CISCO SYSTEMS, INC., 10-Q filed on 11/22/2016
Quarterly Report
Document and Entity Information
3 Months Ended
Oct. 29, 2016
Nov. 17, 2016
Document Documentand Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Oct. 29, 2016 
 
Document Fiscal Period Focus
Q1 
 
Document Fiscal Year Focus
2017 
 
Trading Symbol
CSCO 
 
Entity Registrant Name
CISCO SYSTEMS, INC. 
 
Entity Central Index Key
0000858877 
 
Entity Current Reporting Status
Yes 
 
Current Fiscal Year End Date
--07-29 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
5,019,758,934 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Current assets:
 
 
Cash and cash equivalents
$ 8,583 
$ 7,631 
Investments
62,385 
58,125 
Accounts receivable, net of allowance for doubtful accounts of $247 at October 29, 2016 and $249 at July 30, 2016
4,805 
5,847 
Inventories
1,176 
1,217 
Financing receivables, net
4,541 
4,272 
Other current assets
1,651 
1,627 
Total current assets
83,141 
78,719 
Property and equipment, net
3,499 
3,506 
Financing receivables, net
4,784 
4,158 
Goodwill
26,823 
26,625 
Purchased intangible assets, net
2,297 
2,501 
Deferred tax assets
4,057 
4,299 
Other assets
1,686 
1,844 
TOTAL ASSETS
126,287 
121,652 
Current liabilities:
 
 
Short-term debt
4,155 
4,160 
Accounts payable
996 
1,056 
Income taxes payable
32 
517 
Accrued compensation
2,619 
2,951 
Deferred revenue
10,215 
10,155 
Other current liabilities
5,200 
6,072 
Total current liabilities
23,217 
24,911 
Long-term debt
30,634 
24,483 
Income taxes payable
883 
925 
Deferred revenue
6,736 
6,317 
Other long-term liabilities
1,404 
1,431 
Total liabilities
62,874 
58,067 
Commitments and contingencies
   
   
Cisco shareholders’ equity:
 
 
Preferred stock, no par value: 5 shares authorized; none issued and outstanding
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,024 and 5,029 shares issued and outstanding at October 29, 2016 and July 30, 2016, respectively
44,236 
44,516 
Retained earnings
19,694 
19,396 
Accumulated other comprehensive income (loss)
(524)
(326)
Total Cisco shareholders’ equity
63,406 
63,586 
Noncontrolling interests
(1)
Total equity
63,413 
63,585 
TOTAL LIABILITIES AND EQUITY
$ 126,287 
$ 121,652 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Statement of Financial Position [Abstract]
 
 
Accounts receivable, allowance for doubtful accounts
$ 247 
$ 249 
Preferred stock, shares authorized (in shares)
5,000,000 
5,000,000 
Preferred stock, issued (in shares)
Preferred stock, outstanding (in shares)
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)
5,024,000,000 
5,029,000,000 
Common stock, shares outstanding (in shares)
5,024,000,000 
5,029,000,000 
Consolidated Statements Of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
REVENUE:
 
 
Product
$ 9,302 
$ 9,844 
Service
3,050 
2,838 
Total revenue
12,352 
12,682 
COST OF SALES:
 
 
Product
3,403 
3,853 
Service
1,065 
997 
Total cost of sales
4,468 
4,850 
GROSS MARGIN
7,884 
7,832 
OPERATING EXPENSES:
 
 
Research and development
1,545 
1,560 
Sales and marketing
2,418 
2,443 
General and administrative
555 
539 
Amortization of purchased intangible assets
78 
69 
Restructuring and other charges
411 
142 
Total operating expenses
5,007 
4,753 
OPERATING INCOME
2,877 
3,079 
Interest income
295 
225 
Interest expense
(198)
(159)
Other income (loss), net
(21)
(8)
Interest and other income (loss), net
76 
58 
INCOME BEFORE PROVISION FOR INCOME TAXES
2,953 
3,137 
Provision for income taxes
631 
707 
NET INCOME
$ 2,322 
$ 2,430 
Net income per share:
 
 
Basic (in dollars per share)
$ 0.46 
$ 0.48 
Diluted (in dollars per share)
$ 0.46 
$ 0.48 
Shares used in per-share calculation:
 
 
Basic (in shares)
5,027 
5,080 
Diluted (in shares)
5,066 
5,113 
Cash dividends declared per common share (in dollars per share)
$ 0.26 
$ 0.21 
Consolidated Statements Of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 2,322 
$ 2,430 
Available-for-sale investments:
 
 
Change in net unrealized gains, net of tax benefit (expense) of $81 and $56 for the three months ended October 29, 2016 and October 24, 2015, respectively
(121)
(100)
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $5 and $0 for the three months ended October 29, 2016 and October 24, 2015, respectively
(10)
Total- Available-for-sale investments
(131)
(99)
Cash flow hedging instruments:
 
 
Change in unrealized gains and losses, net of tax benefit (expense) of $3 for each of the three months ended October 29, 2016 and October 24, 2015, respectively
(43)
(1)
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $(1) for each of the three months ended October 29, 2016 and October 24, 2015, respectively
11 
Total- Cash flow hedging instruments
(32)
Net change in cumulative translation adjustment and actuarial gains and losses net of tax benefit (expense) of $(1) and $(39) for the three months ended October 29, 2016, and October 24, 2015, respectively
(27)
(216)
Other comprehensive income (loss)
(190)
(314)
Comprehensive income
2,132 
2,116 
Comprehensive (income) loss attributable to noncontrolling interests
(8)
Comprehensive income attributable to Cisco Systems, Inc.
$ 2,124 
$ 2,117 
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Statement of Comprehensive Income [Abstract]
 
 
Change in net unrealized gains, tax expense (benefit)
$ 81 
$ 56 
Net (gains) losses reclassified into earnings, tax expense (benefit)
Change in unrealized gains and losses, tax expense (benefit)
Net (gains) losses reclassified into earnings, tax expense (benefit)
(1)
(1)
Net change in cumulative translation adjustment and actuarial gains and losses, tax expense (benefit)
$ (1)
$ (39)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Cash flows from operating activities:
 
 
Net income
$ 2,322 
$ 2,430 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation, amortization, and other
599 
507 
Share-based compensation expense
372 
376 
Provision for receivables
15 
Deferred income taxes
158 
193 
Excess tax benefits from share-based compensation
(91)
(73)
(Gains) losses on investments and other, net
32 
(4)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
Accounts receivable
1,049 
631 
Inventories
44 
130 
Financing receivables
(900)
(206)
Other assets
191 
129 
Accounts payable
(63)
Income taxes, net
(440)
(315)
Accrued compensation
(333)
(434)
Deferred revenue
462 
(19)
Other liabilities
(687)
(590)
Net cash provided by operating activities
2,730 
2,766 
Cash flows from investing activities:
 
 
Purchases of investments
(18,667)
(10,823)
Proceeds from sales of investments
11,337 
6,675 
Proceeds from maturities of investments
2,449 
4,133 
Acquisition of businesses, net of cash and cash equivalents acquired
(251)
(614)
Purchases of investments in privately held companies
(38)
(78)
Return of investments in privately held companies
24 
24 
Acquisition of property and equipment
(275)
(262)
Proceeds from sales of property and equipment
Other
23 
(11)
Net cash used in investing activities
(5,396)
(950)
Cash flows from financing activities:
 
 
Issuances of common stock
88 
385 
Repurchases of common stock—repurchase program
(1,023)
(1,210)
Shares repurchased for tax withholdings on vesting of restricted stock units
(401)
(382)
Short-term borrowings, original maturities less than 90 days, net
(4)
Issuances of debt
6,232 
Repayments of debt
(1)
(852)
Excess tax benefits from share-based compensation
91 
73 
Dividends paid
(1,300)
(1,068)
Other
(60)
123 
Net cash provided by (used in) financing activities
3,618 
(2,935)
Net increase (decrease) in cash and cash equivalents
952 
(1,119)
Cash and cash equivalents, beginning of period
7,631 
6,877 
Cash and cash equivalents, end of period
8,583 
5,758 
Supplemental cash flow information:
 
 
Cash paid for interest
248 
264 
Cash paid for income taxes, net
$ 913 
$ 828 
Consolidated Statements Of Equity (USD $)
In Millions, unless otherwise specified
Total
USD ($)
Shares of Common Stock
Common Stock and Additional Paid-In Capital
USD ($)
Retained Earnings
USD ($)
Accumulated Other Comprehensive Income (Loss)
USD ($)
Total Cisco Shareholders’ Equity
USD ($)
Non-controlling Interests
USD ($)
Beginning balance at Jul. 25, 2015
$ 59,707 
 
$ 43,592 
$ 16,045 
$ 61 
$ 59,698 
$ 9 
Beginning balance (in shares) at Jul. 25, 2015
 
5,085 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
2,430 
 
 
2,430 
 
2,430 
 
Other comprehensive income (loss)
(314)
 
 
 
(313)
(313)
(1)
Issuance of common stock (in shares)
 
57 
 
 
 
 
 
Issuance of common stock
385 
 
385 
 
 
385 
 
Repurchase of common stock (in shares)
 
(45)
 
 
 
 
 
Repurchase of common stock
(1,207)
 
(386)
(821)
 
(1,207)
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
(15)
(15)
 
 
 
 
 
Shares repurchased for tax withholdings on vesting of restricted stock units
(382)
 
(382)
 
 
(382)
 
Cash dividends declared (per common share)
(1,068)
 
 
(1,068)
 
(1,068)
 
Tax effects from employee stock incentive plans
39 
 
39 
 
 
39 
 
Share-based compensation
376 
 
376 
 
 
376 
 
Purchase acquisitions and other
19 
 
19 
 
 
19 
 
Ending Balance at Oct. 24, 2015
59,985 
 
43,643 
16,586 
(252)
59,977 
Ending Balance (in shares) at Oct. 24, 2015
 
5,082 
 
 
 
 
 
Beginning balance at Jul. 30, 2016
63,585 
 
44,516 
19,396 
(326)
63,586 
(1)
Beginning balance (in shares) at Jul. 30, 2016
 
5,029 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
2,322 
 
 
2,322 
 
2,322 
 
Other comprehensive income (loss)
(190)
 
 
 
(198)
(198)
Issuance of common stock (in shares)
 
40 
 
 
 
 
 
Issuance of common stock
88 
 
88 
 
 
88 
 
Repurchase of common stock (in shares)
(32)
(32)
 
 
 
 
 
Repurchase of common stock
(1,001)
 
(285)
(716)
 
(1,001)
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
(13)
(13)
 
 
 
 
 
Shares repurchased for tax withholdings on vesting of restricted stock units
(401)
 
(401)
 
 
(401)
 
Cash dividends declared (per common share)
(1,308)
 
 
(1,308)
 
(1,308)
 
Tax effects from employee stock incentive plans
(60)
 
(60)
 
 
(60)
 
Share-based compensation
372 
 
372 
 
 
372 
 
Purchase acquisitions and other
 
 
 
 
Ending Balance at Oct. 29, 2016
$ 63,413 
 
$ 44,236 
$ 19,694 
$ (524)
$ 63,406 
$ 7 
Ending Balance (in shares) at Oct. 29, 2016
 
5,024 
 
 
 
 
 
Consolidated Statements Of Equity (Parenthetical)
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Statement of Stockholders' Equity [Abstract]
 
 
Cash dividends declared (In dollars per share)
$ 0.26 
$ 0.21 
Supplemental Information
Supplemental Information
Supplemental Information
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of October 29, 2016, the Company’s Board of Directors had authorized an aggregate repurchase of up to $112 billion of common stock under this program with no termination date. For additional information regarding stock repurchase, see Note 13 to the Consolidated Financial Statements. The stock repurchases since the inception of this program and the related impacts on Cisco shareholders’ equity are summarized in the following table (in millions): 
 
Shares of
Common
Stock
 
Common Stock
and Additional
Paid-In Capital
 
Retained
Earnings
 
Total Cisco
Shareholders’
Equity
Repurchases of common stock under the repurchase program
4,623

 
$
24,180

 
$
73,418

 
$
97,598

Basis of Presentation
Basis of Presentation
Basis of Presentation
The fiscal year for Cisco Systems, Inc. (the “Company” or “Cisco”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2017 is a 52-week fiscal year, and fiscal 2016 was a 53-week fiscal year. The Consolidated Financial Statements include the accounts of Cisco and its subsidiaries. All intercompany accounts and transactions have been eliminated. The Company conducts business globally and is 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).
The accompanying financial data as of October 29, 2016 and for the three months ended October 29, 2016 and October 24, 2015 has been prepared by the Company, 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 30, 2016 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, the Company believes 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 the Company’s Annual Report on Form 10-K for the fiscal year ended July 30, 2016.
The Company consolidates its investments in a venture fund managed by SOFTBANK Corp. and its affiliates (“SOFTBANK”) as this is a variable interest entity and the Company is the primary beneficiary. The noncontrolling interests attributed to SOFTBANK are presented as a separate component from the Company’s equity in the equity section of the Consolidated Balance Sheets. SOFTBANK’s share of the earnings in the venture fund are not presented separately in the Consolidated Statements of Operations as these amounts are not material for any of the fiscal periods presented.
In the opinion of management, all normal recurring adjustments necessary to present fairly the consolidated balance sheet as of October 29, 2016; the results of operations, the statements of comprehensive income, the statements of cash flows and equity for the three months ended October 29, 2016 and October 24, 2015 as applicable, have been made. The results of operations for the three months ended October 29, 2016 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Certain reclassifications have been made to the amounts in prior periods in order to conform to the current period’s presentation. The Company has evaluated subsequent events through the date that the financial statements were issued.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
Recent Accounting Pronouncements
(a) New Accounting Updates Recently Adopted
Consolidation of Certain Types of Legal Entities In February 2015, the FASB issued an accounting standard update that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The accounting standard update became effective for the Company beginning in the first quarter of fiscal 2017. The application of this accounting standard update did not have any impact on the Company's Consolidated Balance Sheet or Statement of Operations upon adoption, but the Company has provided additional disclosures in Note 8 pursuant to this accounting standard update.
(b) Recent Accounting Standards or Updates Not Yet Effective
Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standard update related to revenue from contracts with customers, which, along with amendments issued in 2015 and 2016, will supersede nearly all current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The underlying principle is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This accounting standard update, as amended, will be effective for the Company beginning in the first quarter of fiscal 2019. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption ("modified retrospective basis"). Early adoption is permitted, but no earlier than fiscal 2018. The Company expects to adopt this accounting standard update on a modified retrospective basis in the first quarter of fiscal 2019, and it is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.

Financial Instruments In January 2016, the FASB issued an accounting standard update that changes the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Leases In February 2016, the FASB issued an accounting standard update related to leases requiring lessees to recognize operating and financing lease liabilities on the balance sheet, as well as corresponding right-of-use assets. The new lease standard also makes some changes to lessor accounting and aligns key aspects of the lessor accounting model with the revenue recognition standard. In addition, disclosures will be required to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2020 on a modified retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Share-Based Compensation In March 2016, the FASB issued an accounting standard update that impacts the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the Consolidated Statements of Cash Flows. The accounting standard will be effective for the Company beginning the first quarter of fiscal 2018, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Credit Losses of Financial Instruments In June 2016, the FASB issued an accounting standard update that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2021 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Classification of Cash Flow Elements In August 2016, the FASB issued an accounting standard update related to the classification of certain cash receipts and cash payments on the statement of cash flows. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019 on a retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Statements of Cash Flows.
Income Taxes on Intra-Entity Transfers of Assets In October 2016, the FASB issued an accounting standard update that requires recognition of the income tax consequences of intra-entity transfers of assets (other than inventory) at the transaction date. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019 on a modified retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Acquisitions and Divestitures
Acquisitions and Divestitures
Acquisitions and Divestitures
The Company completed three acquisitions during the three months ended October 29, 2016. A summary of the allocation of the total purchase consideration is presented as follows (in millions):
 
Purchase Consideration
 
Purchased Intangible Assets
 
Goodwill
CloudLock
$
249

 
$
36

 
$
213

Others (two in total)
9

 
5

 
4

Total
$
258

 
$
41

 
$
217


On August 1, 2016, the Company completed its acquisition of privately held CloudLock Inc. ("CloudLock"), a provider of cloud security that specializes in cloud access security broker technology that provides enterprises with visibility and analytics around user behavior and sensitive data in cloud services. Revenue from the CloudLock acquisition has been included in the Company's Security product category.
The total purchase consideration related to the Company’s acquisitions completed during the three months ended October 29, 2016 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $1 million. Total transaction costs related to the Company’s acquisition activities were $1 million and $5 million for the three months ended October 29, 2016 and October 24, 2015, respectively. These transaction costs were expensed as incurred in general and administrative expenses ("G&A") in the Consolidated Statements of Operations.
The Company’s purchase price allocation for acquisitions completed during recent periods is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information that existed as of the acquisition date but at that time was unknown to the Company may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred.
The goodwill generated from the Company’s acquisitions completed during the three months ended October 29, 2016 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes.
The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition. Pro forma results of operations for the acquisitions completed during the three months ended October 29, 2016 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company’s financial results.
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
(a)
Goodwill
The following table presents the goodwill allocated to the Company’s reportable segments as of and during the three months ended October 29, 2016 (in millions):
 
Balance at
 
 
 
 
 
Balance at
 
July 30, 2016
 
Acquisitions
 
Other
 
October 29, 2016
Americas
$
16,529

 
$
132

 
$
(13
)
 
$
16,648

EMEA
6,269

 
62

 
(4
)
 
6,327

APJC
3,827

 
23

 
(2
)
 
3,848

Total
$
26,625

 
$
217

 
$
(19
)
 
$
26,823

“Other” in the table above primarily consists of foreign currency translation, as well as immaterial purchase accounting adjustments.
(b)
Purchased Intangible Assets
The following table presents details of the Company’s intangible assets acquired through acquisitions completed during the three months ended October 29, 2016 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Amount
 
Amount
CloudLock
6.0
 
$
32

 
4.0
 
$
3

 
1.5
 
$
1

 
$

 
$
36

Others (two in total)
3.0
 
5

 
0.0
 

 
0.0
 

 

 
5

Total
 
 
$
37

 
 
 
$
3

 
 
 
$
1

 
$

 
$
41


The following tables present details of the Company’s purchased intangible assets (in millions): 
October 29, 2016
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
2,861

 
$
(1,334
)
 
$
1,527

Customer relationships
 
1,737

 
(1,220
)
 
517

Other
 
58

 
(21
)
 
37

Total purchased intangible assets with finite lives
 
4,656

 
(2,575
)
 
2,081

In-process research and development, with indefinite lives
 
216

 

 
216

       Total
 
$
4,872

 
$
(2,575
)
 
$
2,297

 
July 30, 2016
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,038

 
$
(1,391
)
 
$
1,647

Customer relationships
 
1,793

 
(1,203
)
 
590

Other
 
85

 
(43
)
 
42

Total purchased intangible assets with finite lives
 
4,916

 
(2,637
)
 
2,279

In-process research and development, with indefinite lives
 
222

 

 
222

       Total
 
$
5,138

 
$
(2,637
)
 
$
2,501


Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses.
Impairment charges related to purchased intangible assets for the three months ended October 29, 2016 were $42 million. Impairment charges were primarily as a result of declines in estimated fair values of certain purchased intangible assets resulting from the reduction or elimination of expected future cash flows associated with certain of the Company’s technology and IPR&D intangible assets. Of these impairment charges, $38 million was recorded to restructuring and other charges upon the Company's decision to exit certain product lines, and the corresponding elimination of future associated cash flows. There were no impairment charges related to purchased intangible assets for the corresponding period in fiscal 2016.
The following table presents the amortization of purchased intangible assets including impairment charges related to purchased intangible assets (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Amortization of purchased intangible assets:
 
 
 
Cost of sales
$
129

 
$
146

Operating expenses
 
 


Amortization of purchased intangible assets
78

 
69

Restructuring and other charges
38

 

Total
$
245

 
$
215


The estimated future amortization expense of purchased intangible assets with finite lives as of October 29, 2016 is as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
524

2018
579

2019
493

2020
281

2021
137

Thereafter
67

   Total
$
2,081

Restructuring and Other Charges
Restructuring and Other Charges
Restructuring and Other Charges
In August 2016, the Company announced a restructuring plan (the "Fiscal 2017 Plan") that will impact up to 5,500 employees, representing approximately 7% of its global workforce. The Company's aggregate pretax estimated charges pursuant to the restructuring plan are expected to be up to $700 million, consisting primarily of severance and other one-time termination benefits, and other associated costs. These charges are primarily cash-based, and the Company expects the Fiscal 2017 Plan to be substantially completed by the end of fiscal 2017.
In connection with a restructuring action announced in August 2014 (the “Fiscal 2015 Plan”), the Company incurred cumulative charges of approximately $756 million. The Company completed the Fiscal 2015 Plan in fiscal 2016.
The following tables summarize the activities related to the restructuring and other charges (in millions):
 
 
FISCAL 2015 AND PRIOR PLANS
 
FISCAL 2017 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 30, 2016
 
$
21

 
$
24

 
$

 
$

 
$
45

Charges
 

 

 
369

 
42

 
411

Cash payments
 
(12
)
 

 
(257
)
 
(1
)
 
(270
)
Non-cash items
 
(4
)
 
(2
)
 

 
(41
)
 
(47
)
Liability as of October 29, 2016
 
$
5

 
$
22

 
$
112

 
$

 
$
139


 
 
FISCAL 2015 AND PRIOR PLANS
 
 
 
 
Employee
Severance
 
Other
 
Total
Liability as of July 25, 2015
 
$
60

 
$
29

 
$
89

Charges
 
125

 
17

 
142

Cash payments
 
(123
)
 
(6
)
 
(129
)
Non-cash items
 

 
(16
)
 
(16
)
Liability as of October 24, 2015
 
$
62

 
$
24

 
$
86

Balance Sheet Details
Balance Sheet Details
Balance Sheet Details
The following tables provide details of selected balance sheet items (in millions):
 
 
October 29,
2016
 
July 30,
2016
Inventories:
 
 
 
 
Raw materials
 
$
111

 
$
91

Finished goods:
 
 
 

Distributor inventory and deferred cost of sales
 
481

 
457

Manufactured finished goods
 
328

 
415

Total finished goods
 
809

 
872

Service-related spares
 
237

 
236

Demonstration systems
 
19

 
18

Total
 
$
1,176

 
$
1,217


Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,819

 
$
4,778

Computer equipment and related software
 
1,292

 
1,288

Production, engineering, and other equipment
 
5,708

 
5,658

Operating lease assets
 
301

 
296

Furniture and fixtures
 
548

 
543

Total gross property and equipment
 
12,668

 
12,563

Less: accumulated depreciation and amortization
 
(9,169
)
 
(9,057
)
Total
 
$
3,499

 
$
3,506


Deferred revenue:
 
 
 
 
Service
 
$
10,424

 
$
10,621

Product:
 

 
 
Deferred revenue related to recurring software and subscription businesses
 
3,801

 
3,308

Deferred revenue related to two-tier distributors
 
439

 
377

Other product deferred revenue
 
2,287

 
2,166

Total product deferred revenue
 
6,527

 
5,851

Total
 
$
16,951

 
$
16,472

Reported as:
 

 
 
Current
 
$
10,215

 
$
10,155

Noncurrent
 
6,736

 
6,317

Total
 
$
16,951

 
$
16,472

Financing Receivables and Operating Leases
Financing Receivables and Operating Leases
Financing Receivables and Operating Leases
(a)
Financing Receivables
Financing receivables primarily consist of lease receivables, loan receivables, and financed service contracts and other. Lease receivables represent sales-type and direct-financing leases resulting from the sale of the Company’s and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Loan receivables represent financing arrangements related to the sale of the Company’s products and services, which may include additional funding for other costs associated with network installation and integration of the Company’s products and services. Lease receivables consist of arrangements with terms of four years on average, while loan receivables generally have terms of up to three years. The financed service contracts and other category includes financing receivables related to technical support and advanced services, software, and receivables related to financing of certain indirect costs associated with leases. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one to three years.
A summary of the Company's financing receivables is presented as follows (in millions):
October 29, 2016
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,202

 
$
2,236

 
$
4,239

 
$
9,677

Residual value
197

 

 

 
197

Unearned income
(163
)
 

 

 
(163
)
Allowance for credit loss
(227
)
 
(111
)
 
(48
)
 
(386
)
Total, net
$
3,009

 
$
2,125

 
$
4,191

 
$
9,325

Reported as:
 
 
 
 
 
 
 
Current
$
1,504

 
$
1,021

 
$
2,016

 
$
4,541

Noncurrent
1,505

 
1,104

 
2,175

 
4,784

Total, net
$
3,009

 
$
2,125

 
$
4,191

 
$
9,325

July 30, 2016
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,272

 
$
2,135

 
$
3,370

 
$
8,777

Residual value
202

 

 

 
202

Unearned income
(174
)
 

 

 
(174
)
Allowance for credit loss
(230
)
 
(97
)
 
(48
)
 
(375
)
Total, net
$
3,070

 
$
2,038

 
$
3,322

 
$
8,430

Reported as:
 
 
 
 
 
 
 
Current
$
1,490

 
$
988

 
$
1,794

 
$
4,272

Noncurrent
1,580

 
1,050

 
1,528

 
4,158

Total, net
$
3,070

 
$
2,038

 
$
3,322

 
$
8,430


As of October 29, 2016 and July 30, 2016, the deferred service revenue related to "Financed Service Contracts and Other" was $2,371 million and $1,716 million, respectively.
Future minimum lease payments to the Company on lease receivables as of October 29, 2016 are summarized as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
1,222

2018
1,066

2019
587

2020
260

2021
65

Thereafter
2

Total
$
3,202


Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
(b)
Credit Quality of Financing Receivables
Gross receivables, excluding residual value, less unearned income categorized by the Company’s internal credit risk rating as of October 29, 2016 and July 30, 2016 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
October 29, 2016
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,652

 
$
1,293

 
$
94

 
$
3,039

Loan receivables
1,081

 
976

 
179

 
2,236

Financed service contracts and other
2,898

 
1,313

 
28

 
4,239

Total
$
5,631

 
$
3,582

 
$
301

 
$
9,514

 
INTERNAL CREDIT RISK RATING
July 30, 2016
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,703

 
$
1,294

 
$
101

 
$
3,098

Loan receivables
986

 
967

 
182

 
2,135

Financed service contracts and other
2,077

 
1,271

 
22

 
3,370

Total
$
4,766

 
$
3,532

 
$
305

 
$
8,603


The Company determines the adequacy of its allowance for credit loss by assessing the risks and losses inherent in its financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by the Company to its customers, which consist of the following: lease receivables, loan receivables, and financed service contracts and other.
The Company’s internal credit risk ratings of 1 through 4 correspond to investment-grade ratings, while credit risk ratings of 5 and 6 correspond to non-investment grade ratings. Credit risk ratings of 7 and higher correspond to substandard ratings.
In circumstances when collectibility is not deemed reasonably assured, the associated revenue is deferred in accordance with the Company’s revenue recognition policies, and the related allowance for credit loss, if any, is included in deferred revenue. The Company also records deferred revenue associated with financing receivables when there are remaining performance obligations, as it does for financed service contracts. Total allowances for credit loss and deferred revenue as of October 29, 2016 and July 30, 2016 were $2,779 million and $2,112 million, respectively, and they were associated with total financing receivables before allowance for credit loss of $9,711 million and $8,805 million as of their respective period ends.
The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of October 29, 2016 and July 30, 2016 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
October 29, 2016
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
86

 
$
70

 
$
249

 
$
405

 
$
2,634

 
$
3,039

 
$
55

 
$
55

Loan receivables
25

 
23

 
95

 
143

 
2,093

 
2,236

 
42

 
42

Financed service contracts and other
317

 
338

 
367

 
1,022

 
3,217

 
4,239

 
29

 
9

Total
$
428

 
$
431

 
$
711

 
$
1,570

 
$
7,944

 
$
9,514

 
$
126

 
$
106

 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 30, 2016
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
111

 
$
25

 
$
251

 
$
387

 
$
2,711

 
$
3,098

 
$
60

 
$
60

Loan receivables
30

 
9

 
37

 
76

 
2,059

 
2,135

 
42

 
42

Financed service contracts and other
213

 
152

 
565

 
930

 
2,440

 
3,370

 
30

 
10

Total
$
354

 
$
186

 
$
853

 
$
1,393

 
$
7,210

 
$
8,603

 
$
132

 
$
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. The balances of either unbilled or current financing receivables included in the category of 91 days plus past due for financing receivables were $436 million and $670 million as of October 29, 2016 and July 30, 2016, respectively.
As of October 29, 2016, the Company had financing receivables of $236 million, net of unbilled or current receivables, that were in the category of 91 days plus past due but remained on accrual status as they are well secured and in the process of collection. Such balance was $144 million as of July 30, 2016.
(c)
Allowance for Credit Loss Rollforward
The allowances for credit loss and the related financing receivables are summarized as follows (in millions):
 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 30, 2016
$
230

 
$
97

 
$
48

 
$
375

Provisions
(4
)
 
12

 

 
8

Foreign exchange and other
1

 
2

 

 
3

Allowance for credit loss as of October 29, 2016
$
227

 
$
111

 
$
48

 
$
386


 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 25, 2015
$
259

 
$
87

 
$
36

 
$
382

Provisions

 
4

 

 
4

Recoveries (write-offs), net
(4
)
 

 
(3
)
 
(7
)
Foreign exchange and other

 
(1
)
 

 
(1
)
Allowance for credit loss as of October 24, 2015
$
255

 
$
90

 
$
33

 
$
378


The Company assesses the allowance for credit loss related to financing receivables on either an individual or a collective basis. The Company considers various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include the Company’s historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer’s ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, will be assessed and fully reserved at the customer level. The Company’s internal credit risk ratings are categorized as 1 through 10, with the lowest credit risk rating representing the highest quality financing receivables.
Typically, the Company also considers receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. These balances, as of October 29, 2016 and July 30, 2016, are presented under “(b) Credit Quality of Financing Receivables” above.
The Company evaluates the remainder of its financing receivables portfolio for impairment on a collective basis and records an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, the Company uses expected default frequency rates published by a major third-party credit-rating agency as well as its own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation.
(d)
Operating Leases
The Company provides 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 and the associated accumulated depreciation are summarized as follows (in millions):
 
October 29, 2016
 
July 30, 2016
Operating lease assets
$
301

 
$
296

Accumulated depreciation
(168
)
 
(161
)
Operating lease assets, net
$
133

 
$
135


Minimum future rentals on noncancelable operating leases as of October 29, 2016 are summarized as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
179

2018
142

2019
53

2020
8

2021
4

Thereafter
1

Total
$
387

Investments
Investments
Investments
(a)
Summary of Available-for-Sale Investments
The following tables summarize the Company’s available-for-sale investments (in millions):
October 29, 2016
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
25,905

 
$
24

 
$
(33
)
 
$
25,896

U.S. government agency securities
2,619

 
4

 
(1
)
 
2,622

Non-U.S. government and agency securities
1,104

 
1

 
(1
)
 
1,104

Corporate debt securities
29,046

 
177

 
(60
)
 
29,163

U.S. agency mortgage-backed securities
2,069

 
16

 
(2
)
 
2,083

Total fixed income securities
60,743

 
222

 
(97
)
 
60,868

Publicly traded equity securities
1,225

 
346

 
(54
)
 
1,517

Total (1)
$
61,968

 
$
568

 
$
(151
)
 
$
62,385


July 30, 2016
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
26,473

 
$
73

 
$
(2
)
 
$
26,544

U.S. government agency securities
2,809

 
8

 

 
2,817

Non-U.S. government and agency securities
1,096

 
4

 

 
1,100

Corporate debt securities
24,044

 
263

 
(15
)
 
24,292

U.S. agency mortgage-backed securities
1,846

 
22

 

 
1,868

Total fixed income securities
56,268

 
370

 
(17
)
 
56,621

Publicly traded equity securities
1,211

 
333

 
(40
)
 
1,504

Total (1)
$
57,479

 
$
703

 
$
(57
)
 
$
58,125

(1) Includes investments that were pending settlement as of the respective fiscal years. The net unsettled investment purchases were $328 million and $654 million as of October 29, 2016 and July 30, 2016, respectively.
Non-U.S. government and agency securities include agency and corporate debt securities that are guaranteed by non-U.S. governments.

(b)
Gains and Losses on Available-for-Sale Investments
The following table presents the gross realized gains and gross realized losses related to the Company’s available-for-sale investments (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Gross realized gains
$
30

 
$
35

Gross realized losses
(15
)
 
(36
)
Total
$
15

 
$
(1
)
The following table presents the realized net gains (losses) related to the Company’s available-for-sale investments by security type (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Net gains/(losses) on investments in publicly traded equity securities
$
5

 
$
(9
)
Net gains/(losses) on investments in fixed income securities
10

 
8

Total
$
15

 
$
(1
)


The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at October 29, 2016 and July 30, 2016 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
October 29, 2016
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
11,766

 
$
(33
)
 
$
100

 
$

 
$
11,866

 
$
(33
)
U.S. government agency securities
596

 
(1
)
 

 

 
596

 
(1
)
Non-U.S. government and agency securities
498

 
(1
)
 

 

 
498

 
(1
)
Corporate debt securities
9,013

 
(57
)
 
572

 
(3
)
 
9,585

 
(60
)
U.S. agency mortgage-backed securities
594

 
(2
)
 

 

 
594

 
(2
)
Total fixed income securities
22,467

 
(94
)

672


(3
)

23,139


(97
)
Publicly traded equity securities
291

 
(53
)
 
3

 
(1
)
 
294

 
(54
)
Total
$
22,758

 
$
(147
)
 
$
675

 
$
(4
)
 
$
23,433

 
$
(151
)
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 30, 2016
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
2,414

 
$
(2
)
 
$

 
$

 
$
2,414

 
$
(2
)
U.S. government agency securities
144

 

 

 

 
144

 

Non-U.S. government and agency securities
61

 

 

 

 
61

 

Corporate debt securities
2,499

 
(7
)
 
1,208

 
(8
)
 
3,707

 
(15
)
U.S. agency mortgage-backed securities
174

 

 

 

 
174

 

Total fixed income securities
5,292

 
(9
)
 
1,208

 
(8
)
 
6,500

 
(17
)
Publicly traded equity securities
188

 
(40
)
 

 

 
188

 
(40
)
Total
$
5,480

 
$
(49
)
 
$
1,208

 
$
(8
)
 
$
6,688

 
$
(57
)

As of October 29, 2016, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of October 29, 2016, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three months ended October 29, 2016.
The Company has evaluated its publicly traded equity securities as of October 29, 2016 and has determined that there was no indication of other-than-temporary impairments in the respective categories of unrealized losses. This determination was based on several factors, which include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and the Company’s intent and ability to hold the publicly traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value.
(c)
Maturities of Fixed Income Securities
The following table summarizes the maturities of the Company’s fixed income securities as of October 29, 2016 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
12,967

 
$
12,977

Due in 1 to 2 years
17,042

 
17,071

Due in 2 to 5 years
25,125

 
25,230

Due after 5 years
3,540

 
3,507

Mortgage-backed securities with no single maturity
2,069

 
2,083

Total
$
60,743

 
$
60,868



Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. The remaining contractual principal maturities for mortgage-backed securities were allocated assuming no prepayments.
(d)
Securities Lending
The Company periodically engages in securities lending activities with certain of its available for sale investments. These transactions are accounted for as a secured lending of the securities, and the securities are typically loaned only on an overnight basis. The average daily balance of securities lending for the three months ended October 29, 2016 and October 24, 2015 was $1.5 billion and $0.5 billion, respectively. The Company requires collateral equal to at least 102% of the fair market value of the loaned security and that the collateral be in the form of cash or liquid, high-quality assets. The Company engages in these secured lending transactions only with highly creditworthy counterparties, and the associated portfolio custodian has agreed to indemnify the Company against collateral losses. The Company did not experience any losses in connection with the secured lending of securities during the periods presented. As of October 29, 2016 and July 30, 2016, the Company had no outstanding securities lending transactions.
(e)
Investments in Privately Held Companies
The carrying value of the Company’s investments in privately held companies was included in other assets. For such investments that were accounted for under the equity and cost method as of October 29, 2016 and July 30, 2016, the amounts are summarized in the following table (in millions):
 
October 29, 2016
 
July 30, 2016
Equity method investments
$
162

 
$
174

Cost method investments
829

 
829

Total
$
991

 
$
1,003


For additional information on impairment charges related to investments in privately held companies, see Note 9.
Variable Interest Entities In the ordinary course of business, the Company has investments in privately held companies and provides financing to certain customers. These privately held companies and customers may be considered to be variable interest entities. The Company evaluates on an ongoing basis its investments in these privately held companies and its customer financings, and has determined that as of October 29, 2016, except as disclosed in Note 1, there were no significant variable interest entities required to be consolidated in the Company’s Consolidated Financial Statements.
As discussed in Note 2, during the first quarter of fiscal 2017, the Company adopted a new accounting standard update related to the consolidation of certain types of legal entities. As of October 29, 2016, the carrying value of the Company's investments in privately held companies was $991 million, of which $609 million of such investments are considered to be in variable interest entities which are unconsolidated. In addition, the Company has additional funding commitments of $189 million related to these 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 carrying value of these investments and the additional funding commitments collectively represent the Company's maximum exposure related to these variable interest entities.
Fair Value
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, the Company considers the principal or most advantageous market in which it would transact, and it also considers 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 as of October 29, 2016 and July 30, 2016 were as follows (in millions):
 
OCTOBER 29, 2016
FAIR VALUE MEASUREMENTS
 
JULY 30, 2016
FAIR VALUE MEASUREMENTS
 
Level 1
 
Level 2
 
Level 3
 
Total
Balance
 
Level 1
 
Level 2
 
Level 3
 
Total
Balance
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
6,749

 
$

 
$

 
$
6,749

 
$
6,049

 
$

 
$

 
$
6,049

Corporate debt securities

 

 

 

 

 
43

 

 
43

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. government securities

 
25,896

 

 
25,896

 

 
26,544

 

 
26,544

U.S. government agency securities

 
2,622

 

 
2,622

 

 
2,817

 

 
2,817

Non-U.S. government and agency securities

 
1,104

 

 
1,104

 

 
1,100

 

 
1,100

Corporate debt securities

 
29,163

 

 
29,163

 

 
24,292

 

 
24,292

U.S. agency mortgage-backed securities

 
2,083

 

 
2,083

 

 
1,868

 

 
1,868

Publicly traded equity securities
1,517

 

 

 
1,517

 
1,504

 

 

 
1,504

Derivative assets

 
292

 

 
292

 

 
384

 
1

 
385

Total
$
8,266

 
$
61,160

 
$

 
$
69,426

 
$
7,553

 
$
57,048

 
$
1

 
$
64,602

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
85

 
$

 
$
85

 
$

 
$
54

 
$

 
$
54

Total
$

 
$
85

 
$

 
$
85

 
$

 
$
54

 
$

 
$
54


Level 1 publicly traded equity securities are determined by using quoted prices in active markets for identical assets. Level 2 fixed income securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses 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. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is ultimately responsible for the financial statements and underlying estimates. The Company’s 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. The Company 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 the Company could not corroborate with market data.
(c)
Assets Measured at Fair Value on a Nonrecurring Basis
The following table presents the Company’s assets that were measured at fair value on a nonrecurring basis during the indicated periods and the related recognized gains and losses for the periods indicated (in millions):
 
TOTAL GAINS (LOSSES) FOR THE
THREE MONTHS ENDED
 
October 29, 2016
 
October 24, 2015
Investments in privately held companies (impaired)
$
(47
)
 
$
(17
)
Purchased intangible assets (impaired)
(42
)
 

Total gains (losses) for nonrecurring measurements
$
(89
)
 
$
(17
)

These assets were measured at fair value due to events or circumstances the Company identified as having significant impact on their fair value during the respective periods. To arrive at the valuation of these assets, the Company considers any significant changes in the financial metrics and economic variables and also uses third-party valuation reports to assist in the valuation as necessary.
The fair value measurement of the impaired investments was classified as Level 3 because significant unobservable inputs were used in the valuation due to the absence of quoted market prices and inherent lack of liquidity. Significant unobservable inputs, which included financial metrics of comparable private and public companies, financial condition and near-term prospects of the investees, recent financing activities of the investees, and the investees’ capital structure as well as other economic variables, reflected the assumptions market participants would use in pricing these assets. The impairment charges, representing the difference between the net book value and the fair value as a result of the evaluation, were recorded to other income (loss), net. The remaining carrying value of the investments that were impaired was $46 million and $6 million as of October 29, 2016 and October 24, 2015, respectively.
The fair value for purchased intangible assets measured at fair value on a nonrecurring basis was categorized as Level 3 due to the use of significant unobservable inputs in the valuation. Significant unobservable inputs that were used included expected revenues and net income related to the assets and the expected life of the assets. The difference between the estimated fair value and the carrying value of the assets was recorded as an impairment charge, which was included in product cost of sales and operating expenses as applicable. See Note 4. The remaining carrying value of the specific purchased intangible assets that were impaired was $11 million and zero as of October 29, 2016 and October 24, 2015.

(d) Other Fair Value Disclosures
The carrying value of the Company’s investments in privately held companies that were accounted for under the cost method was $829 million as of each of October 29, 2016 and July 30, 2016. It was not practicable to estimate the fair value of this portfolio.
The fair value of the Company’s short-term loan receivables and financed service contracts approximates their carrying value due to their short duration. The aggregate carrying value of the Company’s long-term loan receivables and financed service contracts and other as of October 29, 2016 and July 30, 2016 was $3.3 billion and $2.6 billion, respectively. The estimated fair value of the Company’s long-term loan receivables and financed service contracts and other approximates their carrying value. The Company uses significant unobservable inputs in determining discounted cash flows to estimate the fair value of its long-term loan receivables and financed service contracts, and therefore they are categorized as Level 3.
As of October 29, 2016, the estimated fair value of the short-term debt approximates its carrying value due to the short maturities. As of October 29, 2016, the fair value of the Company’s senior notes and other long-term debt was $36.5 billion with a carrying amount of $34.8 billion. This compares to a fair value of $30.9 billion and a carrying amount of $28.6 billion as of July 30, 2016. The fair value of the senior notes and other long-term debt was determined based on observable market prices in a less active market and was categorized as Level 2 in the fair value hierarchy.
Borrowings
Borrowings
Borrowings
(a)
Short-Term Debt
The following table summarizes the Company’s short-term debt (in millions, except percentages):
 
October 29, 2016
 
July 30, 2016
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
4,155

 
1.08
%
 
$
4,159

 
0.97
%
Other notes and borrowings

 

 
1

 
2.08
%
Total short-term debt
$
4,155

 
 
 
$
4,160

 


The effective interest rate on the current portion of long-term debt includes the impact of interest rate swaps, as discussed further in "(b) Long-Term Debt." Other notes and borrowings consist of the short-term portion of secured borrowings associated with customer financing arrangements. These notes and credit facilities were subject to various terms and foreign currency market interest rates pursuant to individual financial arrangements between the financing institution and the applicable foreign subsidiary.
The Company has established a short-term debt financing program of up to $3.0 billion through the issuance of commercial paper notes. The Company uses the proceeds from the issuance of commercial paper notes for general corporate purposes. The Company did not have any commercial paper notes outstanding as of each of October 29, 2016 and July 30, 2016.
(b)
Long-Term Debt
The following table summarizes the Company’s long-term debt (in millions, except percentages):
 
 
 
October 29, 2016
 
July 30, 2016
 
Maturity Date
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior notes:
 
 
 
 
 
 
 
 
 
Floating-rate notes:
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus 0.28%
March 3, 2017
 
$
1,000

 
1.18%
 
$
1,000

 
1.03%
Three-month LIBOR plus 0.60%
February 21, 2018
 
1,000

 
1.48%
 
1,000

 
1.32%
Three-month LIBOR plus 0.31%
June 15, 2018
 
900

 
1.23%
 
900

 
1.03%
Three-month LIBOR plus 0.50%
March 1, 2019
 
500

 
1.40%
 
500

 
1.23%
Three-month LIBOR plus 0.34%
September 20, 2019
(1)
500

 
1.24%
 

 
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
1.10%
March 3, 2017
 
2,400

 
0.93%
 
2,400

 
0.87%
3.15%
March 14, 2017
 
750

 
1.42%
 
750

 
1.22%
1.40%
February 28, 2018
 
1,250

 
1.47%
 
1,250

 
1.47%
1.65%
June 15, 2018
 
1,600

 
1.72%
 
1,600

 
1.72%
4.95%
February 15, 2019
 
2,000

 
4.78%
 
2,000

 
4.76%
1.60%
February 28, 2019
 
1,000

 
1.67%
 
1,000

 
1.67%
2.125%
March 1, 2019
 
1,750

 
1.14%
 
1,750

 
1.08%
1.40%
September 20, 2019
(1)
1,500

 
1.48%
 

 
4.45%
January 15, 2020
 
2,500

 
3.29%
 
2,500

 
3.25%
2.45%
June 15, 2020
 
1,500

 
2.54%
 
1,500

 
2.54%
2.20%
February 28, 2021
 
2,500

 
2.30%
 
2,500

 
2.30%
2.90%
March 4, 2021
 
500

 
1.31%
 
500

 
1.24%
1.85%
September 20, 2021
(1)
2,000

 
1.90%
 

 
3.00%
June 15, 2022
 
500

 
1.56%
 
500

 
1.51%
2.60%
February 28, 2023
 
500

 
2.68%
 
500

 
2.68%
2.20%
September 20, 2023
(1)
750

 
2.27%
 

 
3.625%
March 4, 2024
 
1,000

 
1.42%
 
1,000

 
1.36%
3.50%
June 15, 2025
 
500

 
1.72%
 
500

 
1.67%
2.95%
February 28, 2026
 
750

 
3.01%
 
750

 
3.01%
2.50%
September 20, 2026
(1)
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
 
 
34,650

 
 
 
28,400

 
 
Unaccreted discount/issuance costs
 
 
(150
)
 
 
 
(137
)
 
 
Hedge accounting fair value adjustments
 
 
289

 
 
 
379

 
 
Total
 
 
$
34,789

 
 
 
$
28,642

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
$
4,155

 
 
 
$
4,159

 
 
Long-term debt
 
 
30,634

 
 
 
24,483

 
 
Total
 
 
$
34,789

 
 
 
$
28,642

 
 
(1) In September 2016, the Company issued senior notes for an aggregate principal amount of $6.25 billion.
To achieve its interest rate risk management objectives, the Company entered into interest rate swaps in prior periods with an aggregate notional amount of $9.9 billion designated as fair value hedges of certain of its fixed-rate senior notes. In effect, 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 11.
The effective rates for the fixed-rate debt include the interest on the notes, the accretion of the discount, and, if applicable, adjustments related to hedging. Interest is payable semiannually on each class of the senior fixed-rate notes and payable quarterly on the floating-rate notes. Each of the senior fixed-rate notes is redeemable by the Company 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 the Company’s short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of October 29, 2016, the Company was in compliance with all debt covenants.
As of October 29, 2016, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
4,150

2018
4,750

2019
5,250

2020
6,000

2021
3,000

Thereafter
11,500

Total
$
34,650


(c)
Credit Facility
On May 15, 2015, the Company entered into a credit agreement with certain institutional lenders that provides for a $3.0 billion unsecured revolving credit facility that is scheduled to expire on May 15, 2020. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the highest of (a) the Federal Funds rate plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR, or a comparable or successor rate that is approved by the Administrative Agent (“Eurocurrency Rate”), for an interest period of one-month plus 1.00%, or (ii) the Eurocurrency Rate, plus a margin that is based on the Company’s senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than zero. The credit agreement requires the Company to comply with certain covenants, including that it maintains an interest coverage ratio as defined in the agreement.
The Company may also, upon the agreement of either the then-existing lenders or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $2.0 billion and/or extend the expiration date of the credit facility up to May 15, 2022. As of October 29, 2016, the Company was in compliance with the required interest coverage ratio and the other covenants, and the Company had not borrowed any funds under the credit facility.
Derivative Instruments
Derivative Instruments
Derivative Instruments
(a)
Summary of Derivative Instruments
The Company uses derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. The Company’s 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. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company does, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.
The fair values of the Company’s 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
 
October 29,
2016
 
July 30,
2016
 
Balance Sheet Line Item
 
October 29,
2016
 
July 30,
2016
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
5

 
$
7

 
Other current liabilities
 
$
83

 
$
53

Interest rate derivatives
Other current assets
 
6

 
11

 
Other current liabilities
 

 

Interest rate derivatives
Other assets
 
280

 
366

 
Other long-term liabilities
 

 

Total
 
 
291

 
384

 
 
 
83

 
53

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
1

 

 
Other current liabilities
 
2

 
1

Equity derivatives/warrants
Other assets
 

 
1

 
Other long-term liabilities
 

 

Total
 
 
1

 
1

 
 
 
2

 
1

Total
 
 
$
292

 
$
385

 
 
 
$
85

 
$
54


The effects of the Company’s cash flow and net investment hedging instruments on other comprehensive income (OCI) and the Consolidated Statements of Operations are summarized as follows (in millions):
GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
 
October 29,
2016
 
October 24,
2015
 
Line Item in
Statements of Operations
 
October 29,
2016
 
October 24,
2015
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(46
)
 
$
(4
)
 
Operating expenses
 
$
(9
)
 
$
(2
)
 
 
 
 
 
 
Cost of salesservice
 
(3
)
 
(1
)
Total
 
$
(46
)
 
$
(4
)
 
 
 
$
(12
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
9

 
$

 
Other income (loss), net
 
$

 
$



As of October 29, 2016, the Company estimates that approximately $78 million of net derivative losses related to its cash flow hedges included in accumulated other comprehensive income ("AOCI") will be reclassified into earnings within the next 12 months when the underlying hedged item impacts earnings.
The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the underlying hedged items is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) ON
DERIVATIVE
INSTRUMENTS FOR THE
THREE MONTHS ENDED
 
GAINS (LOSSES)
RELATED TO HEDGED
ITEMS FOR THE
THREE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
October 29,
2016
 
October 24,
2015
 
October 29,
2016
 
October 24,
2015
Interest rate derivatives
 
Interest expense
 
$
(91
)
 
$
127

 
$
90

 
$
(125
)


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
THREE MONTHS ENDED
Derivatives Not Designated as
Hedging Instruments
 
Line Item in Statements of Operations
 
October 29,
2016
 
October 24,
2015
Foreign currency derivatives
 
Other income (loss), net
 
$
(16
)
 
$
4

Total return swaps—deferred compensation
 
Operating expenses
 
(3
)
 
(16
)
Equity derivatives
 
Other income (loss), net
 
1

 
10

Total
 
 
 
$
(18
)
 
$
(2
)

The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
October 29,
2016
 
July 30,
2016
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
2,385

 
$
2,683

Interest rate derivatives
9,900

 
9,900

Net investment hedging instruments
290

 
298

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
2,107

 
2,057

Total return swaps—deferred compensation
497

 
476

Total
$
15,179

 
$
15,414


(b)
Offsetting of Derivative Instruments
The Company presents its derivative instruments at gross fair values in the Consolidated Balance Sheets. However, the Company’s 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. To further limit credit risk, the Company also enters 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. Information related to these offsetting arrangements is summarized as follows (in millions):
 
October 29, 2016
 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEETS
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
BUT WITH LEGAL RIGHTS TO OFFSET
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
292

 
$

 
$
292

 
$
(30
)
 
$
(242
)
 
$
20

Derivatives liabilities
$
85

 
$

 
$
85

 
$
(30
)
 
$

 
$
55

 
July 30, 2016
 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEETS
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
BUT WITH LEGAL RIGHTS TO OFFSET
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
385

 
$

 
$
385

 
$
(23
)
 
$
(305
)
 
$
57

Derivatives liabilities
$
54

 
$

 
$
54

 
$
(23
)
 
$

 
$
31


(c)
Foreign Currency Exchange Risk
The Company conducts business globally in numerous currencies. Therefore, it is exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, the Company enters into foreign currency contracts. The Company does not enter into such contracts for speculative purposes.
The Company hedges forecasted foreign currency transactions related to certain 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 Company assesses effectiveness based on changes in total fair value of the derivatives. The effective portion of the derivative instrument’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion, if any, of the gain or loss is reported in earnings immediately. During the periods presented, the Company did not discontinue any cash flow hedges for which it was probable that a forecasted transaction would not occur.
The Company enters into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, including long-term customer financings, investments, and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances or other current assets, investments, or liabilities denominated in currencies other than the functional currency of the reporting entity.
The Company hedges certain net investments in its foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on the Company’s net investment in those foreign subsidiaries.
(d)
Interest Rate Risk
Interest Rate Derivatives, Investments   The Company’s primary objective for holding fixed income securities is to achieve an appropriate investment return consistent with preserving principal and managing risk. To realize these objectives, the Company may utilize interest rate swaps or other derivatives designated as fair value or cash flow hedges. As of October 29, 2016 and July 30, 2016, the Company did not have any outstanding interest rate derivatives related to its fixed income securities.
Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt In the three months ended October 29, 2016, the Company did not enter into any interest rate swaps. In prior fiscal years, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in fiscal 2017 through 2025. Under these interest rate swaps, the Company receives fixed-rate interest payments and makes 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. The fair value of the interest rate swaps was reflected in other current assets and other assets.
(e)
Equity Price Risk
The Company may hold equity securities for strategic purposes or to diversify its overall investment portfolio. The publicly traded equity securities in the Company’s portfolio are subject to price risk. To manage its exposure to changes in the fair value of certain equity securities, the Company has periodically entered into equity derivatives that are designated as fair value hedges. The changes in the value of the hedging instruments are included in other income (loss), net, and offset the change in the fair value of the underlying hedged investment. In addition, the Company periodically enters into equity derivatives that are not designated as accounting hedges. The changes in the fair value of these derivatives are also included in other income (loss), net.
The Company is also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, the Company utilizes derivatives such as total return swaps to economically hedge this exposure.
(f)
Hedge Effectiveness
For the periods presented, amounts excluded from the assessment of hedge effectiveness were not material for fair value, cash flow, and net investment hedges. In addition, hedge ineffectiveness for fair value, cash flow, and net investment hedges was not material for any of the periods presented.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
(a)
Operating Leases
The Company leases office space in many U.S. locations. Outside the United States, larger leased sites include sites in Australia, Belgium, Canada, China, Germany, India, Israel, Japan, the Netherlands and the United Kingdom. The Company also leases equipment and vehicles. Future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of October 29, 2016 are as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
280

2018
292

2019
178

2020
128

2021
76

Thereafter
162

Total
$
1,116



(b)
Purchase Commitments with Contract Manufacturers and Suppliers
The Company purchases components from a variety of suppliers and uses several contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company enters into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by the Company or establish the parameters defining the Company’s requirements. A significant portion of the Company’s reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule, and adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of October 29, 2016 and July 30, 2016, the Company had total purchase commitments for inventory of $3,920 million and $3,896 million, respectively.
The Company records a liability for firm, noncancelable, and unconditional purchase commitments for quantities in excess of its future demand forecasts consistent with the valuation of the Company’s excess and obsolete inventory. As of October 29, 2016 and July 30, 2016, the liability for these purchase commitments was $161 million and $159 million, respectively, and was included in other current liabilities.
(c)
Other Commitments
In connection with the Company’s acquisitions, the Company has 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 the Company of certain employees of the acquired entities.
The following table summarizes the compensation expense related to acquisitions (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Compensation expense related to acquisitions
$
64

 
$
73


As of October 29, 2016, the Company estimated that future cash compensation expense of up to $299 million may be required to be recognized pursuant to the applicable business combination agreements, which included the remaining potential compensation expense related to Insieme Networks, Inc. ("Insieme"), as more fully discussed immediately below.
Insieme Networks, Inc. In the third quarter of fiscal 2012, the Company made an investment in Insieme, an early stage company focused on research and development in the data center market. As set forth in the agreement between the Company and Insieme, this investment included $100 million of funding and a license to certain of the Company’s technology. Immediately prior to the call option exercise and acquisition described below, the Company owned approximately 83% of Insieme as a result of these investments and has consolidated the results of Insieme in its Consolidated Financial Statements. In connection with this investment, the Company and Insieme entered into a put/call option agreement that provided the Company with the right to purchase the remaining interests in Insieme. In addition, the noncontrolling interest holders could require the Company to purchase their shares upon the occurrence of certain events.
During the first quarter of fiscal 2014, the Company exercised its call option and entered into an agreement to purchase the remaining interests in Insieme. The acquisition closed in the second quarter of fiscal 2014, at which time the former noncontrolling interest holders became eligible to receive up to two milestone payments, which will be determined using agreed-upon formulas based primarily on revenue for certain of Insieme’s products. The Company recorded compensation expense of $20 million and $51 million during the three months ended October 29, 2016 and October 24, 2015, respectively, related to the fair value of the vested portion of amounts that were earned or are expected to be earned by the former noncontrolling interest holders. Continued vesting will result in additional compensation expense in future periods. Based on the terms of the agreement, the Company has determined that the maximum amount that could be recorded as compensation expense by the Company is approximately $834 million (which includes the $803 million that has been expensed to date), net of forfeitures. The former noncontrolling interest holders earned the maximum amount related to these two milestone payments and were paid approximately $323 million and $291 million during the first quarters of fiscal 2017 and fiscal 2016, respectively. As of October 29, 2016, the Company paid a total of approximately $712 million pursuant to these two milestone payments.
(d)
Product Warranties
The following table summarizes the activity related to the product warranty liability (in millions):
 
Three Months Ended
 
October 29,
2016
 
October 24,
2015
Balance at beginning of period
$
414

 
$
449

Provisions for warranty issued
176

 
160

Adjustments for pre-existing warranties

 
(10
)
Settlements
(177
)
 
(166
)
Balance at end of period
$
413

 
$
433


The Company accrues for warranty costs as part of its cost of sales based on associated material product costs, labor costs for technical support staff, and associated overhead. The Company’s products are generally covered by a warranty for periods ranging from 90 days to five years, and for some products the Company provides a limited lifetime warranty.
(e)
Financing and Other Guarantees
In the ordinary course of business, the Company provides 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   The Company facilitates arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60 to 90 days. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, the Company guarantees a portion of these arrangements. The volume of channel partner financing was $6.9 billion for each of the three months ended October 29, 2016 and October 24, 2015. The balance of the channel partner financing subject to guarantees was $1.0 billion and $1.1 billion as of October 29, 2016 and July 30, 2016, respectively.
End-User Financing Guarantees   The Company also provides 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 the Company had provided guarantees was $6 million and $23 million for the three months ended October 29, 2016 and October 24, 2015, respectively.
Financing Guarantee Summary   The aggregate amounts of financing guarantees outstanding at October 29, 2016 and July 30, 2016, 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):
 
October 29,
2016
 
July 30,
2016
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
248

 
$
281

End user
88

 
96

Total
$
336

 
$
377

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(77
)
 
$
(85
)
End user
(70
)
 
(76
)
Total
$
(147
)
 
$
(161
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
189

 
$
216


Other Guarantees The Company’s other guarantee arrangements as of October 29, 2016 and July 30, 2016 that were subject to recognition and disclosure requirements were not material.
(f)
Supplier Component Remediation Liability
The Company has recorded in other current liabilities a liability for the expected remediation cost for certain products sold in prior fiscal years containing memory components manufactured by a single supplier between 2005 and 2010. These components were widely used across the industry and are included in a number of the Company's products. Defects in some of these components have caused products to fail after a power cycle event.  Defect rates due to this issue have been and are expected to be low. However, the Company has seen a small number of its customers experience a growing number of failures in their networks as a result of this component problem. Although the majority of these products were beyond the Company's warranty terms, the Company has been proactively working with customers on mitigation. Prior to the second quarter of fiscal 2014, the Company had a liability of $63 million related to this issue for expected remediation costs based on the intended approach at that time. In February 2014, on the basis of the growing number of failures described above, the Company decided to expand its approach, which resulted in a charge to product cost of sales of $655 million being recorded for the second quarter of fiscal 2014. During fiscal 2016 and 2015, adjustments to product cost of sales of $74 million and $164 million, respectively, were recorded to reduce the liability, reflecting net lower than previously estimated future costs to remediate the impacted customer products. The supplier component remediation liability as of October 29, 2016 and July 30, 2016 was $265 million and $276 million, respectively.
(g)
Indemnifications
In the normal course of business, the Company indemnifies other parties, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold such parties harmless 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.
The Company has been asked to provide indemnification in matters involving certain of the Company’s service provider customers that are subject to patent infringement claims asserted by Sprint Communications Company, L.P. in Kansas and Delaware. Sprint alleges that the service provider customers infringe Sprint’s patents by offering VoIP telephone services utilizing products provided by the Company and other manufacturers. Sprint seeks monetary damages. Sprint’s Kansas cases were stayed pending resolution of Sprint’s appeal of the Delaware court’s judgment that certain Sprint patents were invalid. The Court of Appeals for the Federal Circuit overturned the Delaware court’s judgment on September 23, 2016. As a result, Sprint’s Kansas cases are set for trial on February 13 and March 6, 2017 against Time Warner Cable and Comcast respectively, and its Delaware case was reset for trial on November 6, 2017 against Cox Communications.
The Company believes that the service providers have strong defenses and arguments that the Company's products do not infringe the patents and/or that Sprint's patents are invalid. Due to the uncertainty surrounding the litigation process, which involves numerous defendants, the Company is unable to reasonably estimate the ultimate outcome of this litigation at this time. Should Sprint prevail in litigation, mediation, or settlement, the Company, in accordance with its agreements, may have an obligation to indemnify its service provider customers for damages, mediation awards, or settlement amounts arising from their use of Cisco products. At this time, the Company does not anticipate that the outcome of the matters would be material.
In addition, the Company has entered into indemnification agreements with its officers and directors, and the Company’s Amended and Restated Bylaws contain similar indemnification obligations to the Company’s agents.
It is not possible to determine the maximum potential amount under these indemnification agreements due to the Company’s limited history with prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on the Company’s operating results, financial position, or cash flows.
(h)
Legal Proceedings
Brazil Brazilian authorities have investigated the Company’s Brazilian subsidiary and certain of its current and former employees, as well as a Brazilian importer of the Company’s 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 the Company’s 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 that remain are for calendar years 2003 through 2007, and the asserted claims by the tax authorities from the state of Sao Paulo are for calendar years 2005 through 2007. The total asserted claims by Brazilian state and federal tax authorities aggregate to $253 million for the alleged evasion of import and other taxes, $1.3 billion for interest, and $1.2 billion for various penalties, all determined using an exchange rate as of October 29, 2016. The Company has completed a thorough review of the matters and believes the asserted claims against the Company’s Brazilian subsidiary are without merit, and the Company is defending the claims vigorously. While the Company believes 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, the Company is unable to determine the likelihood of an unfavorable outcome against its Brazilian subsidiary and is unable to reasonably estimate a range of loss, if any. The Company does not expect a final judicial determination for several years.
Backflip Software Backflip Software, Inc. brought claims against the Company as disclosed in the Company’s Form 10-K filed on September 8, 2016. Prior to the commencement of trial set for September 12, 2016, the parties executed a Settlement and Release Agreement resolving all aspects of the case and the Court dismissed the case in its entirety on October 17, 2016. The settlement did not have a material impact on the Company's results of operations.
SRI International On September 4, 2013, SRI International, Inc. (“SRI”) asserted patent infringement claims against the Company in the U.S. District Court for the District of Delaware, accusing Cisco 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. On May 12, 2016, the jury returned a verdict finding willful infringement of the asserted patents. The jury awarded SRI damages of $23.7 million, and the Court will decide whether to award enhanced damages and attorneys’ fees and whether an ongoing royalty should be awarded through the expiration of the patents in 2018. In June 2016, the Company filed post-trial motions. The Company also intends to pursue an appeal to the United States Court of Appeals for the Federal Circuit on various grounds. The Company believes it has strong arguments to overturn the jury verdict and/or reduce the damages award. While the ultimate outcome of the case may still result in a loss, the Company does not expect it to be material.
SSL SSL Services, LLC (“SSL”) has asserted claims for patent infringement against the Company in the U.S. District Court for the Eastern District of Texas. The proceeding was instituted on March 25, 2015. SSL alleges that the Company's AnyConnect products that include Virtual Private Networking functions infringed a U.S. patent owned by SSL. SSL seeks money damages from the Company. On August 18, 2015, Cisco petitioned the Patent Trial and Appeal Board (“PTAB”) of the United States Patent and Trademark Office to review whether the patent SSL has asserted against the Company is valid over prior art. On February 23, 2016, a PTAB multi-judge panel found a reasonable likelihood that Cisco would prevail in showing that SSL’s patent claims are unpatentable and instituted proceedings. The PTAB held a hearing to review the Company's petition on November 15, 2016 and we are awaiting a decision. The district court issued an order on June 28, 2016 staying the district court case pending the final written decision from the PTAB. The Company believes it has strong arguments that the Company's products do not infringe and the patent is invalid. If the Company does not prevail and a jury were to find that the Company's AnyConnect products infringe, the Company believes damages, as appropriately measured, would be immaterial. Due to uncertainty surrounding patent litigation processes, however, the Company is unable to reasonably estimate the ultimate outcome of this litigation at this time.
Kangtega Cisco Systems GmbH (“Cisco GmbH”) is subject to patent claims by Kangtega GmbH (“Kangtega”), instituted on June 6, 2013, alleging that Cisco GmbH infringes in Germany a European Patent by marketing in Germany network intrusion-detection (or firewall) products known as the “ASA” firewall offering. On April 29, 2014, the Mannheim Regional Court dismissed the infringement action, finding no infringement by Cisco GmbH of the asserted patent. On November 23, 2016, a court of appeal in Germany (Oberlandesgericht Karlsruhe) will hear an appeal of that judgment. The matter had been set for July 13, 2016, but that hearing was postponed until November 23, 2016. In addition, on July 25, 2016 the German Federal Patent Court issued its grounds for a decision denying Cisco’s nullity request with respect to the Kangtega patent. The nullity decision, which is open to appeal, regards patent validity and was issued in a separate proceeding from the infringement action in which Cisco has previously prevailed. In the infringement action, Kangtega seeks an injunction which would prohibit Cisco GmbH’s activities in Germany with respect to the ASA firewall offering unless Cisco GmbH takes a license from Kangtega or the Company redesigns the products. The Company believes that the lower court ruling in Cisco's favor in the infringement action was correct and should be affirmed.  The Company does not anticipate that the outcome of the case would be material. However, due to uncertainty surrounding the litigation process, the Company is unable to reasonably estimate the outcome of the appeal and any subsequent appeals to a higher court at this time.
In addition, the Company is 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, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.
Shareholders' Equity
Shareholders' Equity
Shareholders’ Equity
(a)
Cash Dividends on Shares of Common Stock
During the three months ended October 29, 2016, the Company declared and paid cash dividends of $0.26 per common share, or $1.3 billion, on the Company’s outstanding common stock. During the three months ended October 24, 2015, the Company declared and paid cash dividends of $0.21 per common share, or $1.1 billion, on the Company’s outstanding common stock.
Any future dividends will be subject to the approval of the Company's Board of Directors.
(b)
Stock Repurchase Program
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of October 29, 2016, the Company’s Board of Directors had authorized an aggregate repurchase of up to $112 billion of common stock under this program, and the remaining authorized repurchase amount was $14.4 billion, with no termination date. A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts):
 
Shares
Repurchased
 
Weighted-
Average Price
per Share
 
Amount
Repurchased
Cumulative balance at July 30, 2016
4,591

 
$
21.04

 
$
96,597

Repurchase of common stock under the stock repurchase program (1)
32

 
31.12

 
1,001

Cumulative balance at October 29, 2016
4,623

 
$
21.11

 
$
97,598


(1) There were $23 million of stock repurchases pending settlement as of October 29, 2016. There were $45 million of stock repurchases that were pending settlement as of July 30, 2016.
The purchase price for the shares of the Company’s stock repurchased is reflected as a reduction to shareholders’ equity. The Company is required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings and (ii) a reduction of common stock and additional paid-in capital.
(c)
Restricted Stock Unit Withholdings
For the three months ended October 29, 2016 and October 24, 2015, the Company repurchased approximately 13 million and 15 million shares, or $401 million and $382 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units.
(d) Preferred Stock
Under the terms of the Company’s Articles of Incorporation, the Board of Directors may determine the rights, preferences, and terms of the Company’s authorized but unissued shares of preferred stock.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
(a)
Employee Stock Incentive Plans
Stock Incentive Plan Program Description    As of October 29, 2016, the Company had three stock incentive plans: the 2005 Stock Incentive Plan (the “2005 Plan”); the Cisco Systems, Inc. SA Acquisition Long-Term Incentive Plan (the “SA Acquisition Plan”); and the Cisco Systems, Inc. WebEx Acquisition Long-Term Incentive Plan (the “WebEx Acquisition Plan”). In addition, the Company has, in connection with the 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 the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors. The Company’s primary stock incentive plans are summarized as follows:
2005 Plan    As of October 29, 2016, the maximum number of shares issuable under the 2005 Plan over its term was 694 million shares, plus shares from the 1996 Stock Incentive Plan, the SA Acquisition Plan, and the WebEx Acquisition Plan that are forfeited or are terminated for any other reason before being exercised or settled. If any awards granted under the 2005 Plan are forfeited or are terminated for any other reason before being exercised or settled, the unexercised or unsettled shares underlying the awards will again be available under the 2005 Plan. Starting November 19, 2013, shares withheld by the Company from an award other than a stock option or stock appreciation right to satisfy withholding tax liabilities resulting from such award will again be available for issuance, based on the fungible share ratio in effect on the date of grant.
Pursuant to an amendment approved by the Company’s shareholders on November 12, 2009, the number of shares available for issuance under the 2005 Plan is reduced by 1.5 shares for each share awarded as a stock grant or a stock unit, and any shares underlying awards outstanding under the 1996 Stock Incentive Plan, the SA Acquisition Plan, and the WebEx Acquisition Plan that expire unexercised at the end of their maximum terms become available for reissuance under the 2005 Plan. The 2005 Plan permits the granting of stock options, restricted stock, and restricted stock units ("RSUs"), the vesting of which may be performance-based or market-based along with the requisite service requirement, and stock appreciation rights to employees (including employee directors and officers), consultants of the Company and its subsidiaries and affiliates, and non-employee directors of the Company. Stock options and stock appreciation rights granted under the 2005 Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date and prior to November 12, 2009 have an expiration date no later than nine years from the grant date. The expiration date for stock options and stock appreciation rights granted subsequent to the amendment approved on November 12, 2009 shall be no later than 10 years from the grant date.
The stock options will generally become exercisable for 20% or 25% of the option shares one year from the date of grant and then ratably over the following 48 months or 36 months, respectively. Time-based stock grants and time-based RSUs will generally vest with respect to 20% or 25% of the shares or share units covered by the grant annually over the vesting period. The majority of the performance-based and market-based RSUs vests at the end of the three-year requisite service period or earlier if the award recipient meets certain retirement eligibility conditions. Certain performance-based RSUs, that are based on the achievement of financial and/or non-financial operating goals, typically vest upon the achievement of milestones (and may require subsequent service periods), with overall vesting of the shares underlying the award ranging from six months to three years. The Compensation and Management Development Committee of the Board of Directors has the discretion to use different vesting schedules. Stock appreciation rights may be awarded in combination with stock options or stock grants, and such awards shall provide that the stock appreciation rights will not be exercisable unless the related stock options or stock grants are forfeited. Stock grants may be awarded in combination with non-statutory stock options, and such awards may provide that the stock grants will be forfeited in the event that the related non-statutory stock options are exercised.
Acquisition Plans In connection with the Company’s acquisitions of Scientific-Atlanta, Inc. (“Scientific-Atlanta”) and WebEx Communications, Inc. (“WebEx”), the Company adopted the SA Acquisition Plan and the WebEx Acquisition Plan, respectively, each effective upon completion of the applicable acquisition. These plans constitute assumptions, amendments, restatements, and renamings of the 2003 Long-Term Incentive Plan of Scientific-Atlanta and the WebEx Communications, Inc. Amended and Restated 2000 Stock Incentive Plan, respectively. The plans permit the grant of stock options, stock, stock units, and stock appreciation rights to certain employees of the Company and its subsidiaries and affiliates who had been employed by Scientific-Atlanta or its subsidiaries or WebEx or its subsidiaries, as applicable. As a result of the shareholder approval of the amendment and extension of the 2005 Plan, as of November 15, 2007, the Company will no longer make stock option grants or direct share issuances under either the SA Acquisition Plan or the WebEx Acquisition Plan.
(b)
Employee Stock Purchase Plan
The Company has an Employee Stock Purchase Plan, which includes its subplan named the International Employee Stock Purchase Plan (together, the “Purchase Plan”), under which 621 million shares of the Company’s common stock have been reserved for issuance as of October 29, 2016. 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 number of shares of the Company’s stock at a discount of up to 15% of the lesser of the market value at the beginning of the offering period or the end of each 6-month purchase period.  The Purchase Plan is scheduled to terminate on January 3, 2020. No shares were issued under the Purchase Plan during each of the three months ended October 29, 2016 and October 24, 2015. As of October 29, 2016, 123 million shares were available for issuance under the 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
 
October 29, 2016
 
October 24, 2015
Cost of sales—product
$
21

 
$
13

Cost of sales—service
33

 
38

Share-based compensation expense in cost of sales
54

 
51

Research and development
126

 
114

Sales and marketing
140

 
139

General and administrative
49

 
57

Restructuring and other charges
3

 
15

Share-based compensation expense in operating expenses
318

 
325

Total share-based compensation expense
$
372

 
$
376

Income tax benefit for share-based compensation
$
105

 
$
95


As of October 29, 2016, the total compensation cost related to unvested share-based awards not yet recognized was $2.7 billion, which is expected to be recognized over approximately 2.5 years on a weighted-average basis.
(d)
Share-Based Awards Available for Grant
A summary of share-based awards available for grant is as follows (in millions):
 
Share-Based Awards
Available for Grant
BALANCE AT JULY 25, 2015
276

Restricted stock, stock units, and other share-based awards granted
(96
)
Share-based awards canceled/forfeited/expired
30

Shares withheld for taxes and not issued
30

Other
2

BALANCE AT JULY 30, 2016
242

Restricted stock, stock units, and other share-based awards granted
(16
)
Share-based awards canceled/forfeited/expired
66

Shares withheld for taxes and not issued
19

BALANCE AT OCTOBER 29, 2016
311


As reflected in the preceding table, for each share awarded as restricted stock or subject to a restricted stock unit award under the 2005 Plan, an equivalent of 1.5 shares was deducted from the available share-based award balance. For restricted stock units that were awarded with vesting contingent upon the achievement of future financial performance or market-based metrics, the maximum awards that can be achieved upon full vesting of such awards were reflected in the preceding table.
(e)
Restricted Stock and Stock Unit Awards
A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts):
 
Restricted Stock/
Stock Units
 
Weighted-Average
Grant Date Fair
Value per Share
 
Aggregate Fair  Value
UNVESTED BALANCE AT JULY 25, 2015
143

 
$
22.08

 
 
Granted and assumed
70

 
25.69

 
 
Vested
(54
)
 
20.68

 
$
1,428

Canceled/forfeited
(14
)
 
22.86

 
 
UNVESTED BALANCE AT JULY 30, 2016
145

 
24.26

 
 
Granted and assumed
11

 
28.85

 
 
Vested
(36
)
 
22.16

 
$
1,120

Canceled/forfeited
(7
)
 
24.62

 
 
UNVESTED BALANCE AT OCTOBER 29, 2016
113

 
$
25.36

 
 

(f)
Stock Option Awards
A summary of the stock option activity is as follows (in millions, except per-share amounts):
 
STOCK OPTIONS OUTSTANDING
 
Number
Outstanding
 
Weighted-Average
Exercise Price per Share
BALANCE AT JULY 25, 2015
103

 
$
28.68

Assumed from acquisitions
18

 
5.17

Exercised
(32
)
 
19.22

Canceled/forfeited/expired
(16
)
 
30.01

BALANCE AT JULY 30, 2016
73

 
26.78

Assumed from acquisitions
1

 
1.59

Exercised
(4
)
 
19.92

Canceled/forfeited/expired
(55
)
 
32.02

BALANCE AT OCTOBER 29, 2016
15

 
$
9.10


The following table summarizes significant ranges of outstanding and exercisable stock options as of October 29, 2016 (in millions, except years and share prices):
 
 
STOCK OPTIONS OUTSTANDING
 
STOCK OPTIONS EXERCISABLE
Range of Exercise Prices
 
Number
Outstanding
 
Weighted-
Average
Remaining
Contractual
Life
(in Years)
 
Weighted-
Average
Exercise
Price per
Share
 
Aggregate
Intrinsic
Value
 
Number
Exercisable
 
Weighted-
Average
Exercise
Price per
Share
 
Aggregate
Intrinsic
Value
$   0.01 – 20.00
 
12

 
6.6
 
$
5.60

 
$
316

 
5

 
$
5.35

 
$
127

$ 20.01 – 25.00
 
1

 
0.3
 
23.37

 
3

 
1

 
23.37

 
3

$ 25.01 – 30.00
 
2

 
0.4
 
26.64

 
8

 
2

 
26.64

 
8

Total
 
15

 
5.6
 
$
9.10

 
$
327

 
8

 
$
12.43

 
$
138


The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $30.59 as of October 28, 2016, that would have been received by the option holders had those option holders exercised their stock options as of that date. The total number of in-the-money stock options exercisable as of October 29, 2016 was 8 million. As of July 30, 2016, 64 million outstanding stock options were exercisable and the weighted-average exercise price was $29.66.
(g)
Valuation of Employee Share-Based Awards
Time-based restricted stock units and performance-based restricted stock units ("PRSUs") that are based on the Company’s financial performance metrics or non-financial operating goals are valued using the market value of the Company’s common stock on the date of grant, discounted for the present value of expected dividends. On the date of grant, the Company estimated the fair value of the total shareholder return ("TSR") component of the PRSUs using a Monte Carlo simulation model. The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows:
 
RESTRICTED STOCK UNITS
 
PERFORMANCE BASED
RESTRICTED STOCK UNITS
Three Months Ended
October 29, 2016
 
October 24, 2015
 
October 29, 2016
 
October 24, 2015
Number of shares granted (in millions)
7

 
9

 
3

 
4

Grant date fair value per share
$
28.55

 
$
24.02

 
$
29.62

 
$
24.61

Weighted-average assumptions/inputs:
 
 
 
 
 
 
 
   Expected dividend yield
3.3
%
 
3.2
%
 
3.3
%
 
3.2
%
   Range of risk-free interest rates
0.0%  1.2%

 
0.0%  1.1%

 
0.1%  0.9%

 
0.0%  1.1%

   Range of expected volatilities for index
N/A

 
N/A

 
16.7%  46.8%

 
15.3%  54.3%

The PRSUs granted during the periods presented are contingent on the achievement of the Company’s financial performance metrics, its comparative market-based returns, or the achievement of financial and non-financial operating goals. For the awards based on financial performance metrics or comparative market-based returns, generally 50% of the PRSUs are earned based on the average of annual operating cash flow and earnings per share goals established at the beginning of each fiscal year over a three-year performance period. Generally, the remaining 50% of the PRSUs are earned based on the Company’s TSR measured against the benchmark TSR of a peer group over the same period. Each PRSU recipient could vest in 0% to 150% of the target shares granted contingent on the achievement of the Company's financial performance metrics or its comparative market-based returns and 0% to 100% of the target shares granted contingent on the achievement of non-financial operating goals.
Comprehensive Income
Comprehensive Income
Comprehensive Income

The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the three months ended October 29, 2016 and October 24, 2015 are summarized as follows (in millions):
 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 30, 2016
$
413

 
$
(59
)
 
$
(680
)
 
$
(326
)
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(210
)
 
(46
)
 
(26
)
 
(282
)
(Gains) losses reclassified out of AOCI
(15
)
 
12

 

 
(3
)
Tax benefit (expense)
86

 
2

 
(1
)
 
87

BALANCE AT OCTOBER 29, 2016
$
274

 
$
(91
)
 
$
(707
)
 
$
(524
)
 
Net Unrealized Gains on Available-for-Sale Investments
 
Net Unrealized Losses Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 25, 2015
$
310

 
$
(16
)
 
$
(233
)
 
$
61

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(155
)
 
(4
)
 
(178
)
 
(337
)
(Gains) losses reclassified out of AOCI
1

 
3

 
1

 
5

Tax benefit (expense)
56

 
2

 
(39
)
 
19

BALANCE AT OCTOBER 24, 2015
$
212

 
$
(15
)

$
(449
)
 
$
(252
)


The net gains (losses) reclassified out of AOCI into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions):
 
 
Three Months Ended
 
 
 
 
 
October 29,
2016
 
October 24,
2015
 
 
 
Comprehensive Income Components
 
Income Before Taxes
 
 
Line Item in Statements of Operations
Net unrealized gains and losses on available-for-sale investments
 
 
 
 
 
 
 
 
 
$
15

 
$
(1
)
 
 
Other income (loss), net
 
 
 
 
 
 
 
 
Net unrealized gains and losses on cash flow hedging instruments
 
 
 
 
 
 
 
Foreign currency derivatives
 
(9
)
 
(2
)
 
 
Operating expenses
Foreign currency derivatives
 
(3
)
 
(1
)
 
 
Cost of sales—service
 
 
(12
)

(3
)
 

 
 
 
 
 
 
 
 
 
Cumulative translation adjustment and actuarial gains and losses
 
 
 
 
 
 
 
 
 

 
(1
)
 
 
Operating expenses
Total amounts reclassified out of AOCI
 
$
3


$
(5
)
 

 
Income Taxes
Income Taxes
Income Taxes
The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Income before provision for income taxes
$
2,953

 
$
3,137

Provision for income taxes
$
631

 
$
707

Effective tax rate
21.4
%
 
22.5
%

As of October 29, 2016, the Company had $1.7 billion of unrecognized tax benefit, of which $1.3 billion, if recognized, would favorably impact the effective tax rate. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company believes 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. The Company estimates that the unrecognized tax benefits at October 29, 2016 could be reduced by approximately $150 million in the next 12 months.
Segment Information and Major Customers
Segment Information and Major Customers
Segment Information and Major Customers
(a)
Revenue and Gross Margin by Segment
The Company conducts business globally and is primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. The Company’s management makes financial decisions and allocates resources based on the information it receives from its internal management system. Sales are attributed to a segment based on the ordering location of the customer. The Company does not allocate research and development, sales and marketing, or general and administrative expenses to its segments in this internal management system because management does not include the information in its measurement of the performance of the operating segments. In addition, the Company does not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation 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 its measurement of the performance of the operating segments.
Summarized financial information by segment for the three months ended October 29, 2016 and October 24, 2015, based on the Company’s internal management system and as utilized by the Company’s Chief Operating Decision Maker ("CODM"), is as follows (in millions):
 
Three Months Ended
 
October 29,
2016
 
October 24,
2015
Revenue:
 
 
 
Americas
$
7,443

 
$
7,792

EMEA
3,013

 
3,094

APJC
1,896

 
1,796

Total
$
12,352

 
$
12,682

Gross margin:
 
 
 
Americas
$
4,833

 
$
4,943

EMEA
2,013

 
1,989

APJC
1,204

 
1,078

Segment total
8,050

 
8,010

Unallocated corporate items
(166
)
 
(178
)
Total
$
7,884

 
$
7,832


Revenue in the United States was $6.6 billion and $6.9 billion for the three months ended October 29, 2016 and October 24, 2015, respectively.

(b)
Revenue for Groups of Similar Products and Services
The Company designs, manufactures, and sells Internet Protocol (IP)-based networking and other products related to the communications and IT industry and provides services associated with these products and their use. The Company groups its products and technologies into the following categories: Switching, NGN Routing, Collaboration, Data Center, Wireless, Security, Service Provider Video, and Other Products. These products, primarily integrated by Cisco IOS Software, link geographically dispersed local-area networks (LANs), metropolitan-area networks (MANs), and wide-area networks (WANs).
The following table presents revenue for groups of similar products and services (in millions):
 
Three Months Ended
 
October 29,
2016
 
October 24,
2015
Revenue:
 
 
 
Switching
$
3,716

 
$
4,009

NGN Routing
2,089

 
1,969

Collaboration
1,081

 
1,115

Data Center
834

 
859

Wireless
632

 
646

Security
540

 
485

Service Provider Video(1) 
271

 
687

Other
139

 
74

Product
9,302

 
9,844

Service
3,050

 
2,838

Total
$
12,352

 
$
12,682


(1) During the second quarter of fiscal 2016, the Company completed the sale of the Customer Premises Equipment portion of its Service Provider Video Connected Devices business (“SP Video CPE Business”). As a result, revenue from this portion of the Service Provider Video product category will not recur in future periods. Includes SP Video CPE Business revenue of $411 million for the first quarter of fiscal 2016.
The Company has made certain reclassifications to the product revenue amounts for prior periods to conform to the current period’s presentation.

(c)
Additional Segment Information
The majority of the Company’s assets, excluding cash and cash equivalents and investments, was attributable to its U.S. operations as of each of October 29, 2016 and July 30, 2016. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $60.6 billion and $59.8 billion as of October 29, 2016 and July 30, 2016, respectively, and the remaining $10.4 billion and $5.9 billion at the respective period ends were available in the United States.
Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in millions):
 
October 29,
2016
 
July 30,
2016
Property and equipment, net:
 
 
 
United States
$
2,847

 
$
2,822

International
652

 
684

Total
$
3,499

 
$
3,506

Net Income per Share
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
 
October 29,
2016
 
October 24,
2015
Net income
$
2,322

 
$
2,430

Weighted-average shares—basic
5,027

 
5,080

Effect of dilutive potential common shares
39

 
33

Weighted-average shares—diluted
5,066

 
5,113

Net income per share—basic
$
0.46

 
$
0.48

Net income per share—diluted
$
0.46

 
$
0.48

Antidilutive employee share-based awards, excluded
67

 
86


Employee equity share options, unvested shares, and similar equity instruments granted by the Company 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, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are collectively assumed to be used to repurchase shares.
Recent Accounting Pronouncements (Policies)
The fiscal year for Cisco Systems, Inc. (the “Company” or “Cisco”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2017 is a 52-week fiscal year, and fiscal 2016 was a 53-week fiscal year.
The Consolidated Financial Statements include the accounts of Cisco and its subsidiaries. All intercompany accounts and transactions have been eliminated. The Company conducts business globally and is 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).
The accompanying financial data as of October 29, 2016 and for the three months ended October 29, 2016 and October 24, 2015 has been prepared by the Company, 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 30, 2016 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, the Company believes 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 the Company’s Annual Report on Form 10-K for the fiscal year ended July 30, 2016.
The Company consolidates its investments in a venture fund managed by SOFTBANK Corp. and its affiliates (“SOFTBANK”) as this is a variable interest entity and the Company is the primary beneficiary. The noncontrolling interests attributed to SOFTBANK are presented as a separate component from the Company’s equity in the equity section of the Consolidated Balance Sheets. SOFTBANK’s share of the earnings in the venture fund are not presented separately in the Consolidated Statements of Operations as these amounts are not material for any of the fiscal periods presented.
In the opinion of management, all normal recurring adjustments necessary to present fairly the consolidated balance sheet as of October 29, 2016; the results of operations, the statements of comprehensive income, the statements of cash flows and equity for the three months ended October 29, 2016 and October 24, 2015 as applicable, have been made. The results of operations for the three months ended October 29, 2016 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Certain reclassifications have been made to the amounts in prior periods in order to conform to the current period’s presentation. The Company has evaluated subsequent events through the date that the financial statements were issued.
(a) New Accounting Updates Recently Adopted
Consolidation of Certain Types of Legal Entities In February 2015, the FASB issued an accounting standard update that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The accounting standard update became effective for the Company beginning in the first quarter of fiscal 2017. The application of this accounting standard update did not have any impact on the Company's Consolidated Balance Sheet or Statement of Operations upon adoption, but the Company has provided additional disclosures in Note 8 pursuant to this accounting standard update.
(b) Recent Accounting Standards or Updates Not Yet Effective
Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued an accounting standard update related to revenue from contracts with customers, which, along with amendments issued in 2015 and 2016, will supersede nearly all current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The underlying principle is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This accounting standard update, as amended, will be effective for the Company beginning in the first quarter of fiscal 2019. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption ("modified retrospective basis"). Early adoption is permitted, but no earlier than fiscal 2018. The Company expects to adopt this accounting standard update on a modified retrospective basis in the first quarter of fiscal 2019, and it is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.

Financial Instruments In January 2016, the FASB issued an accounting standard update that changes the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Leases In February 2016, the FASB issued an accounting standard update related to leases requiring lessees to recognize operating and financing lease liabilities on the balance sheet, as well as corresponding right-of-use assets. The new lease standard also makes some changes to lessor accounting and aligns key aspects of the lessor accounting model with the revenue recognition standard. In addition, disclosures will be required to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2020 on a modified retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Share-Based Compensation In March 2016, the FASB issued an accounting standard update that impacts the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the Consolidated Statements of Cash Flows. The accounting standard will be effective for the Company beginning the first quarter of fiscal 2018, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Credit Losses of Financial Instruments In June 2016, the FASB issued an accounting standard update that requires measurement and recognition of expected credit losses for financial assets held based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2021 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Classification of Cash Flow Elements In August 2016, the FASB issued an accounting standard update related to the classification of certain cash receipts and cash payments on the statement of cash flows. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019 on a retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Statements of Cash Flows.
Income Taxes on Intra-Entity Transfers of Assets In October 2016, the FASB issued an accounting standard update that requires recognition of the income tax consequences of intra-entity transfers of assets (other than inventory) at the transaction date. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2019 on a modified retrospective basis, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Financing receivables primarily consist of lease receivables, loan receivables, and financed service contracts and other. Lease receivables represent sales-type and direct-financing leases resulting from the sale of the Company’s and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Loan receivables represent financing arrangements related to the sale of the Company’s products and services, which may include additional funding for other costs associated with network installation and integration of the Company’s products and services. Lease receivables consist of arrangements with terms of four years on average, while loan receivables generally have terms of up to three years. The financed service contracts and other category includes financing receivables related to technical support and advanced services, software, and receivables related to financing of certain indirect costs associated with leases. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one to three years.
The Company assesses the allowance for credit loss related to financing receivables on either an individual or a collective basis. The Company considers various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include the Company’s historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer’s ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, will be assessed and fully reserved at the customer level. The Company’s internal credit risk ratings are categorized as 1 through 10, with the lowest credit risk rating representing the highest quality financing receivables.
Typically, the Company also considers receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. These balances, as of October 29, 2016 and July 30, 2016, are presented under “(b) Credit Quality of Financing Receivables” above.
The Company evaluates the remainder of its financing receivables portfolio for impairment on a collective basis and records an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, the Company uses expected default frequency rates published by a major third-party credit-rating agency as well as its own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation.
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, the Company considers the principal or most advantageous market in which it would transact, and it also considers 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.
These assets were measured at fair value due to events or circumstances the Company identified as having significant impact on their fair value during the respective periods. To arrive at the valuation of these assets, the Company considers any significant changes in the financial metrics and economic variables and also uses third-party valuation reports to assist in the valuation as necessary.
The fair value measurement of the impaired investments was classified as Level 3 because significant unobservable inputs were used in the valuation due to the absence of quoted market prices and inherent lack of liquidity. Significant unobservable inputs, which included financial metrics of comparable private and public companies, financial condition and near-term prospects of the investees, recent financing activities of the investees, and the investees’ capital structure as well as other economic variables, reflected the assumptions market participants would use in pricing these assets. The impairment charges, representing the difference between the net book value and the fair value as a result of the evaluation, were recorded to other income (loss), net. The remaining carrying value of the investments that were impaired was $46 million and $6 million as of October 29, 2016 and October 24, 2015, respectively.
The fair value for purchased intangible assets measured at fair value on a nonrecurring basis was categorized as Level 3 due to the use of significant unobservable inputs in the valuation. Significant unobservable inputs that were used included expected revenues and net income related to the assets and the expected life of the assets. The difference between the estimated fair value and the carrying value of the assets was recorded as an impairment charge, which was included in product cost of sales and operating expenses as applicable.
Level 1 publicly traded equity securities are determined by using quoted prices in active markets for identical assets. Level 2 fixed income securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses 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. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is ultimately responsible for the financial statements and underlying estimates. The Company’s 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. The Company 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 the Company could not corroborate with market data.
The Company uses derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. The Company’s 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. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company does, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.
The Company presents its derivative instruments at gross fair values in the Consolidated Balance Sheets. However, the Company’s 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. To further limit credit risk, the Company also enters 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.
The Company conducts business globally in numerous currencies. Therefore, it is exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, the Company enters into foreign currency contracts. The Company does not enter into such contracts for speculative purposes.
The Company hedges forecasted foreign currency transactions related to certain 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 Company assesses effectiveness based on changes in total fair value of the derivatives. The effective portion of the derivative instrument’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion, if any, of the gain or loss is reported in earnings immediately. During the periods presented, the Company did not discontinue any cash flow hedges for which it was probable that a forecasted transaction would not occur.
The Company enters into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, including long-term customer financings, investments, and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances or other current assets, investments, or liabilities denominated in currencies other than the functional currency of the reporting entity.
The Company hedges certain net investments in its foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on the Company’s net investment in those foreign subsidiaries.
(d)
Interest Rate Risk
Interest Rate Derivatives, Investments   The Company’s primary objective for holding fixed income securities is to achieve an appropriate investment return consistent with preserving principal and managing risk. To realize these objectives, the Company may utilize interest rate swaps or other derivatives designated as fair value or cash flow hedges. As of October 29, 2016 and July 30, 2016, the Company did not have any outstanding interest rate derivatives related to its fixed income securities.
Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt In the three months ended October 29, 2016, the Company did not enter into any interest rate swaps. In prior fiscal years, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in fiscal 2017 through 2025. Under these interest rate swaps, the Company receives fixed-rate interest payments and makes 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. The fair value of the interest rate swaps was reflected in other current assets and other assets.
(e)
Equity Price Risk
The Company may hold equity securities for strategic purposes or to diversify its overall investment portfolio. The publicly traded equity securities in the Company’s portfolio are subject to price risk. To manage its exposure to changes in the fair value of certain equity securities, the Company has periodically entered into equity derivatives that are designated as fair value hedges. The changes in the value of the hedging instruments are included in other income (loss), net, and offset the change in the fair value of the underlying hedged investment.
In addition, the Company periodically enters into equity derivatives that are not designated as accounting hedges. The changes in the fair value of these derivatives are also included in other income (loss), net.
The Company is also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, the Company utilizes derivatives such as total return swaps to economically hedge this exposure.
For the periods presented, amounts excluded from the assessment of hedge effectiveness were not material for fair value, cash flow, and net investment hedges. In addition, hedge ineffectiveness for fair value, cash flow, and net investment hedges was not material for any of the periods presented.

The Company purchases components from a variety of suppliers and uses several contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company enters into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by the Company or establish the parameters defining the Company’s requirements. A significant portion of the Company’s reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule, and adjust the Company’s requirements based on its business needs prior to firm orders being placed.
The Company records a liability for firm, noncancelable, and unconditional purchase commitments for quantities in excess of its future demand forecasts consistent with the valuation of the Company’s excess and obsolete inventory.
In the normal course of business, the Company indemnifies other parties, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold such parties harmless 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.
The Company conducts business globally and is primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. The Company’s management makes financial decisions and allocates resources based on the information it receives from its internal management system. Sales are attributed to a segment based on the ordering location of the customer. The Company does not allocate research and development, sales and marketing, or general and administrative expenses to its segments in this internal management system because management does not include the information in its measurement of the performance of the operating segments. In addition, the Company does not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation 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 its measurement of the performance of the operating segments.
Employee equity share options, unvested shares, and similar equity instruments granted by the Company 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, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are collectively assumed to be used to repurchase shares.
Supplemental Information (Tables)
Stock Repurchases Since Inception Of Program
The stock repurchases since the inception of this program and the related impacts on Cisco shareholders’ equity are summarized in the following table (in millions): 
 
Shares of
Common
Stock
 
Common Stock
and Additional
Paid-In Capital
 
Retained
Earnings
 
Total Cisco
Shareholders’
Equity
Repurchases of common stock under the repurchase program
4,623

 
$
24,180

 
$
73,418

 
$
97,598

Acquisitions and Divestitures (Tables)
Schedule of Business Acquisitions, by Acquisition
A summary of the allocation of the total purchase consideration is presented as follows (in millions):
 
Purchase Consideration
 
Purchased Intangible Assets
 
Goodwill
CloudLock
$
249

 
$
36

 
$
213

Others (two in total)
9

 
5

 
4

Total
$
258

 
$
41

 
$
217

Goodwill and Purchased Intangible Assets (Tables)
The following table presents the goodwill allocated to the Company’s reportable segments as of and during the three months ended October 29, 2016 (in millions):
 
Balance at
 
 
 
 
 
Balance at
 
July 30, 2016
 
Acquisitions
 
Other
 
October 29, 2016
Americas
$
16,529

 
$
132

 
$
(13
)
 
$
16,648

EMEA
6,269

 
62

 
(4
)
 
6,327

APJC
3,827

 
23

 
(2
)
 
3,848

Total
$
26,625

 
$
217

 
$
(19
)
 
$
26,823

“Other” in the table above primarily consists of foreign currency translation, as well as immaterial purchase accounting adjustments.
The following table presents details of the Company’s intangible assets acquired through acquisitions completed during the three months ended October 29, 2016 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Amount
 
Amount
CloudLock
6.0
 
$
32

 
4.0
 
$
3

 
1.5
 
$
1

 
$

 
$
36

Others (two in total)
3.0
 
5

 
0.0
 

 
0.0
 

 

 
5

Total
 
 
$
37

 
 
 
$
3

 
 
 
$
1

 
$

 
$
41

The following tables present details of the Company’s purchased intangible assets (in millions): 
October 29, 2016
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
2,861

 
$
(1,334
)
 
$
1,527

Customer relationships
 
1,737

 
(1,220
)
 
517

Other
 
58

 
(21
)
 
37

Total purchased intangible assets with finite lives
 
4,656

 
(2,575
)
 
2,081

In-process research and development, with indefinite lives
 
216

 

 
216

       Total
 
$
4,872

 
$
(2,575
)
 
$
2,297

 
July 30, 2016
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,038

 
$
(1,391
)
 
$
1,647

Customer relationships
 
1,793

 
(1,203
)
 
590

Other
 
85

 
(43
)
 
42

Total purchased intangible assets with finite lives
 
4,916

 
(2,637
)
 
2,279

In-process research and development, with indefinite lives
 
222

 

 
222

       Total
 
$
5,138

 
$
(2,637
)
 
$
2,501

The following table presents the amortization of purchased intangible assets including impairment charges related to purchased intangible assets (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Amortization of purchased intangible assets:
 
 
 
Cost of sales
$
129

 
$
146

Operating expenses
 
 


Amortization of purchased intangible assets
78

 
69

Restructuring and other charges
38

 

Total
$
245

 
$
215

The estimated future amortization expense of purchased intangible assets with finite lives as of October 29, 2016 is as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
524

2018
579

2019
493

2020
281

2021
137

Thereafter
67

   Total
$
2,081

Restructuring and Other Charges (Tables)
Liabilities Related To Restructuring And Other Charges
The following tables summarize the activities related to the restructuring and other charges (in millions):
 
 
FISCAL 2015 AND PRIOR PLANS
 
FISCAL 2017 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 30, 2016
 
$
21

 
$
24

 
$

 
$

 
$
45

Charges
 

 

 
369

 
42

 
411

Cash payments
 
(12
)
 

 
(257
)
 
(1
)
 
(270
)
Non-cash items
 
(4
)
 
(2
)
 

 
(41
)
 
(47
)
Liability as of October 29, 2016
 
$
5

 
$
22

 
$
112

 
$

 
$
139


 
 
FISCAL 2015 AND PRIOR PLANS
 
 
 
 
Employee
Severance
 
Other
 
Total
Liability as of July 25, 2015
 
$
60

 
$
29

 
$
89

Charges
 
125

 
17

 
142

Cash payments
 
(123
)
 
(6
)
 
(129
)
Non-cash items
 

 
(16
)
 
(16
)
Liability as of October 24, 2015
 
$
62

 
$
24

 
$
86

Balance Sheet Details (Tables)
The following tables provide details of selected balance sheet items (in millions):
 
 
October 29,
2016
 
July 30,
2016
Inventories:
 
 
 
 
Raw materials
 
$
111

 
$
91

Finished goods:
 
 
 

Distributor inventory and deferred cost of sales
 
481

 
457

Manufactured finished goods
 
328

 
415

Total finished goods
 
809

 
872

Service-related spares
 
237

 
236

Demonstration systems
 
19

 
18

Total
 
$
1,176

 
$
1,217

Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,819

 
$
4,778

Computer equipment and related software
 
1,292

 
1,288

Production, engineering, and other equipment
 
5,708

 
5,658

Operating lease assets
 
301

 
296

Furniture and fixtures
 
548

 
543

Total gross property and equipment
 
12,668

 
12,563

Less: accumulated depreciation and amortization
 
(9,169
)
 
(9,057
)
Total
 
$
3,499

 
$
3,506

Deferred revenue:
 
 
 
 
Service
 
$
10,424

 
$
10,621

Product:
 

 
 
Deferred revenue related to recurring software and subscription businesses
 
3,801

 
3,308

Deferred revenue related to two-tier distributors
 
439

 
377

Other product deferred revenue
 
2,287

 
2,166

Total product deferred revenue
 
6,527

 
5,851

Total
 
$
16,951

 
$
16,472

Reported as:
 

 
 
Current
 
$
10,215

 
$
10,155

Noncurrent
 
6,736

 
6,317

Total
 
$
16,951

 
$
16,472

Financing Receivables and Operating Leases (Tables)
A summary of the Company's financing receivables is presented as follows (in millions):
October 29, 2016
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,202

 
$
2,236

 
$
4,239

 
$
9,677

Residual value
197

 

 

 
197

Unearned income
(163
)
 

 

 
(163
)
Allowance for credit loss
(227
)
 
(111
)
 
(48
)
 
(386
)
Total, net
$
3,009

 
$
2,125

 
$
4,191

 
$
9,325

Reported as:
 
 
 
 
 
 
 
Current
$
1,504

 
$
1,021

 
$
2,016

 
$
4,541

Noncurrent
1,505

 
1,104

 
2,175

 
4,784

Total, net
$
3,009

 
$
2,125

 
$
4,191

 
$
9,325

July 30, 2016
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,272

 
$
2,135

 
$
3,370

 
$
8,777

Residual value
202

 

 

 
202

Unearned income
(174
)
 

 

 
(174
)
Allowance for credit loss
(230
)
 
(97
)
 
(48
)
 
(375
)
Total, net
$
3,070

 
$
2,038

 
$
3,322

 
$
8,430

Reported as:
 
 
 
 
 
 
 
Current
$
1,490

 
$
988

 
$
1,794

 
$
4,272

Noncurrent
1,580

 
1,050

 
1,528

 
4,158

Total, net
$
3,070

 
$
2,038

 
$
3,322

 
$
8,430

Future minimum lease payments to the Company on lease receivables as of October 29, 2016 are summarized as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
1,222

2018
1,066

2019
587

2020
260

2021
65

Thereafter
2

Total
$
3,202

Gross receivables, excluding residual value, less unearned income categorized by the Company’s internal credit risk rating as of October 29, 2016 and July 30, 2016 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
October 29, 2016
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,652

 
$
1,293

 
$
94

 
$
3,039

Loan receivables
1,081

 
976

 
179

 
2,236

Financed service contracts and other
2,898

 
1,313

 
28

 
4,239

Total
$
5,631

 
$
3,582

 
$
301

 
$
9,514

 
INTERNAL CREDIT RISK RATING
July 30, 2016
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,703

 
$
1,294

 
$
101

 
$
3,098

Loan receivables
986

 
967

 
182

 
2,135

Financed service contracts and other
2,077

 
1,271

 
22

 
3,370

Total
$
4,766

 
$
3,532

 
$
305

 
$
8,603

The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of October 29, 2016 and July 30, 2016 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
October 29, 2016
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
86

 
$
70

 
$
249

 
$
405

 
$
2,634

 
$
3,039

 
$
55

 
$
55

Loan receivables
25

 
23

 
95

 
143

 
2,093

 
2,236

 
42

 
42

Financed service contracts and other
317

 
338

 
367

 
1,022

 
3,217

 
4,239

 
29

 
9

Total
$
428

 
$
431

 
$
711

 
$
1,570

 
$
7,944

 
$
9,514

 
$
126

 
$
106

 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 30, 2016
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
111

 
$
25

 
$
251

 
$
387

 
$
2,711

 
$
3,098

 
$
60

 
$
60

Loan receivables
30

 
9

 
37

 
76

 
2,059

 
2,135

 
42

 
42

Financed service contracts and other
213

 
152

 
565

 
930

 
2,440

 
3,370

 
30

 
10

Total
$
354

 
$
186

 
$
853

 
$
1,393

 
$
7,210

 
$
8,603

 
$
132

 
$
112

The allowances for credit loss and the related financing receivables are summarized as follows (in millions):
 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 30, 2016
$
230

 
$
97

 
$
48

 
$
375

Provisions
(4
)
 
12

 

 
8

Foreign exchange and other
1

 
2

 

 
3

Allowance for credit loss as of October 29, 2016
$
227

 
$
111

 
$
48

 
$
386


 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 25, 2015
$
259

 
$
87

 
$
36

 
$
382

Provisions

 
4

 

 
4

Recoveries (write-offs), net
(4
)
 

 
(3
)
 
(7
)
Foreign exchange and other

 
(1
)
 

 
(1
)
Allowance for credit loss as of October 24, 2015
$
255

 
$
90

 
$
33

 
$
378


Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):
 
October 29, 2016
 
July 30, 2016
Operating lease assets
$
301

 
$
296

Accumulated depreciation
(168
)
 
(161
)
Operating lease assets, net
$
133

 
$
135

Minimum future rentals on noncancelable operating leases as of October 29, 2016 are summarized as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
179

2018
142

2019
53

2020
8

2021
4

Thereafter
1

Total
$
387

Investments (Tables)
The following tables summarize the Company’s available-for-sale investments (in millions):
October 29, 2016
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
25,905

 
$
24

 
$
(33
)
 
$
25,896

U.S. government agency securities
2,619

 
4

 
(1
)
 
2,622

Non-U.S. government and agency securities
1,104

 
1

 
(1
)
 
1,104

Corporate debt securities
29,046

 
177

 
(60
)
 
29,163

U.S. agency mortgage-backed securities
2,069

 
16

 
(2
)
 
2,083

Total fixed income securities
60,743

 
222

 
(97
)
 
60,868

Publicly traded equity securities
1,225

 
346

 
(54
)
 
1,517

Total (1)
$
61,968

 
$
568

 
$
(151
)
 
$
62,385


July 30, 2016
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
26,473

 
$
73

 
$
(2
)
 
$
26,544

U.S. government agency securities
2,809

 
8

 

 
2,817

Non-U.S. government and agency securities
1,096

 
4

 

 
1,100

Corporate debt securities
24,044

 
263

 
(15
)
 
24,292

U.S. agency mortgage-backed securities
1,846

 
22

 

 
1,868

Total fixed income securities
56,268

 
370

 
(17
)
 
56,621

Publicly traded equity securities
1,211

 
333

 
(40
)
 
1,504

Total (1)
$
57,479

 
$
703

 
$
(57
)
 
$
58,125

(1) Includes investments that were pending settlement as of the respective fiscal years. The net unsettled investment purchases were $328 million and $654 million as of October 29, 2016 and July 30, 2016, respectively.
The following table presents the gross realized gains and gross realized losses related to the Company’s available-for-sale investments (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Gross realized gains
$
30

 
$
35

Gross realized losses
(15
)
 
(36
)
Total
$
15

 
$
(1
)
The following table presents the realized net gains (losses) related to the Company’s available-for-sale investments by security type (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Net gains/(losses) on investments in publicly traded equity securities
$
5

 
$
(9
)
Net gains/(losses) on investments in fixed income securities
10

 
8

Total
$
15

 
$
(1
)
The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at October 29, 2016 and July 30, 2016 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
October 29, 2016
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
11,766

 
$
(33
)
 
$
100

 
$

 
$
11,866

 
$
(33
)
U.S. government agency securities
596

 
(1
)
 

 

 
596

 
(1
)
Non-U.S. government and agency securities
498

 
(1
)
 

 

 
498

 
(1
)
Corporate debt securities
9,013

 
(57
)
 
572

 
(3
)
 
9,585

 
(60
)
U.S. agency mortgage-backed securities
594

 
(2
)
 

 

 
594

 
(2
)
Total fixed income securities
22,467

 
(94
)

672


(3
)

23,139


(97
)
Publicly traded equity securities
291

 
(53
)
 
3

 
(1
)
 
294

 
(54
)
Total
$
22,758

 
$
(147
)
 
$
675

 
$
(4
)
 
$
23,433

 
$
(151
)
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 30, 2016
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
2,414

 
$
(2
)
 
$

 
$

 
$
2,414

 
$
(2
)
U.S. government agency securities
144

 

 

 

 
144

 

Non-U.S. government and agency securities
61

 

 

 

 
61

 

Corporate debt securities
2,499

 
(7
)
 
1,208

 
(8
)
 
3,707

 
(15
)
U.S. agency mortgage-backed securities
174

 

 

 

 
174

 

Total fixed income securities
5,292

 
(9
)
 
1,208

 
(8
)
 
6,500

 
(17
)
Publicly traded equity securities
188

 
(40
)
 

 

 
188

 
(40
)
Total
$
5,480

 
$
(49
)
 
$
1,208

 
$
(8
)
 
$
6,688

 
$
(57
)
The following table summarizes the maturities of the Company’s fixed income securities as of October 29, 2016 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
12,967

 
$
12,977

Due in 1 to 2 years
17,042

 
17,071

Due in 2 to 5 years
25,125

 
25,230

Due after 5 years
3,540

 
3,507

Mortgage-backed securities with no single maturity
2,069

 
2,083

Total
$
60,743

 
$
60,868

For such investments that were accounted for under the equity and cost method as of October 29, 2016 and July 30, 2016, the amounts are summarized in the following table (in millions):
 
October 29, 2016
 
July 30, 2016
Equity method investments
$
162

 
$
174

Cost method investments
829

 
829

Total
$
991

 
$
1,003

Fair Value (Tables)
Assets and liabilities measured at fair value on a recurring basis as of October 29, 2016 and July 30, 2016 were as follows (in millions):
 
OCTOBER 29, 2016
FAIR VALUE MEASUREMENTS
 
JULY 30, 2016
FAIR VALUE MEASUREMENTS
 
Level 1
 
Level 2
 
Level 3
 
Total
Balance
 
Level 1
 
Level 2
 
Level 3
 
Total
Balance
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
6,749

 
$

 
$

 
$
6,749

 
$
6,049

 
$

 
$

 
$
6,049

Corporate debt securities

 

 

 

 

 
43

 

 
43

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. government securities

 
25,896

 

 
25,896

 

 
26,544

 

 
26,544

U.S. government agency securities

 
2,622

 

 
2,622

 

 
2,817

 

 
2,817

Non-U.S. government and agency securities

 
1,104

 

 
1,104

 

 
1,100

 

 
1,100

Corporate debt securities

 
29,163

 

 
29,163

 

 
24,292

 

 
24,292

U.S. agency mortgage-backed securities

 
2,083

 

 
2,083

 

 
1,868

 

 
1,868

Publicly traded equity securities
1,517

 

 

 
1,517

 
1,504

 

 

 
1,504

Derivative assets

 
292

 

 
292

 

 
384

 
1

 
385

Total
$
8,266

 
$
61,160

 
$

 
$
69,426

 
$
7,553

 
$
57,048

 
$
1

 
$
64,602

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
85

 
$

 
$
85

 
$

 
$
54

 
$

 
$
54

Total
$

 
$
85

 
$

 
$
85

 
$

 
$
54

 
$

 
$
54

The following table presents the Company’s assets that were measured at fair value on a nonrecurring basis during the indicated periods and the related recognized gains and losses for the periods indicated (in millions):
 
TOTAL GAINS (LOSSES) FOR THE
THREE MONTHS ENDED
 
October 29, 2016
 
October 24, 2015
Investments in privately held companies (impaired)
$
(47
)
 
$
(17
)
Purchased intangible assets (impaired)
(42
)
 

Total gains (losses) for nonrecurring measurements
$
(89
)
 
$
(17
)
Borrowings (Tables)
The following table summarizes the Company’s short-term debt (in millions, except percentages):
 
October 29, 2016
 
July 30, 2016
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
4,155

 
1.08
%
 
$
4,159

 
0.97
%
Other notes and borrowings

 

 
1

 
2.08
%
Total short-term debt
$
4,155

 
 
 
$
4,160

 

The following table summarizes the Company’s long-term debt (in millions, except percentages):
 
 
 
October 29, 2016
 
July 30, 2016
 
Maturity Date
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior notes:
 
 
 
 
 
 
 
 
 
Floating-rate notes:
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus 0.28%
March 3, 2017
 
$
1,000

 
1.18%
 
$
1,000

 
1.03%
Three-month LIBOR plus 0.60%
February 21, 2018
 
1,000

 
1.48%
 
1,000

 
1.32%
Three-month LIBOR plus 0.31%
June 15, 2018
 
900

 
1.23%
 
900

 
1.03%
Three-month LIBOR plus 0.50%
March 1, 2019
 
500

 
1.40%
 
500

 
1.23%
Three-month LIBOR plus 0.34%
September 20, 2019
(1)
500

 
1.24%
 

 
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
1.10%
March 3, 2017
 
2,400

 
0.93%
 
2,400

 
0.87%
3.15%
March 14, 2017
 
750

 
1.42%
 
750

 
1.22%
1.40%
February 28, 2018
 
1,250

 
1.47%
 
1,250

 
1.47%
1.65%
June 15, 2018
 
1,600

 
1.72%
 
1,600

 
1.72%
4.95%
February 15, 2019
 
2,000

 
4.78%
 
2,000

 
4.76%
1.60%
February 28, 2019
 
1,000

 
1.67%
 
1,000

 
1.67%
2.125%
March 1, 2019
 
1,750

 
1.14%
 
1,750

 
1.08%
1.40%
September 20, 2019
(1)
1,500

 
1.48%
 

 
4.45%
January 15, 2020
 
2,500

 
3.29%
 
2,500

 
3.25%
2.45%
June 15, 2020
 
1,500

 
2.54%
 
1,500

 
2.54%
2.20%
February 28, 2021
 
2,500

 
2.30%
 
2,500

 
2.30%
2.90%
March 4, 2021
 
500

 
1.31%
 
500

 
1.24%
1.85%
September 20, 2021
(1)
2,000

 
1.90%
 

 
3.00%
June 15, 2022
 
500

 
1.56%
 
500

 
1.51%
2.60%
February 28, 2023
 
500

 
2.68%
 
500

 
2.68%
2.20%
September 20, 2023
(1)
750

 
2.27%
 

 
3.625%
March 4, 2024
 
1,000

 
1.42%
 
1,000

 
1.36%
3.50%
June 15, 2025
 
500

 
1.72%
 
500

 
1.67%
2.95%
February 28, 2026
 
750

 
3.01%
 
750

 
3.01%
2.50%
September 20, 2026
(1)
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
 
 
34,650

 
 
 
28,400

 
 
Unaccreted discount/issuance costs
 
 
(150
)
 
 
 
(137
)
 
 
Hedge accounting fair value adjustments
 
 
289

 
 
 
379

 
 
Total
 
 
$
34,789

 
 
 
$
28,642

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
$
4,155

 
 
 
$
4,159

 
 
Long-term debt
 
 
30,634

 
 
 
24,483

 
 
Total
 
 
$
34,789

 
 
 
$
28,642

 
 
(1) In September 2016, the Company issued senior notes for an aggregate principal amount of $6.25 billion.
As of October 29, 2016, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
4,150

2018
4,750

2019
5,250

2020
6,000

2021
3,000

Thereafter
11,500

Total
$
34,650

Derivative Instruments (Tables)
The fair values of the Company’s 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
 
October 29,
2016
 
July 30,
2016
 
Balance Sheet Line Item
 
October 29,
2016
 
July 30,
2016
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
5

 
$
7

 
Other current liabilities
 
$
83

 
$
53

Interest rate derivatives
Other current assets
 
6

 
11

 
Other current liabilities
 

 

Interest rate derivatives
Other assets
 
280

 
366

 
Other long-term liabilities
 

 

Total
 
 
291

 
384

 
 
 
83

 
53

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
1

 

 
Other current liabilities
 
2

 
1

Equity derivatives/warrants
Other assets
 

 
1

 
Other long-term liabilities
 

 

Total
 
 
1

 
1

 
 
 
2

 
1

Total
 
 
$
292

 
$
385

 
 
 
$
85

 
$
54


The effects of the Company’s cash flow and net investment hedging instruments on other comprehensive income (OCI) and the Consolidated Statements of Operations are summarized as follows (in millions):
GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
 
October 29,
2016
 
October 24,
2015
 
Line Item in
Statements of Operations
 
October 29,
2016
 
October 24,
2015
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(46
)
 
$
(4
)
 
Operating expenses
 
$
(9
)
 
$
(2
)
 
 
 
 
 
 
Cost of salesservice
 
(3
)
 
(1
)
Total
 
$
(46
)
 
$
(4
)
 
 
 
$
(12
)
 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
9

 
$

 
Other income (loss), net
 
$

 
$



The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the underlying hedged items is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) ON
DERIVATIVE
INSTRUMENTS FOR THE
THREE MONTHS ENDED
 
GAINS (LOSSES)
RELATED TO HEDGED
ITEMS FOR THE
THREE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
October 29,
2016
 
October 24,
2015
 
October 29,
2016
 
October 24,
2015
Interest rate derivatives
 
Interest expense
 
$
(91
)
 
$
127

 
$
90

 
$
(125
)


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
THREE MONTHS ENDED
Derivatives Not Designated as
Hedging Instruments
 
Line Item in Statements of Operations
 
October 29,
2016
 
October 24,
2015
Foreign currency derivatives
 
Other income (loss), net
 
$
(16
)
 
$
4

Total return swaps—deferred compensation
 
Operating expenses
 
(3
)
 
(16
)
Equity derivatives
 
Other income (loss), net
 
1

 
10

Total
 
 
 
$
(18
)
 
$
(2
)
The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
October 29,
2016
 
July 30,
2016
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
2,385

 
$
2,683

Interest rate derivatives
9,900

 
9,900

Net investment hedging instruments
290

 
298

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
2,107

 
2,057

Total return swaps—deferred compensation
497

 
476

Total
$
15,179

 
$
15,414

Information related to these offsetting arrangements is summarized as follows (in millions):
 
October 29, 2016
 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEETS
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
BUT WITH LEGAL RIGHTS TO OFFSET
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
292

 
$

 
$
292

 
$
(30
)
 
$
(242
)
 
$
20

Derivatives liabilities
$
85

 
$

 
$
85

 
$
(30
)
 
$

 
$
55

 
July 30, 2016
 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEETS
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS
BUT WITH LEGAL RIGHTS TO OFFSET
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
385

 
$

 
$
385

 
$
(23
)
 
$
(305
)
 
$
57

Derivatives liabilities
$
54

 
$

 
$
54

 
$
(23
)
 
$

 
$
31

Commitments and Contingencies (Tables)
Future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of October 29, 2016 are as follows (in millions):
Fiscal Year
Amount
2017 (remaining nine months)
$
280

2018
292

2019
178

2020
128

2021
76

Thereafter
162

Total
$
1,116

The following table summarizes the compensation expense related to acquisitions (in millions):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Compensation expense related to acquisitions
$
64

 
$
73

The following table summarizes the activity related to the product warranty liability (in millions):
 
Three Months Ended
 
October 29,
2016
 
October 24,
2015
Balance at beginning of period
$
414

 
$
449

Provisions for warranty issued
176

 
160

Adjustments for pre-existing warranties

 
(10
)
Settlements
(177
)
 
(166
)
Balance at end of period
$
413

 
$
433

Financing Guarantee Summary   The aggregate amounts of financing guarantees outstanding at October 29, 2016 and July 30, 2016, 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):
 
October 29,
2016
 
July 30,
2016
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
248

 
$
281

End user
88

 
96

Total
$
336

 
$
377

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(77
)
 
$
(85
)
End user
(70
)
 
(76
)
Total
$
(147
)
 
$
(161
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
189

 
$
216

Shareholders' Equity (Tables)
Stock Repurchase Program
A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts):
 
Shares
Repurchased
 
Weighted-
Average Price
per Share
 
Amount
Repurchased
Cumulative balance at July 30, 2016
4,591

 
$
21.04

 
$
96,597

Repurchase of common stock under the stock repurchase program (1)
32

 
31.12

 
1,001

Cumulative balance at October 29, 2016
4,623

 
$
21.11

 
$
97,598


(1) There were $23 million of stock repurchases pending settlement as of October 29, 2016. There were $45 million of stock repurchases that were pending settlement as of July 30, 2016.
Employee Benefit Plans (Tables)
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
 
October 29, 2016
 
October 24, 2015
Cost of sales—product
$
21

 
$
13

Cost of sales—service
33

 
38

Share-based compensation expense in cost of sales
54

 
51

Research and development
126

 
114

Sales and marketing
140

 
139

General and administrative
49

 
57

Restructuring and other charges
3

 
15

Share-based compensation expense in operating expenses
318

 
325

Total share-based compensation expense
$
372

 
$
376

Income tax benefit for share-based compensation
$
105

 
$
95

A summary of share-based awards available for grant is as follows (in millions):
 
Share-Based Awards
Available for Grant
BALANCE AT JULY 25, 2015
276

Restricted stock, stock units, and other share-based awards granted
(96
)
Share-based awards canceled/forfeited/expired
30

Shares withheld for taxes and not issued
30

Other
2

BALANCE AT JULY 30, 2016
242

Restricted stock, stock units, and other share-based awards granted
(16
)
Share-based awards canceled/forfeited/expired
66

Shares withheld for taxes and not issued
19

BALANCE AT OCTOBER 29, 2016
311

A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts):
 
Restricted Stock/
Stock Units
 
Weighted-Average
Grant Date Fair
Value per Share
 
Aggregate Fair  Value
UNVESTED BALANCE AT JULY 25, 2015
143

 
$
22.08

 
 
Granted and assumed
70

 
25.69

 
 
Vested
(54
)
 
20.68

 
$
1,428

Canceled/forfeited
(14
)
 
22.86

 
 
UNVESTED BALANCE AT JULY 30, 2016
145

 
24.26

 
 
Granted and assumed
11

 
28.85

 
 
Vested
(36
)
 
22.16

 
$
1,120

Canceled/forfeited
(7
)
 
24.62

 
 
UNVESTED BALANCE AT OCTOBER 29, 2016
113

 
$
25.36

 
 
A summary of the stock option activity is as follows (in millions, except per-share amounts):
 
STOCK OPTIONS OUTSTANDING
 
Number
Outstanding
 
Weighted-Average
Exercise Price per Share
BALANCE AT JULY 25, 2015
103

 
$
28.68

Assumed from acquisitions
18

 
5.17

Exercised
(32
)
 
19.22

Canceled/forfeited/expired
(16
)
 
30.01

BALANCE AT JULY 30, 2016
73

 
26.78

Assumed from acquisitions
1

 
1.59

Exercised
(4
)
 
19.92

Canceled/forfeited/expired
(55
)
 
32.02

BALANCE AT OCTOBER 29, 2016
15

 
$
9.10

The following table summarizes significant ranges of outstanding and exercisable stock options as of October 29, 2016 (in millions, except years and share prices):
 
 
STOCK OPTIONS OUTSTANDING
 
STOCK OPTIONS EXERCISABLE
Range of Exercise Prices
 
Number
Outstanding
 
Weighted-
Average
Remaining
Contractual
Life
(in Years)
 
Weighted-
Average
Exercise
Price per
Share
 
Aggregate
Intrinsic
Value
 
Number
Exercisable
 
Weighted-
Average
Exercise
Price per
Share
 
Aggregate
Intrinsic
Value
$   0.01 – 20.00
 
12

 
6.6
 
$
5.60

 
$
316

 
5

 
$
5.35

 
$
127

$ 20.01 – 25.00
 
1

 
0.3
 
23.37

 
3

 
1

 
23.37

 
3

$ 25.01 – 30.00
 
2

 
0.4
 
26.64

 
8

 
2

 
26.64

 
8

Total
 
15

 
5.6
 
$
9.10

 
$
327

 
8

 
$
12.43

 
$
138

The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows:
 
RESTRICTED STOCK UNITS
 
PERFORMANCE BASED
RESTRICTED STOCK UNITS
Three Months Ended
October 29, 2016
 
October 24, 2015
 
October 29, 2016
 
October 24, 2015
Number of shares granted (in millions)
7

 
9

 
3

 
4

Grant date fair value per share
$
28.55

 
$
24.02

 
$
29.62

 
$
24.61

Weighted-average assumptions/inputs:
 
 
 
 
 
 
 
   Expected dividend yield
3.3
%
 
3.2
%
 
3.3
%
 
3.2
%
   Range of risk-free interest rates
0.0%  1.2%

 
0.0%  1.1%

 
0.1%  0.9%

 
0.0%  1.1%

   Range of expected volatilities for index
N/A

 
N/A

 
16.7%  46.8%

 
15.3%  54.3%

Comprehensive Income (Tables)
The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the three months ended October 29, 2016 and October 24, 2015 are summarized as follows (in millions):
 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 30, 2016
$
413

 
$
(59
)
 
$
(680
)
 
$
(326
)
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(210
)
 
(46
)
 
(26
)
 
(282
)
(Gains) losses reclassified out of AOCI
(15
)
 
12

 

 
(3
)
Tax benefit (expense)
86

 
2

 
(1
)
 
87

BALANCE AT OCTOBER 29, 2016
$
274

 
$
(91
)
 
$
(707
)
 
$
(524
)
 
Net Unrealized Gains on Available-for-Sale Investments
 
Net Unrealized Losses Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 25, 2015
$
310

 
$
(16
)
 
$
(233
)
 
$
61

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(155
)
 
(4
)
 
(178
)
 
(337
)
(Gains) losses reclassified out of AOCI
1

 
3

 
1

 
5

Tax benefit (expense)
56

 
2

 
(39
)
 
19

BALANCE AT OCTOBER 24, 2015
$
212

 
$
(15
)

$
(449
)
 
$
(252
)
The net gains (losses) reclassified out of AOCI into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions):
 
 
Three Months Ended
 
 
 
 
 
October 29,
2016
 
October 24,
2015
 
 
 
Comprehensive Income Components
 
Income Before Taxes
 
 
Line Item in Statements of Operations
Net unrealized gains and losses on available-for-sale investments
 
 
 
 
 
 
 
 
 
$
15

 
$
(1
)
 
 
Other income (loss), net
 
 
 
 
 
 
 
 
Net unrealized gains and losses on cash flow hedging instruments
 
 
 
 
 
 
 
Foreign currency derivatives
 
(9
)
 
(2
)
 
 
Operating expenses
Foreign currency derivatives
 
(3
)
 
(1
)
 
 
Cost of sales—service
 
 
(12
)

(3
)
 

 
 
 
 
 
 
 
 
 
Cumulative translation adjustment and actuarial gains and losses
 
 
 
 
 
 
 
 
 

 
(1
)
 
 
Operating expenses
Total amounts reclassified out of AOCI
 
$
3


$
(5
)
 

 
Income Taxes (Tables)
Income tax provision
The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended
 
October 29, 2016
 
October 24, 2015
Income before provision for income taxes
$
2,953

 
$
3,137

Provision for income taxes
$
631

 
$
707

Effective tax rate
21.4
%
 
22.5
%
Segment Information and Major Customers (Tables)
Summarized financial information by segment for the three months ended October 29, 2016 and October 24, 2015, based on the Company’s internal management system and as utilized by the Company’s Chief Operating Decision Maker ("CODM"), is as follows (in millions):
 
Three Months Ended
 
October 29,
2016
 
October 24,
2015
Revenue:
 
 
 
Americas
$
7,443

 
$
7,792

EMEA
3,013

 
3,094

APJC
1,896

 
1,796

Total
$
12,352

 
$
12,682

Gross margin:
 
 
 
Americas
$
4,833

 
$
4,943

EMEA
2,013

 
1,989

APJC
1,204

 
1,078

Segment total
8,050

 
8,010

Unallocated corporate items
(166
)
 
(178
)
Total
$
7,884

 
$
7,832

The following table presents revenue for groups of similar products and services (in millions):
 
Three Months Ended
 
October 29,
2016
 
October 24,
2015
Revenue:
 
 
 
Switching
$
3,716

 
$
4,009

NGN Routing
2,089

 
1,969

Collaboration
1,081

 
1,115

Data Center
834

 
859

Wireless
632

 
646

Security
540

 
485

Service Provider Video(1) 
271

 
687

Other
139

 
74

Product
9,302

 
9,844

Service
3,050

 
2,838

Total
$
12,352

 
$
12,682


(1) During the second quarter of fiscal 2016, the Company completed the sale of the Customer Premises Equipment portion of its Service Provider Video Connected Devices business (“SP Video CPE Business”). As a result, revenue from this portion of the Service Provider Video product category will not recur in future periods. Includes SP Video CPE Business revenue of $411 million for the first quarter of fiscal 2016.
The following table presents property and equipment information for geographic areas (in millions):
 
October 29,
2016
 
July 30,
2016
Property and equipment, net:
 
 
 
United States
$
2,847

 
$
2,822

International
652

 
684

Total
$
3,499

 
$
3,506



Net Income per Share (Tables)
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
 
October 29,
2016
 
October 24,
2015
Net income
$
2,322

 
$
2,430

Weighted-average shares—basic
5,027

 
5,080

Effect of dilutive potential common shares
39

 
33

Weighted-average shares—diluted
5,066

 
5,113

Net income per share—basic
$
0.46

 
$
0.48

Net income per share—diluted
$
0.46

 
$
0.48

Antidilutive employee share-based awards, excluded
67

 
86

Supplemental Information (Stock Repurchases Since Inception of Program) (Details) (USD $)
Share data in Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Supplementary Information [Line Items]
 
 
Authorized common stock repurchase amount
$ 112,000,000,000 
 
Repurchases of common stock under the repurchase program (in shares)
4,623 
4,591 
Repurchases of common stock under the repurchase program
97,598,000,000 
96,597,000,000 
Shares of Common Stock (in shares)
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program (in shares)
4,623 
 
Common Stock and Additional Paid-In Capital
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
24,180,000,000 
 
Retained Earnings
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
73,418,000,000 
 
Total Cisco Shareholders’ Equity
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
$ 97,598,000,000 
 
Basis of Presentation (Details)
3 Months Ended
Oct. 29, 2016
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of geographic segments
Acquisitions and Divestitures (Additional Information Acquisitions) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Supplementary Information [Line Items]
 
 
Number of business combinations
 
Acquired cash and cash equivalents
$ 1 
 
General and administrative
 
 
Supplementary Information [Line Items]
 
 
Acquisition related costs
$ 1 
$ 5 
Acquisitions and Divestitures (Summary Of Allocation Of Total Purchase Consideration) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Business Acquisition [Line Items]
 
Purchase Consideration
$ 258 
Purchased Intangible Assets
41 
Goodwill
217 
CloudLock Inc
 
Business Acquisition [Line Items]
 
Purchase Consideration
249 
Purchased Intangible Assets
36 
Goodwill
213 
Others (two in total)
 
Business Acquisition [Line Items]
 
Purchase Consideration
Purchased Intangible Assets
Goodwill
$ 4 
Goodwill and Purchased Intangible Assets (Schedule Of Goodwill By Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Goodwill [Roll Forward]
 
Beginning Balance
$ 26,625 
Acquisitions
217 
Other
(19)
Ending Balance
26,823 
Americas
 
Goodwill [Roll Forward]
 
Beginning Balance
16,529 
Acquisitions
132 
Other
(13)
Ending Balance
16,648 
EMEA
 
Goodwill [Roll Forward]
 
Beginning Balance
6,269 
Acquisitions
62 
Other
(4)
Ending Balance
6,327 
APJC
 
Goodwill [Roll Forward]
 
Beginning Balance
3,827 
Acquisitions
23 
Other
(2)
Ending Balance
$ 3,848 
Goodwill and Purchased Intangible Assets (Schedule Of Intangible Assets Acquired Through Business Combinations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
acquisition
Intangible Assets Acquired Through Business Combinations
 
Number of business combinations
Total, Amount
$ 41 
CloudLock Inc
 
Intangible Assets Acquired Through Business Combinations
 
Total, Amount
36 
Others (two in total)
 
Intangible Assets Acquired Through Business Combinations
 
Number of business combinations
Total, Amount
IPR&D
 
Intangible Assets Acquired Through Business Combinations
 
Indefinite Lives, Amount
IPR&D |
CloudLock Inc
 
Intangible Assets Acquired Through Business Combinations
 
Indefinite Lives, Amount
IPR&D |
Others (two in total)
 
Intangible Assets Acquired Through Business Combinations
 
Indefinite Lives, Amount
TECHNOLOGY
 
Intangible Assets Acquired Through Business Combinations
 
Finite Lives, Amount
37 
TECHNOLOGY |
CloudLock Inc
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
6 years 
Finite Lives, Amount
32 
TECHNOLOGY |
Others (two in total)
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
3 years 
Finite Lives, Amount
CUSTOMER RELATIONSHIPS
 
Intangible Assets Acquired Through Business Combinations
 
Finite Lives, Amount
CUSTOMER RELATIONSHIPS |
CloudLock Inc
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
4 years 
Finite Lives, Amount
CUSTOMER RELATIONSHIPS |
Others (two in total)
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
0 years 
Finite Lives, Amount
OTHER
 
Intangible Assets Acquired Through Business Combinations
 
Finite Lives, Amount
OTHER |
CloudLock Inc
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
1 year 6 months 
Finite Lives, Amount
OTHER |
Others (two in total)
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
0 years 
Finite Lives, Amount
$ 0 
Goodwill and Purchased Intangible Assets (Schedule Of Purchased Intangible Assets With Finite And Indefinite Lives) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Business Acquisition [Line Items]
 
 
Gross
$ 4,656 
$ 4,916 
Accumulated Amortization
(2,575)
(2,637)
Total purchased intangible assets with finite lives, net
2,081 
2,279 
In-process research and development, with indefinite lives
216 
222 
Total finite and indefinite lives Intangible assets, Gross
4,872 
5,138 
Total finite and indefinite lives intangible assets, net
2,297 
2,501 
TECHNOLOGY
 
 
Business Acquisition [Line Items]
 
 
Gross
2,861 
3,038 
Accumulated Amortization
(1,334)
(1,391)
Total purchased intangible assets with finite lives, net
1,527 
1,647 
CUSTOMER RELATIONSHIPS
 
 
Business Acquisition [Line Items]
 
 
Gross
1,737 
1,793 
Accumulated Amortization
(1,220)
(1,203)
Total purchased intangible assets with finite lives, net
517 
590 
OTHER
 
 
Business Acquisition [Line Items]
 
 
Gross
58 
85 
Accumulated Amortization
(21)
(43)
Total purchased intangible assets with finite lives, net
$ 37 
$ 42 
Goodwill and Purchased Intangible Assets (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Impairment charges
$ 78,000,000 
$ 69,000,000 
Purchased intangible assets impairment
42,000,000 
Restructuring and other charges
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Impairment charges
$ 38,000,000 
$ 0 
Goodwill and Purchased Intangible Assets (Schedule Of Amortization Of Purchased Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
$ 78 
$ 69 
Cost of sales
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
129 
146 
Amortization of purchased intangible assets
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
78 
69 
Restructuring and other charges
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
38 
Total
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
$ 245 
$ 215 
Goodwill and Purchased Intangible Assets (Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
 
 
2017 (remaining nine months)
$ 524 
 
2018
579 
 
2019
493 
 
2020
281 
 
2021
137 
 
Thereafter
67 
 
Total purchased intangible assets with finite lives, net
$ 2,081 
$ 2,279 
Restructuring and Other Charges (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 1 Months Ended 3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Aug. 31, 2016
FISCAL 2017 PLAN
employee
Oct. 29, 2016
FISCAL 2015 PLAN
Restructuring Cost and Reserve [Line Items]
 
 
 
 
Expected number of employees impacted by restructuring plan
 
 
5,500 
 
Approximate workforce reduction, percent
 
 
7.00% 
 
Expected restructuring charges
 
 
$ 700 
 
Restructuring charges
$ 411 
$ 142 
 
$ 756 
Balance Sheet Details (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Inventories:
 
 
Raw materials
$ 111 
$ 91 
Finished goods:
 
 
Distributor inventory and deferred cost of sales
481 
457 
Manufactured finished goods
328 
415 
Total finished goods
809 
872 
Service-related spares
237 
236 
Demonstration systems
19 
18 
Total
1,176 
1,217 
Gross property and equipment:
 
 
Land, buildings, and building and leasehold improvements
4,819 
4,778 
Computer equipment and related software
1,292 
1,288 
Production, engineering, and other equipment
5,708 
5,658 
Operating lease assets
301 
296 
Furniture and fixtures
548 
543 
Total gross property and equipment
12,668 
12,563 
Less: accumulated depreciation and amortization
(9,169)
(9,057)
Total
3,499 
3,506 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
16,951 
16,472 
Current
10,215 
10,155 
Noncurrent
6,736 
6,317 
Service
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
10,424 
10,621 
Product:
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
6,527 
5,851 
Product: |
Deferred revenue related to recurring software and subscription businesses
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
3,801 
3,308 
Product: |
Deferred revenue related to two-tier distributors
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
439 
377 
Product: |
Other product deferred revenue
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
$ 2,287 
$ 2,166 
Financing Receivables and Operating Leases (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Rating
Jul. 30, 2016
Financing Receivables And Guarantees [Line Items]
 
 
Average lease term
4 years 
 
Deferred revenue
$ 16,951 
$ 16,472 
Financing receivable, allowance for credit loss and deferred revenue
2,779 
2,112 
Total financing receivables before allowance for credit loss
9,711 
8,805 
Threshold for past due receivables
31 days 
 
Unbilled or current financing receivables included in greater than 91 days plus past due
436 
670 
Financing receivable, 91 days past due and still accruing
236 
144 
Investment credit risk ratings range lowest
 
Investment credit risk ratings range highest
10 
 
Rating at or higher when receivables deemed impaired
 
Maximum
 
 
Financing Receivables And Guarantees [Line Items]
 
 
Loan receivables term
3 years 
 
Financed Service Contracts and Other |
Minimum
 
 
Financing Receivables And Guarantees [Line Items]
 
 
Financed service contracts term
1 year 
 
Financed Service Contracts and Other |
Maximum
 
 
Financing Receivables And Guarantees [Line Items]
 
 
Financed service contracts term
3 years 
 
Financed Service Contracts and Other
 
 
Financing Receivables And Guarantees [Line Items]
 
 
Deferred revenue
$ 2,371 
$ 1,716 
Financing Receivables and Operating Leases (Schedule Of Financing Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Oct. 24, 2015
Jul. 25, 2015
Financing Receivables [Line Items]
 
 
 
 
Allowance for credit loss
$ (386)
$ (375)
$ (378)
$ (382)
Current
4,541 
4,272 
 
 
Lease Receivables
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
3,202 
3,272 
 
 
Residual value
197 
202 
 
 
Unearned income
(163)
(174)
 
 
Allowance for credit loss
(227)
(230)
 
 
Total, net
3,009 
3,070 
 
 
Current
1,504 
1,490 
 
 
Noncurrent
1,505 
1,580 
 
 
Loan Receivables
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
2,236 
2,135 
 
 
Residual value
 
 
Unearned income
 
 
Allowance for credit loss
(111)
(97)
 
 
Total, net
2,125 
2,038 
 
 
Current
1,021 
988 
 
 
Noncurrent
1,104 
1,050 
 
 
Financed Service Contracts and Other
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
4,239 
3,370 
 
 
Residual value
 
 
Unearned income
 
 
Allowance for credit loss
(48)
(48)
 
 
Total, net
4,191 
3,322 
 
 
Current
2,016 
1,794 
 
 
Noncurrent
2,175 
1,528 
 
 
Total
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
9,677 
8,777 
 
 
Residual value
197 
202 
 
 
Unearned income
(163)
(174)
 
 
Allowance for credit loss
(386)
(375)
 
 
Total, net
9,325 
8,430 
 
 
Current
4,541 
4,272 
 
 
Noncurrent
$ 4,784 
$ 4,158 
 
 
Financing Receivables and Operating Leases (Schedule Of Contractual Maturities Of Gross Lease Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Receivables [Abstract]
 
2017 (remaining nine months)
$ 1,222 
2018
1,066 
2019
587 
2020
260 
2021
65 
Thereafter
Total
$ 3,202 
Financing Receivables and Operating Leases (Schedule Of Financing Receivables Categorized By Internal Credit Risk Rating) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
$ 9,514 
$ 8,603 
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
5,631 
4,766 
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
3,582 
3,532 
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
301 
305 
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
9,514 
8,603 
Lease Receivables |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,652 
1,703 
Lease Receivables |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,293 
1,294 
Lease Receivables |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
94 
101 
Lease Receivables |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
3,039 
3,098 
Loan Receivables |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,081 
986 
Loan Receivables |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
976 
967 
Loan Receivables |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
179 
182 
Loan Receivables |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
2,236 
2,135 
Financed Service Contracts and Other |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
2,898 
2,077 
Financed Service Contracts and Other |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,313 
1,271 
Financed Service Contracts and Other |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
28 
22 
Financed Service Contracts and Other |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
$ 4,239 
$ 3,370 
Financing Receivables and Operating Leases (Schedule Of Aging Analysis Of Financing Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
$ 1,570 
$ 1,393 
Current
7,944 
7,210 
Total
9,514 
8,603 
Nonaccrual Financing Receivables
126 
132 
Impaired Financing Receivables
106 
112 
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
428 
354 
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
431 
186 
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
711 
853 
Lease Receivables
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
405 
387 
Current
2,634 
2,711 
Total
3,039 
3,098 
Nonaccrual Financing Receivables
55 
60 
Impaired Financing Receivables
55 
60 
Lease Receivables |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
86 
111 
Lease Receivables |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
70 
25 
Lease Receivables |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
249 
251 
Loan Receivables
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
143 
76 
Current
2,093 
2,059 
Total
2,236 
2,135 
Nonaccrual Financing Receivables
42 
42 
Impaired Financing Receivables
42 
42 
Loan Receivables |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
25 
30 
Loan Receivables |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
23 
Loan Receivables |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
95 
37 
Financed Service Contracts and Other
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
1,022 
930 
Current
3,217 
2,440 
Total
4,239 
3,370 
Nonaccrual Financing Receivables
29 
30 
Impaired Financing Receivables
10 
Financed Service Contracts and Other |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
317 
213 
Financed Service Contracts and Other |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
338 
152 
Financed Service Contracts and Other |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
$ 367 
$ 565 
Financing Receivables and Operating Leases (Operating Lease Schedule) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Receivables [Abstract]
 
 
Operating lease assets
$ 301 
$ 296 
Accumulated depreciation
(168)
(161)
Operating lease assets, net
$ 133 
$ 135 
Financing Receivables and Operating Leases (Minimum future rental payments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Receivables [Abstract]
 
2017 (remaining nine months)
$ 179 
2018
142 
2019
53 
2020
2021
Thereafter
Total
$ 387 
Investments (Summary Of Available-For-Sale Investments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Schedule of Investments [Line Items]
 
 
Amortized Cost
$ 61,968 
$ 57,479 
Gross Unrealized Gains
568 
703 
Gross Unrealized Losses
(151)
(57)
Fair Value
62,385 
58,125 
Net unsettled available-for-sale investments, purchases
328 
654 
Total fixed income securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
60,743 
56,268 
Gross Unrealized Gains
222 
370 
Gross Unrealized Losses
(97)
(17)
Fair Value
60,868 
56,621 
Total fixed income securities |
U.S. government securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
25,905 
26,473 
Gross Unrealized Gains
24 
73 
Gross Unrealized Losses
(33)
(2)
Fair Value
25,896 
26,544 
Total fixed income securities |
U.S. government agency securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
2,619 
2,809 
Gross Unrealized Gains
Gross Unrealized Losses
(1)
Fair Value
2,622 
2,817 
Total fixed income securities |
Non-U.S. government and agency securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
1,104 
1,096 
Gross Unrealized Gains
Gross Unrealized Losses
(1)
Fair Value
1,104 
1,100 
Total fixed income securities |
Corporate debt securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
29,046 
24,044 
Gross Unrealized Gains
177 
263 
Gross Unrealized Losses
(60)
(15)
Fair Value
29,163 
24,292 
Total fixed income securities |
U.S. agency mortgage-backed securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
2,069 
1,846 
Gross Unrealized Gains
16 
22 
Gross Unrealized Losses
(2)
Fair Value
2,083 
1,868 
Publicly traded equity securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
1,225 
1,211 
Gross Unrealized Gains
346 
333 
Gross Unrealized Losses
(54)
(40)
Fair Value
$ 1,517 
$ 1,504 
Investments (Available-For-Sale Investments With Gross Unrealized Losses) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
$ 22,758 
$ 5,480 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(147)
(49)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
675 
1,208 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(4)
(8)
TOTAL, Fair Value
23,433 
6,688 
TOTAL, Gross Unrealized Losses
(151)
(57)
Publicly traded equity securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
291 
188 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(53)
(40)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(1)
TOTAL, Fair Value
294 
188 
TOTAL, Gross Unrealized Losses
(54)
(40)
Total fixed income securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
22,467 
5,292 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(94)
(9)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
672 
1,208 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(3)
(8)
TOTAL, Fair Value
23,139 
6,500 
TOTAL, Gross Unrealized Losses
(97)
(17)
Total fixed income securities |
U.S. government securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
11,766 
2,414 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(33)
(2)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
100 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
TOTAL, Fair Value
11,866 
2,414 
TOTAL, Gross Unrealized Losses
(33)
(2)
Total fixed income securities |
U.S. government agency securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
596 
144 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(1)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
TOTAL, Fair Value
596 
144 
TOTAL, Gross Unrealized Losses
(1)
Total fixed income securities |
Non-U.S. government and agency securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
498 
61 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(1)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
TOTAL, Fair Value
498 
61 
TOTAL, Gross Unrealized Losses
(1)
Total fixed income securities |
Corporate debt securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
9,013 
2,499 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(57)
(7)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
572 
1,208 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(3)
(8)
TOTAL, Fair Value
9,585 
3,707 
TOTAL, Gross Unrealized Losses
(60)
(15)
Total fixed income securities |
U.S. agency mortgage-backed securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
594 
174 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(2)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
TOTAL, Fair Value
594 
174 
TOTAL, Gross Unrealized Losses
$ (2)
$ 0 
Investments (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 29, 2016
entity
Oct. 24, 2015
Jul. 30, 2016
Schedule of Investments [Line Items]
 
 
 
Other than temporary impairment, credit losses recognized in earnings, credit losses on debt securities held
$ 0 
 
 
Average daily balance of securities lending
1,500,000,000 
500,000,000 
 
Fair value of securities received as collateral That can be resold or repledged, percentage
102.00% 
102.00% 
 
Secured lending transactions outstanding
 
Number of variable interest entities required to be consolidated
 
 
Investments in privately held companies
991,000,000 
 
1,003,000,000 
Funding commitments
189,000,000 
 
 
Variable Interest Entity, Not Primary Beneficiary
 
 
 
Schedule of Investments [Line Items]
 
 
 
Investments in privately held companies
$ 609,000,000 
 
 
Investments (Maturities Of Fixed Income Securities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Schedule of Investments [Line Items]
 
Amortized Cost
$ 60,743 
Fair Value
60,868 
Less than 1 year
 
Schedule of Investments [Line Items]
 
Amortized Cost
12,967 
Fair Value
12,977 
Due in 1 to 2 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
17,042 
Fair Value
17,071 
Due in 2 to 5 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
25,125 
Fair Value
25,230 
Due after 5 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
3,540 
Fair Value
3,507 
Fixed Income Securities
 
Schedule of Investments [Line Items]
 
Amortized Cost
2,069 
Fair Value
$ 2,083 
Investments (Equity Method and Cost Method Investment) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Investments, Debt and Equity Securities [Abstract]
 
 
Equity method investments
$ 162 
$ 174 
Cost method investments
829 
829 
Total
$ 991 
$ 1,003 
Fair Value (Assets and Liabilities Measured At Fair Value On Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
$ 69,426 
$ 64,602 
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
292 
385 
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities
85 
54 
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
6,749 
6,049 
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
43 
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
29,163 
24,292 
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
25,896 
26,544 
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
2,622 
2,817 
Available-for-sale investments: |
Non-U.S. government and agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
1,104 
1,100 
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
2,083 
1,868 
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
1,517 
1,504 
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
8,266 
7,553 
Level 1 |
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 1 |
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities
Level 1 |
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
6,749 
6,049 
Level 1 |
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 1 |
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 1 |
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 1 |
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 1 |
Available-for-sale investments: |
Non-U.S. government and agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 1 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 1 |
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
1,517 
1,504 
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
61,160 
57,048 
Level 2 |
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
292 
384 
Level 2 |
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities
85 
54 
Level 2 |
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 2 |
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
43 
Level 2 |
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
29,163 
24,292 
Level 2 |
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
25,896 
26,544 
Level 2 |
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
2,622 
2,817 
Level 2 |
Available-for-sale investments: |
Non-U.S. government and agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
1,104 
1,100 
Level 2 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
2,083 
1,868 
Level 2 |
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities
Level 3 |
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Available-for-sale investments: |
Non-U.S. government and agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
Level 3 |
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets
$ 0 
$ 0 
Fair Value (Fair Value, Nonrecurring Measurement) (Details) (Level 3, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
 
 
Gains (losses) for assets measured on a nonrecurring basis
$ (89)
$ (17)
Investments in privately held companies (impaired) |
Other Income (loss), net
 
 
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
 
 
Gains (losses) for assets measured on a nonrecurring basis
(47)
(17)
Purchased intangible assets (impaired) |
Cost of Sales and Operating Expenses
 
 
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
 
 
Gains (losses) for assets measured on a nonrecurring basis
$ (42)
$ 0 
Fair Value (Additional Information) (Details) (USD $)
Oct. 29, 2016
Jul. 30, 2016
Oct. 29, 2016
Level 3
Jul. 30, 2016
Level 3
Oct. 29, 2016
Level 2
Jul. 30, 2016
Level 2
Oct. 29, 2016
Remaining carrying value of impaired investments
Level 3
Oct. 24, 2015
Remaining carrying value of impaired investments
Level 3
Oct. 29, 2016
Remaining carrying value of impaired purchased intangibles
Level 3
Oct. 24, 2015
Remaining carrying value of impaired purchased intangibles
Level 3
Oct. 29, 2016
Investments In Privately Held Companies
Jul. 30, 2016
Investments In Privately Held Companies
Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Remaining carrying value of the investments that were impaired
 
 
 
 
 
 
$ 46,000,000 
$ 6,000,000 
$ 11,000,000 
$ 0 
 
 
Carrying value of cost method investments in privately held companies
 
 
 
 
 
 
 
 
 
 
829,000,000 
829,000,000 
Long term loan receivables and financed service contracts and others carrying value
 
 
3,300,000,000 
2,600,000,000 
 
 
 
 
 
 
 
 
Senior notes, fair value
 
 
 
 
36,500,000,000 
30,900,000,000 
 
 
 
 
 
 
Senior notes, carrying value
$ 34,789,000,000 
$ 28,642,000,000 
 
 
$ 34,800,000,000 
$ 28,600,000,000 
 
 
 
 
 
 
Borrowings (Schedule Of Short-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Short-term Debt [Line Items]
 
 
Amount
$ 4,155 
$ 4,160 
Current portion of long-term debt
 
 
Short-term Debt [Line Items]
 
 
Amount
4,155 
4,159 
Effective Rate
1.08% 
0.97% 
Other notes and borrowings
 
 
Short-term Debt [Line Items]
 
 
Amount
$ 0 
$ 1 
Effective Rate
0.00% 
2.08% 
Borrowings (Additional Information) (Details) (USD $)
0 Months Ended
Oct. 29, 2016
Jul. 30, 2016
May 15, 2015
Unsecured revolving credit facility
May 15, 2015
Unsecured revolving credit facility
Federal fund rate plus 0.50% [Member]
May 15, 2015
Unsecured revolving credit facility
One-month LIBOR plus 1%
May 15, 2015
Unsecured revolving credit facility
Eurodollar
Oct. 29, 2016
Derivatives designated as hedging instruments:
Interest rate derivatives
Jul. 30, 2016
Derivatives designated as hedging instruments:
Interest rate derivatives
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
Commercial paper, maximum borrowing limit
$ 3,000,000,000.0 
 
 
 
 
 
 
 
Commercial paper
 
 
 
 
 
 
Derivative, notional amount
15,179,000,000 
15,414,000,000 
 
 
 
 
9,900,000,000 
9,900,000,000 
Current borrowing capacity
 
 
3,000,000,000 
 
 
 
 
 
Interest rate based on % above pre-defined market rate
 
 
 
0.50% 
1.00% 
0.00% 
 
 
Additional credit facility upon agreement
 
 
2,000,000,000.0 
 
 
 
 
 
Line of credit facility, amount outstanding
$ 0 
 
 
 
 
 
 
 
Borrowings (Schedule Of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 29, 2016
Jul. 30, 2016
Oct. 29, 2016
Floating Rate Notes 3-month Libor Plus 0.28% Due March 2017
Jul. 30, 2016
Floating Rate Notes 3-month Libor Plus 0.28% Due March 2017
Oct. 29, 2016
Floating Rate Notes 3-month Libor Plus 0.60% Due February 2018
Jul. 30, 2016
Floating Rate Notes 3-month Libor Plus 0.60% Due February 2018
Oct. 29, 2016
Floating Rate Notes 3-month Libor Plus 0.31% Due June 2018
Jul. 30, 2016
Floating Rate Notes 3-month Libor Plus 0.31% Due June 2018
Oct. 29, 2016
Floating Rate Notes 3-month Libor Plus 0.50% Due March 2019
Jul. 30, 2016
Floating Rate Notes 3-month Libor Plus 0.50% Due March 2019
Oct. 29, 2016
Floating Rate Notes 3-month Libor Plus 0.34% Due September 2019
Jul. 30, 2016
Floating Rate Notes 3-month Libor Plus 0.34% Due September 2019
Oct. 29, 2016
Fixed-Rate Notes, 1.1%, Due March 2017
Jul. 30, 2016
Fixed-Rate Notes, 1.1%, Due March 2017
Oct. 29, 2016
Fixed-Rate Notes, 3.15%, Due March 2017
Jul. 30, 2016
Fixed-Rate Notes, 3.15%, Due March 2017
Oct. 29, 2016
Fixed Rate Notes, 1.4%, Due February 28, 2018
Jul. 30, 2016
Fixed Rate Notes, 1.4%, Due February 28, 2018
Oct. 29, 2016
Fixed rate notes 1.65% due June 2018
Jul. 30, 2016
Fixed rate notes 1.65% due June 2018
Oct. 29, 2016
Fixed-Rate Notes, 4.95%, Due February 2019
Jul. 30, 2016
Fixed-Rate Notes, 4.95%, Due February 2019
Oct. 29, 2016
Fixed-Rate Notes, 1.60%, Due February 2019
Jul. 30, 2016
Fixed-Rate Notes, 1.60%, Due February 2019
Oct. 29, 2016
Fixed-Rate Notes, 2.125%, Due March 2019
Jul. 30, 2016
Fixed-Rate Notes, 2.125%, Due March 2019
Oct. 29, 2016
Fixed-Rate Notes, 1.40%, Due September 2019
Jul. 30, 2016
Fixed-Rate Notes, 1.40%, Due September 2019
Oct. 29, 2016
Fixed-Rate Notes, 4.45%, Due January 2020
Jul. 30, 2016
Fixed-Rate Notes, 4.45%, Due January 2020
Oct. 29, 2016
Fixed-Rate Notes, 2.45%, Due June 2020
Jul. 30, 2016
Fixed-Rate Notes, 2.45%, Due June 2020
Oct. 29, 2016
Fixed-Rate Notes, 2.2%, Due February 2021
Jul. 30, 2016
Fixed-Rate Notes, 2.2%, Due February 2021
Oct. 29, 2016
Fixed-Rate Notes, 2.90%, Due March 2021
Jul. 30, 2016
Fixed-Rate Notes, 2.90%, Due March 2021
Oct. 29, 2016
Fixed-Rate Notes, 1.85%, Due September 2021
Jul. 30, 2016
Fixed-Rate Notes, 1.85%, Due September 2021
Oct. 29, 2016
Fixed-Rate Notes, 3.0 %, Due June 15, 2022
Jul. 30, 2016
Fixed-Rate Notes, 3.0 %, Due June 15, 2022
Oct. 29, 2016
Fixed-Rate Notes, 2.6%, Due February, 2023
Jul. 30, 2016
Fixed-Rate Notes, 2.6%, Due February, 2023
Oct. 29, 2016
Fixed-Rate Notes, 2.20%, Due September 2023
Jul. 30, 2016
Fixed-Rate Notes, 2.20%, Due September 2023
Oct. 29, 2016
Fixed-Rate Notes,3.625%, Due March 2024
Jul. 30, 2016
Fixed-Rate Notes,3.625%, Due March 2024
Oct. 29, 2016
Fixed-Rate Notes,3.5%, Due June 15, 2025
Jul. 30, 2016
Fixed-Rate Notes,3.5%, Due June 15, 2025
Oct. 29, 2016
Fixed-Rate Notes,2.95%, Due February, 2026
Jul. 30, 2016
Fixed-Rate Notes,2.95%, Due February, 2026
Oct. 29, 2016
Fixed-Rate Notes, 2.50%, Due September 2026
Jul. 30, 2016
Fixed-Rate Notes, 2.50%, Due September 2026
Oct. 29, 2016
Fixed-Rate Notes, 5.9%, Due February 2039
Jul. 30, 2016
Fixed-Rate Notes, 5.9%, Due February 2039
Oct. 29, 2016
Fixed-Rate Notes, 5.5%, Due January 2040
Jul. 30, 2016
Fixed-Rate Notes, 5.5%, Due January 2040
Sep. 30, 2016
Aggregate debt issuance in February 2016 [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus this Percentage
 
 
0.28% 
0.28% 
0.60% 
0.60% 
0.31% 
0.31% 
0.50% 
0.50% 
0.34% 
0.34% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount
 
 
$ 1,000 
$ 1,000 
$ 1,000 
$ 1,000 
$ 900 
$ 900 
$ 500 
$ 500 
$ 500 
$ 0 
$ 2,400 
$ 2,400 
$ 750 
$ 750 
$ 1,250 
$ 1,250 
$ 1,600 
$ 1,600 
$ 2,000 
$ 2,000 
$ 1,000 
$ 1,000 
$ 1,750 
$ 1,750 
$ 1,500 
$ 0 
$ 2,500 
$ 2,500 
$ 1,500 
$ 1,500 
$ 2,500 
$ 2,500 
$ 500 
$ 500 
$ 2,000 
$ 0 
$ 500 
$ 500 
$ 500 
$ 500 
$ 750 
$ 0 
$ 1,000 
$ 1,000 
$ 500 
$ 500 
$ 750 
$ 750 
$ 1,500 
$ 0 
$ 2,000 
$ 2,000 
$ 2,000 
$ 2,000 
$ 6,250 
Effective Rate
 
 
1.18% 
1.03% 
1.48% 
1.32% 
1.23% 
1.03% 
1.40% 
1.23% 
1.24% 
0.00% 
0.93% 
0.87% 
1.42% 
1.22% 
1.47% 
1.47% 
1.72% 
1.72% 
4.78% 
4.76% 
1.67% 
1.67% 
1.14% 
1.08% 
1.48% 
0.00% 
3.29% 
3.25% 
2.54% 
2.54% 
2.30% 
2.30% 
1.31% 
1.24% 
1.90% 
0.00% 
1.56% 
1.51% 
2.68% 
2.68% 
2.27% 
0.00% 
1.42% 
1.36% 
1.72% 
1.67% 
3.01% 
3.01% 
2.55% 
0.00% 
6.11% 
6.11% 
5.67% 
5.67% 
 
Interest rate, stated percentage
 
 
 
 
 
 
 
 
 
 
 
 
1.10% 
1.10% 
3.15% 
3.15% 
1.40% 
1.40% 
1.65% 
1.65% 
4.95% 
4.95% 
1.60% 
1.60% 
2.125% 
2.125% 
1.40% 
1.40% 
4.45% 
4.45% 
2.45% 
2.45% 
2.20% 
2.20% 
2.90% 
2.90% 
1.85% 
1.85% 
3.00% 
3.00% 
2.60% 
2.60% 
2.20% 
2.20% 
3.625% 
3.625% 
3.50% 
3.50% 
2.95% 
2.95% 
2.50% 
2.50% 
5.90% 
5.90% 
5.50% 
5.50% 
 
Total
34,650 
28,400 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaccreted discount/issuance costs
(150)
(137)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hedge accounting fair value adjustments
289 
379 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
34,789 
28,642 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
4,155 
4,159 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
$ 30,634 
$ 24,483 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings (Schedule Of Future Principal Payments For Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Debt Disclosure [Abstract]
 
 
2017 (remaining nine months)
$ 4,150 
 
2018
4,750 
 
2019
5,250 
 
2020
6,000 
 
2021
3,000 
 
Thereafter
11,500 
 
Total
$ 34,650 
$ 28,400 
Derivative Instruments (Derivatives Recorded At Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
$ 292 
$ 385 
DERIVATIVE LIABILITIES
85 
54 
Derivatives designated as hedging instruments:
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
291 
384 
DERIVATIVE LIABILITIES
83 
53 
Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
83 
53 
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
11 
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
280 
366 
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other long-term liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
Derivatives not designated as hedging instruments:
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
DERIVATIVE LIABILITIES
Derivatives not designated as hedging instruments: |
Foreign currency derivatives |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
Derivatives not designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
Derivatives not designated as hedging instruments: |
Equity derivatives/warrants |
Other assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
Derivatives not designated as hedging instruments: |
Equity derivatives/warrants |
Other long-term liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
$ 0 
$ 0 
Derivative Instruments (Effect Of Derivative Instruments Designated As Cash Flow Hedges On Other Comprehensive Income And Consolidated Statements Of Operations Summary) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Derivatives designated as cash flow hedging instruments:
 
 
Derivative [Line Items]
 
 
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
$ (46)
$ (4)
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
(12)
(3)
Derivatives designated as cash flow hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
(46)
(4)
Derivatives designated as cash flow hedging instruments: |
Foreign currency derivatives |
Operating expenses
 
 
Derivative [Line Items]
 
 
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
(9)
(2)
Derivatives designated as cash flow hedging instruments: |
Foreign currency derivatives |
Cost of sales—service
 
 
Derivative [Line Items]
 
 
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
(3)
(1)
Derivatives designated as net investment hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
Derivatives designated as net investment hedging instruments: |
Foreign currency derivatives |
Other income (loss), net
 
 
Derivative [Line Items]
 
 
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
$ 0 
$ 0 
Derivative Instruments (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Oct. 29, 2016
Oct. 29, 2016
Fixed Income Securities
derivative
Jul. 30, 2016
Fixed Income Securities
derivative
Oct. 29, 2016
Derivatives designated as cash flow hedging instruments:
Derivative [Line Items]
 
 
 
 
Net derivative gains or losses to be reclassified from AOCI into earnings in next twelve months
$ 78 
 
 
 
Foreign currency cash flow hedges maturity period, maximum, months
 
 
 
24 months 
Number of interest rate derivatives held
 
 
Derivative Instruments (Effect Of Derivative Instruments Designated As Fair Value Hedges And Underlying Hedged Items On Consolidated Statements Of Operations) (Details) (Derivatives Designated as Fair Value Hedging Instruments, Interest rate derivatives, Interest expense, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Derivatives Designated as Fair Value Hedging Instruments |
Interest rate derivatives |
Interest expense
 
 
Hedge Underlying Gain Loss [Line Items]
 
 
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED
$ (91)
$ 127 
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
$ 90 
$ (125)
Derivative Instruments (Effect Of Derivative Instruments Not Designated As Hedges On Consolidated Statement Of Operations Summary) (Details) (Derivatives not designated as hedging instruments:, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
$ (18)
$ (2)
Foreign currency derivatives |
Other income (loss), net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
(16)
Total return swaps—deferred compensation |
Operating expenses
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
(3)
(16)
Equity derivatives/warrants |
Other income (loss), net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
$ 1 
$ 10 
Derivative Instruments (Schedule Of Notional Amounts Of Derivatives Outstanding) (Details) (USD $)
Oct. 29, 2016
Jul. 30, 2016
Derivative [Line Items]
 
 
Derivatives
$ 15,179,000,000 
$ 15,414,000,000 
Derivatives designated as hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
2,385,000,000 
2,683,000,000 
Derivatives designated as hedging instruments: |
Interest rate derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
9,900,000,000 
9,900,000,000 
Derivatives designated as hedging instruments: |
Net investment hedging instruments
 
 
Derivative [Line Items]
 
 
Derivatives
290,000,000 
298,000,000 
Derivatives not designated as hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
2,107,000,000 
2,057,000,000 
Derivatives not designated as hedging instruments: |
Total return swaps—deferred compensation
 
 
Derivative [Line Items]
 
 
Derivatives
$ 497,000,000 
$ 476,000,000 
Derivative Instruments (Offsetting of Derivative Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
Gross Amount of Recognized, Assets
$ 292 
$ 385 
Gross Amounts Offset, Assets
Net Amounts Presented, Assets
292 
385 
Gross Derivative Amounts, Assets
(30)
(23)
Cash Collateral, Assets
(242)
(305)
Net Amount, Assets
20 
57 
Gross Amount of Recognized, Liabilities
85 
54 
Gross Amounts Offset, Liabilities
Net Amount Presented, Liabilities
85 
54 
Gross Derivative Amounts, Liabilities
(30)
(23)
Cash Collateral, Liabilities
Net Amount, Liabilities
$ 55 
$ 31 
Commitments and Contingencies (Schedule Of Future Minimum Lease Payments Under All Noncancelable Operating Leases) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Commitments and Contingencies Disclosure [Abstract]
 
2017 (remaining nine months)
$ 280 
2018
292 
2019
178 
2020
128 
2021
76 
Thereafter
162 
Total
$ 1,116 
Commitments and Contingencies (Additional Information) (Details) (USD $)
3 Months Ended 0 Months Ended 12 Months Ended 3 Months Ended 27 Months Ended 39 Months Ended 3 Months Ended 12 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Jul. 30, 2016
May 12, 2016
SRI International
Sep. 4, 2014
SRI International
Pending Litigation
patent
Oct. 29, 2016
Maximum
Oct. 29, 2016
Minimum
Oct. 29, 2016
Insieme Networks Inc
Oct. 24, 2015
Insieme Networks Inc
Jul. 27, 2013
Insieme Networks Inc
Apr. 28, 2012
Insieme Networks Inc
Oct. 29, 2016
Insieme Networks Inc
Oct. 29, 2016
Insieme Networks Inc
Oct. 29, 2016
Insieme Networks Inc
Including compensation that has been expensed through current reporting period
Maximum
Jan. 25, 2014
Supplier Component Remediation Liability
Oct. 29, 2016
Supplier Component Remediation Liability
Jul. 30, 2016
Supplier Component Remediation Liability
Oct. 26, 2013
Supplier Component Remediation Liability
Jul. 30, 2016
Supplier Component Remediation Liability
Cost of Goods, Product Line
Jul. 25, 2015
Supplier Component Remediation Liability
Cost of Goods, Product Line
Contingency [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase commitments
$ 3,920,000,000 
 
$ 3,896,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability for purchase commitments
161,000,000 
 
159,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future compensation expense & contingent consideration, maximum
299,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable interest entities investment
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
Ownership percentage as a result of investment
 
 
 
 
 
 
 
 
 
83.00% 
 
 
 
 
 
 
 
 
 
 
Compensation expense related to acquisitions
 
 
 
 
 
 
 
20,000,000 
51,000,000 
 
 
803,000,000 
 
 
 
 
 
 
 
 
Commitments and contingencies
   
 
   
 
 
 
 
 
 
 
 
 
 
834,000,000 
 
265,000,000 
276,000,000 
63,000,000 
 
 
Payments to acquire additional interest in subsidiaries
 
 
 
 
 
 
 
323,000,000 
291,000,000 
 
 
 
712,000,000 
 
 
 
 
 
 
 
Warranty period for products, in days
 
 
 
 
 
 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warranty period for products, in years
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Channel partners revolving short-term financing payment term, in days
 
 
 
 
 
90 days 
60 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
Volume of channel partner financing
6,900,000,000 
6,900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance of the channel partner financing subject to guarantees
1,000,000,000 
 
1,100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
End user lease and loan term, in years
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing provided by third parties for leases and loans on which the Company has provided guarantees
6,000,000 
23,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charge to product cost of sales
3,403,000,000 
3,853,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
655,000,000 
 
 
 
 
 
Adjustments to product cost of sales
10,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
74,000,000 
164,000,000 
Brazilian authority claim of import tax evasion by importer tax portion
253,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer interest portion
1,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer penalties portion
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of allegedly infringed patents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Damages awarded, value
 
 
 
$ 23,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies (Schedule of Other Commitments) (Details) (Acquisition, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Acquisition
 
 
Contingency [Line Items]
 
 
Compensation expense related to acquisitions
$ 64 
$ 73 
Commitments and Contingencies (Schedule Of Product Warranty Liability) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
 
 
Balance at beginning of period
$ 414 
$ 449 
Provisions for warranty issued
176 
160 
Adjustments for pre-existing warranties
(10)
Settlements
(177)
(166)
Balance at end of period
$ 413 
$ 433 
Commitments and Contingencies (Schedule of Financing Guarantees Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
$ 336 
$ 377 
Deferred revenue associated with financing guarantees:
(147)
(161)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
189 
216 
Channel partner
 
 
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
248 
281 
Deferred revenue associated with financing guarantees:
(77)
(85)
End user
 
 
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
88 
96 
Deferred revenue associated with financing guarantees:
$ (70)
$ (76)
Shareholders' Equity (Additional Information) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Class of Stock [Line Items]
 
 
Cash dividends paid per common share (in dollars per share)
$ 0.26 
$ 0.21 
Payments of dividends
$ 1,300,000,000 
$ 1,068,000,000 
Authorized common stock repurchase amount
112,000,000,000 
 
Remaining authorized repurchase amount
14,400,000,000 
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
13 
15 
Payments related to tax withholding for share-based compensation
$ 401,000,000 
$ 382,000,000 
Shareholders' Equity (Stock Repurchase Program) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 29, 2016
Stock repurchase program
Jul. 30, 2016
Stock repurchase program
Shares Repurchased
 
 
 
Cumulative Shares Repurchased, Beginning balance (in shares)
4,591 
 
 
Repurchase of common stock under the stock repurchase program, Shares Repurchased (in shares)
32 
 
 
Cumulative Shares Repurchased, Ending balance (in shares)
4,623 
 
 
Weighted- Average Price per Share
 
 
 
Cumulative Weighted-Average Price per Share, Beginning balance (in dollars per share)
$ 21.04 
 
 
Repurchase of common stock under the stock repurchase program, Weighted-Average Price per Share (in dollars per share)
$ 31.12 
 
 
Cumulative Weighted-Average Price per Share, Ending balance (in dollars per share)
$ 21.11 
 
 
Amount Repurchased
 
 
 
Cumulative Amount Repurchased, Beginning balance
$ 96,597 
 
 
Repurchase of common stock under the stock repurchase program, Amount Repurchased
1,001 
 
 
Cumulative Amount Repurchased, Ending balance
97,598 
 
 
Class of Stock [Line Items]
 
 
 
Stock repurchases pending settlement
 
$ 23 
$ 45 
Employee Benefit Plans (Additional Information) (Details) (USD $)
In Billions, except Share data, unless otherwise specified
3 Months Ended 3 Months Ended 3 Months Ended
Oct. 29, 2016
stock_incentive_plan
Oct. 28, 2016
Jul. 30, 2016
Oct. 29, 2016
2005 Plan
Oct. 29, 2016
2005 Plan
Stock awards subsequent to November 12, 2009
Nov. 12, 2009
2005 Plan
Stock awards subsequent to November 12, 2009
Oct. 29, 2016
2005 Plan
Stock awards subsequent to November 12, 2009
Maximum
Oct. 29, 2016
2005 Plan
Stock awards prior to November 12, 2009
Maximum
Oct. 29, 2016
2005 Plan
Employee Stock Option
Oct. 29, 2016
2005 Plan
Employee Stock Option
Minimum
Oct. 29, 2016
2005 Plan
Employee Stock Option
Maximum
Oct. 29, 2016
2005 Plan
Time based stock award
Minimum
Oct. 29, 2016
2005 Plan
Time based stock award
Maximum
Oct. 29, 2016
2005 Plan
Performance base and Market base RSU
Oct. 29, 2016
2005 Plan
Performance based RSU based on Financial or nonFinancial operating goal [Member]
Minimum
Oct. 29, 2016
2005 Plan
Performance based RSU based on Financial or nonFinancial operating goal [Member]
Maximum
Oct. 29, 2016
2005 Plan
PRSU based on financial performance metrics
Minimum
Oct. 29, 2016
2005 Plan
PRSU based on financial performance metrics
Maximum
Oct. 29, 2016
2005 Plan
PRSU based on TSR
Minimum
Oct. 29, 2016
2005 Plan
PRSU based on TSR
Maximum
Oct. 29, 2016
2005 Plan
PRSU based on nonfinancial operating goals
Minimum
Oct. 29, 2016
2005 Plan
PRSU based on nonfinancial operating goals
Maximum
Oct. 29, 2016
Employee Stock Purchase Plan
Oct. 24, 2015
Employee Stock Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of stock incentive plans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reserved for issuance (in shares)
 
 
 
694,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
621,000,000 
 
Reduction in shares available for issuance pursuant to November 12, 2009 amendment (in shares)
 
 
 
 
1.5 
1.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise price as a percentage of market value for Options
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expiration date for stock options and stock appreciation rights
 
 
 
 
 
 
10 years 
9 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24 months 
 
Share-based compensation award vesting rights, percentage
 
 
 
 
 
 
 
 
 
20.00% 
25.00% 
20.00% 
25.00% 
 
 
 
0.00% 
150.00% 
0.00% 
150.00% 
0.00% 
100.00% 
 
 
Award vesting period
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award requisite service period
 
 
 
3 years 
 
 
 
 
 
36 months 
48 months 
 
 
3 years 
6 months 
3 years 
 
 
 
 
 
 
 
 
Shares eligible for employees purchase, percentage of discount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.00% 
 
Shares were issued under the Purchase Plan (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares available for issuance (in shares)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
123,000,000 
 
Total compensation cost related to unvested share-based awards
$ 2.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected period of recognition of compensation cost, years
2 years 6 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing stock price (in dollars per share)
 
$ 30.59 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In-the-money exercisable stock option shares (in shares)
8,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number Exercisable (in shares)
8,000,000 
 
64,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted- average exercise price per share (in dollars per share)
$ 12.43 
 
$ 29.66 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PRSU allocation between Financial operating goals and TSR
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Employee Benefit Plans (Summary Of Share-Based Compensation Expense) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
$ 372 
$ 376 
Income tax benefit for share-based compensation
105 
95 
Cost of sales—product
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
21 
13 
Cost of sales—service
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
33 
38 
Cost of sales
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
54 
51 
Research and development
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
126 
114 
Sales and marketing
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
140 
139 
General and administrative
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
49 
57 
Restructuring and other
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
15 
Operating expenses
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
$ 318 
$ 325 
Employee Benefit Plans (Summary of Share-Based Awards available for Grant) (Details)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 29, 2016
Jul. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
 
Balance, beginning of period (in shares)
242 
276 
Restricted stock, stock units, and other share-based awards granted (in shares)
(16)
(96)
Share-based awards canceled/forfeited/expired (in shares)
66 
30 
Shares withheld for taxes and not issued (in shares)
19 
30 
Other (in shares)
 
Balance, end of period (in shares)
311 
242 
Employee Benefit Plans (Summary Of Restricted Stock And Stock Unit Activity) (Details) (Restricted Stock/Stock Units, USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 29, 2016
Jul. 30, 2016
Restricted Stock/Stock Units
 
 
Restricted Stock and Stock Unit Activity [Roll Forward]
 
 
Beginning balance, Restricted Stock/Stock Units (in shares)
145,000,000 
143,000,000 
Granted and assumed (in shares)
11,000,000 
70,000,000 
Vested (in shares)
(36,000,000)
(54,000,000)
Canceled/forfeited (in shares)
(7,000,000)
(14,000,000)
Ending balance, Restricted Stock/Stock Units (in shares)
113,000,000 
145,000,000 
Beginning balance, Weighted-Average Grant-Date Fair Value per Share (in dollars per share)
$ 24.26 
$ 22.08 
Granted and assumed, Weighted-Average Grant-Date Fair Value per Share (in dollars per share)
$ 28.85 
$ 25.69 
Vested, Weighted-Average Grant-Date Fair Value per Share (in dollars per share)
$ 22.16 
$ 20.68 
Canceled/forfeited, Weighted-Average Grant-Date Fair Value per Share (in dollars per share)
$ 24.62 
$ 22.86 
Ending balance, Weighted-Average Grant-Date Fair Value per Share (in dollars per share)
$ 25.36 
$ 24.26 
Vested, Aggregate Fair Value
$ 1,120 
$ 1,428 
Employee Benefit Plans (Summary Of Stock Option Activity) (Details) (USD $)
3 Months Ended 12 Months Ended
Oct. 29, 2016
Jul. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Beginning balance, Number Outstanding, options (in shares)
73,000,000 
103,000,000 
Assumed from acquisitions (in shares)
1,000,000 
18,000,000 
Exercised (in shares)
(4,000,000)
(32,000,000)
Canceled/forfeited/expired (in shares)
(55,000,000)
(16,000,000)
Ending balance, Number Outstanding, options (in shares)
15,000,000 
73,000,000 
Weighted-Average Exercise Price per Share, Beginning Balance (in dollars per share)
$ 26.78 
$ 28.68 
Assumed from acquisitions, Weighted-Average Exercise Price per Share (in dollars per share)
$ 1.59 
$ 5.17 
Exercised, Weighted-Average Exercise Price per Share (in dollars per share)
$ 19.92 
$ 19.22 
Canceled/forfeited/expired, Weighted-Average Exercise Price per Share (in dollars per share)
$ 32.02 
$ 30.01 
Weighted-Average Exercise Price per Share, Ending Balance (in dollars per share)
$ 9.10 
$ 26.78 
Employee Benefit Plans (Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Jul. 30, 2016
Jul. 25, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
15,000,000 
73,000,000 
103,000,000 
Weighted- Average Remaining Contractual Life (in Years)
5 years 7 months 6 days 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 9.10 
$ 26.78 
$ 28.68 
Aggregate Intrinsic Value (Outstanding Options)
$ 327 
 
 
Number Exercisable (in shares)
8,000,000 
64,000,000 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 12.43 
$ 29.66 
 
Aggregate Intrinsic Value (Exercisable Options)
138 
 
 
$ 0.01 – 20.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
12,000,000 
 
 
Weighted- Average Remaining Contractual Life (in Years)
6 years 7 months 6 days 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 5.60 
 
 
Aggregate Intrinsic Value (Outstanding Options)
316 
 
 
Number Exercisable (in shares)
5,000,000 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 5.35 
 
 
Aggregate Intrinsic Value (Exercisable Options)
127 
 
 
$ 20.01 – 25.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
1,000,000 
 
 
Weighted- Average Remaining Contractual Life (in Years)
3 months 18 days 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 23.37 
 
 
Aggregate Intrinsic Value (Outstanding Options)
 
 
Number Exercisable (in shares)
1,000,000 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 23.37 
 
 
Aggregate Intrinsic Value (Exercisable Options)
 
 
$ 25.01 – 30.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
2,000,000 
 
 
Weighted- Average Remaining Contractual Life (in Years)
4 months 24 days 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 26.64 
 
 
Aggregate Intrinsic Value (Outstanding Options)
 
 
Number Exercisable (in shares)
2,000,000 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 26.64 
 
 
Aggregate Intrinsic Value (Exercisable Options)
$ 8 
 
 
Minimum |
$ 0.01 – 20.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 0.01 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 0.01 
 
 
Minimum |
$ 20.01 – 25.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 20.01 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 20.01 
 
 
Minimum |
$ 25.01 – 30.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 25.01 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 25.01 
 
 
Maximum |
$ 0.01 – 20.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 20 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 20 
 
 
Maximum |
$ 20.01 – 25.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 25 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 25 
 
 
Maximum |
$ 25.01 – 30.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 30 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 30 
 
 
Comprehensive Income (AOCI components) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Jul. 30, 2016
Oct. 29, 2016
Net Unrealized Gains (Losses) on Available-for-Sale Investments
Oct. 24, 2015
Net Unrealized Gains (Losses) on Available-for-Sale Investments
Oct. 29, 2016
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
Oct. 24, 2015
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
Oct. 29, 2016
Cumulative Translation Adjustment and Actuarial Gains and Losses
Oct. 24, 2015
Cumulative Translation Adjustment and Actuarial Gains and Losses
Oct. 29, 2016
Accumulated Other Comprehensive Income (Loss)
Oct. 24, 2015
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$ 63,406 
$ 63,586 
$ 413 
$ 310 
$ (59)
$ (16)
$ (680)
$ (233)
$ (326)
$ 61 
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
 
 
(210)
(155)
(46)
(4)
(26)
(178)
(282)
(337)
(Gains) losses reclassified out of AOCI
 
 
(15)
12 
(3)
Tax benefit (expense)
 
 
86 
56 
(1)
(39)
87 
19 
Balance, end of period
$ 63,406 
$ 63,586 
$ 274 
$ 212 
$ (91)
$ (15)
$ (707)
$ (449)
$ (524)
$ (252)
Comprehensive Income (Reclassification out of other comprehensive income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Total amounts reclassified out of AOCI
$ 3 
$ (5)
Cumulative translation adjustment and actuarial gains and losses
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
(Gains) losses reclassified out of AOCI
(1)
Reclassification out of Accumulated Other Comprehensive Income |
Net unrealized gains and losses on available-for-sale investments
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Other income (loss), net
15 
(1)
Reclassification out of Accumulated Other Comprehensive Income |
Net unrealized gains and losses on cash flow hedging instruments |
Cash Flow Hedging
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Operating expenses
(9)
(2)
Cost of sales—service
(3)
(1)
Net unrealized gains and losses on cash flow hedging instruments
$ (12)
$ (3)
Income Taxes (Income Before Provision For Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Income Tax Disclosure [Abstract]
 
 
Income before provision for income taxes
$ 2,953 
$ 3,137 
Provision for income taxes
$ 631 
$ 707 
Effective tax rate
21.40% 
22.50% 
Income Taxes (Additional Information) (Details) (USD $)
Oct. 29, 2016
Income Tax Disclosure [Abstract]
 
Unrecognized tax benefits
$ 1,700,000,000 
Unrecognized tax benefits that would impact effective tax rate
1,300,000,000 
Unrecognized tax benefit that could be reduced in next 12 months
$ 150,000,000 
Segment Information and Major Customers (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Jul. 30, 2016
Segment Reporting Information [Line Items]
 
 
 
Number of geographic segments
 
 
Revenue, total
$ 12,352,000,000 
$ 12,682,000,000 
 
United States
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue, total
6,600,000,000 
6,900,000,000 
 
Cash and cash equivalents and investments
10,400,000,000 
 
5,900,000,000 
International
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Cash and cash equivalents and investments
$ 60,600,000,000 
 
$ 59,800,000,000 
Segment Information and Major Customers (Summary Of Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Segment Reporting Information [Line Items]
 
 
Revenue, total
$ 12,352 
$ 12,682 
Gross margin
7,884 
7,832 
Americas
 
 
Segment Reporting Information [Line Items]
 
 
Revenue, total
7,443 
7,792 
Gross margin
4,833 
4,943 
EMEA
 
 
Segment Reporting Information [Line Items]
 
 
Revenue, total
3,013 
3,094 
Gross margin
2,013 
1,989 
APJC
 
 
Segment Reporting Information [Line Items]
 
 
Revenue, total
1,896 
1,796 
Gross margin
1,204 
1,078 
Segment Reconciling Items
 
 
Segment Reporting Information [Line Items]
 
 
Gross margin
8,050 
8,010 
Intersegment Eliminations
 
 
Segment Reporting Information [Line Items]
 
 
Gross margin
$ (166)
$ (178)
Segment Information and Major Customers (Summary Of Net Revenue For Groups Of Similar Products And Services) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
$ 12,352 
$ 12,682 
Switching
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
3,716 
4,009 
NGN Routing
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
2,089 
1,969 
Collaboration
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
1,081 
1,115 
Data Center
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
834 
859 
Wireless
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
632 
646 
Security
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
540 
485 
Service Provider Video
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
271 
687 
Other
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
139 
74 
Product
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
9,302 
9,844 
Service
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
3,050 
2,838 
SP Video CPE Business
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
 
$ 411 
Segment Information and Major Customers (Property and Equipment Information for Geographic Areas) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 29, 2016
Jul. 30, 2016
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
$ 3,499 
$ 3,506 
United States
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
2,847 
2,822 
International
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
$ 652 
$ 684 
Net Income per Share (Calculation Of Basic And Diluted Net Income Per Share) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 29, 2016
Oct. 24, 2015
Earnings Per Share [Abstract]
 
 
Net income
$ 2,322 
$ 2,430 
Weighted-average shares—basic (in shares)
5,027 
5,080 
Effect of dilutive potential common shares (in shares)
39 
33 
Weighted-average shares—diluted (in shares)
5,066 
5,113 
Net income per share—basic (in dollars per share)
$ 0.46 
$ 0.48 
Net income per share—diluted (in dollars per share)
$ 0.46 
$ 0.48 
Antidilutive employee share-based awards, excluded (in shares)
67 
86