingencies | 300 | $ 300 | 300 | 300 | |||||||||||||
Inventories | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Liability for purchase commitments | $ 152 | 152 | 141 | $ 152 | |||||||||||||
Inventories | |||||||||||||||||
Contingency [Line Items] | |||||||||||||||||
Purchase commitment | $ 4,600 | $ 4,400 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Other Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Acquisition | ||||
Contingency [Line Items] | ||||
Compensation expense related to acquisitions | $ 59 | $ 50 | $ 116 | $ 111 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 23, 2021 | Jan. 25, 2020 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at beginning of period | $ 331 | $ 342 |
Provisions for warranties issued | 247 | 283 |
Adjustments for pre-existing warranties | 4 | (3) |
Settlements | (249) | (291) |
Balance at end of period | $ 333 | $ 331 |
Commitments and Contingencies_4
Commitments and Contingencies - Schedule of Financing Guarantees Outstanding (Details) - USD ($) $ in Millions | Jan. 23, 2021 | Jul. 25, 2020 |
Loss Contingencies [Line Items] | ||
Maximum potential future payments relating to financing guarantees: | $ 213 | $ 207 |
Deferred revenue associated with financing guarantees: | (27) | (28) |
Total | 186 | 179 |
Channel partner | ||
Loss Contingencies [Line Items] | ||
Maximum potential future payments relating to financing guarantees: | 205 | 198 |
Deferred revenue associated with financing guarantees: | (19) | (19) |
End user | ||
Loss Contingencies [Line Items] | ||
Maximum potential future payments relating to financing guarantees: | 8 | 9 |
Deferred revenue associated with financing guarantees: | $ (8) | $ (9) |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | Feb. 09, 2021 | Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | Jul. 25, 2020 |
Class of Stock [Line Items] | ||||||
Cash dividends paid per common share (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.72 | $ 0.70 | ||
Payments of dividends | $ 1,500,000,000 | $ 1,500,000,000 | $ 3,041,000,000 | $ 2,972,000,000 | ||
Remaining authorized repurchase amount | $ 9,200,000,000 | $ 9,200,000,000 | ||||
Dividend declared (in dollars per share) | $ 0.36 | $ 0.35 | $ 0.72 | $ 0.70 | ||
Subsequent event | ||||||
Class of Stock [Line Items] | ||||||
Dividend declared (in dollars per share) | $ 0.37 | |||||
Stock repurchase program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchases pending settlement | $ 32,000,000 | $ 32,000,000 | $ 0 |
Shareholders' Equity - Stock Re
Shareholders' Equity - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |||||
Jan. 23, 2021 | Oct. 24, 2020 | Jul. 25, 2020 | Apr. 25, 2020 | Jan. 25, 2020 | Oct. 26, 2019 | |
Stockholders' Equity Note [Abstract] | ||||||
Shares (in shares) | 19 | 20 | 0 | 25 | 18 | 16 |
Weighted-Average Price per Share (in dollars per share) | $ 42.82 | $ 40.44 | $ 0 | $ 39.71 | $ 46.71 | $ 48.91 |
Amount | $ 801 | $ 800 | $ 0 | $ 981 | $ 870 | $ 768 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) $ in Billions | Dec. 10, 2020shares | Jan. 23, 2021USD ($)stock_incentive_planshares | Jan. 25, 2020shares | Jan. 23, 2021USD ($)periodstock_incentive_planshares | Jan. 25, 2020shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of stock incentive plans (stock incentive plan) | stock_incentive_plan | 1 | 1 | |||
Total compensation cost related to unvested share-based awards | $ | $ 4 | $ 4 | |||
Expected period of recognition of compensation cost | 2 years 8 months 12 days | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance (in shares) | 721,000,000 | 721,000,000 | |||
Consecutive offering period | 24 months | ||||
Number of purchase periods | period | 4 | ||||
Purchase period | 6 months | ||||
ESPP discount percentage from market price, beginning of purchase period | 15.00% | ||||
Shares issued under employee purchase plan (in shares) | 8,000,000 | 9,000,000 | 8,000,000 | 9,000,000 | |
Shares reserved for issuance (in shares) | 133,000,000 | 133,000,000 | |||
2005 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Extension term of plan | 9 years | ||||
Additional shares approved (in shares) | 96,000,000 | ||||
Shares reserved for issuance (in shares) | 790,000,000 | 790,000,000 | |||
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) | 253,000,000 | 253,000,000 | |||
Reduction in shares available for issuance pursuant to November 12, 2009 amendment (in shares) | 1.5 | 1.5 |
Employee Benefit Plans - Summar
Employee Benefit Plans - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 436 | $ 384 | $ 874 | $ 782 |
Income tax benefit for share-based compensation | 95 | 109 | 176 | 240 |
Share-based compensation expense in cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 68 | 59 | 133 | 116 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 171 | 146 | 338 | 292 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 128 | 119 | 262 | 246 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 59 | 55 | 120 | 115 |
Restructuring and other charges | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 10 | 5 | 21 | 13 |
Share-based compensation expense in operating expenses | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 368 | 325 | 741 | 666 |
Product | Share-based compensation expense in cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | 25 | 23 | 49 | 46 |
Services | Share-based compensation expense in cost of sales | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total share-based compensation expense | $ 43 | $ 36 | $ 84 | $ 70 |
Employee Benefit Plans - Summ_2
Employee Benefit Plans - Summary of Restricted Stock and Stock Unit Activity (Details) - Restricted Stock/Stock Units - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 6 Months Ended | 12 Months Ended |
Jan. 23, 2021 | Jul. 25, 2020 | |
Restricted Stock/ Stock Units | ||
Beginning balance (in shares) | 96 | 100 |
Granted and assumed (in shares) | 33 | 49 |
Vested (in shares) | (21) | (44) |
Canceled/forfeited/other (in shares) | (9) | (9) |
Ending balance (in shares) | 99 | 96 |
Weighted-Average Grant Date Fair Value per Share | ||
Beginning balance (in dollars per share) | $ 42.03 | $ 38.66 |
Granted and assumed (in dollars per share) | 37.90 | 42.61 |
Vested (in dollars per share) | 39.05 | 35.20 |
Canceled/forfeited/other (in dollars per share) | 41.63 | 40.45 |
Ending balance (in dollars per share) | $ 41.35 | $ 42.03 |
Aggregate Fair Value | ||
Vested | $ 908 | $ 2,045 |
Comprehensive Income (Loss) - A
Comprehensive Income (Loss) - AOCI Components (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jan. 23, 2021 | Jan. 25, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ 37,920 | $ 33,571 |
Other comprehensive income (loss) before reclassifications | 305 | 126 |
(Gains) losses reclassified out of AOCI | (27) | (17) |
Tax benefit (expense) | 23 | (17) |
Ending balance | 39,121 | 35,533 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (519) | (792) |
Ending balance | (218) | (700) |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | 315 | 0 |
Other comprehensive income (loss) before reclassifications | (35) | 168 |
(Gains) losses reclassified out of AOCI | (24) | (21) |
Tax benefit (expense) | 24 | (17) |
Ending balance | 280 | 130 |
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (6) | (14) |
Other comprehensive income (loss) before reclassifications | (5) | 0 |
(Gains) losses reclassified out of AOCI | (5) | 2 |
Tax benefit (expense) | 2 | 1 |
Ending balance | (14) | (11) |
Cumulative Translation Adjustment and Actuarial Gains (Losses) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (828) | (778) |
Other comprehensive income (loss) before reclassifications | 345 | (42) |
(Gains) losses reclassified out of AOCI | 2 | 2 |
Tax benefit (expense) | (3) | (1) |
Ending balance | $ (484) | $ (819) |
Income Taxes - Income Before Pr
Income Taxes - Income Before Provision for Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income before provision for income taxes | $ 3,255 | $ 3,534 | $ 5,936 | $ 7,220 |
Provision for income taxes | $ 710 | $ 656 | $ 1,217 | $ 1,416 |
Effective tax rate | 21.80% | 18.60% | 20.50% | 19.60% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Billions | Jan. 23, 2021USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 2.5 |
Unrecognized tax benefits that would impact effective tax rate | $ 2.1 |
Segment Information and Major_3
Segment Information and Major Customers - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021USD ($) | Jan. 25, 2020USD ($) | Jan. 23, 2021USD ($)segment | Jan. 25, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of geographic segments | segment | 3 | |||
Revenue | $ 11,960 | $ 12,005 | $ 23,889 | $ 25,164 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 6,200 | $ 6,200 | $ 12,700 | $ 13,300 |
Segment Information and Major_4
Segment Information and Major Customers - Summary of Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 11,960 | $ 12,005 | $ 23,889 | $ 25,164 |
Gross margin | 7,784 | 7,764 | 15,365 | 16,228 |
Operating segments | ||||
Segment Reporting Information [Line Items] | ||||
Gross margin | 8,005 | 7,974 | 15,858 | 16,650 |
Operating segments | Americas | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 6,969 | 7,013 | 14,168 | 14,990 |
Gross margin | 4,705 | 4,692 | 9,552 | 10,008 |
Operating segments | EMEA | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,207 | 3,134 | 6,171 | 6,417 |
Gross margin | 2,145 | 2,062 | 4,038 | 4,229 |
Operating segments | APJC | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,784 | 1,859 | 3,551 | 3,758 |
Gross margin | 1,155 | 1,219 | 2,268 | 2,413 |
Unallocated corporate items | ||||
Segment Reporting Information [Line Items] | ||||
Gross margin | $ (221) | $ (210) | $ (493) | $ (422) |
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 | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | $ 11,960 | $ 12,005 | $ 23,889 | $ 25,164 |
Total Product | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 8,572 | 8,671 | 17,159 | 18,549 |
Infrastructure Platforms | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 6,391 | 6,567 | 12,732 | 14,120 |
Applications | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 1,354 | 1,349 | 2,734 | 2,847 |
Security | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 822 | 749 | 1,684 | 1,565 |
Other Products | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | 4 | 7 | 9 | 17 |
Services | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Revenue | $ 3,388 | $ 3,334 | $ 6,730 | $ 6,615 |
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 | 6 Months Ended | ||
Jan. 23, 2021 | Jan. 25, 2020 | Jan. 23, 2021 | Jan. 25, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,545 | $ 2,878 | $ 4,719 | $ 5,804 |
Weighted-average shares—basic (in shares) | 4,223 | 4,242 | 4,227 | 4,244 |
Effect of dilutive potential common shares (in shares) | 11 | 18 | 12 | 21 |
Weighted-average shares—diluted (in shares) | 4,234 | 4,260 | 4,239 | 4,265 |
Net income per share—basic (in dollars per share) | $ 0.60 | $ 0.68 | $ 1.12 | $ 1.37 |
Net income per share—diluted (in dollars per share) | $ 0.60 | $ 0.68 | $ 1.11 | $ 1.36 |
Antidilutive employee share-based awards, excluded (in shares) | 49 | 29 | 56 | 32 |