CISCO SYSTEMS, INC., 10-Q filed on 11/21/2017
Quarterly Report
Document and Entity Information
3 Months Ended
Oct. 28, 2017
Nov. 16, 2017
Document Documentand Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Oct. 28, 2017 
 
Document Fiscal Period Focus
Q1 
 
Document Fiscal Year Focus
2018 
 
Trading Symbol
CSCO 
 
Entity Registrant Name
CISCO SYSTEMS, INC. 
 
Entity Central Index Key
0000858877 
 
Current Fiscal Year End Date
--07-28 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
4,943,622,124 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Current assets:
 
 
Cash and cash equivalents
$ 11,043 
$ 11,708 
Investments
60,545 
58,784 
Accounts receivable, net of allowance for doubtful accounts of $193 at October 28, 2017 and $211 at July 29, 2017
4,206 
5,146 
Inventories
1,693 
1,616 
Financing receivables, net
5,038 
4,856 
Other current assets
1,555 
1,593 
Total current assets
84,080 
83,703 
Property and equipment, net
3,202 
3,322 
Financing receivables, net
4,876 
4,738 
Goodwill
30,233 
29,766 
Purchased intangible assets, net
2,677 
2,539 
Deferred tax assets
4,006 
4,239 
Other assets
1,448 
1,511 
TOTAL ASSETS
130,522 
129,818 
Current liabilities:
 
 
Short-term debt
10,239 
7,992 
Accounts payable
1,155 
1,385 
Income taxes payable
86 
98 
Accrued compensation
2,684 
2,895 
Deferred revenue
10,920 
10,821 
Other current liabilities
4,200 
4,392 
Total current liabilities
29,284 
27,583 
Long-term debt
25,684 
25,725 
Income taxes payable
883 
1,250 
Deferred revenue
7,645 
7,673 
Other long-term liabilities
1,476 
1,450 
Total liabilities
64,972 
63,681 
Commitments and contingencies (Note 12)
   
   
Cisco shareholders’ equity:
 
 
Preferred stock, no par value: 5 shares authorized; none issued and outstanding
0 
0 
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,951 and 4,983 shares issued and outstanding at October 28, 2017 and July 29, 2017, respectively
44,872 
45,253 
Retained earnings
20,647 
20,838 
Accumulated other comprehensive income (loss)
31 
46 
Total equity
65,550 
66,137 
TOTAL LIABILITIES AND EQUITY
$ 130,522 
$ 129,818 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Statement of Financial Position [Abstract]
 
 
Accounts receivable, allowance for doubtful accounts
$ 193 
$ 211 
Preferred stock, shares authorized (in shares)
5,000,000 
5,000,000 
Preferred stock, issued (in shares)
0 
0 
Preferred stock, outstanding (in shares)
0 
0 
Common stock, par value (in dollars per share)
$ 0.001 
$ 0.001 
Common stock, shares authorized (in shares)
20,000,000,000 
20,000,000,000 
Common stock, shares issued (in shares)
4,951,000,000 
4,983,000,000 
Common stock, shares outstanding (in shares)
4,951,000,000 
4,983,000,000 
Consolidated Statements Of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
REVENUE:
 
 
Product
$ 9,054 
$ 9,302 
Service
3,082 
3,050 
Total revenue
12,136 
12,352 
COST OF SALES:
 
 
Product
3,615 
3,403 
Service
1,094 
1,065 
Total cost of sales
4,709 
4,468 
GROSS MARGIN
7,427 
7,884 
OPERATING EXPENSES:
 
 
Research and development
1,567 
1,545 
Sales and marketing
2,334 
2,418 
General and administrative
557 
555 
Amortization of purchased intangible assets
61 
78 
Restructuring and other charges
152 
411 
Total operating expenses
4,671 
5,007 
OPERATING INCOME
2,756 
2,877 
Interest income
379 
295 
Interest expense
(235)
(198)
Other income (loss), net
62 
(21)
Interest and other income (loss), net
206 
76 
INCOME BEFORE PROVISION FOR INCOME TAXES
2,962 
2,953 
Provision for income taxes
568 
631 
NET INCOME
$ 2,394 
$ 2,322 
Net income per share:
 
 
Basic (in dollars per share)
$ 0.48 
$ 0.46 
Diluted (in dollars per share)
$ 0.48 
$ 0.46 
Shares used in per-share calculation:
 
 
Basic (in shares)
4,959 
5,027 
Diluted (in shares)
4,994 
5,066 
Cash dividends declared per common share (in dollars per share)
$ 0.29 
$ 0.26 
Consolidated Statements Of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 2,394 
$ 2,322 
Available-for-sale investments:
 
 
Change in net unrealized gains and losses, net of tax benefit (expense) of $(23) and $81 for the three months ended October 28, 2017 and October 29, 2016, respectively
(5)
(121)
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $10 and $5 for the three months ended October 28, 2017 and October 29, 2016, respectively
(23)
(10)
Total- Available-for-sale investments
(28)
(131)
Cash flow hedging instruments:
 
 
Change in unrealized gains and losses, net of tax benefit (expense) of $(1) and $3 for the three months ended October 28, 2017 and October 29, 2016, respectively
7 
(43)
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $2 and $(1) for the three months ended October 28, 2017 and October 29, 2016, respectively
(11)
11 
Total- Cash flow hedging instruments
(4)
(32)
Net change in cumulative translation adjustment and actuarial gains and losses net of tax benefit (expense) of $(2) and $(1) for the three months ended October 28, 2017 and October 29, 2016, respectively
17 
(27)
Other comprehensive income (loss)
(15)
(190)
Comprehensive income
2,379 
2,132 
Comprehensive (income) loss attributable to noncontrolling interests
0 
(8)
Comprehensive income attributable to Cisco Systems, Inc.
$ 2,379 
$ 2,124 
Consolidated Statements Of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Statement of Comprehensive Income [Abstract]
 
 
Change in net unrealized gains, tax benefit (expense)
$ (23)
$ 81 
Net (gains) losses reclassified into earnings, tax expense (benefit)
10 
5 
Change in unrealized gains and losses, tax benefit (expense)
(1)
3 
Net (gains) losses reclassified into earnings, tax expense (benefit)
2 
(1)
Net change in cumulative translation adjustment and actuarial gains and losses, tax benefit (expense)
$ (2)
$ (1)
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Cash flows from operating activities:
 
 
Net income
$ 2,394 
$ 2,322 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation, amortization, and other
566 
599 
Share-based compensation expense
392 
372 
Provision for receivables
(17)
15 
Deferred income taxes
178 
158 
Excess tax benefits from share-based compensation
0 
(91)
(Gains) losses on divestitures, investments and other, net
(56)
32 
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
Accounts receivable
957 
1,049 
Inventories
(80)
44 
Financing receivables
(333)
(900)
Other assets
8 
191 
Accounts payable
(235)
(63)
Income taxes, net
(419)
(440)
Accrued compensation
(215)
(333)
Deferred revenue
77 
462 
Other liabilities
(137)
(687)
Net cash provided by operating activities
3,080 
2,730 
Cash flows from investing activities:
 
 
Purchases of investments
(8,275)
(18,667)
Proceeds from sales of investments
2,682 
11,337 
Proceeds from maturities of investments
3,929 
2,449 
Acquisition of businesses, net of cash and cash equivalents acquired
(725)
(251)
Purchases of investments in privately held companies
(20)
(38)
Return of investments in privately held companies
81 
24 
Acquisition of property and equipment
(168)
(275)
Proceeds from sales of property and equipment
1 
2 
Other
0 
23 
Net cash used in investing activities
(2,495)
(5,396)
Cash flows from financing activities:
 
 
Issuances of common stock
9 
88 
Repurchases of common stock—repurchase program
(1,686)
(1,023)
Shares repurchased for tax withholdings on vesting of restricted stock units
(342)
(401)
Short-term borrowings, original maturities of 90 days or less, net
(2,498)
0 
Issuances of debt
5,482 
6,232 
Repayments of debt
(748)
(1)
Excess tax benefits from share-based compensation
0 
91 
Dividends paid
(1,436)
(1,300)
Other
(31)
(60)
Net cash provided by (used in) financing activities
(1,250)
3,618 
Net increase (decrease) in cash and cash equivalents
(665)
952 
Cash and cash equivalents, beginning of period
11,708 
7,631 
Cash and cash equivalents, end of period
11,043 
8,583 
Supplemental cash flow information:
 
 
Cash paid for interest
283 
248 
Cash paid for income taxes, net
$ 810 
$ 913 
Consolidated Statements Of Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
USD ($)
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. 30, 2016
$ 63,585 
 
$ 44,516 
$ 19,396 
$ (326)
$ 63,586 
$ (1)
Beginning balance (in shares) at Jul. 30, 2016
 
5,029,000,000 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
2,322 
 
 
2,322 
 
2,322 
 
Other comprehensive income (loss)
(190)
 
 
 
(198)
(198)
8 
Issuance of common stock (in shares)
 
40,000,000 
 
 
 
 
 
Issuance of common stock
88 
 
88 
 
 
88 
 
Repurchase of common stock (in shares)
 
(32,000,000)
 
 
 
 
 
Repurchase of common stock
(1,001)
 
(285)
(716)
 
(1,001)
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
(13,000,000)
(13,000,000)
 
 
 
 
 
Shares repurchased for tax withholdings on vesting of restricted stock units
(401)
 
(401)
 
 
(401)
 
Cash dividends declared
(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
6 
 
6 
 
 
6 
 
Ending Balance at Oct. 29, 2016
63,413 
 
44,236 
19,694 
(524)
63,406 
7 
Ending Balance (in shares) at Oct. 29, 2016
 
5,024,000,000 
 
 
 
 
 
Beginning balance at Jul. 29, 2017
66,137 
 
45,253 
20,838 
46 
66,137 
0 
Beginning balance (in shares) at Jul. 29, 2017
 
4,983,000,000 
 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
2,394 
 
 
2,394 
 
2,394 
 
Other comprehensive income (loss)
(15)
 
 
 
(15)
(15)
 
Issuance of common stock (in shares)
 
30,000,000 
 
 
 
 
 
Issuance of common stock
9 
 
9 
 
 
9 
 
Repurchase of common stock (in shares)
(51,000,000)
(51,000,000)
 
 
 
 
 
Repurchase of common stock
(1,620)
 
(462)
(1,158)
 
(1,620)
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
(11,000,000)
(11,000,000)
 
 
 
 
 
Shares repurchased for tax withholdings on vesting of restricted stock units
(342)
 
(342)
 
 
(342)
 
Cash dividends declared
(1,436)
 
 
(1,436)
 
(1,436)
 
Cumulative effect of adoption of accounting standard
9 
 
 
9 
 
9 
 
Share-based compensation
392 
 
392 
 
 
392 
 
Purchase acquisitions and other
22 
 
22 
 
 
22 
 
Ending Balance at Oct. 28, 2017
$ 65,550 
 
$ 44,872 
$ 20,647 
$ 31 
$ 65,550 
$ 0 
Ending Balance (in shares) at Oct. 28, 2017
 
4,951,000,000 
 
 
 
 
 
Consolidated Statements Of Equity (Parenthetical)
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Statement of Stockholders' Equity [Abstract]
 
 
Cash dividends declared (in dollars per share)
$ 0.29 
$ 0.26 
Supplemental Information
Supplemental Information
Supplemental Information
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of October 28, 2017, 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
4,760

 
$
25,407

 
$
76,516

 
$
101,923

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 2018 and fiscal 2017 are each 52-week fiscal years. 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 28, 2017 and for the three months ended October 28, 2017 and October 29, 2016 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 29, 2017 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 29, 2017.
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 28, 2017; the results of operations and the statements of comprehensive income, the statements of cash flows and equity for the three months ended October 28, 2017 and October 29, 2016, as applicable, have been made. The results of operations for the three months ended October 28, 2017 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
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. Cisco adopted this accounting standard update beginning the first quarter of fiscal 2018 on a prospective basis. This resulted in an overall decrease in the effective tax rate for the first quarter of fiscal 2018 due to recognition of excess tax benefits from share-based compensation. The application of this accounting standard update did not have a material impact on the Company's Consolidated Financial Statements.
(b) Recent Accounting Standards or Updates Not Yet Effective
Revenue Recognition In May 2014, the FASB issued a new accounting standard related to revenue recognition. The new standard will supersede nearly all U.S. GAAP on revenue recognition and eliminate industry-specific guidance. The underlying principle of the new standard is to recognize revenue when a customer obtains control of promised goods or services at an amount that reflects the consideration that is expected to be received in exchange for those goods or services. It also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers.
The standard allows two methods of adoption: i) retrospectively to each prior period presented (“full retrospective method”), or ii) retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption ("modified retrospective method"). Cisco will adopt the new standard using the modified retrospective method at the beginning of its first quarter of fiscal 2019.
Cisco is on schedule in establishing new accounting policies, implementing systems and processes (including more extensive use of estimates), and internal controls necessary to support the requirements of the new standard. Cisco has completed its preliminary assessment of the financial statement impact of the new standard, as discussed below, and will continue to update that assessment as more information becomes available.
The new standard will primarily impact Cisco’s revenue recognition for software arrangements and sales to two-tier distributors. In both areas, the new standard will accelerate the recognition of revenue. The table below details both the current and expected revenue recognition timing in these areas:
 
 
Current Revenue Standard
 
New Revenue Standard
Software arrangements:
 
 
 
 
Perpetual software licenses
 
Upfront
 
Upfront
Term software licenses
 
Ratable
 
Upfront
Security software licenses
 
Ratable
 
Ratable
Enterprise license agreements
 
Ratable
 
Upfront
Software support services
 
Ratable
 
Ratable
Software-as-a-service
 
Ratable
 
Ratable
Two-tier distribution
 
Sell-Through
 
Sell-In

Cisco expects that the new standard will not have a material impact on total revenue in the year of adoption based on two factors: i) revenue will be accelerated consistent with the changes in timing as indicated in the preceding table, largely offset by ii) the reduction of revenue from software arrangements where revenue was previously deferred in prior periods and recognized ratably over time as required under the current standard. This preliminary assessment is based on the types and number of revenue arrangements currently in place. The exact impact of the new standard will be dependent on facts and circumstances at adoption and could vary from quarter to quarter.
In addition to the above revenue recognition timing impacts, the new standard will require incremental contract acquisition costs (such as sales commissions) for customer contracts to be capitalized and amortized over the contract period. Currently, these costs are expensed as incurred.
Cisco will be required to record cumulative effect adjustments to retained earnings upon adopting the new standard at the beginning of fiscal 2019. The most significant of these adjustments will be to reduce product deferred revenue and increase retained earnings at the date of adoption to reflect revenue that would have been already recognized under the new standard related to existing arrangements. There will also be an adjustment to increase accounts receivable and reduce inventories related to the changes in revenue recognition on sales to two-tier distributors. Lastly, an adjustment will be recorded to establish an asset and increase retained earnings related to the requirement to capitalize incremental contract acquisition costs for customer contracts.
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 Cisco beginning in the first quarter of fiscal 2019, and early adoption is permitted. The most significant impact of this accounting standard update for Cisco is that it will require the remeasurement of investments that are not accounted for under the equity method at fair value at the end of each reporting period with the changes recorded to the income statement. While Cisco is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements, Cisco expects that this accounting standard update will increase the variability of other income (loss), net.
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 Cisco beginning in the first quarter of fiscal 2020 on a modified retrospective basis, and early adoption is permitted. Cisco 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 Cisco beginning in the first quarter of fiscal 2021 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. Cisco 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 Cisco beginning in the first quarter of fiscal 2019 on a retrospective basis, and early adoption is permitted. Cisco 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 Cisco beginning in the first quarter of fiscal 2019 on a modified retrospective basis, and early adoption is permitted. Cisco is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Restricted Cash in Statement of Cash Flow In November 2016, the FASB issued an accounting standard update that provides guidance on the classification and presentation of changes in restricted cash and cash equivalents in the statement of cash flows. The accounting standard update will be effective for Cisco beginning in the first quarter of fiscal 2019 using a retrospective transition method to each period presented, and early adoption is permitted. Cisco does not expect that this accounting standard update will have a material impact on its Consolidated Statements of Cash Flows.
Definition of a Business In January 2017, the FASB issued an accounting standard update that clarifies the definition of a business to help companies evaluate whether acquisition or disposal transactions should be accounted for as asset groups or as businesses. The accounting standard update will be effective for Cisco beginning in the first quarter of fiscal 2019 on a prospective basis. The impact of this accounting standard update will be fact dependent, but Cisco expects that some transactions that were previously accounted for as business combinations or disposal transactions will be accounted for as asset purchases or asset sales under the accounting standard update.
Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard update that removes Step 2 of the goodwill impairment test, which requires the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value. The accounting standard update will be effective for Cisco beginning in the first quarter of fiscal 2021 on a prospective basis, and early adoption is permitted. Cisco does not expect that this accounting standard update will impact its Consolidated Financial Statements.
Acquisitions and Divestitures
Acquisitions and Divestitures
Acquisitions and Divestitures
The Company completed three acquisitions during the three months ended October 28, 2017. A summary of the allocation of the total purchase consideration is presented as follows (in millions):
 
Purchase Consideration
 
Net Tangible Assets Acquired (Liabilities Assumed)
 
Purchased Intangible Assets
 
Goodwill
Viptela
$
497

 
$
(18
)
 
$
180

 
$
335

Springpath
248

 
(11
)
 
160

 
99

Other
16

 
1

 
6

 
9

Total
$
761

 
$
(28
)
 
$
346

 
$
443


On July 31, 2017, the Company completed its acquisition of privately held Viptela Inc. ("Viptela"), a provider of software-defined wide area networking products. Revenue from the Viptela acquisition has been included in the Company's Infrastructure Platforms product category.
On September 22, 2017, the Company completed its acquisition of privately held Springpath, Inc. ("Springpath"), a hyperconvergence software company. Revenue from the Springpath acquisition has been included in the Company's Infrastructure Platforms product category.
The total purchase consideration related to acquisitions completed during the three months ended October 28, 2017 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $11 million. Total transaction costs related to acquisition activities were $9 million and $1 million for the three months ended October 28, 2017 and October 29, 2016, respectively. These transaction costs were expensed as incurred in general and administrative expenses ("G&A") in the Consolidated Statements of Operations. The Company recognized a gain of $46 million during the three months ended October 28, 2017 in connection with its acquisitions. This gain was recognized in Other income (loss), net in the Consolidated Statement of Operations.
The 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 acquisitions completed during the three months ended October 28, 2017 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 28, 2017 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company’s financial results.
Pending Acquisition of BroadSoft On October 23, 2017, the Company announced a definitive agreement to acquire publicly held BroadSoft, Inc. ("BroadSoft"), a cloud calling and contact center solutions company. Under the terms of the agreement, the Company will pay $55 per share, in cash, in exchange for each share of BroadSoft, or an aggregate purchase price of approximately $1.9 billion net of cash and short-term investments. The acquisition is expected to close after completion of customary regulatory reviews.
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 28, 2017 (in millions):
 
Balance at
 
 
 
 
 
Balance at
 
July 29, 2017
 
Acquisitions
 
Other
 
October 28, 2017
Americas
$
18,691

 
$
323

 
$
15

 
$
19,029

EMEA
7,057

 
92

 
6

 
7,155

APJC
4,018

 
28

 
3

 
4,049

Total
$
29,766

 
$
443

 
$
24

 
$
30,233


“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 28, 2017 (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
Viptela
5.0
 
$
144

 
6.0
 
$
35

 
1.0
 
$
1

 
$
—

 
$
180

Springpath
4.0
 
157

 
0.0
 
—

 
0.0
 
—

 
3

 
160

Other
5.0
 
3

 
4.0
 
3

 
0.0
 
—

 
—

 
6

Total
 
 
$
304

 
 
 
$
38

 
 
 
$
1

 
$
3

 
$
346


The following tables present details of the Company’s purchased intangible assets (in millions): 
October 28, 2017
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,465

 
$
(1,514
)
 
$
1,951

Customer relationships
 
1,391

 
(818
)
 
573

Other
 
82

 
(44
)
 
38

Total purchased intangible assets with finite lives
 
4,938

 
(2,376
)
 
2,562

In-process research and development, with indefinite lives
 
115

 
—

 
115

       Total
 
$
5,053

 
$
(2,376
)
 
$
2,677

 
July 29, 2017
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,182

 
$
(1,386
)
 
$
1,796

Customer relationships
 
1,353

 
(765
)
 
588

Other
 
82

 
(38
)
 
44

Total purchased intangible assets with finite lives
 
4,617

 
(2,189
)
 
2,428

In-process research and development, with indefinite lives
 
111

 
—

 
111

       Total
 
$
4,728

 
$
(2,189
)
 
$
2,539


Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses.
Impairment charges related to purchased intangible assets were zero and $42 million for the three months ended October 28, 2017 and October 29, 2016, respectively. 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 for the three months ended October 29, 2016 was recorded to restructuring and other charges in connection with the Company's decision to exit certain products lines, and the corresponding elimination of future associated cash flows.
The following table presents the amortization of purchased intangible assets, including impairment charges (in millions):
 
Three Months Ended
 
October 28, 2017
 
October 29, 2016
Amortization of purchased intangible assets:
 
 
 
Cost of sales
$
154

 
$
129

Operating expenses
 
 


Amortization of purchased intangible assets
61

 
78

Restructuring and other charges
—

 
38

Total
$
215

 
$
245


The estimated future amortization expense of purchased intangible assets with finite lives as of October 28, 2017 is as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
647

2019
776

2020
559

2021
362

2022
145

Thereafter
73

   Total
$
2,562

Restructuring and Other Charges
Restructuring and Other Charges
Restructuring and Other Charges
The Company began taking action under a restructuring plan in August 2016 (the "Fiscal 2017 Plan"), in order to reinvest in its key priority areas. In the first quarter of fiscal 2018, the Company extended the Fiscal 2017 Plan to include an additional $150 million of estimated additional pretax charges for employee severance and other one-time termination benefits. The Company's estimated aggregate pretax charges of approximately $1.0 billion under the Fiscal 2017 Plan are primarily cash based and consist primarily of employee severance and other one-time termination benefits, and other associated costs. In connection with this plan, the Company has incurred cumulative charges of approximately $908 million and it expects the Fiscal 2017 Plan to be substantially completed by the end of the second quarter of fiscal 2018.
The following tables summarize the activities related to the restructuring and other charges (in millions):
 
 
FISCAL 2017 AND PRIOR PLANS
 
 
 
 
Employee
Severance
 
Other
 
Total
Liability as of July 29, 2017
 
$
74

 
$
43

 
$
117

Charges
 
145

 
7

 
152

Cash payments
 
(79
)
 
(16
)
 
(95
)
Non-cash items
 
—

 
(6
)
 
(6
)
Liability as of October 28, 2017
 
$
140

 
$
28

 
$
168

 
 
FISCAL 2017 AND PRIOR PLANS
 
 
 
 
Employee
Severance
 
Other
 
Total
Liability as of July 30, 2016
 
$
21

 
$
24

 
$
45

Charges
 
369

 
42

 
411

Cash payments
 
(269
)
 
(1
)
 
(270
)
Non-cash items
 
(4
)
 
(43
)
 
(47
)
Liability as of October 29, 2016
 
$
117

 
$
22

 
$
139

Balance Sheet Details
Balance Sheet Details
Balance Sheet Details
The following tables provide details of selected balance sheet items (in millions):
 
 
October 28,
2017
 
July 29,
2017
Inventories:
 
 
 
 
Raw materials
 
$
358

 
$
289

Work in Process
 
1

 
1

Finished goods:
 
 
 

Distributor inventory and deferred cost of sales
 
457

 
451

Manufactured finished goods
 
550

 
552

Total finished goods
 
1,007

 
1,003

Service-related spares
 
303

 
300

Demonstration systems
 
24

 
23

Total
 
$
1,693

 
$
1,616


Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,854

 
$
4,926

Computer equipment and related software
 
1,251

 
1,258

Production, engineering, and other equipment
 
5,681

 
5,707

Operating lease assets
 
352

 
356

Furniture and fixtures
 
393

 
572

Total gross property and equipment
 
12,531

 
12,819

Less: accumulated depreciation and amortization
 
(9,329
)
 
(9,497
)
Total
 
$
3,202

 
$
3,322


Deferred revenue:
 
 
 
 
Service
 
$
10,991

 
$
11,302

Product:
 

 
 
Deferred revenue related to recurring software and subscription offers
 
5,213

 
4,971

Other product deferred revenue
 
2,361

 
2,221

Total product deferred revenue
 
7,574

 
7,192

Total
 
$
18,565

 
$
18,494

Reported as:
 

 
 
Current
 
$
10,920

 
$
10,821

Noncurrent
 
7,645

 
7,673

Total
 
$
18,565

 
$
18,494

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. 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. Lease receivables consist of arrangements with terms of four years on average. Loan receivables represent financing arrangements related to the sale of the Company’s hardware, software, and services, which may include additional funding for other costs associated with network installation and integration of the Company’s products and services. Loan receivables generally have terms of up to three years. Financed service contracts include financing receivables related to technical support and advanced services. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one to three years.
A summary of the Company's financing receivables is presented as follows (in millions):
October 28, 2017
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,848

 
$
4,748

 
$
2,583

 
$
10,179

Residual value
167

 
—

 
—

 
167

Unearned income
(143
)
 
—

 
—

 
(143
)
Allowance for credit loss
(160
)
 
(106
)
 
(23
)
 
(289
)
Total, net
$
2,712

 
$
4,642

 
$
2,560

 
$
9,914

Reported as:
 
 
 
 
 
 
 
Current
$
1,290

 
$
2,236

 
$
1,512

 
$
5,038

Noncurrent
1,422

 
2,406

 
1,048

 
4,876

Total, net
$
2,712

 
$
4,642

 
$
2,560

 
$
9,914

July 29, 2017
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,784

 
$
4,560

 
$
2,517

 
$
9,861

Residual value
173

 
—

 
—

 
173

Unearned income
(145
)
 
—

 
—

 
(145
)
Allowance for credit loss
(162
)
 
(103
)
 
(30
)
 
(295
)
Total, net
$
2,650

 
$
4,457

 
$
2,487

 
$
9,594

Reported as:
 
 
 
 
 
 
 
Current
$
1,301

 
$
2,104

 
$
1,451

 
$
4,856

Noncurrent
1,349

 
2,353

 
1,036

 
4,738

Total, net
$
2,650

 
$
4,457

 
$
2,487

 
$
9,594


Future minimum lease payments to the Company on lease receivables as of October 28, 2017 are summarized as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
1,106

2019
932

2020
512

2021
239

2022
57

Thereafter
2

Total
$
2,848


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 28, 2017 and July 29, 2017 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
October 28, 2017
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,320

 
$
1,337

 
$
48

 
$
2,705

Loan receivables
2,988

 
1,571

 
189

 
4,748

Financed service contracts
1,656

 
911

 
16

 
2,583

Total
$
5,964

 
$
3,819

 
$
253

 
$
10,036

 
INTERNAL CREDIT RISK RATING
July 29, 2017
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,408

 
$
1,181

 
$
50

 
$
2,639

Loan receivables
2,865

 
1,516

 
179

 
4,560

Financed service contracts
1,593

 
902

 
22

 
2,517

Total
$
5,866

 
$
3,599

 
$
251

 
$
9,716


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.
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.
The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of October 28, 2017 and July 29, 2017 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
October 28, 2017
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
161

 
$
86

 
$
320

 
$
567

 
$
2,138

 
$
2,705

 
$
14

 
$
14

Loan receivables
145

 
81

 
407

 
633

 
4,115

 
4,748

 
44

 
44

Financed service contracts
261

 
184

 
106

 
551

 
2,032

 
2,583

 
13

 
2

Total
$
567

 
$
351

 
$
833

 
$
1,751

 
$
8,285

 
$
10,036

 
$
71

 
$
60

 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 29, 2017
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
160

 
$
60

 
$
216

 
$
436

 
$
2,203

 
$
2,639

 
$
14

 
$
14

Loan receivables
230

 
48

 
259

 
537

 
4,023

 
4,560

 
43

 
43

Financed service contracts
160

 
77

 
523

 
760

 
1,757

 
2,517

 
18

 
2

Total
$
550

 
$
185

 
$
998

 
$
1,733

 
$
7,983

 
$
9,716

 
$
75

 
$
59


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 $595 million and $666 million as of October 28, 2017 and July 29, 2017, respectively.
As of October 28, 2017, the Company had financing receivables of $215 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 $315 million as of July 29, 2017.
(c)
Allowance for Credit Loss Rollforward
The allowances for credit loss and the related financing receivables are summarized as follows (in millions):
 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Allowance for credit loss as of July 29, 2017
$
162

 
$
103

 
$
30

 
$
295

Provisions
(2
)
 
2

 
(6
)
 
(6
)
Foreign exchange and other
—

 
1

 
(1
)
 
—

Allowance for credit loss as of October 28, 2017
$
160

 
$
106

 
$
23

 
$
289


 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
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


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 28, 2017 and July 29, 2017, 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 28, 2017
 
July 29, 2017
Operating lease assets
$
352

 
$
356

Accumulated depreciation
(221
)
 
(212
)
Operating lease assets, net
$
131

 
$
144


Minimum future rentals on noncancelable operating leases as of October 28, 2017 are summarized as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
139

2019
110

2020
48

2021
7

Thereafter
2

Total
$
306

Investments
Investments
Investments
(a)
Summary of Available-for-Sale Investments
The following tables summarize the Company’s available-for-sale investments (in millions):
October 28, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
20,564

 
$
—

 
$
(93
)
 
$
20,471

U.S. government agency securities
1,923

 
—

 
(6
)
 
1,917

Non-U.S. government and agency securities
358

 
—

 
(1
)
 
357

Corporate debt securities
31,999

 
162

 
(131
)
 
32,030

U.S. agency mortgage-backed securities
2,095

 
2

 
(23
)
 
2,074

Commercial paper
1,775

 
—

 
—

 
1,775

Certificates of deposit
140

 
—

 
—

 
140

Total fixed income securities
58,854

 
164

 
(254
)
 
58,764

Publicly traded equity securities
1,134

 
653

 
(6
)
 
1,781

Total (1)
$
59,988

 
$
817

 
$
(260
)
 
$
60,545


July 29, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
19,880

 
$
3

 
$
(60
)
 
$
19,823

U.S. government agency securities
2,057

 
—

 
(5
)
 
2,052

Non-U.S. government and agency securities
389

 
—

 
(1
)
 
388

Corporate debt securities
31,626

 
202

 
(93
)
 
31,735

U.S. agency mortgage-backed securities
2,037

 
3

 
(17
)
 
2,023

Commercial paper
996

 
—

 
—

 
996

Certificates of deposit
60

 
—

 
—

 
60

Total fixed income securities
57,045

 
208

 
(176
)
 
57,077

Publicly traded equity securities
1,180

 
554

 
(27
)
 
1,707

Total (1)
$
58,225

 
$
762

 
$
(203
)
 
$
58,784

(1) Includes investments that were pending settlement as of the respective fiscal years. The net unsettled investment purchases (sales) were $95 million and $(30) million as of October 28, 2017 and July 29, 2017, 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 available-for-sale investments (in millions):
 
Three Months Ended
 
October 28, 2017
 
October 29, 2016
Gross realized gains
$
67

 
$
30

Gross realized losses
(34
)
 
(15
)
Total
$
33

 
$
15


The following table presents the realized net gains (losses) related to available-for-sale investments by security type (in millions):
 
Three Months Ended
 
October 28, 2017
 
October 29, 2016
Net gains (losses) on investments in publicly traded equity securities
$
29

 
$
5

Net gains (losses) on investments in fixed income securities
4

 
10

Total
$
33

 
$
15


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 28, 2017 and July 29, 2017 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
October 28, 2017
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
16,719

 
$
(66
)
 
$
3,602

 
$
(27
)
 
$
20,321

 
$
(93
)
U.S. government agency securities
1,696

 
(4
)
 
222

 
(2
)
 
1,918

 
(6
)
Non-U.S. government and agency securities
316

 
(1
)
 
41

 
—

 
357

 
(1
)
Corporate debt securities
8,129

 
(45
)
 
4,209

 
(86
)
 
12,338

 
(131
)
U.S. agency mortgage-backed securities
1,562

 
(16
)
 
266

 
(7
)
 
1,828

 
(23
)
Total fixed income securities
28,422

 
(132
)

8,340


(122
)

36,762


(254
)
Publicly traded equity securities
54

 
(6
)
 
—

 
—

 
54

 
(6
)
Total
$
28,476

 
$
(138
)
 
$
8,340

 
$
(122
)
 
$
36,816

 
$
(260
)
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 29, 2017
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
14,962

 
$
(55
)
 
$
771

 
$
(5
)
 
$
15,733

 
$
(60
)
U.S. government agency securities
1,791

 
(4
)
 
130

 
(1
)
 
1,921

 
(5
)
Non-U.S. government and agency securities
368

 
(1
)
 
—

 
—

 
368

 
(1
)
Corporate debt securities
9,487

 
(92
)
 
101

 
(1
)
 
9,588

 
(93
)
U.S. agency mortgage-backed securities
1,485

 
(16
)
 
38

 
(1
)
 
1,523

 
(17
)
Total fixed income securities
28,093

 
(168
)
 
1,040

 
(8
)
 
29,133

 
(176
)
Publicly traded equity securities
122

 
(27
)
 
—

 
—

 
122

 
(27
)
Total
$
28,215

 
$
(195
)
 
$
1,040

 
$
(8
)
 
$
29,255

 
$
(203
)

For the three months ended October 28, 2017, the net realized losses related to available-for-sale investments included impairment charges of $26 million. These impairment charges related primarily to publicly traded equity securities and were due to a decline in the fair value of those securities below their cost basis that were determined to be other than temporary. There were no impairment charges on available-for-sale investments for the three months ended October 29, 2016.
As of October 28, 2017, 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 28, 2017, 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 28, 2017.
The Company has evaluated its publicly traded equity securities as of October 28, 2017 and has determined that there were no additional 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 28, 2017 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
16,376

 
$
16,360

Due in 1 to 2 years
14,866

 
14,820

Due in 2 to 5 years
21,852

 
21,883

Due after 5 years
3,665

 
3,627

Mortgage-backed securities with no single maturity
2,095

 
2,074

Total
$
58,854

 
$
58,764


Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.
(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 28, 2017 and October 29, 2016 was $0.5 billion and $1.2 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 28, 2017 and July 29, 2017, the Company had no outstanding securities lending transactions.
(e)
Investments in Privately Held Companies
The carrying value of the 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 28, 2017 and July 29, 2017, the amounts are summarized in the following table (in millions):
 
October 28, 2017
 
July 29, 2017
Equity method investments
$
108

 
$
124

Cost method investments
839

 
859

Total
$
947

 
$
983


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 28, 2017, 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 of October 28, 2017, the carrying value of investments in privately held companies was $947 million, of which $519 million of such investments are considered to be in variable interest entities which are unconsolidated. In addition, the Company has additional funding commitments of $213 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 28, 2017 and July 29, 2017 were as follows (in millions):
 
OCTOBER 28, 2017
FAIR VALUE MEASUREMENTS
 
JULY 29, 2017
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
$
9,103

 
$
—

 
$
—

 
$
9,103

 
$
9,567

 
$
—

 
$
—

 
$
9,567

U.S. government securities
—

 
—

 
—

 
—

 
—

 
139

 
—

 
139

Commercial paper
—

 
115

 
—

 
115

 
—

 
160

 
—

 
160

Certificates of deposit
—

 
—

 
—

 
—

 
—

 
25

 
—

 
25

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. government securities
—

 
20,471

 
—

 
20,471

 
—

 
19,823

 
—

 
19,823

U.S. government agency securities
—

 
1,917

 
—

 
1,917

 
—

 
2,052

 
—

 
2,052

Non-U.S. government and agency securities
—

 
357

 
—

 
357

 
—

 
388

 
—

 
388

Corporate debt securities
—

 
32,030

 
—

 
32,030

 
—

 
31,735

 
—

 
31,735

U.S. agency mortgage-backed securities
—

 
2,074

 
—

 
2,074

 
—

 
2,023

 
—

 
2,023

Commercial paper
—

 
1,775

 
—

 
1,775

 
—

 
996

 
—

 
996

Certificates of deposit
—

 
140

 
—

 
140

 
—

 
60

 
—

 
60

Publicly traded equity securities
1,781

 
—

 
—

 
1,781

 
1,707

 
—

 
—

 
1,707

Derivative assets
—

 
99

 
—

 
99

 
—

 
149

 
—

 
149

Total
$
10,884

 
$
58,978

 
$
—

 
$
69,862

 
$
11,274

 
$
57,550

 
$
—

 
$
68,824

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
18

 
$
—

 
$
18

 
$
—

 
$
4

 
$
—

 
$
4

Total
$
—

 
$
18

 
$
—

 
$
18

 
$
—

 
$
4

 
$
—

 
$
4



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 28, 2017
 
October 29, 2016
Investments in privately held companies (impaired)
$
(21
)
 
$
(47
)
Purchased intangible assets (impaired)
—

 
(42
)
Total gains (losses) for nonrecurring measurements
$
(21
)
 
$
(89
)

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 $25 million and $46 million as of October 28, 2017 and October 29, 2016, 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 zero and $11 million as of October 28, 2017 and October 29, 2016, respectively.

(d) Other Fair Value Disclosures
The carrying value of investments in privately held companies that were accounted for under the cost method was $839 million and $859 million as of October 28, 2017 and July 29, 2017, respectively. It was not practicable to estimate the fair value of this portfolio.
The fair value of short-term loan receivables and financed service contracts approximates their carrying value due to their short duration. The aggregate carrying value of long-term loan receivables and financed service contracts as of October 28, 2017 and July 29, 2017 was $3.5 billion and $3.4 billion, respectively. The estimated fair value of long-term loan receivables and financed service contracts 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 28, 2017, the estimated fair value of the short-term debt approximates its carrying value due to the short maturities. As of October 28, 2017, the fair value of the Company’s senior notes and other long-term debt was $32.0 billion with a carrying amount of $30.4 billion. This compares to a fair value of $32.1 billion and a carrying amount of $30.5 billion as of July 29, 2017. 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 28, 2017
 
July 29, 2017
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
4,748

 
1.70
%
 
$
4,747

 
1.66
%
Commercial paper
5,491

 
1.25
%
 
3,245

 
1.16
%
Total short-term debt
$
10,239

 
 
 
$
7,992

 


The Company has a short-term debt financing program of up to $10.0 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 effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging.
(b)
Long-Term Debt
The following table summarizes the Company’s long-term debt (in millions, except percentages):
 
 
 
October 28, 2017
 
July 29, 2017
 
Maturity Date
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior notes:
 
 
 
 
 
 
 
 
 
Floating-rate notes:
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus 0.60%
February 21, 2018
 
$
1,000

 
1.98%
 
$
1,000

 
1.84%
Three-month LIBOR plus 0.31%
June 15, 2018
 
900

 
1.70%
 
900

 
1.62%
Three-month LIBOR plus 0.50%
March 1, 2019
 
500

 
1.88%
 
500

 
1.76%
Three-month LIBOR plus 0.34%
September 20, 2019
 
500

 
1.71%
 
500

 
1.66%
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
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

 
4.96%
 
2,000

 
4.96%
1.60%
February 28, 2019
 
1,000

 
1.67%
 
1,000

 
1.67%
2.125%
March 1, 2019
 
1,750

 
1.85%
 
1,750

 
1.84%
1.40%
September 20, 2019
 
1,500

 
1.48%
 
1,500

 
1.48%
4.45%
January 15, 2020
 
2,500

 
3.85%
 
2,500

 
3.84%
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

 
2.01%
 
500

 
2.00%
1.85%
September 20, 2021
 
2,000

 
1.90%
 
2,000

 
1.90%
3.00%
June 15, 2022
 
500

 
2.28%
 
500

 
2.26%
2.60%
February 28, 2023
 
500

 
2.68%
 
500

 
2.68%
2.20%
September 20, 2023
 
750

 
2.27%
 
750

 
2.27%
3.625%
March 4, 2024
 
1,000

 
2.13%
 
1,000

 
2.12%
3.50%
June 15, 2025
 
500

 
2.44%
 
500

 
2.43%
2.95%
February 28, 2026
 
750

 
3.01%
 
750

 
3.01%
2.50%
September 20, 2026
 
1,500

 
2.55%
 
1,500

 
2.55%
5.90%
February 15, 2039
 
2,000

 
6.11%
 
2,000

 
6.11%
5.50%
January 15, 2040
 
2,000

 
5.67%
 
2,000

 
5.67%
Total
 
 
30,500

 
 
 
30,500

 
 
Unaccreted discount/issuance costs
 
 
(130
)
 
 
 
(136
)
 
 
Hedge accounting fair value adjustments
 
 
62

 
 
 
108

 
 
Total
 
 
$
30,432

 
 
 
$
30,472

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
$
4,748

 
 
 
$
4,747

 
 
Long-term debt
 
 
25,684

 
 
 
25,725

 
 
Total
 
 
$
30,432

 
 
 
$
30,472

 
 


The Company entered into interest rate swaps in prior periods with an aggregate notional amount of $6.75 billion designated as fair value hedges of certain of its fixed-rate senior notes. These swaps convert the fixed interest rates of the fixed-rate notes to floating interest rates based on the London InterBank Offered Rate ("LIBOR"). The gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. For additional information, see Note 11.
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 have been 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 28, 2017, the Company was in compliance with all debt covenants.
As of October 28, 2017, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
4,750

2019
5,250

2020
6,000

2021
3,000

2022
2,500

Thereafter
9,000

Total
$
30,500


(c)
Credit Facilities
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 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.
In addition, on March 30, 2017, the Company entered into a 364-Day credit agreement with certain institutional lenders that provides for a $2.0 billion unsecured revolving credit facility that is scheduled to expire on March 29, 2018. The credit agreement also provides the Company with the option to, for a fee, convert any borrowing outstanding thereunder on March 29, 2018 to a term loan maturing no later than March 29, 2019. The interest rate applicable to outstanding balances under the credit agreement will be based on either (i) the higher of (a) the rates on overnight Federal Funds transactions with members of the Federal Reserve System (i.e., Federal Funds rate) plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time or (c) LIBOR for an interest period of one month plus 1.00%, or (ii) LIBOR plus a margin that is based on the Company's senior debt credit ratings as published by S&P Global Rating, a business unit of Standard & Poor’s Financial Services LLC, and Moody’s Investors Service, Inc.
These credit agreements require that the Company comply with certain covenants, including that the Company maintains an interest coverage ratio as defined in these agreements. As of October 28, 2017, the Company was in compliance with the required interest coverage ratios and the other covenants, and the Company had not borrowed any funds under these credit facilities.
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 28,
2017
 
July 29,
2017
 
Balance Sheet Line Item
 
October 28,
2017
 
July 29,
2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
40

 
$
46

 
Other current liabilities
 
$
—

 
$
1

Equity derivatives
Other current assets
 
—

 
—

 
Other current liabilities
 
14

 
—

Interest rate derivatives
Other assets
 
58

 
102

 
Other long-term liabilities
 
2

 
—

Total
 
 
98

 
148

 
 
 
16

 
1

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

 
1

 
Other current liabilities
 
2

 
3

Equity derivatives/warrants
Other assets
 
—

 
—

 
Other long-term liabilities
 
—

 
—

Total
 
 
1

 
1

 
 
 
2

 
3

Total
 
 
$
99

 
$
149

 
 
 
$
18

 
$
4


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 28,
2017
 
October 29,
2016
 
Line Item in
Statements of Operations
 
October 28,
2017
 
October 29,
2016
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
8

 
$
(46
)
 
Operating expenses
 
$
10

 
$
(9
)
 
 
 
 
 
 
Cost of sales—service
 
3

 
(3
)
Total
 
$
8

 
$
(46
)
 
 
 
$
13

 
$
(12
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(5
)
 
$
9

 
Other income (loss), net
 
$
—

 
$
—


As of October 28, 2017, the Company estimates that approximately $44 million of net derivative gains 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 28,
2017
 
October 29,
2016
 
October 28,
2017
 
October 29,
2016
Interest rate derivatives
 
Interest expense
 
$
(46
)
 
$
(91
)
 
$
46

 
$
90

Equity derivatives
 
Other income (loss), net
 
(14
)
 
—

 
14

 
—

Total
 
 
 
$
(60
)
 
$
(91
)
 
$
60

 
$
90


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 28,
2017
 
October 29,
2016
Foreign currency derivatives
 
Other income (loss), net
 
$
7

 
$
(16
)
Total return swaps—deferred compensation
 
Operating expenses
 
16

 
(3
)
Equity derivatives
 
Other income (loss), net
 
1

 
1

Total
 
 
 
$
24

 
$
(18
)

The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
October 28,
2017
 
July 29,
2017
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
1,219

 
$
1,696

Interest rate derivatives
6,750

 
6,750

Net investment hedging instruments
266

 
351

Equity derivatives
302

 
—

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
1,918

 
2,258

Total return swaps—deferred compensation
564

 
535

Total
$
11,019

 
$
11,590


(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 28, 2017
 
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
$
99

 
$
—

 
$
99

 
$
(14
)
 
$
(57
)
 
$
28

Derivatives liabilities
$
18

 
$
—

 
$
18

 
$
(14
)
 
$
—

 
$
4

 
July 29, 2017
 
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
$
149

 
$
—

 
$
149

 
$
(4
)
 
$
(81
)
 
$
64

Derivatives liabilities
$
4

 
$
—

 
$
4

 
$
(4
)
 
$
—

 
$
—


(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 28, 2017 and July 29, 2017, 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 28, 2017, 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 2019 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 Belgium, Canada, China, France, Germany, India, Israel, Japan, Poland 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 28, 2017 are as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
316

2019
292

2020
203

2021
120

2022
99

Thereafter
147

Total
$
1,177


(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 28, 2017 and July 29, 2017, the Company had total purchase commitments for inventory of $4,205 million and $4,640 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 28, 2017 and July 29, 2017, the liability for these purchase commitments was $161 million and $162 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 28, 2017
 
October 29, 2016
Compensation expense related to acquisitions
$
42

 
$
64


As of October 28, 2017, the Company estimated that future cash compensation expense of up to $298 million may be required to be recognized pursuant to the applicable business combination agreements.
Insieme Networks, Inc. In fiscal 2012, the Company made an investment in Insieme, an early stage company focused on research and development in the data center market. This investment included $100 million of funding and a license to certain of the Company’s technology. During fiscal 2014, the Company acquired the remaining interests in Insieme, at which time the former noncontrolling interest holders became eligible to receive up to two milestone payments, which were determined using agreed-upon formulas based primarily on revenue for certain of Insieme’s products. The former noncontrolling interest holders earned the maximum amount related to these two milestone payments and were paid approximately $1 million and $323 million during the three months ended October 28, 2017 and October 29, 2016, respectively. The Company recorded compensation expense of $1 million and $20 million during the three months ended October 28, 2017 and October 29, 2016, respectively, related to these milestone payments. The Company does not expect a material amount of future compensation expense or further milestone payments related to this acquisition.
The Company also has certain funding commitments, primarily related to its investments in privately held companies and venture funds, some of which are based on the achievement of certain agreed-upon milestones, and some of which are required to be funded on demand. The funding commitments were $213 million and $216 million as of October 28, 2017 and July 29, 2017, respectively.
(d)
Product Warranties
The following table summarizes the activity related to the product warranty liability (in millions):
 
Three Months Ended
 
October 28,
2017
 
October 29,
2016
Balance at beginning of period
$
407

 
$
414

Provisions for warranty issued
148

 
176

Adjustments for pre-existing warranties
(12
)
 
—

Settlements
(149
)
 
(177
)
Balance at end of period
$
394

 
$
413


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 $6.7 billion and $6.9 billion for the three months ended October 28, 2017 and October 29, 2016, respectively. The balance of the channel partner financing subject to guarantees was $1.0 billion as of each of October 28, 2017 and July 29, 2017.
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 $14 million and $6 million for the three months ended October 28, 2017 and October 29, 2016, respectively.
Financing Guarantee Summary   The aggregate amounts of financing guarantees outstanding at October 28, 2017 and July 29, 2017, 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 28,
2017
 
July 29,
2017
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
266

 
$
240

End user
65

 
74

Total
$
331

 
$
314

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(79
)
 
$
(82
)
End user
(46
)
 
(52
)
Total
$
(125
)
 
$
(134
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
206

 
$
180


Other Guarantees The Company’s other guarantee arrangements as of October 28, 2017 and July 29, 2017 that were subject to recognition and disclosure requirements were not material.
(f)
Supplier Component Remediation Liabilities
In fiscal 2014, the Company recorded a charge to product cost of sales of $655 million resulting from failures related to products containing memory components manufactured by a single supplier between 2005 and 2010. The Company performs regular assessments of the sufficiency of this liability and reduced the amount by $74 million and $164 million in fiscal 2016 and fiscal 2015, respectively based on updated analyses. During the second quarter of fiscal 2017, the Company further reduced the liability by $141 million to reflect lower than expected defects, actual usage history, and estimated lower future remediation costs as more of the impacted products age and near the end of the support period covered by the remediation program. In addition, during the second quarter of fiscal 2017, the Company recorded a charge to product cost of sales of $125 million related to the expected remediation costs for anticipated failures in future periods of a widely-used component sourced from a third party which is included in several of the Company’s products. The liabilities related to the supplier component remediation matters as of October 28, 2017 and July 29, 2017 were $146 million and $174 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 indemnify certain of the Company’s service provider customers that are subject to patent infringement claims asserted by Sprint Communications Company, L.P. in federal court in Kansas and Delaware. Sprint alleges that the service provider customers infringed Sprint’s patents by offering VoIP telephone services utilizing products provided by the Company generally in combination with those of other manufacturers. Sprint seeks monetary damages. Following a trial on March 3, 2017 against Time Warner Inc., a jury in Kansas found that Time Warner Cable willfully infringed five Sprint patents and awarded Sprint $139.8 million in damages. On March 14, 2017, the Kansas court declined Sprint's request for enhanced damages and entered judgment in favor of Sprint for $139.8 million plus 1.06% in post-judgment interest. On May 30, 2017, the Court awarded Sprint $20.3 million in pre-judgment interest and denied Time Warner Cable's post-trial motions. Time Warner Cable has appealed. On October 16, 2017, Sprint and Comcast Cable Communications, LLC reached resolution of the claims in Sprint's lawsuit against Comcast and on October 19, 2017, the Kansas court dismissed Sprint's lawsuit. Sprint's trial against Cox Communications, Inc. in Delaware is scheduled for December 7, 2017.
For the remaining cases, the Company believes that the service providers continue to have strong non-infringement and invalidity defenses and arguments and/or that Sprint’s damages claims are inconsistent with prevailing law at trial and/or on appeal. Due to the uncertainty surrounding the litigation process, the Company is unable to reasonably estimate the ultimate outcome of the remaining 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 its obligations regarding the final outcome of the remaining matters would be material.
On January 15, 2016, Huawei Technologies Co. Ltd. (“Huawei”) filed four patent infringement actions against T-Mobile US, Inc. and T-Mobile USA, Inc. (collectively, “T-Mobile”) in federal court in the Eastern District of Texas. Huawei alleged that T-Mobile’s use of 3GPP standards to implement its 3G and 4G cellular networks infringe 12 patents, now reduced to 10 patents as a result of pre-trial dismissals. Huawei's infringement allegations for some of the patents are based on T-Mobile's use of products provided by the Company in combination with those of other manufacturers. T-Mobile has requested indemnity by the Company with respect to portions of the network that use the Company's equipment. On November 9, 2017, the court continued the trial date to January 2, 2018.
The Company believes that the patents are invalid and/or not infringed, and that Huawei’s claims should be rejected for Huawei's failure to comply with its licensing and disclosure obligations to standards setting organizations that issued the relevant standards. If T-Mobile is found to infringe any of the patents warranting an award of damages, the Company believes damages against T-Mobile, as appropriately measured, should be governed by reasonable and nondiscriminatory licensing principles. Due to uncertainty surrounding patent litigation processes, however, the Company is unable to reasonably estimate the ultimate outcome of this litigation and the Company does not anticipate that its obligations, if any, regarding the final outcome of the matters would be material.
During the first quarter of fiscal 2018, the Company recorded legal and indemnification settlement charges of $122 million to product cost of sales in relation to these matters.
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 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 $250 million for the alleged evasion of import and other taxes, $1.5 billion for interest, and $1.2 billion for various penalties, all determined using an exchange rate as of October 28, 2017. 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.
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 the Company's products and services in the area of network intrusion detection of infringing two U.S. patents. SRI sought monetary damages of at least a reasonable royalty and enhanced damages. The trial on these claims began on May 2, 2016 and 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. On May 25, 2017, the Court awarded SRI enhanced damages and attorneys’ fees, entered judgment in the new amount of $57.0 million, and ordered an ongoing royalty of 3.5% through the expiration of the patents in 2018. The Company has appealed 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, the Company 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 the Company would prevail in showing that SSL’s patent claims are unpatentable and instituted proceedings. On June 28, 2016, in light of the PTAB’s decision to review the patent’s validity, the district court issued an order staying the district court case pending the final written decision from the PTAB. On February 22, 2017, following a hearing, the PTAB issued its Final Written Decision that the patent’s claims are unpatentable. SSL has appealed this decision to the Court of Appeals for the Federal Circuit. 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, the Company is unable to reasonably estimate the ultimate outcome of this litigation at this time.
Straight Path On September 24, 2014, Straight Path IP Group, Inc. (“Straight Path”) asserted patent infringement claims against the Company in U.S. District Court for the Northern District of California, accusing the Company’s 9971 IP Phone, Unified Communications Manager working in conjunction with 9971 IP Phones, and Video Communication Server products of infringement. All of the asserted patents have expired and Straight Path was therefore limited to seeking monetary damages for the alleged past infringement. On November 13, 2017, the Court granted the Company's motion for summary judgment of non-infringement, thereby dismissing Straight Path's claims against the Company and cancelling a trial which had been set for March 12, 2018.
DXC Technology On August 21, 2015, the Company and Cisco Systems Capital Corporation (“Cisco Capital”) filed an action in Santa Clara County Superior Court for declaratory judgment and breach of contract against HP Inc. (“HP”) regarding a services agreement for management services of a third party’s network. HP prepaid the service agreement through a financing arrangement with Cisco Capital. HP terminated its agreement with the Company, and pursuant to the terms of the service agreement with HP, the Company determined the credit HP was entitled to receive under the agreement. HP disputed the Company’s credit calculation and contended that the Company owes a larger credit to HP than the Company had calculated. In December 2015, the Company filed an amended complaint which dropped the breach of contract claim in light of HP’s continuing payments to Cisco Capital under the financing arrangement. On January 19, 2016, HP Inc. filed a counterclaim for breach of contract simultaneously with its answer to the amended complaint. The court continued the trial date from November 6, 2017 to March 12, 2018. DXC Technology Corporation (“DXC”) reported that it is the party in interest in this matter pursuant to the Separation and Distribution Agreement between the then Hewlett-Packard Co. and Hewlett Packard Enterprise Company (“HPE") and the subsequent Separation and Distribution Agreement between HPE and DXC. On August 30, 2017, the Company and DXC attended a court ordered mediation and, on September 1, 2017, the parties jointly informed the court that they are continuing to discuss the details of a business resolution to the dispute. The Company is unable to reasonably estimate the ultimate outcome of this litigation due to uncertainty surrounding the litigation process. However, the Company does not anticipate that its obligation, if any, regarding the final outcome of the dispute would be material.
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 28, 2017, the Company declared and paid cash dividends of $0.29 per common share, or $1.4 billion, on the Company’s outstanding 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.
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 28, 2017, 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 $10.1 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 29, 2017
4,709

 
$
21.30

 
$
100,303

Repurchase of common stock under the stock repurchase program (1)
51

 
31.80

 
1,620

Cumulative balance at October 28, 2017
4,760

 
$
21.41

 
$
101,923


(1) There were no stock repurchases pending settlement as of October 28, 2017. There were $66 million of stock repurchases that were pending settlement as of July 29, 2017.
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 28, 2017 and October 29, 2016, the Company repurchased approximately 11 million and 13 million shares, or $342 million and $401 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 28, 2017, the Company had one stock incentive plan: the 2005 Stock Incentive Plan (the “2005 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 plan is summarized as follows:
2005 Plan    As of October 28, 2017, the maximum number of shares issuable under the 2005 Plan over its term was 694 million shares, plus shares from certain previous plans 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. In addition, 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 from certain previous plans 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. The expiration date for stock options and stock appreciation rights 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 over a four year term. 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.
(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 28, 2017. 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 28, 2017 and October 29, 2016, respectively. As of October 28, 2017, 100 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 28, 2017
 
October 29, 2016
Cost of sales—product
$
23

 
$
21

Cost of sales—service
34

 
33

Share-based compensation expense in cost of sales
57

 
54

Research and development
136

 
126

Sales and marketing
135

 
140

General and administrative
64

 
49

Restructuring and other charges
6

 
3

Share-based compensation expense in operating expenses
341

 
318

Total share-based compensation expense
$
398

 
$
372

Income tax benefit for share-based compensation
$
175

 
$
105


As of October 28, 2017, the total compensation cost related to unvested share-based awards not yet recognized was $2.9 billion, which is expected to be recognized over approximately 2.6 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 30, 2016
242

Restricted stock, stock units, and other share-based awards granted
(76
)
Share-based awards canceled/forfeited/expired
78

Shares withheld for taxes and not issued
28

BALANCE AT JULY 29, 2017
272

Restricted stock, stock units, and other share-based awards granted
(16
)
Share-based awards canceled/forfeited/expired
5

Shares withheld for taxes and not issued
15

BALANCE AT OCTOBER 28, 2017
276


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 30, 2016
145

 
$
24.26

 
 
Granted
50

 
27.89

 
 
Assumed from acquisitions
15

 
32.21

 
 
Vested
(54
)
 
23.14

 
$
1,701

Canceled/forfeited
(15
)
 
23.56

 
 
UNVESTED BALANCE AT JULY 29, 2017
141

 
26.94

 
 
Granted
10

 
30.19

 
 
Assumed from acquisitions
1

 
28.70

 
 
Vested
(29
)
 
24.52

 
$
927

Canceled/forfeited
(6
)
 
28.73

 
 
UNVESTED BALANCE AT OCTOBER 28, 2017
117

 
$
27.75

 
 

(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 30, 2016
73

 
$
26.78

Assumed from acquisitions
8

 
4.47

Exercised
(14
)
 
12.11

Canceled/forfeited/expired
(55
)
 
31.83

BALANCE AT JULY 29, 2017
12

 
6.15

Assumed from acquisitions
3

 
8.07

Exercised
(2
)
 
5.19

BALANCE AT OCTOBER 28, 2017
13

 
$
6.68


The following table summarizes significant ranges of outstanding and exercisable stock options as of October 28, 2017 (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 – 30.00
 
13

 
6.6
 
$
6.68

 
$
371

 
7

 
$
5.90

 
$
193


The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $34.43 as of October 27, 2017, 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 28, 2017 was 7 million. As of July 29, 2017, 6 million outstanding stock options were exercisable and the weighted-average exercise price was $5.61.
(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 28, 2017
 
October 29, 2016
 
October 28, 2017
 
October 29, 2016
Number of shares granted (in millions)
7

 
7

 
3

 
3

Grant date fair value per share
$
29.81

 
$
28.55

 
$
31.31

 
$
29.62

Weighted-average assumptions/inputs:
 
 
 
 
 
 
 
   Expected dividend yield
3.6
%
 
3.3
%
 
3.6
%
 
3.3
%
   Range of risk-free interest rates
1.0% – 1.9%

 
0.0% – 1.2%

 
1.0% – 1.6%

 
0.1% – 0.9%

   Range of expected volatilities for index
N/A

 
N/A

 
13.2% – 81.0%

 
16.7% – 46.8%

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 28, 2017 and October 29, 2016 are summarized as follows (in millions):
 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains (Losses)
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 29, 2017
$
373

 
$
32

 
$
(359
)
 
$
46

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
18

 
8

 
18

 
44

(Gains) losses reclassified out of AOCI
(33
)
 
(13
)
 
1

 
(45
)
Tax benefit (expense)
(13
)
 
1

 
(2
)
 
(14
)
BALANCE AT OCTOBER 28, 2017
$
345

 
$
28

 
$
(342
)
 
$
31

 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains (Losses)
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 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
)


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 28,
2017
 
October 29,
2016
 
 
Comprehensive Income Components
 
Income Before Taxes
 
Line Item in Statements of Operations
Net unrealized gains and losses on available-for-sale investments
 
$
33

 
$
15

 
Other income (loss), net
Net unrealized gains and losses on cash flow hedging instruments
 
 
 
 
 
 
Foreign currency derivatives
 
10

 
(9
)
 
Operating expenses
Foreign currency derivatives
 
3

 
(3
)
 
Cost of sales—service
 
 
13


(12
)

 
Cumulative translation adjustment and actuarial gains and losses
 
(1
)
 
—

 
Operating expenses
Total amounts reclassified out of AOCI
 
$
45


$
3


 
Income Taxes
Income Taxes
Income Taxes
The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended
 
October 28,
2017
 
October 29,
2016
Income before provision for income taxes
$
2,962

 
$
2,953

Provision for income taxes
$
568

 
$
631

Effective tax rate
19.2
%
 
21.4
%

As of October 28, 2017, the Company had $2.1 billion of unrecognized tax benefit, of which $1.5 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 28, 2017 could be reduced by approximately $100 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 settlements and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in its measurement of the performance of the operating segments.
Summarized financial information by segment for the three months ended October 28, 2017 and October 29, 2016, 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 28,
2017
 
October 29,
2016
Revenue:
 
 
 
Americas
$
7,350

 
$
7,443

EMEA
2,909

 
3,013

APJC
1,877

 
1,896

Total
$
12,136

 
$
12,352

Gross margin:
 
 
 
Americas
$
4,722

 
$
4,833

EMEA
1,839

 
2,013

APJC
1,165

 
1,204

Segment total
7,726

 
8,050

Unallocated corporate items
(299
)
 
(166
)
Total
$
7,427

 
$
7,884


Revenue in the United States was $6.5 billion and $6.6 billion for the three months ended October 28, 2017 and October 29, 2016, 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. Effective in the first quarter of fiscal 2018, the Company began reporting its product and service revenue in the following five categories: Infrastructure Platforms, Applications, Security, Other Products, and Services. The change better aligns the Company's product categories with its evolving business model. Prior period amounts have been reclassified to conform to the current period's presentation. 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 28,
2017
 
October 29,
2016
Revenue:
 
 
 
Infrastructure Platforms
$
6,970

 
$
7,273

Applications
1,203

 
1,136

Security
585

 
540

Other Products
296

 
353

Total Product
9,054

 
9,302

Services
3,082

 
3,050

Total
$
12,136

 
$
12,352



(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 28, 2017 and July 29, 2017. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $69.1 billion and $67.5 billion as of October 28, 2017 and July 29, 2017, respectively, and the remaining $2.5 billion and $3.0 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 28,
2017
 
July 29,
2017
Property and equipment, net:
 
 
 
United States
$
2,624

 
$
2,711

International
578

 
611

Total
$
3,202

 
$
3,322

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 28,
2017
 
October 29,
2016
Net income
$
2,394

 
$
2,322

Weighted-average shares—basic
4,959

 
5,027

Effect of dilutive potential common shares
35

 
39

Weighted-average shares—diluted
4,994

 
5,066

Net income per share—basic
$
0.48

 
$
0.46

Net income per share—diluted
$
0.48

 
$
0.46

Antidilutive employee share-based awards, excluded
15

 
67


Employee equity share options, unvested shares, and similar equity instruments are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that has not yet recognized 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)
Fiscal Period 
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 2018 and fiscal 2017 are each 52-week fiscal years.
Basis of Presentation 
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 28, 2017 and for the three months ended October 28, 2017 and October 29, 2016 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 29, 2017 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 29, 2017.
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 28, 2017; the results of operations and the statements of comprehensive income, the statements of cash flows and equity for the three months ended October 28, 2017 and October 29, 2016, as applicable, have been made. The results of operations for the three months ended October 28, 2017 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Reclassification 
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.
New Accounting Updates Recently Adopted and Recent Accounting Standards or Updates Not Yet Effective 
(a) New Accounting Updates Recently Adopted
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. Cisco adopted this accounting standard update beginning the first quarter of fiscal 2018 on a prospective basis. This resulted in an overall decrease in the effective tax rate for the first quarter of fiscal 2018 due to recognition of excess tax benefits from share-based compensation. The application of this accounting standard update did not have a material impact on the Company's Consolidated Financial Statements.
(b) Recent Accounting Standards or Updates Not Yet Effective
Revenue Recognition In May 2014, the FASB issued a new accounting standard related to revenue recognition. The new standard will supersede nearly all U.S. GAAP on revenue recognition and eliminate industry-specific guidance. The underlying principle of the new standard is to recognize revenue when a customer obtains control of promised goods or services at an amount that reflects the consideration that is expected to be received in exchange for those goods or services. It also requires increased disclosures including the nature, amount, timing, and uncertainty of revenues and cash flows related to contracts with customers.
The standard allows two methods of adoption: i) retrospectively to each prior period presented (“full retrospective method”), or ii) retrospectively with the cumulative effect recognized in retained earnings as of the date of adoption ("modified retrospective method"). Cisco will adopt the new standard using the modified retrospective method at the beginning of its first quarter of fiscal 2019.
Cisco is on schedule in establishing new accounting policies, implementing systems and processes (including more extensive use of estimates), and internal controls necessary to support the requirements of the new standard. Cisco has completed its preliminary assessment of the financial statement impact of the new standard, as discussed below, and will continue to update that assessment as more information becomes available.
The new standard will primarily impact Cisco’s revenue recognition for software arrangements and sales to two-tier distributors. In both areas, the new standard will accelerate the recognition of revenue. The table below details both the current and expected revenue recognition timing in these areas:
 
 
Current Revenue Standard
 
New Revenue Standard
Software arrangements:
 
 
 
 
Perpetual software licenses
 
Upfront
 
Upfront
Term software licenses
 
Ratable
 
Upfront
Security software licenses
 
Ratable
 
Ratable
Enterprise license agreements
 
Ratable
 
Upfront
Software support services
 
Ratable
 
Ratable
Software-as-a-service
 
Ratable
 
Ratable
Two-tier distribution
 
Sell-Through
 
Sell-In

Cisco expects that the new standard will not have a material impact on total revenue in the year of adoption based on two factors: i) revenue will be accelerated consistent with the changes in timing as indicated in the preceding table, largely offset by ii) the reduction of revenue from software arrangements where revenue was previously deferred in prior periods and recognized ratably over time as required under the current standard. This preliminary assessment is based on the types and number of revenue arrangements currently in place. The exact impact of the new standard will be dependent on facts and circumstances at adoption and could vary from quarter to quarter.
In addition to the above revenue recognition timing impacts, the new standard will require incremental contract acquisition costs (such as sales commissions) for customer contracts to be capitalized and amortized over the contract period. Currently, these costs are expensed as incurred.
Cisco will be required to record cumulative effect adjustments to retained earnings upon adopting the new standard at the beginning of fiscal 2019. The most significant of these adjustments will be to reduce product deferred revenue and increase retained earnings at the date of adoption to reflect revenue that would have been already recognized under the new standard related to existing arrangements. There will also be an adjustment to increase accounts receivable and reduce inventories related to the changes in revenue recognition on sales to two-tier distributors. Lastly, an adjustment will be recorded to establish an asset and increase retained earnings related to the requirement to capitalize incremental contract acquisition costs for customer contracts.
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 Cisco beginning in the first quarter of fiscal 2019, and early adoption is permitted. The most significant impact of this accounting standard update for Cisco is that it will require the remeasurement of investments that are not accounted for under the equity method at fair value at the end of each reporting period with the changes recorded to the income statement. While Cisco is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements, Cisco expects that this accounting standard update will increase the variability of other income (loss), net.
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 Cisco beginning in the first quarter of fiscal 2020 on a modified retrospective basis, and early adoption is permitted. Cisco 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 Cisco beginning in the first quarter of fiscal 2021 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. Cisco 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 Cisco beginning in the first quarter of fiscal 2019 on a retrospective basis, and early adoption is permitted. Cisco 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 Cisco beginning in the first quarter of fiscal 2019 on a modified retrospective basis, and early adoption is permitted. Cisco is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Restricted Cash in Statement of Cash Flow In November 2016, the FASB issued an accounting standard update that provides guidance on the classification and presentation of changes in restricted cash and cash equivalents in the statement of cash flows. The accounting standard update will be effective for Cisco beginning in the first quarter of fiscal 2019 using a retrospective transition method to each period presented, and early adoption is permitted. Cisco does not expect that this accounting standard update will have a material impact on its Consolidated Statements of Cash Flows.
Definition of a Business In January 2017, the FASB issued an accounting standard update that clarifies the definition of a business to help companies evaluate whether acquisition or disposal transactions should be accounted for as asset groups or as businesses. The accounting standard update will be effective for Cisco beginning in the first quarter of fiscal 2019 on a prospective basis. The impact of this accounting standard update will be fact dependent, but Cisco expects that some transactions that were previously accounted for as business combinations or disposal transactions will be accounted for as asset purchases or asset sales under the accounting standard update.
Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued an accounting standard update that removes Step 2 of the goodwill impairment test, which requires the assessment of fair value of individual assets and liabilities of a reporting unit to measure goodwill impairments. Goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value. The accounting standard update will be effective for Cisco beginning in the first quarter of fiscal 2021 on a prospective basis, and early adoption is permitted. Cisco does not expect that this accounting standard update will impact its Consolidated Financial Statements.
Financing Receivables and Operating Leases 
Financing receivables primarily consist of lease receivables, loan receivables, and financed service contracts. 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. Lease receivables consist of arrangements with terms of four years on average. Loan receivables represent financing arrangements related to the sale of the Company’s hardware, software, and services, which may include additional funding for other costs associated with network installation and integration of the Company’s products and services. Loan receivables generally have terms of up to three years. Financed service contracts include financing receivables related to technical support and advanced services. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one to three years.
Impairment of Financing Receivable 
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 28, 2017 and July 29, 2017, 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 Measurement 
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, 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.
Fair Value of Financial Instruments 
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.
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 $25 million and $46 million as of October 28, 2017 and October 29, 2016, 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.
Derivatives 
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.
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.
Hedging Derivatives 
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 28, 2017 and July 29, 2017, 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 28, 2017, 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 2019 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.
Derivatives Not Designated as Hedges 
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.
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 
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.
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.
Segment Information 
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 settlements and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in its measurement of the performance of the operating segments.
Net Income per Share 
Employee equity share options, unvested shares, and similar equity instruments are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that has not yet recognized 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
4,760

 
$
25,407

 
$
76,516

 
$
101,923

Recent Accounting Pronouncements (Tables)
Summary of Current and Expected Revenue Recognition Timing
The table below details both the current and expected revenue recognition timing in these areas:
 
 
Current Revenue Standard
 
New Revenue Standard
Software arrangements:
 
 
 
 
Perpetual software licenses
 
Upfront
 
Upfront
Term software licenses
 
Ratable
 
Upfront
Security software licenses
 
Ratable
 
Ratable
Enterprise license agreements
 
Ratable
 
Upfront
Software support services
 
Ratable
 
Ratable
Software-as-a-service
 
Ratable
 
Ratable
Two-tier distribution
 
Sell-Through
 
Sell-In
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
 
Net Tangible Assets Acquired (Liabilities Assumed)
 
Purchased Intangible Assets
 
Goodwill
Viptela
$
497

 
$
(18
)
 
$
180

 
$
335

Springpath
248

 
(11
)
 
160

 
99

Other
16

 
1

 
6

 
9

Total
$
761

 
$
(28
)
 
$
346

 
$
443

Goodwill and Purchased Intangible Assets (Tables)
Goodwill By Reportable Segment 
The following table presents the goodwill allocated to the Company’s reportable segments as of and during the three months ended October 28, 2017 (in millions):
 
Balance at
 
 
 
 
 
Balance at
 
July 29, 2017
 
Acquisitions
 
Other
 
October 28, 2017
Americas
$
18,691

 
$
323

 
$
15

 
$
19,029

EMEA
7,057

 
92

 
6

 
7,155

APJC
4,018

 
28

 
3

 
4,049

Total
$
29,766

 
$
443

 
$
24

 
$
30,233

Schedule Of Intangible Assets Acquired Through Business Combinations 
The following table presents details of the Company’s intangible assets acquired through acquisitions completed during the three months ended October 28, 2017 (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
Viptela
5.0
 
$
144

 
6.0
 
$
35

 
1.0
 
$
1

 
$
—

 
$
180

Springpath
4.0
 
157

 
0.0
 
—

 
0.0
 
—

 
3

 
160

Other
5.0
 
3

 
4.0
 
3

 
0.0
 
—

 
—

 
6

Total
 
 
$
304

 
 
 
$
38

 
 
 
$
1

 
$
3

 
$
346

Schedule Of Purchased Intangible Assets 
The following tables present details of the Company’s purchased intangible assets (in millions): 
October 28, 2017
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,465

 
$
(1,514
)
 
$
1,951

Customer relationships
 
1,391

 
(818
)
 
573

Other
 
82

 
(44
)
 
38

Total purchased intangible assets with finite lives
 
4,938

 
(2,376
)
 
2,562

In-process research and development, with indefinite lives
 
115

 
—

 
115

       Total
 
$
5,053

 
$
(2,376
)
 
$
2,677

 
July 29, 2017
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,182

 
$
(1,386
)
 
$
1,796

Customer relationships
 
1,353

 
(765
)
 
588

Other
 
82

 
(38
)
 
44

Total purchased intangible assets with finite lives
 
4,617

 
(2,189
)
 
2,428

In-process research and development, with indefinite lives
 
111

 
—

 
111

       Total
 
$
4,728

 
$
(2,189
)
 
$
2,539

Schedule Of Amortization Of Purchased Intangible Assets 
The following table presents the amortization of purchased intangible assets, including impairment charges (in millions):
 
Three Months Ended
 
October 28, 2017
 
October 29, 2016
Amortization of purchased intangible assets:
 
 
 
Cost of sales
$
154

 
$
129

Operating expenses
 
 


Amortization of purchased intangible assets
61

 
78

Restructuring and other charges
—

 
38

Total
$
215

 
$
245

Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets 
The estimated future amortization expense of purchased intangible assets with finite lives as of October 28, 2017 is as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
647

2019
776

2020
559

2021
362

2022
145

Thereafter
73

   Total
$
2,562

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 2017 AND PRIOR PLANS
 
 
 
 
Employee
Severance
 
Other
 
Total
Liability as of July 29, 2017
 
$
74

 
$
43

 
$
117

Charges
 
145

 
7

 
152

Cash payments
 
(79
)
 
(16
)
 
(95
)
Non-cash items
 
—

 
(6
)
 
(6
)
Liability as of October 28, 2017
 
$
140

 
$
28

 
$
168

 
 
FISCAL 2017 AND PRIOR PLANS
 
 
 
 
Employee
Severance
 
Other
 
Total
Liability as of July 30, 2016
 
$
21

 
$
24

 
$
45

Charges
 
369

 
42

 
411

Cash payments
 
(269
)
 
(1
)
 
(270
)
Non-cash items
 
(4
)
 
(43
)
 
(47
)
Liability as of October 29, 2016
 
$
117

 
$
22

 
$
139

Balance Sheet Details (Tables)
Inventories 
The following tables provide details of selected balance sheet items (in millions):
 
 
October 28,
2017
 
July 29,
2017
Inventories:
 
 
 
 
Raw materials
 
$
358

 
$
289

Work in Process
 
1

 
1

Finished goods:
 
 
 

Distributor inventory and deferred cost of sales
 
457

 
451

Manufactured finished goods
 
550

 
552

Total finished goods
 
1,007

 
1,003

Service-related spares
 
303

 
300

Demonstration systems
 
24

 
23

Total
 
$
1,693

 
$
1,616

Property And Equipment, Net 
Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,854

 
$
4,926

Computer equipment and related software
 
1,251

 
1,258

Production, engineering, and other equipment
 
5,681

 
5,707

Operating lease assets
 
352

 
356

Furniture and fixtures
 
393

 
572

Total gross property and equipment
 
12,531

 
12,819

Less: accumulated depreciation and amortization
 
(9,329
)
 
(9,497
)
Total
 
$
3,202

 
$
3,322

Deferred Revenue 
Deferred revenue:
 
 
 
 
Service
 
$
10,991

 
$
11,302

Product:
 

 
 
Deferred revenue related to recurring software and subscription offers
 
5,213

 
4,971

Other product deferred revenue
 
2,361

 
2,221

Total product deferred revenue
 
7,574

 
7,192

Total
 
$
18,565

 
$
18,494

Reported as:
 

 
 
Current
 
$
10,920

 
$
10,821

Noncurrent
 
7,645

 
7,673

Total
 
$
18,565

 
$
18,494

Financing Receivables and Operating Leases (Tables)
Financing Receivables 
A summary of the Company's financing receivables is presented as follows (in millions):
October 28, 2017
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,848

 
$
4,748

 
$
2,583

 
$
10,179

Residual value
167

 
—

 
—

 
167

Unearned income
(143
)
 
—

 
—

 
(143
)
Allowance for credit loss
(160
)
 
(106
)
 
(23
)
 
(289
)
Total, net
$
2,712

 
$
4,642

 
$
2,560

 
$
9,914

Reported as:
 
 
 
 
 
 
 
Current
$
1,290

 
$
2,236

 
$
1,512

 
$
5,038

Noncurrent
1,422

 
2,406

 
1,048

 
4,876

Total, net
$
2,712

 
$
4,642

 
$
2,560

 
$
9,914

July 29, 2017
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,784

 
$
4,560

 
$
2,517

 
$
9,861

Residual value
173

 
—

 
—

 
173

Unearned income
(145
)
 
—

 
—

 
(145
)
Allowance for credit loss
(162
)
 
(103
)
 
(30
)
 
(295
)
Total, net
$
2,650

 
$
4,457

 
$
2,487

 
$
9,594

Reported as:
 
 
 
 
 
 
 
Current
$
1,301

 
$
2,104

 
$
1,451

 
$
4,856

Noncurrent
1,349

 
2,353

 
1,036

 
4,738

Total, net
$
2,650

 
$
4,457

 
$
2,487

 
$
9,594

Contractual Maturities Of The Gross Lease Receivables 
Future minimum lease payments to the Company on lease receivables as of October 28, 2017 are summarized as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
1,106

2019
932

2020
512

2021
239

2022
57

Thereafter
2

Total
$
2,848

Schedule Of Internal Credit Risk Rating For Each Portfolio Segment And Class 
Gross receivables, excluding residual value, less unearned income categorized by the Company’s internal credit risk rating as of October 28, 2017 and July 29, 2017 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
October 28, 2017
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,320

 
$
1,337

 
$
48

 
$
2,705

Loan receivables
2,988

 
1,571

 
189

 
4,748

Financed service contracts
1,656

 
911

 
16

 
2,583

Total
$
5,964

 
$
3,819

 
$
253

 
$
10,036

 
INTERNAL CREDIT RISK RATING
July 29, 2017
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,408

 
$
1,181

 
$
50

 
$
2,639

Loan receivables
2,865

 
1,516

 
179

 
4,560

Financed service contracts
1,593

 
902

 
22

 
2,517

Total
$
5,866

 
$
3,599

 
$
251

 
$
9,716

Schedule Of Financing Receivables By Portfolio Segment And Class Aging Analysis 
The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of October 28, 2017 and July 29, 2017 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
October 28, 2017
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
161

 
$
86

 
$
320

 
$
567

 
$
2,138

 
$
2,705

 
$
14

 
$
14

Loan receivables
145

 
81

 
407

 
633

 
4,115

 
4,748

 
44

 
44

Financed service contracts
261

 
184

 
106

 
551

 
2,032

 
2,583

 
13

 
2

Total
$
567

 
$
351

 
$
833

 
$
1,751

 
$
8,285

 
$
10,036

 
$
71

 
$
60

 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 29, 2017
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
160

 
$
60

 
$
216

 
$
436

 
$
2,203

 
$
2,639

 
$
14

 
$
14

Loan receivables
230

 
48

 
259

 
537

 
4,023

 
4,560

 
43

 
43

Financed service contracts
160

 
77

 
523

 
760

 
1,757

 
2,517

 
18

 
2

Total
$
550

 
$
185

 
$
998

 
$
1,733

 
$
7,983

 
$
9,716

 
$
75

 
$
59

Allowance For Credit Loss And Related Financing Receivables 
The allowances for credit loss and the related financing receivables are summarized as follows (in millions):
 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Allowance for credit loss as of July 29, 2017
$
162

 
$
103

 
$
30

 
$
295

Provisions
(2
)
 
2

 
(6
)
 
(6
)
Foreign exchange and other
—

 
1

 
(1
)
 
—

Allowance for credit loss as of October 28, 2017
$
160

 
$
106

 
$
23

 
$
289


 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
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


Schedule of Property Subject to or Available for Operating Lease 
Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):
 
October 28, 2017
 
July 29, 2017
Operating lease assets
$
352

 
$
356

Accumulated depreciation
(221
)
 
(212
)
Operating lease assets, net
$
131

 
$
144

Schedule of Future Minimum Rental Payments for Operating Leases 
Minimum future rentals on noncancelable operating leases as of October 28, 2017 are summarized as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
139

2019
110

2020
48

2021
7

Thereafter
2

Total
$
306

Investments (Tables)
Summary Of Available-For-Sale Investments 
The following tables summarize the Company’s available-for-sale investments (in millions):
October 28, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
20,564

 
$
—

 
$
(93
)
 
$
20,471

U.S. government agency securities
1,923

 
—

 
(6
)
 
1,917

Non-U.S. government and agency securities
358

 
—

 
(1
)
 
357

Corporate debt securities
31,999

 
162

 
(131
)
 
32,030

U.S. agency mortgage-backed securities
2,095

 
2

 
(23
)
 
2,074

Commercial paper
1,775

 
—

 
—

 
1,775

Certificates of deposit
140

 
—

 
—

 
140

Total fixed income securities
58,854

 
164

 
(254
)
 
58,764

Publicly traded equity securities
1,134

 
653

 
(6
)
 
1,781

Total (1)
$
59,988

 
$
817

 
$
(260
)
 
$
60,545


July 29, 2017
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
19,880

 
$
3

 
$
(60
)
 
$
19,823

U.S. government agency securities
2,057

 
—

 
(5
)
 
2,052

Non-U.S. government and agency securities
389

 
—

 
(1
)
 
388

Corporate debt securities
31,626

 
202

 
(93
)
 
31,735

U.S. agency mortgage-backed securities
2,037

 
3

 
(17
)
 
2,023

Commercial paper
996

 
—

 
—

 
996

Certificates of deposit
60

 
—

 
—

 
60

Total fixed income securities
57,045

 
208

 
(176
)
 
57,077

Publicly traded equity securities
1,180

 
554

 
(27
)
 
1,707

Total (1)
$
58,225

 
$
762

 
$
(203
)
 
$
58,784

(1) Includes investments that were pending settlement as of the respective fiscal years. The net unsettled investment purchases (sales) were $95 million and $(30) million as of October 28, 2017 and July 29, 2017, respectively.
Gross Realized Gains And Gross Realized Losses Related To Available-For-Sale Investment 
The following table presents the gross realized gains and gross realized losses related to available-for-sale investments (in millions):
 
Three Months Ended
 
October 28, 2017
 
October 29, 2016
Gross realized gains
$
67

 
$
30

Gross realized losses
(34
)
 
(15
)
Total
$
33

 
$
15


The following table presents the realized net gains (losses) related to available-for-sale investments by security type (in millions):
 
Three Months Ended
 
October 28, 2017
 
October 29, 2016
Net gains (losses) on investments in publicly traded equity securities
$
29

 
$
5

Net gains (losses) on investments in fixed income securities
4

 
10

Total
$
33

 
$
15

Available-For-Sale Investments With Gross Unrealized Losses 
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 28, 2017 and July 29, 2017 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
October 28, 2017
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
16,719

 
$
(66
)
 
$
3,602

 
$
(27
)
 
$
20,321

 
$
(93
)
U.S. government agency securities
1,696

 
(4
)
 
222

 
(2
)
 
1,918

 
(6
)
Non-U.S. government and agency securities
316

 
(1
)
 
41

 
—

 
357

 
(1
)
Corporate debt securities
8,129

 
(45
)
 
4,209

 
(86
)
 
12,338

 
(131
)
U.S. agency mortgage-backed securities
1,562

 
(16
)
 
266

 
(7
)
 
1,828

 
(23
)
Total fixed income securities
28,422

 
(132
)

8,340


(122
)

36,762


(254
)
Publicly traded equity securities
54

 
(6
)
 
—

 
—

 
54

 
(6
)
Total
$
28,476

 
$
(138
)
 
$
8,340

 
$
(122
)
 
$
36,816

 
$
(260
)
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 29, 2017
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
14,962

 
$
(55
)
 
$
771

 
$
(5
)
 
$
15,733

 
$
(60
)
U.S. government agency securities
1,791

 
(4
)
 
130

 
(1
)
 
1,921

 
(5
)
Non-U.S. government and agency securities
368

 
(1
)
 
—

 
—

 
368

 
(1
)
Corporate debt securities
9,487

 
(92
)
 
101

 
(1
)
 
9,588

 
(93
)
U.S. agency mortgage-backed securities
1,485

 
(16
)
 
38

 
(1
)
 
1,523

 
(17
)
Total fixed income securities
28,093

 
(168
)
 
1,040

 
(8
)
 
29,133

 
(176
)
Publicly traded equity securities
122

 
(27
)
 
—

 
—

 
122

 
(27
)
Total
$
28,215

 
$
(195
)
 
$
1,040

 
$
(8
)
 
$
29,255

 
$
(203
)
Maturities of Fixed Income Securities 
The following table summarizes the maturities of the Company’s fixed income securities as of October 28, 2017 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
16,376

 
$
16,360

Due in 1 to 2 years
14,866

 
14,820

Due in 2 to 5 years
21,852

 
21,883

Due after 5 years
3,665

 
3,627

Mortgage-backed securities with no single maturity
2,095

 
2,074

Total
$
58,854

 
$
58,764

Equity Method and Cost Method Investments 
For such investments that were accounted for under the equity and cost method as of October 28, 2017 and July 29, 2017, the amounts are summarized in the following table (in millions):
 
October 28, 2017
 
July 29, 2017
Equity method investments
$
108

 
$
124

Cost method investments
839

 
859

Total
$
947

 
$
983

Fair Value (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis 
Assets and liabilities measured at fair value on a recurring basis as of October 28, 2017 and July 29, 2017 were as follows (in millions):
 
OCTOBER 28, 2017
FAIR VALUE MEASUREMENTS
 
JULY 29, 2017
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
$
9,103

 
$
—

 
$
—

 
$
9,103

 
$
9,567

 
$
—

 
$
—

 
$
9,567

U.S. government securities
—

 
—

 
—

 
—

 
—

 
139

 
—

 
139

Commercial paper
—

 
115

 
—

 
115

 
—

 
160

 
—

 
160

Certificates of deposit
—

 
—

 
—

 
—

 
—

 
25

 
—

 
25

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. government securities
—

 
20,471

 
—

 
20,471

 
—

 
19,823

 
—

 
19,823

U.S. government agency securities
—

 
1,917

 
—

 
1,917

 
—

 
2,052

 
—

 
2,052

Non-U.S. government and agency securities
—

 
357

 
—

 
357

 
—

 
388

 
—

 
388

Corporate debt securities
—

 
32,030

 
—

 
32,030

 
—

 
31,735

 
—

 
31,735

U.S. agency mortgage-backed securities
—

 
2,074

 
—

 
2,074

 
—

 
2,023

 
—

 
2,023

Commercial paper
—

 
1,775

 
—

 
1,775

 
—

 
996

 
—

 
996

Certificates of deposit
—

 
140

 
—

 
140

 
—

 
60

 
—

 
60

Publicly traded equity securities
1,781

 
—

 
—

 
1,781

 
1,707

 
—

 
—

 
1,707

Derivative assets
—

 
99

 
—

 
99

 
—

 
149

 
—

 
149

Total
$
10,884

 
$
58,978

 
$
—

 
$
69,862

 
$
11,274

 
$
57,550

 
$
—

 
$
68,824

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
18

 
$
—

 
$
18

 
$
—

 
$
4

 
$
—

 
$
4

Total
$
—

 
$
18

 
$
—

 
$
18

 
$
—

 
$
4

 
$
—

 
$
4

Fair Value Measurements, Nonrecurring 
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 28, 2017
 
October 29, 2016
Investments in privately held companies (impaired)
$
(21
)
 
$
(47
)
Purchased intangible assets (impaired)
—

 
(42
)
Total gains (losses) for nonrecurring measurements
$
(21
)
 
$
(89
)
Borrowings (Tables)
Schedule Of Short-Term Debt 
The following table summarizes the Company’s short-term debt (in millions, except percentages):
 
October 28, 2017
 
July 29, 2017
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
4,748

 
1.70
%
 
$
4,747

 
1.66
%
Commercial paper
5,491

 
1.25
%
 
3,245

 
1.16
%
Total short-term debt
$
10,239

 
 
 
$
7,992

 

Schedule Of Long-Term Debt 
The following table summarizes the Company’s long-term debt (in millions, except percentages):
 
 
 
October 28, 2017
 
July 29, 2017
 
Maturity Date
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior notes:
 
 
 
 
 
 
 
 
 
Floating-rate notes:
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus 0.60%
February 21, 2018
 
$
1,000

 
1.98%
 
$
1,000

 
1.84%
Three-month LIBOR plus 0.31%
June 15, 2018
 
900

 
1.70%
 
900

 
1.62%
Three-month LIBOR plus 0.50%
March 1, 2019
 
500

 
1.88%
 
500

 
1.76%
Three-month LIBOR plus 0.34%
September 20, 2019
 
500

 
1.71%
 
500

 
1.66%
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
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

 
4.96%
 
2,000

 
4.96%
1.60%
February 28, 2019
 
1,000

 
1.67%
 
1,000

 
1.67%
2.125%
March 1, 2019
 
1,750

 
1.85%
 
1,750

 
1.84%
1.40%
September 20, 2019
 
1,500

 
1.48%
 
1,500

 
1.48%
4.45%
January 15, 2020
 
2,500

 
3.85%
 
2,500

 
3.84%
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

 
2.01%
 
500

 
2.00%
1.85%
September 20, 2021
 
2,000

 
1.90%
 
2,000

 
1.90%
3.00%
June 15, 2022
 
500

 
2.28%
 
500

 
2.26%
2.60%
February 28, 2023
 
500

 
2.68%
 
500

 
2.68%
2.20%
September 20, 2023
 
750

 
2.27%
 
750

 
2.27%
3.625%
March 4, 2024
 
1,000

 
2.13%
 
1,000

 
2.12%
3.50%
June 15, 2025
 
500

 
2.44%
 
500

 
2.43%
2.95%
February 28, 2026
 
750

 
3.01%
 
750

 
3.01%
2.50%
September 20, 2026
 
1,500

 
2.55%
 
1,500

 
2.55%
5.90%
February 15, 2039
 
2,000

 
6.11%
 
2,000

 
6.11%
5.50%
January 15, 2040
 
2,000

 
5.67%
 
2,000

 
5.67%
Total
 
 
30,500

 
 
 
30,500

 
 
Unaccreted discount/issuance costs
 
 
(130
)
 
 
 
(136
)
 
 
Hedge accounting fair value adjustments
 
 
62

 
 
 
108

 
 
Total
 
 
$
30,432

 
 
 
$
30,472

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
$
4,748

 
 
 
$
4,747

 
 
Long-term debt
 
 
25,684

 
 
 
25,725

 
 
Total
 
 
$
30,432

 
 
 
$
30,472

 
 


Schedule Of Principal Payments For Long-Term Debt 
As of October 28, 2017, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
4,750

2019
5,250

2020
6,000

2021
3,000

2022
2,500

Thereafter
9,000

Total
$
30,500

Derivative Instruments (Tables)
Derivatives Recorded At Fair Value 
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 28,
2017
 
July 29,
2017
 
Balance Sheet Line Item
 
October 28,
2017
 
July 29,
2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
40

 
$
46

 
Other current liabilities
 
$
—

 
$
1

Equity derivatives
Other current assets
 
—

 
—

 
Other current liabilities
 
14

 
—

Interest rate derivatives
Other assets
 
58

 
102

 
Other long-term liabilities
 
2

 
—

Total
 
 
98

 
148

 
 
 
16

 
1

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

 
1

 
Other current liabilities
 
2

 
3

Equity derivatives/warrants
Other assets
 
—

 
—

 
Other long-term liabilities
 
—

 
—

Total
 
 
1

 
1

 
 
 
2

 
3

Total
 
 
$
99

 
$
149

 
 
 
$
18

 
$
4


Gains And Losses On Derivatives Designated As Cash Flow Hedges 
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 28,
2017
 
October 29,
2016
 
Line Item in
Statements of Operations
 
October 28,
2017
 
October 29,
2016
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
8

 
$
(46
)
 
Operating expenses
 
$
10

 
$
(9
)
 
 
 
 
 
 
Cost of sales—service
 
3

 
(3
)
Total
 
$
8

 
$
(46
)
 
 
 
$
13

 
$
(12
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(5
)
 
$
9

 
Other income (loss), net
 
$
—

 
$
—


Schedule Of Derivative Fair Value Hedge Instruments Gain Loss In Statement Of Financial Performance 
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 28,
2017
 
October 29,
2016
 
October 28,
2017
 
October 29,
2016
Interest rate derivatives
 
Interest expense
 
$
(46
)
 
$
(91
)
 
$
46

 
$
90

Equity derivatives
 
Other income (loss), net
 
(14
)
 
—

 
14

 
—

Total
 
 
 
$
(60
)
 
$
(91
)
 
$
60

 
$
90


Effect Of Derivative Instruments Not Designated As Fair Value Hedges On Consolidated Statement Of Operations Summary 
The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) FOR THE
THREE MONTHS ENDED
Derivatives Not Designated as
Hedging Instruments
 
Line Item in Statements of Operations
 
October 28,
2017
 
October 29,
2016
Foreign currency derivatives
 
Other income (loss), net
 
$
7

 
$
(16
)
Total return swaps—deferred compensation
 
Operating expenses
 
16

 
(3
)
Equity derivatives
 
Other income (loss), net
 
1

 
1

Total
 
 
 
$
24

 
$
(18
)
Schedule Of Notional Amounts Of Derivatives Outstanding 
The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
October 28,
2017
 
July 29,
2017
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
1,219

 
$
1,696

Interest rate derivatives
6,750

 
6,750

Net investment hedging instruments
266

 
351

Equity derivatives
302

 
—

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
1,918

 
2,258

Total return swaps—deferred compensation
564

 
535

Total
$
11,019

 
$
11,590

Offsetting Assets and Liabilities 
Information related to these offsetting arrangements is summarized as follows (in millions):
 
October 28, 2017
 
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
$
99

 
$
—

 
$
99

 
$
(14
)
 
$
(57
)
 
$
28

Derivatives liabilities
$
18

 
$
—

 
$
18

 
$
(14
)
 
$
—

 
$
4

 
July 29, 2017
 
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
$
149

 
$
—

 
$
149

 
$
(4
)
 
$
(81
)
 
$
64

Derivatives liabilities
$
4

 
$
—

 
$
4

 
$
(4
)
 
$
—

 
$
—

Commitments and Contingencies (Tables)
Schedule Of Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases 
Future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of October 28, 2017 are as follows (in millions):
Fiscal Year
Amount
2018 (remaining nine months)
$
316

2019
292

2020
203

2021
120

2022
99

Thereafter
147

Total
$
1,177

Compensation expenses related to business combinations 
The following table summarizes the compensation expense related to acquisitions (in millions):
 
Three Months Ended
 
October 28, 2017
 
October 29, 2016
Compensation expense related to acquisitions
$
42

 
$
64

Schedule Of Product Warranty Liability 
The following table summarizes the activity related to the product warranty liability (in millions):
 
Three Months Ended
 
October 28,
2017
 
October 29,
2016
Balance at beginning of period
$
407

 
$
414

Provisions for warranty issued
148

 
176

Adjustments for pre-existing warranties
(12
)
 
—

Settlements
(149
)
 
(177
)
Balance at end of period
$
394

 
$
413

Schedule of Guarantor Obligations 
  The aggregate amounts of financing guarantees outstanding at October 28, 2017 and July 29, 2017, 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 28,
2017
 
July 29,
2017
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
266

 
$
240

End user
65

 
74

Total
$
331

 
$
314

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(79
)
 
$
(82
)
End user
(46
)
 
(52
)
Total
$
(125
)
 
$
(134
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
206

 
$
180

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 29, 2017
4,709

 
$
21.30

 
$
100,303

Repurchase of common stock under the stock repurchase program (1)
51

 
31.80

 
1,620

Cumulative balance at October 28, 2017
4,760

 
$
21.41

 
$
101,923


(1) There were no stock repurchases pending settlement as of October 28, 2017. There were $66 million of stock repurchases that were pending settlement as of July 29, 2017.
Employee Benefit Plans (Tables)
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 28, 2017
 
October 29, 2016
Cost of sales—product
$
23

 
$
21

Cost of sales—service
34

 
33

Share-based compensation expense in cost of sales
57

 
54

Research and development
136

 
126

Sales and marketing
135

 
140

General and administrative
64

 
49

Restructuring and other charges
6

 
3

Share-based compensation expense in operating expenses
341

 
318

Total share-based compensation expense
$
398

 
$
372

Income tax benefit for share-based compensation
$
175

 
$
105

Summary Of 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 30, 2016
242

Restricted stock, stock units, and other share-based awards granted
(76
)
Share-based awards canceled/forfeited/expired
78

Shares withheld for taxes and not issued
28

BALANCE AT JULY 29, 2017
272

Restricted stock, stock units, and other share-based awards granted
(16
)
Share-based awards canceled/forfeited/expired
5

Shares withheld for taxes and not issued
15

BALANCE AT OCTOBER 28, 2017
276

Summary Of Restricted Stock And Stock Unit Activity 
A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts):
 
Restricted Stock/
Stock Units
 
Weighted-Average
Grant Date Fair
Value per Share
 
Aggregate Fair  Value
UNVESTED BALANCE AT JULY 30, 2016
145

 
$
24.26

 
 
Granted
50

 
27.89

 
 
Assumed from acquisitions
15

 
32.21

 
 
Vested
(54
)
 
23.14

 
$
1,701

Canceled/forfeited
(15
)
 
23.56

 
 
UNVESTED BALANCE AT JULY 29, 2017
141

 
26.94

 
 
Granted
10

 
30.19

 
 
Assumed from acquisitions
1

 
28.70

 
 
Vested
(29
)
 
24.52

 
$
927

Canceled/forfeited
(6
)
 
28.73

 
 
UNVESTED BALANCE AT OCTOBER 28, 2017
117

 
$
27.75

 
 
Summary Of Stock Option Activity 
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 30, 2016
73

 
$
26.78

Assumed from acquisitions
8

 
4.47

Exercised
(14
)
 
12.11

Canceled/forfeited/expired
(55
)
 
31.83

BALANCE AT JULY 29, 2017
12

 
6.15

Assumed from acquisitions
3

 
8.07

Exercised
(2
)
 
5.19

BALANCE AT OCTOBER 28, 2017
13

 
$
6.68

Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options 
The following table summarizes significant ranges of outstanding and exercisable stock options as of October 28, 2017 (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 – 30.00
 
13

 
6.6
 
$
6.68

 
$
371

 
7

 
$
5.90

 
$
193

Schedule of Assumptions Used 
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 28, 2017
 
October 29, 2016
 
October 28, 2017
 
October 29, 2016
Number of shares granted (in millions)
7

 
7

 
3

 
3

Grant date fair value per share
$
29.81

 
$
28.55

 
$
31.31

 
$
29.62

Weighted-average assumptions/inputs:
 
 
 
 
 
 
 
   Expected dividend yield
3.6
%
 
3.3
%
 
3.6
%
 
3.3
%
   Range of risk-free interest rates
1.0% – 1.9%

 
0.0% – 1.2%

 
1.0% – 1.6%

 
0.1% – 0.9%

   Range of expected volatilities for index
N/A

 
N/A

 
13.2% – 81.0%

 
16.7% – 46.8%

Comprehensive Income (Tables)
Components Of AOCI, Net Of Tax 
The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the three months ended October 28, 2017 and October 29, 2016 are summarized as follows (in millions):
 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains (Losses)
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 29, 2017
$
373

 
$
32

 
$
(359
)
 
$
46

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
18

 
8

 
18

 
44

(Gains) losses reclassified out of AOCI
(33
)
 
(13
)
 
1

 
(45
)
Tax benefit (expense)
(13
)
 
1

 
(2
)
 
(14
)
BALANCE AT OCTOBER 28, 2017
$
345

 
$
28

 
$
(342
)
 
$
31

 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains (Losses)
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 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
)
Reclassification out of Accumulated Other Comprehensive Income 
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 28,
2017
 
October 29,
2016
 
 
Comprehensive Income Components
 
Income Before Taxes
 
Line Item in Statements of Operations
Net unrealized gains and losses on available-for-sale investments
 
$
33

 
$
15

 
Other income (loss), net
Net unrealized gains and losses on cash flow hedging instruments
 
 
 
 
 
 
Foreign currency derivatives
 
10

 
(9
)
 
Operating expenses
Foreign currency derivatives
 
3

 
(3
)
 
Cost of sales—service
 
 
13


(12
)

 
Cumulative translation adjustment and actuarial gains and losses
 
(1
)
 
—

 
Operating expenses
Total amounts reclassified out of AOCI
 
$
45


$
3


 
Income Taxes (Tables)
Income Tax Provision
The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended
 
October 28,
2017
 
October 29,
2016
Income before provision for income taxes
$
2,962

 
$
2,953

Provision for income taxes
$
568

 
$
631

Effective tax rate
19.2
%
 
21.4
%
Segment Information and Major Customers (Tables)
Reportable Segments 
Summarized financial information by segment for the three months ended October 28, 2017 and October 29, 2016, 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 28,
2017
 
October 29,
2016
Revenue:
 
 
 
Americas
$
7,350

 
$
7,443

EMEA
2,909

 
3,013

APJC
1,877

 
1,896

Total
$
12,136

 
$
12,352

Gross margin:
 
 
 
Americas
$
4,722

 
$
4,833

EMEA
1,839

 
2,013

APJC
1,165

 
1,204

Segment total
7,726

 
8,050

Unallocated corporate items
(299
)
 
(166
)
Total
$
7,427

 
$
7,884

Net Sales For Groups Of Similar Products And Services 
The following table presents revenue for groups of similar products and services (in millions):
 
Three Months Ended
 
October 28,
2017
 
October 29,
2016
Revenue:
 
 
 
Infrastructure Platforms
$
6,970

 
$
7,273

Applications
1,203

 
1,136

Security
585

 
540

Other Products
296

 
353

Total Product
9,054

 
9,302

Services
3,082

 
3,050

Total
$
12,136

 
$
12,352

Property And Equipment, Net 
The following table presents property and equipment information for geographic areas (in millions):
 
October 28,
2017
 
July 29,
2017
Property and equipment, net:
 
 
 
United States
$
2,624

 
$
2,711

International
578

 
611

Total
$
3,202

 
$
3,322



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 28,
2017
 
October 29,
2016
Net income
$
2,394

 
$
2,322

Weighted-average shares—basic
4,959

 
5,027

Effect of dilutive potential common shares
35

 
39

Weighted-average shares—diluted
4,994

 
5,066

Net income per share—basic
$
0.48

 
$
0.46

Net income per share—diluted
$
0.48

 
$
0.46

Antidilutive employee share-based awards, excluded
15

 
67

Supplemental Information (Stock Repurchases Since Inception of Program) (Details) (USD $)
Oct. 28, 2017
Jul. 29, 2017
Supplementary Information [Line Items]
 
 
Authorized common stock repurchase amount
$ 112,000,000,000 
 
Repurchases of common stock under the repurchase program (in shares)
4,760,000,000 
4,709,000,000 
Repurchases of common stock under the repurchase program
101,923,000,000 
100,303,000,000 
Shares of Common Stock
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program (in shares)
4,760,000,000 
 
Common Stock and Additional Paid-In Capital
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
25,407,000,000 
 
Retained Earnings
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
76,516,000,000 
 
Total Cisco Shareholders’ Equity
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
$ 101,923,000,000 
 
Basis of Presentation (Details)
3 Months Ended
Oct. 28, 2017
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of geographic segments (segment)
3 
Acquisitions and Divestitures (Additional Information) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended
Oct. 28, 2017
acquisition
Oct. 23, 2017
BroadSoft, Inc
Oct. 28, 2017
General and administrative
Oct. 29, 2016
General and administrative
Supplementary Information [Line Items]
 
 
 
 
Number of business combinations (acquisition)
3 
 
 
 
Acquired cash and cash equivalents
$ 11 
 
 
 
Acquisition related costs
 
 
9 
1 
Gains recognized from acquisitions
46 
 
 
 
Share price for each share acquired (in dollars per share)
 
$ 55 
 
 
Purchase Consideration
$ 761 
$ 1,900 
 
 
Acquisitions and Divestitures (Summary Of Allocation Of Total Purchase Consideration) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Business Acquisition [Line Items]
 
Purchase Consideration
$ 761 
Net Tangible Assets Acquired (Liabilities Assumed)
(28)
Purchased Intangible Assets
346 
Goodwill
443 
Viptela
 
Business Acquisition [Line Items]
 
Purchase Consideration
497 
Net Tangible Assets Acquired (Liabilities Assumed)
(18)
Purchased Intangible Assets
180 
Goodwill
335 
Springpath
 
Business Acquisition [Line Items]
 
Purchase Consideration
248 
Net Tangible Assets Acquired (Liabilities Assumed)
(11)
Purchased Intangible Assets
160 
Goodwill
99 
Other
 
Business Acquisition [Line Items]
 
Purchase Consideration
16 
Net Tangible Assets Acquired (Liabilities Assumed)
1 
Purchased Intangible Assets
6 
Goodwill
$ 9 
Goodwill and Purchased Intangible Assets (Schedule Of Goodwill By Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Goodwill [Roll Forward]
 
Beginning Balance
$ 29,766 
Acquisitions
443 
Other
24 
Ending Balance
30,233 
Americas
 
Goodwill [Roll Forward]
 
Beginning Balance
18,691 
Acquisitions
323 
Other
15 
Ending Balance
19,029 
EMEA
 
Goodwill [Roll Forward]
 
Beginning Balance
7,057 
Acquisitions
92 
Other
6 
Ending Balance
7,155 
APJC
 
Goodwill [Roll Forward]
 
Beginning Balance
4,018 
Acquisitions
28 
Other
3 
Ending Balance
$ 4,049 
Goodwill and Purchased Intangible Assets (Schedule Of Intangible Assets Acquired Through Business Combinations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Intangible Assets Acquired Through Business Combinations
 
Total, Amount
$ 346 
Viptela
 
Intangible Assets Acquired Through Business Combinations
 
Total, Amount
180 
Springpath
 
Intangible Assets Acquired Through Business Combinations
 
Total, Amount
160 
Other
 
Intangible Assets Acquired Through Business Combinations
 
Total, Amount
6 
IPR&D
 
Intangible Assets Acquired Through Business Combinations
 
Indefinite Lives, Amount
3 
IPR&D |
Viptela
 
Intangible Assets Acquired Through Business Combinations
 
Indefinite Lives, Amount
0 
IPR&D |
Springpath
 
Intangible Assets Acquired Through Business Combinations
 
Indefinite Lives, Amount
3 
IPR&D |
Other
 
Intangible Assets Acquired Through Business Combinations
 
Indefinite Lives, Amount
0 
TECHNOLOGY
 
Intangible Assets Acquired Through Business Combinations
 
Finite Lives, Amount
304 
TECHNOLOGY |
Viptela
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
5 years 0 months 0 days 
Finite Lives, Amount
144 
TECHNOLOGY |
Springpath
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
4 years 0 months 0 days 
Finite Lives, Amount
157 
TECHNOLOGY |
Other
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
5 years 0 months 0 days 
Finite Lives, Amount
3 
CUSTOMER RELATIONSHIPS
 
Intangible Assets Acquired Through Business Combinations
 
Finite Lives, Amount
38 
CUSTOMER RELATIONSHIPS |
Viptela
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
6 years 0 months 0 days 
Finite Lives, Amount
35 
CUSTOMER RELATIONSHIPS |
Springpath
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
0 years 
Finite Lives, Amount
0 
CUSTOMER RELATIONSHIPS |
Other
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
4 years 0 months 0 days 
Finite Lives, Amount
3 
OTHER
 
Intangible Assets Acquired Through Business Combinations
 
Finite Lives, Amount
1 
OTHER |
Viptela
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
1 year 
Finite Lives, Amount
1 
OTHER |
Springpath
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
0 years 
Finite Lives, Amount
0 
OTHER |
Other
 
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. 28, 2017
Jul. 29, 2017
Business Acquisition [Line Items]
 
 
Gross
$ 4,938 
$ 4,617 
Accumulated Amortization
(2,376)
(2,189)
Total purchased intangible assets with finite lives, net
2,562 
2,428 
In-process research and development, with indefinite lives
115 
111 
Total finite and indefinite lives intangible assets, Gross
5,053 
4,728 
Total finite and indefinite lives intangible assets, net
2,677 
2,539 
TECHNOLOGY
 
 
Business Acquisition [Line Items]
 
 
Gross
3,465 
3,182 
Accumulated Amortization
(1,514)
(1,386)
Total purchased intangible assets with finite lives, net
1,951 
1,796 
CUSTOMER RELATIONSHIPS
 
 
Business Acquisition [Line Items]
 
 
Gross
1,391 
1,353 
Accumulated Amortization
(818)
(765)
Total purchased intangible assets with finite lives, net
573 
588 
OTHER
 
 
Business Acquisition [Line Items]
 
 
Gross
82 
82 
Accumulated Amortization
(44)
(38)
Total purchased intangible assets with finite lives, net
$ 38 
$ 44 
Goodwill and Purchased Intangible Assets (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Purchased intangible assets impairment
$ 0 
$ 42,000,000 
Impairment charges
61,000,000 
78,000,000 
Restructuring and other charges
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Impairment charges
$ 0 
$ 38,000,000 
Goodwill and Purchased Intangible Assets (Schedule Of Amortization Of Purchased Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
$ 61 
$ 78 
Cost of sales
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
154 
129 
Amortization of purchased intangible assets
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
61 
78 
Restructuring and other charges
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
0 
38 
Total
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
Amortization of purchased intangible assets
$ 215 
$ 245 
Goodwill and Purchased Intangible Assets (Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
 
 
2018 (remaining nine months)
$ 647 
 
2019
776 
 
2020
559 
 
2021
362 
 
2022
145 
 
Thereafter
73 
 
Total purchased intangible assets with finite lives, net
$ 2,562 
$ 2,428 
Restructuring and Other Charges (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Restructuring Cost and Reserve [Line Items]
 
 
Restructuring charges
$ 152 
$ 411 
Fiscal 2017 Plan
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Expected restructuring charges
150 
 
Restructuring charges
908 
 
Fiscal 2017 Plan |
Employee Severance
 
 
Restructuring Cost and Reserve [Line Items]
 
 
Expected restructuring charges
$ 1,000 
 
Balance Sheet Details (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Inventories:
 
 
Raw materials
$ 358 
$ 289 
Work in Process
1 
1 
Finished goods:
 
 
Distributor inventory and deferred cost of sales
457 
451 
Manufactured finished goods
550 
552 
Total finished goods
1,007 
1,003 
Service-related spares
303 
300 
Demonstration systems
24 
23 
Total
1,693 
1,616 
Gross property and equipment:
 
 
Land, buildings, and building and leasehold improvements
4,854 
4,926 
Computer equipment and related software
1,251 
1,258 
Production, engineering, and other equipment
5,681 
5,707 
Operating lease assets
352 
356 
Furniture and fixtures
393 
572 
Total gross property and equipment
12,531 
12,819 
Less: accumulated depreciation and amortization
(9,329)
(9,497)
Total
3,202 
3,322 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
18,565 
18,494 
Current
10,920 
10,821 
Noncurrent
7,645 
7,673 
Product:
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
7,574 
7,192 
Service
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
10,991 
11,302 
Deferred revenue related to recurring software and subscription offers |
Product:
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
5,213 
4,971 
Other product deferred revenue |
Product:
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
$ 2,361 
$ 2,221 
Financing Receivables and Operating Leases (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
rating
Jul. 29, 2017
Financing Receivables And Guarantees [Line Items]
 
 
Average lease term
4 years 0 months 0 days 
 
Threshold for past due receivables
31 days 
 
Unbilled or current financing receivables included in greater than 91 days plus past due
$ 595 
$ 666 
Financing receivable, 91 days past due and still accruing
$ 215 
$ 315 
Investment credit risk ratings range lowest
1 
 
Rating at or higher when receivables deemed impaired
10 
 
Rating at or higher when receivables deemed impaired
8 
 
Maximum
 
 
Financing Receivables And Guarantees [Line Items]
 
 
Loan receivables term
3 years 
 
Maximum |
Financed Service Contracts
 
 
Financing Receivables And Guarantees [Line Items]
 
 
Financed service contracts term
3 years 
 
Minimum |
Financed Service Contracts
 
 
Financing Receivables And Guarantees [Line Items]
 
 
Financed service contracts term
1 year 
 
Financing Receivables and Operating Leases (Schedule Of Financing Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Oct. 29, 2016
Jul. 30, 2016
Financing Receivables [Line Items]
 
 
 
 
Allowance for credit loss
$ (289)
$ (295)
$ (386)
$ (375)
Current
5,038 
4,856 
 
 
Lease Receivables
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
2,848 
2,784 
 
 
Residual value
167 
173 
 
 
Unearned income
(143)
(145)
 
 
Allowance for credit loss
(160)
(162)
 
 
Total, net
2,712 
2,650 
 
 
Current
1,290 
1,301 
 
 
Noncurrent
1,422 
1,349 
 
 
Loan Receivables
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
4,748 
4,560 
 
 
Residual value
0 
0 
 
 
Unearned income
0 
0 
 
 
Allowance for credit loss
(106)
(103)
 
 
Total, net
4,642 
4,457 
 
 
Current
2,236 
2,104 
 
 
Noncurrent
2,406 
2,353 
 
 
Financed Service Contracts
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
2,583 
2,517 
 
 
Residual value
0 
0 
 
 
Unearned income
0 
0 
 
 
Allowance for credit loss
(23)
(30)
 
 
Total, net
2,560 
2,487 
 
 
Current
1,512 
1,451 
 
 
Noncurrent
1,048 
1,036 
 
 
Total
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
10,179 
9,861 
 
 
Residual value
167 
173 
 
 
Unearned income
(143)
(145)
 
 
Allowance for credit loss
(289)
(295)
 
 
Total, net
9,914 
9,594 
 
 
Current
5,038 
4,856 
 
 
Noncurrent
$ 4,876 
$ 4,738 
 
 
Financing Receivables and Operating Leases (Schedule Of Contractual Maturities Of Gross Lease Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Receivables [Abstract]
 
2018 (remaining nine months)
$ 1,106 
2019
932 
2020
512 
2021
239 
2022
57 
Thereafter
2 
Total
$ 2,848 
Financing Receivables and Operating Leases (Schedule Of Financing Receivables Categorized By Internal Credit Risk Rating) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
$ 10,036 
$ 9,716 
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
5,964 
5,866 
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
3,819 
3,599 
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
253 
251 
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
10,036 
9,716 
Lease Receivables |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,320 
1,408 
Lease Receivables |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,337 
1,181 
Lease Receivables |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
48 
50 
Lease Receivables |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
2,705 
2,639 
Loan Receivables |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
2,988 
2,865 
Loan Receivables |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,571 
1,516 
Loan Receivables |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
189 
179 
Loan Receivables |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
4,748 
4,560 
Financed Service Contracts |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,656 
1,593 
Financed Service Contracts |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
911 
902 
Financed Service Contracts |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
16 
22 
Financed Service Contracts |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
$ 2,583 
$ 2,517 
Financing Receivables and Operating Leases (Schedule Of Aging Analysis Of Financing Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
$ 1,751 
$ 1,733 
Current
8,285 
7,983 
Total
10,036 
9,716 
Nonaccrual Financing Receivables
71 
75 
Impaired Financing Receivables
60 
59 
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
567 
550 
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
351 
185 
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
833 
998 
Lease Receivables
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
567 
436 
Current
2,138 
2,203 
Total
2,705 
2,639 
Nonaccrual Financing Receivables
14 
14 
Impaired Financing Receivables
14 
14 
Lease Receivables |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
161 
160 
Lease Receivables |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
86 
60 
Lease Receivables |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
320 
216 
Loan Receivables
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
633 
537 
Current
4,115 
4,023 
Total
4,748 
4,560 
Nonaccrual Financing Receivables
44 
43 
Impaired Financing Receivables
44 
43 
Loan Receivables |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
145 
230 
Loan Receivables |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
81 
48 
Loan Receivables |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
407 
259 
Financed Service Contracts
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
551 
760 
Current
2,032 
1,757 
Total
2,583 
2,517 
Nonaccrual Financing Receivables
13 
18 
Impaired Financing Receivables
2 
2 
Financed Service Contracts |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
261 
160 
Financed Service Contracts |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
184 
77 
Financed Service Contracts |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Total Past Due
$ 106 
$ 523 
Financing Receivables and Operating Leases (Operating Lease Schedule) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Receivables [Abstract]
 
 
Operating lease assets
$ 352 
$ 356 
Accumulated depreciation
(221)
(212)
Operating lease assets, net
$ 131 
$ 144 
Financing Receivables and Operating Leases (Minimum future rental payments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Receivables [Abstract]
 
2018 (remaining nine months)
$ 139 
2019
110 
2020
48 
2021
7 
Thereafter
2 
Total
$ 306 
Investments (Summary Of Available-For-Sale Investments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Schedule of Investments [Line Items]
 
 
Amortized Cost
$ 59,988 
$ 58,225 
Gross Unrealized Gains
817 
762 
Gross Unrealized Losses
(260)
(203)
Fair Value
60,545 
58,784 
Net unsettled available-for-sale investments, purchases (sales)
95 
(30)
Total fixed income securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
58,854 
57,045 
Gross Unrealized Gains
164 
208 
Gross Unrealized Losses
(254)
(176)
Fair Value
58,764 
57,077 
Total fixed income securities |
U.S. government securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
20,564 
19,880 
Gross Unrealized Gains
0 
3 
Gross Unrealized Losses
(93)
(60)
Fair Value
20,471 
19,823 
Total fixed income securities |
U.S. government agency securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
1,923 
2,057 
Gross Unrealized Gains
0 
0 
Gross Unrealized Losses
(6)
(5)
Fair Value
1,917 
2,052 
Total fixed income securities |
Non-U.S. government and agency securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
358 
389 
Gross Unrealized Gains
0 
0 
Gross Unrealized Losses
(1)
(1)
Fair Value
357 
388 
Total fixed income securities |
Corporate debt securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
31,999 
31,626 
Gross Unrealized Gains
162 
202 
Gross Unrealized Losses
(131)
(93)
Fair Value
32,030 
31,735 
Total fixed income securities |
U.S. agency mortgage-backed securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
2,095 
2,037 
Gross Unrealized Gains
2 
3 
Gross Unrealized Losses
(23)
(17)
Fair Value
2,074 
2,023 
Total fixed income securities |
Commercial paper
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
1,775 
996 
Gross Unrealized Gains
0 
0 
Gross Unrealized Losses
0 
0 
Fair Value
1,775 
996 
Total fixed income securities |
Certificates of deposit
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
140 
60 
Gross Unrealized Gains
0 
0 
Gross Unrealized Losses
0 
0 
Fair Value
140 
60 
Publicly traded equity securities
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
1,134 
1,180 
Gross Unrealized Gains
653 
554 
Gross Unrealized Losses
(6)
(27)
Fair Value
$ 1,781 
$ 1,707 
Investments (Available-For-Sale Investments With Gross Unrealized Losses) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
$ 28,476 
$ 28,215 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(138)
(195)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
8,340 
1,040 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(122)
(8)
TOTAL, Fair Value
36,816 
29,255 
TOTAL, Gross Unrealized Losses
(260)
(203)
Publicly traded equity securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
54 
122 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(6)
(27)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
0 
0 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
0 
0 
TOTAL, Fair Value
54 
122 
TOTAL, Gross Unrealized Losses
(6)
(27)
Total fixed income securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
28,422 
28,093 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(132)
(168)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
8,340 
1,040 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(122)
(8)
TOTAL, Fair Value
36,762 
29,133 
TOTAL, Gross Unrealized Losses
(254)
(176)
Total fixed income securities |
U.S. government securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
16,719 
14,962 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(66)
(55)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
3,602 
771 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(27)
(5)
TOTAL, Fair Value
20,321 
15,733 
TOTAL, Gross Unrealized Losses
(93)
(60)
Total fixed income securities |
U.S. government agency securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
1,696 
1,791 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(4)
(4)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
222 
130 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(2)
(1)
TOTAL, Fair Value
1,918 
1,921 
TOTAL, Gross Unrealized Losses
(6)
(5)
Total fixed income securities |
Non-U.S. government and agency securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
316 
368 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(1)
(1)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
41 
0 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
0 
0 
TOTAL, Fair Value
357 
368 
TOTAL, Gross Unrealized Losses
(1)
(1)
Total fixed income securities |
Corporate debt securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
8,129 
9,487 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(45)
(92)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
4,209 
101 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(86)
(1)
TOTAL, Fair Value
12,338 
9,588 
TOTAL, Gross Unrealized Losses
(131)
(93)
Total fixed income securities |
U.S. agency mortgage-backed securities
 
 
Schedule of Investments [Line Items]
 
 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value
1,562 
1,485 
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses
(16)
(16)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value
266 
38 
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses
(7)
(1)
TOTAL, Fair Value
1,828 
1,523 
TOTAL, Gross Unrealized Losses
$ (23)
$ (17)
Investments (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 28, 2017
entity
Oct. 29, 2016
Jul. 29, 2017
Schedule of Investments [Line Items]
 
 
 
Impairment charges of available-for-sale investments
$ 26,000,000 
$ 0 
 
Other than temporary impairment, credit losses recognized in earnings, credit losses on debt securities held
0 
 
 
Average daily balance of securities lending
500,000,000 
1,200,000,000 
 
Fair value of securities received as collateral that can be resold or repledged, percentage (at least)
102.00% 
 
 
Secured lending transactions outstanding
0 
 
0 
Number of variable interest entities required to be consolidated (entity)
0 
 
 
Investments in privately held companies
947,000,000 
 
983,000,000 
Funding commitments
213,000,000 
 
 
Variable Interest Entity, Not Primary Beneficiary
 
 
 
Schedule of Investments [Line Items]
 
 
 
Investments in privately held companies
$ 519,000,000 
 
 
Investments (Maturities Of Fixed Income Securities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Schedule of Investments [Line Items]
 
Amortized Cost
$ 58,854 
Fair Value
58,764 
Less than 1 year
 
Schedule of Investments [Line Items]
 
Amortized Cost
16,376 
Fair Value
16,360 
Due in 1 to 2 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
14,866 
Fair Value
14,820 
Due in 2 to 5 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
21,852 
Fair Value
21,883 
Due after 5 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
3,665 
Fair Value
3,627 
Mortgage-backed securities with no single maturity
 
Schedule of Investments [Line Items]
 
Amortized Cost
2,095 
Fair Value
$ 2,074 
Investments (Equity Method and Cost Method Investment) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Investments, Debt and Equity Securities [Abstract]
 
 
Equity method investments
$ 108 
$ 124 
Cost method investments
839 
859 
Total
$ 947 
$ 983 
Fair Value (Assets and Liabilities Measured At Fair Value On Recurring Basis) (Details) (USD $)
Oct. 28, 2017
Jul. 29, 2017
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
$ 69,862,000,000 
$ 68,824,000,000 
Derivative liabilities
18,000,000 
4,000,000 
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
10,884,000,000 
11,274,000,000 
Derivative liabilities
0 
0 
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
58,978,000,000 
57,550,000,000 
Derivative liabilities
18,000,000 
4,000,000 
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Derivative liabilities
0 
0 
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
9,103,000,000 
9,567,000,000 
Cash equivalents: |
Money market funds |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
9,103,000,000 
9,567,000,000 
Cash equivalents: |
Money market funds |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Cash equivalents: |
Money market funds |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Cash equivalents: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
139,000,000 
Cash equivalents: |
U.S. government securities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Cash equivalents: |
U.S. government securities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
139,000,000 
Cash equivalents: |
U.S. government securities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Cash equivalents: |
Commercial paper
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
115,000,000 
160,000,000 
Cash equivalents: |
Commercial paper |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Cash equivalents: |
Commercial paper |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
115,000,000 
160,000,000 
Cash equivalents: |
Commercial paper |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Cash equivalents: |
Certificates of deposit
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
25,000,000 
Cash equivalents: |
Certificates of deposit |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Cash equivalents: |
Certificates of deposit |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
25,000,000 
Cash equivalents: |
Certificates of deposit |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
20,471,000,000 
19,823,000,000 
Available-for-sale investments: |
U.S. government securities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
U.S. government securities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
20,471,000,000 
19,823,000,000 
Available-for-sale investments: |
U.S. government securities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
1,917,000,000 
2,052,000,000 
Available-for-sale investments: |
U.S. government agency securities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
U.S. government agency securities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
1,917,000,000 
2,052,000,000 
Available-for-sale investments: |
U.S. government agency securities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Non-U.S. government and agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
357,000,000 
388,000,000 
Available-for-sale investments: |
Non-U.S. government and agency securities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Non-U.S. government and agency securities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
357,000,000 
388,000,000 
Available-for-sale investments: |
Non-U.S. government and agency securities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
32,030,000,000 
31,735,000,000 
Available-for-sale investments: |
Corporate debt securities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Corporate debt securities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
32,030,000,000 
31,735,000,000 
Available-for-sale investments: |
Corporate debt securities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
2,074,000,000 
2,023,000,000 
Available-for-sale investments: |
U.S. agency mortgage-backed securities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
U.S. agency mortgage-backed securities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
2,074,000,000 
2,023,000,000 
Available-for-sale investments: |
U.S. agency mortgage-backed securities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Commercial paper
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
1,775,000,000 
996,000,000 
Available-for-sale investments: |
Commercial paper |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Commercial paper |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
1,775,000,000 
996,000,000 
Available-for-sale investments: |
Commercial paper |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Certificates of deposit
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
140,000,000 
60,000,000 
Available-for-sale investments: |
Certificates of deposit |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Certificates of deposit |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
140,000,000 
60,000,000 
Available-for-sale investments: |
Certificates of deposit |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
1,781,000,000 
1,707,000,000 
Available-for-sale investments: |
Publicly traded equity securities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
1,781,000,000 
1,707,000,000 
Available-for-sale investments: |
Publicly traded equity securities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Available-for-sale investments: |
Publicly traded equity securities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
99,000,000 
149,000,000 
Derivative assets |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Derivative assets |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
99,000,000 
149,000,000 
Derivative assets |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Total
0 
0 
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Derivative liabilities
18,000,000 
4,000,000 
Derivative liabilities |
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Derivative liabilities
0 
0 
Derivative liabilities |
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Derivative liabilities
18,000,000 
4,000,000 
Derivative liabilities |
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Derivative liabilities
$ 0 
$ 0 
Fair Value (Fair Value, Nonrecurring Measurement) (Details) (Fair Value, Measurements, Nonrecurring, Level 3, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
 
 
Total gains (losses) for nonrecurring measurements
$ (21)
$ (89)
Investments in privately held companies (impaired)
 
 
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
 
 
Total gains (losses) for nonrecurring measurements
(21)
(47)
Purchased intangible assets (impaired)
 
 
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
 
 
Total gains (losses) for nonrecurring measurements
$ 0 
$ (42)
Fair Value (Additional Information) (Details) (USD $)
Oct. 28, 2017
Jul. 29, 2017
Oct. 28, 2017
Investments in privately held companies (impaired)
Jul. 29, 2017
Investments in privately held companies (impaired)
Oct. 28, 2017
Level 3
Jul. 29, 2017
Level 3
Oct. 28, 2017
Level 3
Remaining carrying value of impaired investments
Oct. 29, 2016
Level 3
Remaining carrying value of impaired investments
Oct. 28, 2017
Level 3
Remaining carrying value of impaired purchased intangibles
Oct. 29, 2016
Level 3
Remaining carrying value of impaired purchased intangibles
Oct. 28, 2017
Level 2
Jul. 29, 2017
Level 2
Fair Value Measurements [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Remaining carrying value of the investments that were impaired
 
 
 
 
 
 
$ 25,000,000 
$ 46,000,000 
$ 0 
$ 11,000,000 
 
 
Carrying value of cost method investments in privately held companies
 
 
839,000,000 
859,000,000 
 
 
 
 
 
 
 
 
Long term loan receivables and financed service contracts and others carrying value
 
 
 
 
3,500,000,000 
3,400,000,000 
 
 
 
 
 
 
Senior notes, fair value
 
 
 
 
 
 
 
 
 
 
32,000,000,000 
32,100,000,000 
Senior notes, carrying value
$ 30,432,000,000 
$ 30,472,000,000 
 
 
 
 
 
 
 
 
$ 30,400,000,000 
$ 30,500,000,000 
Borrowings (Schedule Of Short-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Short-term Debt [Line Items]
 
 
Amount
$ 10,239 
$ 7,992 
Current portion of long-term debt
 
 
Short-term Debt [Line Items]
 
 
Amount
4,748 
4,747 
Effective Rate
1.70% 
1.66% 
Commercial paper
 
 
Short-term Debt [Line Items]
 
 
Amount
$ 5,491 
$ 3,245 
Effective Rate
1.25% 
1.16% 
Borrowings (Additional Information) (Details) (USD $)
0 Months Ended
Oct. 28, 2017
Jul. 29, 2017
May 15, 2015
Unsecured revolving credit facility
Mar. 30, 2017
Unsecured revolving credit facility
364-Day Credit Agreement With Certain Institutional Lenders
Revolving Credit Facility
May 15, 2015
Unsecured revolving credit facility
Federal fund rate plus 0.50%
May 15, 2015
Unsecured revolving credit facility
One-month LIBOR plus 1%
Mar. 30, 2017
Unsecured revolving credit facility
One-month LIBOR plus 1%
364-Day Credit Agreement With Certain Institutional Lenders
Revolving Credit Facility
May 15, 2015
Unsecured revolving credit facility
Eurodollar
Mar. 30, 2017
Unsecured revolving credit facility
Federal Funds Rate
364-Day Credit Agreement With Certain Institutional Lenders
Revolving Credit Facility
Oct. 28, 2017
Derivatives designated as hedging instruments:
Interest rate derivatives
Jul. 29, 2017
Derivatives designated as hedging instruments:
Interest rate derivatives
Mar. 31, 2017
Commercial paper
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Commercial paper, maximum borrowing limit (up to)
 
 
 
 
 
 
 
 
 
 
 
$ 10,000,000,000.0 
Derivative, notional amount
11,019,000,000 
11,590,000,000 
 
 
 
 
 
 
 
6,750,000,000 
6,750,000,000 
 
Current borrowing capacity
 
 
3,000,000,000 
 
 
 
 
 
 
 
 
 
Interest rate based on % above pre-defined market rate
 
 
 
 
0.50% 
1.00% 
1.00% 
0.00% 
0.50% 
 
 
 
Additional credit facility upon agreement (up to)
 
 
2,000,000,000.0 
 
 
 
 
 
 
 
 
 
Credit facility maximum borrowing capacity
 
 
 
2,000,000,000 
 
 
 
 
 
 
 
 
Line of credit facility, amount outstanding
$ 0 
 
 
 
 
 
 
 
 
 
 
 
Borrowings (Schedule Of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Jul. 29, 2017
Oct. 28, 2017
Floating Rate Notes 3-month Libor Plus 0.60% Due February 2018
Jul. 29, 2017
Floating Rate Notes 3-month Libor Plus 0.60% Due February 2018
Oct. 28, 2017
Floating Rate Notes 3-month Libor Plus 0.31% Due June 2018
Jul. 29, 2017
Floating Rate Notes 3-month Libor Plus 0.31% Due June 2018
Oct. 28, 2017
Floating Rate Notes 3-month Libor Plus 0.50% Due March 2019
Jul. 29, 2017
Floating Rate Notes 3-month Libor Plus 0.50% Due March 2019
Oct. 28, 2017
Floating Rate Notes 3-month Libor Plus 0.34% Due September 2019
Jul. 29, 2017
Floating Rate Notes 3-month Libor Plus 0.34% Due September 2019
Oct. 28, 2017
Fixed Rate Notes, 1.4%, Due February 28, 2018
Jul. 29, 2017
Fixed Rate Notes, 1.4%, Due February 28, 2018
Oct. 28, 2017
Fixed rate notes 1.65% due June 2018
Jul. 29, 2017
Fixed rate notes 1.65% due June 2018
Oct. 28, 2017
Fixed-Rate Notes, 4.95%, Due February 2019
Jul. 29, 2017
Fixed-Rate Notes, 4.95%, Due February 2019
Oct. 28, 2017
Fixed-Rate Notes, 1.60%, Due February 2019
Jul. 29, 2017
Fixed-Rate Notes, 1.60%, Due February 2019
Oct. 28, 2017
Fixed-Rate Notes, 2.125%, Due March 2019
Jul. 29, 2017
Fixed-Rate Notes, 2.125%, Due March 2019
Oct. 28, 2017
Fixed-Rate Notes, 1.40%, Due September 2019
Jul. 29, 2017
Fixed-Rate Notes, 1.40%, Due September 2019
Oct. 28, 2017
Fixed-Rate Notes, 4.45%, Due January 2020
Jul. 29, 2017
Fixed-Rate Notes, 4.45%, Due January 2020
Oct. 28, 2017
Fixed-Rate Notes, 2.45%, Due June 2020
Jul. 29, 2017
Fixed-Rate Notes, 2.45%, Due June 2020
Oct. 28, 2017
Fixed-Rate Notes, 2.2%, Due February 2021
Jul. 29, 2017
Fixed-Rate Notes, 2.2%, Due February 2021
Oct. 28, 2017
Fixed-Rate Notes, 2.90%, Due March 2021
Jul. 29, 2017
Fixed-Rate Notes, 2.90%, Due March 2021
Oct. 28, 2017
Fixed-Rate Notes, 1.85%, Due September 2021
Jul. 29, 2017
Fixed-Rate Notes, 1.85%, Due September 2021
Oct. 28, 2017
Fixed-Rate Notes, 3.0 %, Due June 15, 2022
Jul. 29, 2017
Fixed-Rate Notes, 3.0 %, Due June 15, 2022
Oct. 28, 2017
Fixed-Rate Notes, 2.6%, Due February, 2023
Jul. 29, 2017
Fixed-Rate Notes, 2.6%, Due February, 2023
Oct. 28, 2017
Fixed-Rate Notes, 2.20%, Due September 2023
Jul. 29, 2017
Fixed-Rate Notes, 2.20%, Due September 2023
Oct. 28, 2017
Fixed-Rate Notes, 3.625%, Due March 2024
Jul. 29, 2017
Fixed-Rate Notes, 3.625%, Due March 2024
Oct. 28, 2017
Fixed-Rate Notes,3.5%, Due June 15, 2025
Jul. 29, 2017
Fixed-Rate Notes,3.5%, Due June 15, 2025
Oct. 28, 2017
Fixed-Rate Notes,2.95%, Due February, 2026
Jul. 29, 2017
Fixed-Rate Notes,2.95%, Due February, 2026
Oct. 28, 2017
Fixed-Rate Notes, 2.50%, Due September 2026
Jul. 29, 2017
Fixed-Rate Notes, 2.50%, Due September 2026
Oct. 28, 2017
Fixed-Rate Notes, 5.9%, Due February 2039
Jul. 29, 2017
Fixed-Rate Notes, 5.9%, Due February 2039
Oct. 28, 2017
Fixed-Rate Notes, 5.5%, Due January 2040
Jul. 29, 2017
Fixed-Rate Notes, 5.5%, Due January 2040
Oct. 28, 2017
One-month LIBOR plus
Floating Rate Notes 3-month Libor Plus 0.60% Due February 2018
Oct. 28, 2017
One-month LIBOR plus
Floating Rate Notes 3-month Libor Plus 0.31% Due June 2018
Oct. 28, 2017
One-month LIBOR plus
Floating Rate Notes 3-month Libor Plus 0.50% Due March 2019
Oct. 28, 2017
One-month LIBOR plus
Floating Rate Notes 3-month Libor Plus 0.34% Due September 2019
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus this percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.60% 
0.31% 
0.50% 
0.34% 
Interest rate, stated percentage
 
 
 
 
 
 
 
 
 
 
1.40% 
 
1.65% 
 
4.95% 
 
1.60% 
 
2.125% 
 
1.40% 
 
4.45% 
 
2.45% 
 
2.20% 
 
2.90% 
 
1.85% 
 
3.00% 
 
2.60% 
 
2.20% 
 
3.625% 
 
3.50% 
 
2.95% 
 
2.50% 
 
5.90% 
 
5.50% 
 
 
 
 
 
Amount
 
 
$ 1,000 
$ 1,000 
$ 900 
$ 900 
$ 500 
$ 500 
$ 500 
$ 500 
$ 1,250 
$ 1,250 
$ 1,600 
$ 1,600 
$ 2,000 
$ 2,000 
$ 1,000 
$ 1,000 
$ 1,750 
$ 1,750 
$ 1,500 
$ 1,500 
$ 2,500 
$ 2,500 
$ 1,500 
$ 1,500 
$ 2,500 
$ 2,500 
$ 500 
$ 500 
$ 2,000 
$ 2,000 
$ 500 
$ 500 
$ 500 
$ 500 
$ 750 
$ 750 
$ 1,000 
$ 1,000 
$ 500 
$ 500 
$ 750 
$ 750 
$ 1,500 
$ 1,500 
$ 2,000 
$ 2,000 
$ 2,000 
$ 2,000 
 
 
 
 
Effective Rate
 
 
1.98% 
1.84% 
1.70% 
1.62% 
1.88% 
1.76% 
1.71% 
1.66% 
1.47% 
1.47% 
1.72% 
1.72% 
4.96% 
4.96% 
1.67% 
1.67% 
1.85% 
1.84% 
1.48% 
1.48% 
3.85% 
3.84% 
2.54% 
2.54% 
2.30% 
2.30% 
2.01% 
2.00% 
1.90% 
1.90% 
2.28% 
2.26% 
2.68% 
2.68% 
2.27% 
2.27% 
2.13% 
2.12% 
2.44% 
2.43% 
3.01% 
3.01% 
2.55% 
2.55% 
6.11% 
6.11% 
5.67% 
5.67% 
 
 
 
 
Total
30,500 
30,500 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaccreted discount/issuance costs
(130)
(136)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Hedge accounting fair value adjustments
62 
108 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
30,432 
30,472 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
4,748 
4,747 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
$ 25,684 
$ 25,725 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings (Schedule Of Future Principal Payments For Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Debt Disclosure [Abstract]
 
 
2018 (remaining nine months)
$ 4,750 
 
2019
5,250 
 
2020
6,000 
 
2021
3,000 
 
2022
2,500 
 
Thereafter
9,000 
 
Total
$ 30,500 
$ 30,500 
Derivative Instruments (Derivatives Recorded At Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
$ 99 
$ 149 
DERIVATIVE LIABILITIES
18 
4 
Derivatives designated as hedging instruments:
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
98 
148 
DERIVATIVE LIABILITIES
16 
1 
Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
40 
46 
Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
0 
1 
Derivatives designated as hedging instruments: |
Equity derivatives/warrants |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
0 
0 
Derivatives designated as hedging instruments: |
Equity derivatives/warrants |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
14 
0 
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
58 
102 
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other long-term liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
2 
0 
Derivatives not designated as hedging instruments:
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
1 
1 
DERIVATIVE LIABILITIES
2 
3 
Derivatives not designated as hedging instruments: |
Foreign currency derivatives |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
1 
1 
Derivatives not designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
2 
3 
Derivatives not designated as hedging instruments: |
Equity derivatives/warrants |
Other assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
0 
0 
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. 28, 2017
Oct. 29, 2016
Derivatives designated as cash flow hedging instruments:
 
 
Derivative [Line Items]
 
 
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
$ 8 
$ (46)
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
13 
(12)
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)
8 
(46)
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)
10 
(9)
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 
(3)
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)
(5)
9 
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. 28, 2017
Oct. 28, 2017
Fixed Income Securities
derivative
Jul. 29, 2017
Fixed Income Securities
derivative
Oct. 28, 2017
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
$ 44 
 
 
 
Foreign currency cash flow hedges maturity period, maximum, months
 
 
 
24 months 
Number of interest rate derivatives held (derivative)
 
0 
0 
 
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, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Hedge Underlying Gain Loss [Line Items]
 
 
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED
$ (60)
$ (91)
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
60 
90 
Interest rate derivatives |
Interest expense
 
 
Hedge Underlying Gain Loss [Line Items]
 
 
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED
(46)
(91)
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
46 
90 
Equity derivatives |
Other income (loss), net
 
 
Hedge Underlying Gain Loss [Line Items]
 
 
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED
(14)
0 
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
$ 14 
$ 0 
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. 28, 2017
Oct. 29, 2016
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
$ 24 
$ (18)
Foreign currency derivatives |
Other income (loss), net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
7 
(16)
Total return swaps—deferred compensation |
Operating expenses
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
16 
(3)
Equity derivatives |
Other income (loss), net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE PERIOD
$ 1 
$ 1 
Derivative Instruments (Schedule Of Notional Amounts Of Derivatives Outstanding) (Details) (USD $)
Oct. 28, 2017
Jul. 29, 2017
Derivative [Line Items]
 
 
Derivatives
$ 11,019,000,000 
$ 11,590,000,000 
Derivatives designated as hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
1,219,000,000 
1,696,000,000 
Derivatives designated as hedging instruments: |
Interest rate derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
6,750,000,000 
6,750,000,000 
Derivatives designated as hedging instruments: |
Net investment hedging instruments
 
 
Derivative [Line Items]
 
 
Derivatives
266,000,000 
351,000,000 
Derivatives designated as hedging instruments: |
Equity derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
302,000,000 
0 
Derivatives not designated as hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
1,918,000,000 
2,258,000,000 
Derivatives not designated as hedging instruments: |
Total return swaps—deferred compensation
 
 
Derivative [Line Items]
 
 
Derivatives
$ 564,000,000 
$ 535,000,000 
Derivative Instruments (Offsetting of Derivative Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
Gross Amount of Recognized, Assets
$ 99 
$ 149 
Gross Amounts Offset, Assets
0 
0 
Net Amounts Presented, Assets
99 
149 
Gross Derivative Amounts, Assets
(14)
(4)
Cash Collateral, Assets
(57)
(81)
Net Amount, Assets
28 
64 
Gross Amount of Recognized, Liabilities
18 
4 
Gross Amounts Offset, Liabilities
0 
0 
Net Amount Presented, Liabilities
18 
4 
Gross Derivative Amounts, Liabilities
(14)
(4)
Cash Collateral, Liabilities
0 
0 
Net Amount, Liabilities
$ 4 
$ 0 
Commitments and Contingencies (Schedule Of Future Minimum Lease Payments Under All Noncancelable Operating Leases) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Commitments and Contingencies Disclosure [Abstract]
 
2018 (remaining nine months)
$ 316 
2019
292 
2020
203 
2021
120 
2022
99 
Thereafter
147 
Total
$ 1,177 
Commitments and Contingencies (Additional Information) (Details) (USD $)
3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 7 Months Ended 0 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Jul. 29, 2017
May 12, 2016
SRI International
May 25, 2017
SRI International
Pending Litigation
Sep. 4, 2013
SRI International
Pending Litigation
patent
Jan. 28, 2017
Damages from Product Defects
Mar. 14, 2017
Patent Infringement
Sprint Communications Company, L.P. vs. Time Warner Cable, Inc.
Pending Litigation
Mar. 3, 2017
Patent Infringement
Sprint Communications Company, L.P. vs. Time Warner Cable, Inc.
Pending Litigation
patent
Oct. 28, 2017
Patent Infringement
Sprint Communications Company, L.P. vs. Time Warner Cable, Inc.
Pending Litigation
Jan. 15, 2016
Patent Infringement
Huawei Technologies Co. Ltd. Vs. T-Mobile US, Inc.
Pending Litigation
patent
claim
Oct. 28, 2017
Patent Infringement
Huawei Technologies Co. Ltd. Vs. T-Mobile US, Inc.
Pending Litigation
patent
Oct. 28, 2017
Patent Indemnification
Oct. 28, 2017
Minimum
Oct. 28, 2017
Maximum
Oct. 28, 2017
Insieme Networks Inc
Oct. 29, 2016
Insieme Networks Inc
Jul. 28, 2012
Insieme Networks Inc
Oct. 28, 2017
Investments in privately held companies (impaired)
Jul. 29, 2017
Investments in privately held companies (impaired)
Jul. 26, 2014
Supplier Component Remediation Liability
Oct. 28, 2017
Supplier Component Remediation Liability
Jul. 29, 2017
Supplier Component Remediation Liability
Jan. 28, 2017
Supplier Component Remediation Liability
Cost of Goods, Product Line
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
$ 4,205,000,000 
 
$ 4,640,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability for purchase commitments
161,000,000 
 
162,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future compensation expense & contingent consideration (up to)
298,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable interest entities investment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
Payments to acquire additional interest in subsidiaries
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
323,000,000 
 
 
 
 
 
 
 
 
 
Compensation expense related to acquisitions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
20,000,000 
 
 
 
 
 
 
 
 
 
Commitments and contingencies
   
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
213,000,000 
216,000,000 
 
 
 
 
 
 
Warranty period for products
 
 
 
 
 
 
 
 
 
 
 
 
 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
Warranty period for products
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
Channel partners revolving short-term financing payment term
 
 
 
 
 
 
 
 
 
 
 
 
 
60 days 
90 days 
 
 
 
 
 
 
 
 
 
 
 
Volume of channel partner financing
6,700,000,000 
6,900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance of the channel partner financing subject to guarantees
1,000,000,000 
 
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
End user lease and loan term
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
Financing provided by third parties for leases and loans on which the Company has provided guarantees
14,000,000 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Charge to product cost of sales
3,615,000,000 
3,403,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
655,000,000 
 
 
 
 
 
Adjustments for pre-existing warranties
(12,000,000)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(141,000,000)
74,000,000 
164,000,000 
Charge for expected remediation
 
 
 
 
 
 
125,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss contingency accrual
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
146,000,000 
174,000,000 
 
 
 
Number of patents found infringed (patent)
 
 
 
 
 
 
 
 
5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Damages awarded, value
 
 
 
23,700,000 
57,000,000 
 
 
139,800,000 
139,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of post-judgment interest awarded
 
 
 
 
 
 
 
1.06% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-judgment interest requested
 
 
 
 
 
 
 
 
 
20,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of patent infringement actions filed (claim)
 
 
 
 
 
 
 
 
 
 
4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of allegedly infringed patents (patent)
 
 
 
 
 
2 
 
 
 
 
12 
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Legal and indemnification settlement
 
 
 
 
 
 
 
 
 
 
 
 
122,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer tax portion
250,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer interest portion
1,500,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer penalties portion
$ 1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of royalty awarded
 
 
 
 
3.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies (Schedule of Other Commitments) (Details) (Acquisition, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Acquisition
 
 
Contingency [Line Items]
 
 
Compensation expense related to acquisitions
$ 42 
$ 64 
Commitments and Contingencies (Schedule Of Product Warranty Liability) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
 
 
Balance at beginning of period
$ 407 
$ 414 
Provisions for warranty issued
148 
176 
Adjustments for pre-existing warranties
(12)
0 
Settlements
(149)
(177)
Balance at end of period
$ 394 
$ 413 
Commitments and Contingencies (Schedule of Financing Guarantees Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
$ 331 
$ 314 
Deferred revenue associated with financing guarantees:
(125)
(134)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
206 
180 
Channel partner
 
 
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
266 
240 
Deferred revenue associated with financing guarantees:
(79)
(82)
End user
 
 
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
65 
74 
Deferred revenue associated with financing guarantees:
$ (46)
$ (52)
Shareholders' Equity (Additional Information) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Stockholders' Equity Note [Abstract]
 
 
Cash dividends paid per common share (in dollars per share)
$ 0.29 
$ 0.26 
Payments of dividends
$ 1,436,000,000 
$ 1,300,000,000 
Authorized common stock repurchase amount
112,000,000,000 
 
Remaining authorized repurchase amount
10,100,000,000 
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
11 
13 
Payments related to tax withholding for share-based compensation
$ 342,000,000 
$ 401,000,000 
Shareholders' Equity (Stock Repurchase Program) (Details) (USD $)
3 Months Ended
Oct. 28, 2017
Oct. 28, 2017
Stock repurchase program
Jul. 29, 2017
Stock repurchase program
Shares Repurchased
 
 
 
Cumulative Shares Repurchased, Beginning balance (in shares)
4,709,000,000 
 
 
Repurchase of common stock under the stock repurchase program, Shares Repurchased (in shares)
51,000,000 
 
 
Cumulative Shares Repurchased, Ending balance (in shares)
4,760,000,000 
 
 
Weighted- Average Price per Share
 
 
 
Cumulative Weighted-Average Price per Share, Beginning balance (in dollars per share)
$ 21.30 
 
 
Repurchase of common stock under the stock repurchase program, Weighted-Average Price per Share (in dollars per share)
$ 31.80 
 
 
Cumulative Weighted-Average Price per Share, Ending balance (in dollars per share)
$ 21.41 
 
 
Amount Repurchased
 
 
 
Cumulative Amount Repurchased, Beginning balance
$ 100,303,000,000 
 
 
Repurchase of common stock under the stock repurchase program, Amount Repurchased
1,620,000,000 
 
 
Cumulative Amount Repurchased, Ending balance
101,923,000,000 
 
 
Class of Stock [Line Items]
 
 
 
Stock repurchases pending settlement
 
$ 0 
$ 66,000,000 
Employee Benefit Plans (Additional Information) (Details) (USD $)
In Billions, except Share data, unless otherwise specified
3 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended 0 Months Ended 3 Months Ended
Oct. 28, 2017
stock_incentive_plan
Oct. 27, 2017
Jul. 29, 2017
Oct. 28, 2017
Employee Stock Purchase Plan
Oct. 29, 2016
Employee Stock Purchase Plan
Nov. 12, 2009
2005 Plan
Oct. 28, 2017
2005 Plan
Oct. 28, 2017
2005 Plan
Stock awards subsequent to November 12, 2009
Nov. 12, 2009
2005 Plan
Stock awards subsequent to November 12, 2009
Nov. 12, 2009
2005 Plan
Stock awards subsequent to November 12, 2009
Maximum
Oct. 28, 2017
2005 Plan
Employee Stock Option
Oct. 28, 2017
2005 Plan
Employee Stock Option
Minimum
Oct. 28, 2017
2005 Plan
Employee Stock Option
Maximum
Oct. 28, 2017
2005 Plan
Performance base and Market base RSU
Oct. 28, 2017
2005 Plan
Performance based RSU based on Financial or nonFinancial operating goal
Minimum
Oct. 28, 2017
2005 Plan
Performance based RSU based on Financial or nonFinancial operating goal
Maximum
Oct. 28, 2017
2005 Plan
PRSU based on financial performance metrics
Minimum
Oct. 28, 2017
2005 Plan
PRSU based on financial performance metrics
Maximum
Oct. 28, 2017
2005 Plan
PRSU based on TSR
Minimum
Oct. 28, 2017
2005 Plan
PRSU based on TSR
Maximum
Oct. 28, 2017
2005 Plan
PRSU based on nonfinancial operating goals
Minimum
Oct. 28, 2017
2005 Plan
PRSU based on nonfinancial operating goals
Maximum
Oct. 28, 2017
2005 Plan
Time Based Stock Grants And Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of stock incentive plans (stock incentive plan)
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares reserved for issuance (in shares)
 
 
 
621,400,000 
 
 
694,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
24 months 
 
 
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation award vesting rights, percentage
 
 
 
 
 
 
 
 
 
 
 
20.00% 
25.00% 
 
 
 
0.00% 
150.00% 
0.00% 
150.00% 
0.00% 
100.00% 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
1 year 
 
 
 
 
 
 
 
 
 
 
 
4 years 
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 issued under employee purchase plan, shares (in shares)
 
 
 
0 
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares available for issuance (in shares)
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total compensation cost related to unvested share-based awards
$ 2.9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected period of recognition of compensation cost
2 years 7 months 6 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Closing stock price (in dollars per share)
 
$ 34.43 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In-the-money exercisable stock option shares (in shares)
7,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number Exercisable (in shares)
 
 
6,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted- average exercise price per share (in dollars per share)
 
 
$ 5.61 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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. 28, 2017
Oct. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
$ 398 
$ 372 
Income tax benefit for share-based compensation
175 
105 
Cost of sales—product
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
23 
21 
Cost of sales—service
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
34 
33 
Share-based compensation expense in cost of sales
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
57 
54 
Research and development
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
136 
126 
Sales and marketing
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
135 
140 
General and administrative
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
64 
49 
Restructuring and other charges
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
6 
3 
Share-based compensation expense in operating expenses
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
$ 341 
$ 318 
Employee Benefit Plans (Summary of Share-Based Awards available for Grant) (Details)
3 Months Ended 12 Months Ended
Oct. 28, 2017
Jul. 29, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
 
 
Balance, beginning of period (in shares)
272,000,000 
242,000,000 
Restricted stock, stock units, and other share-based awards granted (in shares)
(16,000,000)
(76,000,000)
Share-based awards canceled/forfeited/expired (in shares)
5,000,000 
78,000,000 
Shares withheld for taxes and not issued (in shares)
15,000,000 
28,000,000 
Balance, end of period (in shares)
276,000,000 
272,000,000 
Employee Benefit Plans (Summary Of Restricted Stock And Stock Unit Activity) (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 28, 2017
Jul. 29, 2017
Restricted Stock/ Stock Units
 
 
Assumed from acquisitions (in shares)
3,000,000 
8,000,000 
Weighted- Average Price per Share
 
 
Assumed from acquisitions (in dollars per share)
$ 8.07 
$ 4.47 
Restricted Stock/Stock Units
 
 
Restricted Stock/ Stock Units
 
 
Beginning balance (in shares)
141,000,000 
145,000,000 
Granted (in shares)
10,000,000 
50,000,000 
Assumed from acquisitions (in shares)
1,000,000 
15,000,000 
Vested (in shares)
(29,000,000)
(54,000,000)
Canceled/forfeited (in shares)
(6,000,000)
(15,000,000)
Ending balance (in shares)
117,000,000 
141,000,000 
Weighted- Average Price per Share
 
 
Beginning balance (in dollars per share)
$ 26.94 
$ 24.26 
Granted (in dollars per share)
$ 30.19 
$ 27.89 
Assumed from acquisitions (in dollars per share)
$ 28.70 
$ 32.21 
Vested (in dollars per share)
$ 24.52 
$ 23.14 
Canceled/forfeited (in dollars per share)
$ 28.73 
$ 23.56 
Ending balance (in dollars per share)
$ 27.75 
$ 26.94 
Aggregate Fair Value
$ 927 
$ 1,701 
Employee Benefit Plans (Summary Of Stock Option Activity) (Details) (USD $)
3 Months Ended 12 Months Ended
Oct. 28, 2017
Jul. 29, 2017
Number Outstanding
 
 
Beginning balance (in shares)
12,000,000 
73,000,000 
Assumed from acquisitions (in shares)
3,000,000 
8,000,000 
Exercised (in shares)
(2,000,000)
(14,000,000)
Canceled/forfeited/expired (in shares)
 
(55,000,000)
Ending balance (in shares)
13,000,000 
12,000,000 
Weighted-Average Exercise Price per Share
 
 
Beginning balance (in dollars per share)
$ 6.15 
$ 26.78 
Assumed from acquisitions (in dollars per share)
$ 8.07 
$ 4.47 
Exercised (in dollars per share)
$ 5.19 
$ 12.11 
Canceled/forfeited/expired (in dollars per share)
 
$ 31.83 
Ending Balance (in dollars per share)
$ 6.68 
$ 6.15 
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. 28, 2017
Jul. 29, 2017
Jul. 30, 2016
Oct. 28, 2017
$ 0.01 – 30.00
Oct. 28, 2017
Minimum
$ 0.01 – 30.00
Oct. 28, 2017
Maximum
$ 0.01 – 30.00
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Number Outstanding (in shares)
13,000,000 
12,000,000 
73,000,000 
13,000,000 
 
 
Weighted- Average Remaining Contractual Life (in Years)
 
 
 
6 years 7 months 6 days 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
$ 6.68 
$ 6.15 
$ 26.78 
$ 6.68 
$ 0.01 
$ 30.00 
Aggregate Intrinsic Value (Outstanding Options)
 
 
 
$ 371 
 
 
Number Exercisable (in shares)
 
6,000,000 
 
7,000,000 
 
 
Weighted- Average Exercise Price per Share (in dollars per share)
 
$ 5.61 
 
$ 5.90 
$ 0.01 
$ 30.00 
Aggregate Intrinsic Value (Exercisable Options)
 
 
 
$ 193 
 
 
Comprehensive Income (AOCI components) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Jul. 29, 2017
Oct. 28, 2017
Net Unrealized Gains (Losses) on Available-for-Sale Investments
Oct. 29, 2016
Net Unrealized Gains (Losses) on Available-for-Sale Investments
Oct. 28, 2017
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
Oct. 29, 2016
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
Oct. 28, 2017
Cumulative Translation Adjustment and Actuarial Gains (Losses)
Oct. 29, 2016
Cumulative Translation Adjustment and Actuarial Gains (Losses)
Oct. 28, 2017
Accumulated Other Comprehensive Income (Loss)
Oct. 29, 2016
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
Balance, beginning of period
$ 65,550 
$ 66,137 
$ 373 
$ 413 
$ 32 
$ (59)
$ (359)
$ (680)
$ 46 
$ (326)
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
 
 
18 
(210)
8 
(46)
18 
(26)
44 
(282)
(Gains) losses reclassified out of AOCI
 
 
(33)
(15)
(13)
12 
1 
0 
(45)
(3)
Tax benefit (expense)
 
 
(13)
86 
1 
2 
(2)
(1)
(14)
87 
Balance, end of period
$ 65,550 
$ 66,137 
$ 345 
$ 274 
$ 28 
$ (91)
$ (342)
$ (707)
$ 31 
$ (524)
Comprehensive Income (Reclassification out of other comprehensive income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Total amounts reclassified out of AOCI
$ 45 
$ 3 
Cumulative translation adjustment and actuarial gains and losses
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Cumulative translation adjustment and actuarial gains and losses
(1)
0 
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
33 
15 
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
10 
(9)
Cost of sales—service
3 
(3)
Net unrealized gains and losses on cash flow hedging instruments
$ 13 
$ (12)
Income Taxes (Income Before Provision For Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Income Tax Disclosure [Abstract]
 
 
Income before provision for income taxes
$ 2,962 
$ 2,953 
Provision for income taxes
$ 568 
$ 631 
Effective tax rate
19.20% 
21.40% 
Income Taxes (Additional Information) (Details) (USD $)
Oct. 28, 2017
Income Tax Disclosure [Abstract]
 
Unrecognized tax benefits
$ 2,100,000,000 
Unrecognized tax benefits that would impact effective tax rate
1,500,000,000 
Unrecognized tax benefit that could be reduced in next 12 months
$ 100,000,000 
Segment Information and Major Customers (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Jul. 29, 2017
Segment Reporting Information [Line Items]
 
 
 
Number of geographic segments (segment)
3 
 
 
Revenue, total
$ 12,136,000,000 
$ 12,352,000,000 
 
United States
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue, total
6,500,000,000 
6,600,000,000 
 
Cash and cash equivalents and investments
2,500,000,000 
 
3,000,000,000 
International
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Cash and cash equivalents and investments
$ 69,100,000,000 
 
$ 67,500,000,000 
Segment Information and Major Customers (Summary Of Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 28, 2017
Oct. 29, 2016
Segment Reporting Information [Line Items]
 
 
Revenue, total
$ 12,136 
$ 12,352 
Gross margin
7,427 
7,884 
Operating Segments |
Americas
 
 
Segment Reporting Information [Line Items]
 
 
Revenue, total
7,350 
7,443 
Gross margin
4,722 
4,833 
Operating Segments |
EMEA
 
 
Segment Reporting Information [Line Items]
 
 
Revenue, total
2,909 
3,013 
Gross margin
1,839 
2,013 
Operating Segments |
APJC
 
 
Segment Reporting Information [Line Items]
 
 
Revenue, total
1,877 
1,896 
Gross margin
1,165 
1,204 
Segment Reconciling Items
 
 
Segment Reporting Information [Line Items]
 
 
Gross margin
7,726 
8,050 
Intersegment Eliminations
 
 
Segment Reporting Information [Line Items]
 
 
Gross margin
$ (299)
$ (166)
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. 28, 2017
Oct. 29, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue, total
$ 12,136 
$ 12,352 
Infrastructure Platforms
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue, total
6,970 
7,273 
Applications
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue, total
1,203 
1,136 
Security
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue, total
585 
540 
Other Products
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue, total
296 
353 
Total Product
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue, total
9,054 
9,302 
Service
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue, total
$ 3,082 
$ 3,050 
Segment Information and Major Customers (Property and Equipment Information for Geographic Areas) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 28, 2017
Jul. 29, 2017
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
$ 3,202 
$ 3,322 
United States
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
2,624 
2,711 
International
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
$ 578 
$ 611 
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. 28, 2017
Oct. 29, 2016
Earnings Per Share [Abstract]
 
 
Net income
$ 2,394 
$ 2,322 
Weighted-average shares—basic (in shares)
4,959 
5,027 
Effect of dilutive potential common shares (in shares)
35 
39 
Weighted-average shares—diluted (in shares)
4,994 
5,066 
Net income per share—basic (in dollars per share)
$ 0.48 
$ 0.46 
Net income per share—diluted (in dollars per share)
$ 0.48 
$ 0.46 
Antidilutive employee share-based awards, excluded (in shares)
15 
67