CISCO SYSTEMS, INC., 10-K filed on 9/6/2018
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
12 Months Ended
Jul. 28, 2018
Aug. 31, 2018
Jan. 26, 2018
Document Documentand Entity Information [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Jul. 28, 2018    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2018    
Trading Symbol CSCO    
Entity Registrant Name CISCO SYSTEMS, INC.    
Entity Central Index Key 0000858877    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Current Fiscal Year End Date --07-28    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Common Stock, Shares Outstanding   4,571,334,136  
Entity Public Float     $ 207,120,318,133
v3.10.0.1
Consolidated Balance Sheets - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Current assets:    
Cash and cash equivalents $ 8,934 $ 11,708
Investments 37,614 58,784
Accounts receivable, net of allowance for doubtful accounts of $129 at July 28, 2018 and $211 at July 29, 2017 5,554 5,146
Inventories 1,846 1,616
Financing receivables, net 4,949 4,856
Other current assets 2,940 1,593
Total current assets 61,837 83,703
Property and equipment, net 3,006 3,322
Financing receivables, net 4,882 4,738
Goodwill 31,706 29,766
Purchased intangible assets, net 2,552 2,539
Deferred tax assets 3,219 4,239
Other assets 1,582 1,511
TOTAL ASSETS 108,784 129,818
Current liabilities:    
Short-term debt 5,238 7,992
Accounts payable 1,904 1,385
Income taxes payable 1,004 98
Accrued compensation 2,986 2,895
Deferred revenue 11,490 10,821
Other current liabilities 4,413 4,392
Total current liabilities 27,035 27,583
Long-term debt 20,331 25,725
Income taxes payable 8,585 1,250
Deferred revenue 8,195 7,673
Other long-term liabilities 1,434 1,450
Total liabilities 65,580 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; 4,614 and 4,983 shares issued and outstanding at July 28, 2018 and July 29, 2017, respectively 42,820 45,253
Retained earnings 1,233 20,838
Accumulated other comprehensive income (loss) (849) 46
Total Cisco shareholders’ equity 43,204 66,137
Noncontrolling interests 0 0
Total equity 43,204 66,137
TOTAL LIABILITIES AND EQUITY $ 108,784 $ 129,818
v3.10.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Statement of Financial Position [Abstract]    
Accounts receivable, allowance for doubtful accounts $ 129 $ 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) 4,614,000,000 4,983,000,000
Common stock, shares outstanding (in shares) 4,614,000,000 4,983,000,000
v3.10.0.1
Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
REVENUE:      
Revenue $ 49,330 $ 48,005 $ 49,247
COST OF SALES:      
Total cost of sales 18,724 17,781 18,287
GROSS MARGIN 30,606 30,224 30,960
OPERATING EXPENSES:      
Research and development 6,332 6,059 6,296
Sales and marketing 9,242 9,184 9,619
General and administrative 2,144 1,993 1,814
Amortization of purchased intangible assets 221 259 303
Restructuring and other charges 358 756 268
Total operating expenses 18,297 18,251 18,300
OPERATING INCOME 12,309 11,973 12,660
Interest income 1,508 1,338 1,005
Interest expense (943) (861) (676)
Other income (loss), net 165 (163) (69)
Interest and other income (loss), net 730 314 260
INCOME BEFORE PROVISION FOR INCOME TAXES 13,039 12,287 12,920
Provision for income taxes 12,929 2,678 2,181
NET INCOME $ 110 $ 9,609 $ 10,739
Net income per share:      
Basic (in dollars per share) $ 0.02 $ 1.92 $ 2.13
Diluted (in dollars per share) $ 0.02 $ 1.90 $ 2.11
Shares used in per-share calculation:      
Basic (in shares) 4,837 5,010 5,053
Diluted (in shares) 4,881 5,049 5,088
Cash dividends declared per common share (in dollars per share) $ 1.24 $ 1.1 $ 0.94
Product      
REVENUE:      
Revenue $ 36,709 $ 35,705 $ 37,254
COST OF SALES:      
Total cost of sales 14,427 13,699 14,161
Service      
REVENUE:      
Revenue 12,621 12,300 11,993
COST OF SALES:      
Total cost of sales $ 4,297 $ 4,082 $ 4,126
v3.10.0.1
Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Statement of Comprehensive Income [Abstract]      
Net income $ 110 $ 9,609 $ 10,739
Available-for-sale investments:      
Change in net unrealized gains and losses, net of tax benefit (expense) of $(11), $74, and $(49) for fiscal 2018, 2017, and 2016, respectively (554) (89) 92
Net (gains) losses reclassified into earnings, net of tax expense (benefit) of $104, $(37), and $0 for fiscal 2018, 2017, and 2016, respectively (183) 50 1
Total- Available-for-sale investments (737) (39) 93
Cash flow hedging instruments:      
Change in unrealized gains and losses, net of tax benefit (expense) of $(3), $(5), and $7 for fiscal 2018, 2017, and 2016, respectively 18 17 (59)
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $7, $(5), and $(4) for fiscal 2018, 2017, and 2016, respectively (61) 74 16
Total- Cash flow hedging instruments (43) 91 (43)
Net change in cumulative translation adjustment and actuarial gains and losses, net of tax benefit (expense) of $(8), $(13), and $(42) for fiscal 2018, 2017, and 2016, respectively (160) 321 (447)
Other comprehensive income (loss) (940) 373 (397)
Comprehensive income (loss) (830) 9,982 10,342
Comprehensive (income) loss attributable to noncontrolling interests 0 (1) 10
Comprehensive income (loss) attributable to Cisco Systems, Inc. $ (830) $ 9,981 $ 10,352
v3.10.0.1
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Statement of Comprehensive Income [Abstract]      
Change in net unrealized gains, tax benefit (expense) $ (11) $ 74 $ (49)
Net (gains) losses reclassified into earnings, tax expense (benefit) 104 (37) 0
Change in unrealized gains and losses, tax benefit (expense) (3) (5) 7
Net (gains) losses reclassified into earnings, tax expense (benefit) 7 (5) (4)
Net change in cumulative translation adjustment and actuarial gains and losses, tax benefit (expense) $ (8) $ (13) $ (42)
v3.10.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Cash flows from operating activities:      
Net income $ 110 $ 9,609 $ 10,739
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation, amortization, and other 2,192 2,286 2,150
Share-based compensation expense 1,576 1,526 1,458
Provision (benefit) for receivables (134) (8) (9)
Deferred income taxes 900 (124) (194)
Excess tax benefits from share-based compensation 0 (153) (129)
(Gains) losses on divestitures, investments and other, net (322) 154 (317)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:      
Accounts receivable (269) 756 (404)
Inventories (244) (394) 315
Financing receivables (219) (1,038) (150)
Other assets 66 15 (37)
Accounts payable 504 311 (65)
Income taxes, net 8,118 60 (300)
Accrued compensation 100 (110) (101)
Deferred revenue 1,205 1,683 1,219
Other liabilities 83 (697) (605)
Net cash provided by operating activities 13,666 13,876 13,570
Cash flows from investing activities:      
Purchases of investments (14,285) (42,702) (46,760)
Proceeds from sales of investments 17,706 28,827 28,778
Proceeds from maturities of investments 15,769 12,143 14,115
Acquisition of businesses, net of cash and cash equivalents acquired (3,006) (3,324) (3,161)
Proceeds from business divestitures 27 0 372
Purchases of investments in privately held companies (267) (222) (256)
Return of investments in privately held companies 168 203 91
Acquisition of property and equipment (834) (964) (1,146)
Proceeds from sales of property and equipment 59 7 41
Other (13) 39 (191)
Net cash provided by (used in) investing activities 15,324 (5,993) (8,117)
Cash flows from financing activities:      
Issuances of common stock 623 708 1,127
Repurchases of common stock - repurchase program (17,547) (3,685) (3,909)
Shares repurchased for tax withholdings on vesting of restricted stock units (703) (619) (557)
Short-term borrowings, original maturities of 90 days or less, net (2,502) 2,497 (4)
Issuances of debt 6,877 6,980 6,978
Repayments of debt (12,375) (4,151) (3,863)
Excess tax benefits from share-based compensation 0 153 129
Dividends paid (5,968) (5,511) (4,750)
Other (169) (178) 150
Net cash used in financing activities (31,764) (3,806) (4,699)
Net (decrease) increase in cash and cash equivalents (2,774) 4,077 754
Cash and cash equivalents, beginning of fiscal year 11,708 7,631 6,877
Cash and cash equivalents, end of fiscal year 8,934 11,708 7,631
Supplemental cash flow information:      
Cash paid for interest 910 897 859
Cash paid for income taxes, net $ 3,911 $ 2,742 $ 2,675
v3.10.0.1
Consolidated Statements of Equity - USD ($)
shares in Millions, $ in Millions
Total
Shares of Common Stock
Common Stock and Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total Cisco Shareholders’ Equity
Non-controlling Interests
Beginning balance (in shares) at Jul. 25, 2015   5,085          
Beginning balance at Jul. 25, 2015 $ 59,707   $ 43,592 $ 16,045 $ 61 $ 59,698 $ 9
Net income 10,739     10,739   10,739  
Other comprehensive income (loss) (397)       (387) (387) (10)
Issuance of common stock (in shares)   113          
Issuance of common stock $ 1,127   1,127     1,127  
Repurchase of common stock (in shares) (148) (148)          
Repurchase of common stock $ (3,918)   (1,280) (2,638)   (3,918)  
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) (21) (21)          
Shares repurchased for tax withholdings on vesting of restricted stock units $ (557)   (557)     (557)  
Cash dividends declared (4,750)     (4,750)   (4,750)  
Tax effects from employee stock incentive plans 30   30     30  
Share-based compensation 1,458   1,458     1,458  
Purchase acquisitions and other 146   146     146  
Ending Balance (in shares) at Jul. 30, 2016   5,029          
Ending Balance at Jul. 30, 2016 63,585   44,516 19,396 (326) 63,586 (1)
Net income 9,609     9,609   9,609  
Other comprehensive income (loss) 373       372 372 1
Issuance of common stock (in shares)   92          
Issuance of common stock $ 708   708     708  
Repurchase of common stock (in shares) (118) (118)          
Repurchase of common stock $ (3,706)   (1,050) (2,656)   (3,706)  
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) (20) (20)          
Shares repurchased for tax withholdings on vesting of restricted stock units $ (619)   (619)     (619)  
Cash dividends declared (5,511)     (5,511)   (5,511)  
Tax effects from employee stock incentive plans (10)   (10)     (10)  
Share-based compensation 1,540   1,540     1,540  
Purchase acquisitions and other 168   168     168  
Ending Balance (in shares) at Jul. 29, 2017   4,983          
Ending Balance at Jul. 29, 2017 66,137   45,253 20,838 46 66,137 0
Net income 110     110   110  
Other comprehensive income (loss) (940)       (940) (940)  
Issuance of common stock (in shares)   83          
Issuance of common stock $ 623   623     623  
Repurchase of common stock (in shares) (432) (432)          
Repurchase of common stock $ (17,661)   (3,950) (13,711)   (17,661)  
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares) (20) (20)          
Shares repurchased for tax withholdings on vesting of restricted stock units $ (703)   (703)     (703)  
Cash dividends declared (5,968)     (5,968)   (5,968)  
Effect of adoption of accounting standards 9     (36) 45 9  
Share-based compensation 1,576   1,576     1,576  
Purchase acquisitions and other 21   21     21  
Ending Balance (in shares) at Jul. 28, 2018   4,614          
Ending Balance at Jul. 28, 2018 $ 43,204   $ 42,820 $ 1,233 $ (849) $ 43,204 $ 0
v3.10.0.1
Consolidated Statements of Equity (Parenthetical) - $ / shares
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared, per common share (in dollars per share) $ 1.24 $ 1.10 $ 0.94
v3.10.0.1
Basis of Presentation
12 Months Ended
Jul. 28, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation
The fiscal year for Cisco Systems, Inc. (the “Company,” “Cisco,” “we,” “us,” or “our”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2018 and fiscal 2017 were each 52-week fiscal years, while fiscal 2016 was a 53-week fiscal year. The Consolidated Financial Statements include the accounts of ours and those of our subsidiaries. All intercompany accounts and transactions have been eliminated. We conduct business globally and are primarily managed on a geographic basis in the following three geographic segments: the Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC).
We consolidate our investments in a venture fund managed by SOFTBANK Corp. and its affiliates (“SOFTBANK”) as this is a variable interest entity and we are the primary beneficiary. The noncontrolling interests attributed to SOFTBANK are presented as a separate component from our 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.
Certain reclassifications have been made to the amounts for prior years in order to conform to the current year’s presentation. We have evaluated subsequent events through the date that the financial statements were issued.
v3.10.0.1
Summary of Significant Accounting Policies
12 Months Ended
Jul. 28, 2018
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
(a) Cash and Cash Equivalents   We consider all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions.
(b) Available-for-Sale Investments   We classify our investments in both fixed income securities and publicly traded equity securities as available-for-sale investments. Fixed income securities primarily consist of U.S. government securities, U.S. government agency securities, non-U.S. government and agency securities, corporate debt securities, and U.S. agency mortgage-backed securities. These available-for-sale investments are primarily held in the custody of a major financial institution. A specific identification method is used to determine the cost basis of fixed income and public equity securities sold. These investments are recorded in the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments, to the extent the investments are unhedged, are included as a separate component of accumulated other comprehensive income (AOCI), net of tax. We classify our investments as current based on the nature of the investments and their availability for use in current operations.
(c) Other-than-Temporary Impairments on Investments   When the fair value of a debt security is less than its amortized cost, it is deemed impaired, and we will assess whether the impairment is other than temporary. An impairment is considered other than temporary if (i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis, or (iii) we do not expect to recover the entire amortized cost basis of the security. If impairment is considered other than temporary based on condition (i) or (ii) described earlier, the entire difference between the amortized cost and the fair value of the debt security is recognized in earnings. If an impairment is considered other than temporary based on condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security) will be recognized in earnings, and the amount relating to all other factors will be recognized in other comprehensive income (OCI).
We recognize an impairment charge on publicly traded equity securities when a decline in the fair value of a security below the respective cost basis is judged to be other than temporary. We consider various factors in determining whether a decline in the fair value of these investments is other than temporary, including the length of time and extent to which the fair value of the security has been less than our cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.
Investments in privately held companies are included in other assets in the Consolidated Balance Sheets and are accounted for using either the cost or equity method. We monitor these investments for impairments and make reductions in carrying values if we determine that an impairment charge is required based primarily on the financial condition and near-term prospects of these companies.

(d) Inventories   Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. We provide inventory write-downs based on excess and obsolete inventories determined primarily by future demand forecasts. The write-down is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. In addition, we record a liability for firm, noncancelable, and unconditional purchase commitments with contract manufacturers and suppliers for quantities in excess of our future demand forecasts consistent with our valuation of excess and obsolete inventory.
(e) Allowance for Doubtful Accounts   The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. We regularly review the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, economic conditions that may affect a customer’s ability to pay, and expected default frequency rates. Trade receivables are written off at the point when they are considered uncollectible.
(f) Financing Receivables and Guarantees   We provide financing arrangements, including leases, financed service contracts, and loans, for certain qualified end-user customers to build, maintain, and upgrade their networks. Lease receivables primarily represent sales-type and direct-financing leases. Leases have on average a four-year term and are usually collateralized by a security interest in the underlying assets. Loan receivables include customers financing purchases of our hardware, software and services and also may include additional funds for other costs associated with network installation and integration of our products and services. Loan receivables generally have terms of up to three years. Financed service contracts typically have terms of one to three years and primarily relate to technical support services.
We determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by us to our customers: lease receivables, loan receivables, and financed service contracts.
We assess the allowance for credit loss related to financing receivables on either an individual or a collective basis. We consider various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include our historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer’s ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, are assessed and reserved at the customer level. Our internal credit risk ratings are categorized as 1 through 10, with the lowest credit risk rating representing the highest quality financing receivables. Typically, we also consider financing receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. We evaluate the remainder of our financing receivables portfolio for impairment on a collective basis and record an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, we use historical default rates and expected default frequency rates published by major third-party credit-rating agencies as well as our own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation.
Expected default frequency rates and historical default rates are published quarterly by major third-party credit-rating agencies, and the internal credit risk rating is derived by taking into consideration various customer-specific factors and macroeconomic conditions. These factors, which include the strength of the customer’s business and financial performance, the quality of the customer’s banking relationships, our specific historical experience with the customer, the performance and outlook of the customer’s industry, the customer’s legal and regulatory environment, the potential sovereign risk of the geographic locations in which the customer is operating, and independent third-party evaluations, are updated regularly or when facts and circumstances indicate that an update is deemed necessary.
Financing receivables are written off at the point when they are considered uncollectible, and all outstanding balances, including any previously earned but uncollected interest income, will be reversed and charged against the allowance for credit loss. We do not typically have any partially written-off financing receivables.
Outstanding financing receivables that are aged 31 days or more from the contractual payment date are considered past due. We do not accrue interest on financing receivables that are considered impaired or more than 90 days past due unless either the receivable has not been collected due to administrative reasons or the receivable is well secured and in the process of collection. Financing receivables may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a financing receivable has been categorized as nonaccrual, interest will be recognized when cash is received. A financing receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and the customer remains current for an appropriate period.
We facilitate arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60 to 90 days. In certain instances, these financing arrangements result in a transfer of our receivables to the third party. The receivables are derecognized upon transfer, as these transfers qualify as true sales, and we receive a payment for the receivables from the third party based on our standard payment terms. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, we guarantee a portion of these arrangements. We also provide financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years. We could be called upon to make payments under these guarantees in the event of nonpayment by the channel partners or end-user customers. Deferred revenue relating to these financing arrangements is recorded in accordance with revenue recognition policies or for the fair value of the financing guarantees.
(g) Depreciation and Amortization   Property and equipment are stated at cost, less accumulated depreciation or amortization, whenever applicable. Depreciation and amortization expenses for property and equipment were approximately $1.1 billion, $1.1 billion, and $1.0 billion for fiscal 2018, 2017, and 2016, respectively. Depreciation and amortization are computed using the straight-line method, generally over the following periods:
Asset Category
 
Period
Buildings
 
25 years
Building improvements
 
10 years
Leasehold improvements
 
Shorter of remaining lease term or up to 10 years
Computer equipment and related software
 
30 to 36 months
Production, engineering, and other equipment
 
Up to 5 years
Operating lease assets
 
Based on lease term
Furniture and fixtures
 
5 years

(h) Business Combinations We allocate the fair value of the purchase consideration of our acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (IPR&D), based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. Acquisition-related expenses and related restructuring costs are recognized separately from the business combination and are expensed as incurred.
(i) Goodwill and Purchased Intangible Assets   Goodwill is tested for impairment on an annual basis in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. When impaired, the carrying value of goodwill is written down to fair value. The goodwill impairment test involves a two-step process. The first step, identifying a potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be conducted; otherwise, no further steps are necessary as no potential impairment exists. If necessary, the second step to measure the impairment loss would be to compare the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Any excess of the reporting unit goodwill carrying value over the respective implied fair value is recognized as an impairment loss. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. See “Long-Lived Assets” for our policy regarding impairment testing of purchased intangible assets with finite lives. Purchased intangible assets with indefinite lives are assessed for potential impairment annually or when events or circumstances indicate that their carrying amounts might be impaired.
(j) Long-Lived Assets   Long-lived assets that are held and used by us are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of the undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the difference between the fair value of the asset and its carrying value. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.
(k) Fair Value   Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the principal or most advantageous market in which we would transact, and we also consider assumptions that market participants would use when pricing the asset or liability.
The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. We use inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of assets or liabilities.
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair values are determined based on model-based techniques such as discounted cash flow models using inputs that we could not corroborate with market data.
(l) Derivative Instruments   We recognize derivative instruments as either assets or liabilities and measure those instruments at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For a derivative instrument designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For a derivative instrument designated as a net investment hedge of our foreign operations, the gain or loss is recorded in the cumulative translation adjustment within AOCI together with the offsetting loss or gain of the hedged exposure of the underlying foreign operations. Any ineffective portion of the net investment hedges is reported in earnings during the period of change. For derivative instruments that are not designated as accounting hedges, changes in fair value are recognized in earnings in the period of change. We record derivative instruments in the statements of cash flows to operating, investing, or financing activities consistent with the cash flows of the hedged item.
Hedge effectiveness for foreign exchange forward contracts used as cash flow hedges is assessed by comparing the change in the fair value of the hedge contract with the change in the fair value of the forecasted cash flows of the hedged item. Hedge effectiveness for equity forward contracts and foreign exchange net investment hedge forward contracts is assessed by comparing changes in fair value due to changes in spot rates for both the derivative and the hedged item. For foreign exchange option contracts, hedge effectiveness is assessed based on the hedging instrument’s entire change in fair value. Hedge effectiveness for interest rate swaps is assessed by comparing the change in fair value of the swap with the change in the fair value of the hedged item due to changes in the benchmark interest rate.
(m) Foreign Currency Translation   Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of AOCI. Income and expense accounts are translated at average exchange rates during the year. Remeasurement adjustments are recorded in other income (loss), net. The effect of foreign currency exchange rates on cash and cash equivalents was not material for any of the fiscal years presented.
(n) Concentrations of Risk   Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. We seek to mitigate our credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties.
We perform ongoing credit evaluations of our customers and, with the exception of certain financing transactions, do not require collateral from our customers. We receive certain of our components from sole suppliers. Additionally, we rely on a limited number of contract manufacturers and suppliers to provide manufacturing services for our products. The inability of a contract manufacturer or supplier to fulfill our supply requirements could materially impact future operating results.
(o) Revenue Recognition   We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectibility is reasonably assured. In instances where final acceptance of the product, system, or solution is specified by the customer, revenue is deferred until all acceptance criteria have been met. For hosting arrangements, we recognize revenue ratably over the hosting period, while usage revenue is recognized based on utilization. Software subscription revenue is deferred and recognized ratably over the subscription term upon delivery of the first product and commencement of the term. Technical support and consulting services revenue is deferred and recognized ratably over the period during which the services are to be performed, which is typically from one to three years. Transactional advanced services revenue is recognized upon delivery or completion of performance milestones.
We use distributors that typically stock inventory and sell to systems integrators, service providers, and other resellers. We refer to this as our two-tier sales to the end customer. Revenue from distributors is recognized based on a sell-through method using point-of-sale information provided by the distributors. Distributors and other partners participate in various rebate, cooperative marketing, and other incentive programs, and we maintain estimated accruals and allowances for these programs. The ending liability for these programs was included in other current liabilities, and the balance was $1.0 billion as of each of July 28, 2018 and July 29, 2017. We accrue for warranty costs, sales returns, and other allowances based on our historical experience. Shipping and handling fees billed to customers are included in revenue, with the associated costs included in cost of sales.
Many of our products have both software and non-software components that function together to deliver the products’ essential functionality. We also provide technical support and advanced services. We have a broad customer base that encompasses virtually all types of public and private entities, including enterprise businesses, service providers, and commercial customers. Cisco and our salesforce are not organized by product divisions, and our products and services can be sold standalone or together in various combinations across our geographic segments or customer markets. For example, service provider arrangements are typically larger in scale with longer deployment schedules and involve the delivery of a variety of product technologies, including high-end routing, video and network management software, and other product technologies along with technical support and advanced services. Our enterprise and commercial arrangements are unique for each customer and smaller in scale and may include network infrastructure products such as routers and switches or collaboration technologies such as Unified Communications and Cisco TelePresence systems products along with technical support services.
We enter into revenue arrangements that may consist of multiple deliverables of our product and service offerings due to the needs of our customers. For example, a customer may purchase routing products along with a contract for technical support services. This arrangement would consist of multiple elements, with the products delivered in one reporting period and the technical support services delivered across multiple reporting periods. Another customer may purchase networking products along with advanced service offerings, in which all the elements are delivered within the same reporting period. In addition, distributors purchase products or technical support services on a standalone basis for resale to an end user or for purposes of stocking certain products, and these transactions would not result in a multiple-element arrangement. We consider several factors when reviewing multiple purchases made by the same customer within a short time frame in order to identify multiple-element arrangements, including whether the deliverables are closely interrelated, whether the deliverables are essential to each other’s functionality, whether payment terms are linked, whether the customer is entitled to a refund or concession if another purchase is not completed satisfactorily, and/or whether the purchases were negotiated together as one overall arrangement.
In many instances, products are sold separately in standalone arrangements as customers may support the products themselves or purchase support on a time-and-materials basis. Advanced services are sometimes sold in standalone engagements such as general consulting, network management, or security advisory projects, and technical support services are sold separately through renewals of annual contracts. We determine our vendor-specific objective evidence (VSOE) based on our normal pricing and discounting practices for products or services when sold separately. VSOE determination requires that a substantial majority of the historical standalone transactions has the selling prices for a product or service that fall within a reasonably narrow pricing range, generally evidenced by approximately 80% of such historical standalone transactions falling within plus or minus 15% of the median rates. In addition, we consider the geographies in which the products or services are sold, major product and service groups and customer classifications, and other environmental or marketing variables in determining VSOE.
When we are not able to establish VSOE for all deliverables in an arrangement with multiple elements, which may be due to us infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history, such as in the case of certain newly introduced product categories, we attempt to determine the selling price of each element based on third-party evidence of selling price (TPE). TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, our go-to-market strategy differs from that of our peers, and our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, we are unable to reliably determine what similar competitor products’ selling prices are on a standalone basis. Therefore, we are typically not able to determine TPE.
When we are unable to establish fair value using VSOE or TPE, we use estimated selling prices (ESP) in our allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact a sale if the product or service were regularly sold on a standalone basis. ESP is generally used for new or highly proprietary offerings and solutions or for offerings not priced within a reasonably narrow range. We determine ESP for a product or service by considering multiple factors, including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and pricing practices. The determination of ESP is made through consultation with and formal approval by our management, taking into consideration the go-to-market strategy.
We regularly review VSOE, TPE, and ESP and maintains internal controls over the establishment and updates of these estimates. There were no material impacts during fiscal 2018 from changes in VSOE, TPE, or ESP.
Our arrangements with multiple deliverables may include one or more software deliverables that are subject to the software revenue recognition guidance. In these cases, revenue for the software is generally recognized upon shipment or electronic delivery and granting of the license. The revenue for these multiple-element arrangements is allocated to the software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the applicable accounting guidance. In the circumstances where we cannot determine VSOE or TPE of the selling price for all of the deliverables in the arrangement, including the software deliverables, ESP is used for the purposes of performing this allocation. VSOE is required to allocate the revenue between multiple software deliverables. If VSOE is available for the undelivered software elements, we apply the residual method; where VSOE is not available, software revenue is either recognized when all software elements have been delivered or recognized ratably when post-contract support is the only undelivered software element remaining.
(p) Advertising Costs   We expense all advertising costs as incurred. Advertising costs included within sales and marketing expenses were approximately $166 million, $209 million, and $186 million for fiscal 2018, 2017, and 2016, respectively.
(q) Share-Based Compensation Expense   We measure and recognize the compensation expense for all share-based awards made to employees and directors, including employee stock options, restricted stock units (RSUs), performance-based restricted stock units (PRSUs), and employee stock purchases related to the Employee Stock Purchase Plan (Employee Stock Purchase Rights) based on estimated fair values. The fair value of employee stock options is estimated on the date of grant using a lattice-binomial option-pricing model (Lattice-Binomial Model) or the Black-Scholes model, and for employee stock purchase rights we estimate the fair value using the Black-Scholes model. The fair value for time-based stock awards and stock awards that are contingent upon the achievement of financial performance metrics is based on the grant date share price reduced by the present value of the expected dividend yield prior to vesting. The fair value of market-based stock awards is estimated using an option-pricing model on the date of grant. Share-based compensation expense is reduced for forfeitures.
(r) Software Development Costs   Software development costs, including costs to develop software sold, leased, or otherwise marketed, that are incurred subsequent to the establishment of technological feasibility are capitalized if significant. Costs incurred during the application development stage for internal-use software are capitalized if significant. Capitalized software development costs are amortized using the straight-line amortization method over the estimated useful life of the applicable software. Such software development costs required to be capitalized have not been material to date.
(s) Income Taxes   Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized.
We account for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We classify the liability for unrecognized tax benefits as current to the extent that we anticipate payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
(t) Computation of Net Income per Share   Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Diluted shares outstanding includes the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase shares.
(u) Consolidation of Variable Interest Entities  We use a qualitative approach in assessing the consolidation requirement for variable interest entities. The approach focuses on identifying which enterprise has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. In the event that we are the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in our Consolidated Financial Statements.
(v) Use of Estimates   The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for the following, among others:
Revenue recognition
Allowances for accounts receivable, sales returns, and financing receivables
Inventory valuation and liability for purchase commitments with contract manufacturers and suppliers
Loss contingencies and product warranties
Fair value measurements and other-than-temporary impairments
Goodwill and purchased intangible asset impairments
Income taxes
The actual results experienced by us may differ materially from management’s estimates.
(w) 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. We 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 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 our Consolidated Financial Statements.
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an accounting standard update that allows companies to reclassify from AOCI to retained earnings stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act (the "Tax Act"). The guidance is effective January 1, 2019 with early adoption permitted. We early adopted this accounting standard update in the third quarter of fiscal 2018 and elected not to reclassify prior periods. Adoption of this standard resulted in a decrease of $45 million to retained earnings due to the reclassification from AOCI to retained earnings.
(x) Recent Accounting Standards or Updates Not Yet Effective as of Fiscal Year End
Revenue Recognition In May 2014, the FASB issued ASC 606, a new accounting standard related to revenue recognition. ASC 606 will supersede nearly all U.S. GAAP on revenue recognition and eliminate industry-specific guidance. The underlying principle of ASC 606 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.
ASC 606 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"). We will adopt ASC 606 using the modified retrospective method at the beginning of our first quarter of fiscal 2019.
We are in process of finalizing our new accounting policies, systems, processes, and internal controls necessary to support the requirements of ASC 606. We have substantially completed our assessment of the financial statement impact of ASC 606, the impacts of which are as discussed below.
ASC 606 will primarily impact our 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 the timing of when revenue is typically recognized under the current revenue standard compared to the timing of when revenue will typically be recognized under ASC 606 for these major 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
In addition to the above revenue recognition timing impacts, ASC 606 requires incremental contract acquisition costs (such as sales commissions) for customer contracts to be capitalized and amortized over the contract term. Currently, these costs are expensed as incurred.
Upon adopting ASC 606 at the beginning of fiscal 2019, our cumulative effect adjustment will increase retained earnings by approximately $2.3 billion. This cumulative effect adjustment is primarily driven by a reduction to our deferred product revenue of approximately $2.8 billion, of which $1.3 billion relates to our recurring software and subscription offers, $0.6 billion relates to two-tier distribution, and the remainder relates to non-recurring software, services and other adjustments. In addition to the adjustment to deferred product revenue, other adjustments at transition include adjustments to accounts receivable, inventories, other current and noncurrent assets, and other liabilities. The adjustment to other current and noncurrent assets is primarily for capitalized incremental contract acquisitions costs and the establishment of contract assets. The cumulative effect adjustment is recorded net of tax with the direct tax effect recorded primarily as a reduction of deferred tax assets. We also expect to record in the first quarter of fiscal 2019 a net indirect tax benefit to our provision for income taxes related to intercompany adjustments associated with the new standard. See Critical Accounting Estimates, "Revenue Recognition" for further discussion on the fiscal 2019 revenue impacts of ASC 606.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019. The most significant impact of this accounting standard update for us 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. We estimate an increase to retained earnings of approximately $0.3 billion upon adoption of the accounting standard at the beginning of fiscal 2019. The adjustment is primarily driven by a reclassification of net unrealized gains (losses), net of tax on available-for-sale equity investments from accumulated other comprehensive income, and an increase related to our privately held investments. We expect that this accounting standard update will increase the variability of other income (loss), net in future periods.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019 on a modified retrospective basis. We estimate an increase to retained earnings of approximately $1.3 billion upon adoption of the accounting standard at the beginning of fiscal 2019. The increase to retained earnings reflects estimated changes to deferred tax assets and other assets related to the recognition of income tax effects of intra-entity asset transfers (other than inventory) that occurred prior to the adoption date. The ongoing impact of this standard will be facts and circumstances dependent on any transactions within its scope.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019 on a retrospective basis. We do not expect that this accounting standard update will have a material impact on our Consolidated Statements of Cash Flows.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019 using a retrospective transition method for each period presented. We do not expect this accounting update will have a material impact, though it will change the presentation of the 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. We will adopt this accounting standard update beginning in the first quarter of fiscal 2019 on a prospective basis. The impact of this accounting standard update will be fact dependent, but we expect 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. We will early adopt this standard in the first quarter of fiscal 2019 on a prospective basis. We do not expect this accounting standard update will have a material impact on our Consolidated Financial Statements.
Leases In February 2016, the FASB issued an accounting standard update, as well as subsequent amendments, 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 us beginning in the first quarter of fiscal 2020 on a modified retrospective basis, and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our 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 us beginning in the first quarter of fiscal 2021 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements.
v3.10.0.1
Acquisitions and Divestitures
12 Months Ended
Jul. 28, 2018
Business Combinations [Abstract]  
Acquisitions and Divestitures
Acquisitions and Divestitures
(a)
Acquisition Summary
We completed eight acquisitions during fiscal 2018. A summary of the allocation of the total purchase consideration is presented as follows (in millions):
Fiscal 2018
Purchase Consideration
 
Net Tangible Assets Acquired (Liabilities Assumed)
 
Purchased Intangible Assets
 
Goodwill
Viptela
$
497

 
$
(18
)
 
$
180

 
$
335

Springpath
248

 
(11
)
 
160

 
99

BroadSoft
2,179

 
353

 
430

 
1,396

Accompany
222

 
6

 
55

 
161

Others (four in total)
72

 
4

 
42

 
26

Total
$
3,218

 
$
334

 
$
867

 
$
2,017


On July 31, 2017, we completed our 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 our Infrastructure Platforms product category.
On September 22, 2017, we completed our acquisition of privately held Springpath, Inc. ("Springpath"), a hyperconvergence software company. Revenue from the Springpath acquisition has been included in our Infrastructure Platforms product category.
On February 1, 2018, we completed our acquisition of publicly held BroadSoft, Inc. ("BroadSoft"), a cloud calling and contact center solutions company. Revenue from the BroadSoft acquisition has been included in our Applications product category.
On May 10, 2018, we completed our acquisition of privately held Accompany, a provider of an AI-driven relationship intelligence platform. Results from the Accompany acquisition will be included in our Applications product category.
The total purchase consideration related to our acquisitions completed during fiscal 2018 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $187 million.
Fiscal 2017 Acquisitions
Allocation of the purchase consideration for acquisitions completed in fiscal 2017 is summarized as follows (in millions):
Fiscal 2017
Purchase Consideration
 
Net Tangible Assets Acquired (Liabilities Assumed)
 
Purchased Intangible Assets
 
Goodwill
CloudLock
$
249

 
$

 
$
36

 
$
213

AppDynamics
3,258

 
(175
)
 
785

 
2,648

MindMeld
104

 
(11
)
 
51

 
64

Others (four in total)
26

 

 
6

 
20

Total
$
3,637

 
$
(186
)
 
$
878

 
$
2,945


On August 1, 2016, we acquired privately held CloudLock Inc. ("CloudLock"), a provider of cloud security that specializes in cloud access security broker technology that provides enterprises with visibility and analytics around user behavior and sensitive data in cloud services. Revenue from the CloudLock acquisition has been included in our Security product category.
On March 17, 2017, we acquired privately held AppDynamics, Inc. ("AppDynamics"), an application intelligence software company. AppDynamics's cloud application and business monitoring platform is designed to enable companies to improve application and business performance. With the AppDynamics acquisition, we seek to provide end-to-end visibility and intelligence from the customer's network through to the application. Product revenue from the AppDynamics acquisition has been included in our Other product category.
On May 26, 2017, we acquired privately held MindMeld, Inc. ("MindMeld"), an artificial intelligence (AI) company. MindMeld's unique AI platform enables customers to build intelligent and human-like conversational interfaces for any application or device. Revenue from the MindMeld acquisition has been included in our Collaboration product category.
The total purchase consideration related to our acquisitions completed during fiscal 2017 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these acquisitions was approximately $138 million.
Fiscal 2016 Acquisitions
In fiscal 2016, we completed 12 acquisitions for total purchase consideration of $3.4 billion.
(b)
Pending Divestiture of Service Provider Video Software Solutions Business
In the fourth quarter of fiscal 2018, we announced a definitive agreement to sell our Service Provider Video Software Solutions ("SPVSS") business. As of July 28, 2018, this business had tangible assets of approximately $175 million (primarily comprised of accounts receivables, inventories and various other current and long-term assets) and net intangible assets and goodwill (based on relative fair value) of $300 million. In addition, the business had total liabilities of approximately $320 million (primarily comprised of deferred revenue and various other current and long-term liabilities). These assets and liabilities were held for sale and were not presented separately as the amounts were not material to the Consolidated Balance Sheet. We expect to have an immaterial financial statement impact from this transaction upon closing. The transaction is expected to close in the first half of fiscal 2019, subject to customary closing conditions and regulatory approvals.
(c) Pending Acquisition of Duo Security
On August 2, 2018, we announced our intent to acquire Duo Security, Inc., the leading provider of unified access security and multi-factor authentication delivered through the cloud. Integrating our network, device and cloud security platforms with Duo Security's zero-trust authentication and access products is designed to enable customers to easily and securely connect users to any application on any networked device.
Under the terms of the agreement, we have agreed to pay approximately $2.35 billion in cash and assumed equity awards to acquire Duo Security. The acquisition is expected to close during the first quarter of fiscal 2019 subject to customary closing conditions and regulatory approvals. Upon close of the acquisition, revenue from Duo Security will be included in our Security product category.
(d) Other Acquisition and Divestiture Information
Total transaction costs related to our acquisition and divestiture activities during fiscal 2018, 2017, and 2016 were $41 million, $10 million, and $32 million, respectively. These transaction costs were expensed as incurred in G&A expenses in the Consolidated Statements of Operations.
Our 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 us, may become known to us 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 our acquisitions completed during fiscal 2018 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes.
The Consolidated Financial Statements include the operating results of each acquisition from the date of acquisition. Pro forma results of operations for the acquisitions completed during fiscal 2018, 2017, and 2016 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to our financial results.
We completed two divestitures during fiscal 2018. The financial statement impact of these divestitures was not material for fiscal 2018.
v3.10.0.1
Goodwill and Purchased Intangible Assets
12 Months Ended
Jul. 28, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
(a)
Goodwill
The following tables present the goodwill allocated to our reportable segments as of July 28, 2018 and July 29, 2017, as well as the changes to goodwill during fiscal 2018 and 2017 (in millions):
 
Balance at July 29, 2017
 
Acquisitions
 
Other
 
Balance at July 28, 2018
Americas
$
18,691

 
$
1,355

 
$
(48
)
 
$
19,998

EMEA
7,057

 
491

 
(19
)
 
7,529

APJC
4,018

 
171

 
(10
)
 
4,179

Total
$
29,766

 
$
2,017

 
$
(77
)
 
$
31,706

 
Balance at July 30, 2016
 
Acquisitions
 
Other
 
Balance at July 29, 2017
Americas
$
16,529

 
$
2,042

 
$
120

 
$
18,691

EMEA
6,269

 
740

 
48

 
7,057

APJC
3,827

 
163

 
28

 
4,018

Total
$
26,625

 
$
2,945

 
$
196

 
$
29,766


“Other” in the tables above primarily consists of divestitures, foreign currency translation, as well as immaterial purchase accounting adjustments.
(b)
Purchased Intangible Assets
The following tables present details of our intangible assets acquired through acquisitions completed during fiscal 2018 and 2017 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
Fiscal 2018
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

 

 

 

 

 
3

 
160

BroadSoft
4.0
 
255

 
6.0

 
169

 
2.0

 
6

 

 
430

Accompany
4.0
 
55

 

 

 

 

 

 
55

Others (four in total)
3.9
 
39

 
4.0

 
3

 

 

 

 
42

Total
 
 
$
650

 
 
 
$
207

 
 
 
$
7

 
$
3

 
$
867

 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
Fiscal 2017
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Amount
 
Amount
CloudLock
6.0
 
$
32

 
4.0

 
$
3

 
1.5

 
$
1

 
$

 
$
36

AppDynamics
4.0
 
525

 
7.0

 
235

 
2.3

 
25

 

 
785

MindMeld
4.0
 
51

 
1.0

 

 

 

 

 
51

Others (four in total)
3.0
 
6

 

 

 

 

 

 
6

Total

 
$
614

 

 
$
238

 

 
$
26

 
$

 
$
878


The following tables present details of our purchased intangible assets (in millions): 
July 28, 2018
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,711

 
$
(1,888
)
 
$
1,823

Customer relationships
 
1,538

 
(937
)
 
601

Other
 
63

 
(38
)
 
25

Total purchased intangible assets with finite lives
 
5,312

 
(2,863
)
 
2,449

In-process research and development, with indefinite lives
 
103

 

 
103

Total
 
$
5,415

 
$
(2,863
)
 
$
2,552

 
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 approximately $1 million, $47 million, and $74 million for fiscal 2018, fiscal 2017, and fiscal 2016, respectively. Impairment charges were as a result of declines in estimated fair value resulting from the reduction or elimination of expected future cash flows associated with certain of our technology and IPR&D intangible assets.
The following table presents the amortization of purchased intangible assets (in millions):
Years Ended
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Amortization of purchased intangible assets:
 
 
 
 
 
 
Cost of sales
 
$
640

 
$
556

 
$
577

Operating expenses
 

 

 

Amortization of purchased intangible assets
 
221

 
259

 
303

Restructuring and other charges
 

 
38

 

Total
 
$
861

 
$
853

 
$
880


The estimated future amortization expense of purchased intangible assets with finite lives as of July 28, 2018 is as follows (in millions):
Fiscal Year
Amount
2019
$
714

2020
$
667

2021
$
475

2022
$
222

2023
$
82

Thereafter
$
37

v3.10.0.1
Restructuring and Other Charges
12 Months Ended
Jul. 28, 2018
Restructuring Charges [Abstract]  
Restructuring and Other Charges
Restructuring and Other Charges
We initiated a restructuring plan during fiscal 2018 (the “Fiscal 2018 Plan”), in order to realign our organization and enable further investment in key priority areas. The total pretax charges are estimated to be approximately $300 million. In connection with the Fiscal 2018 Plan, we incurred charges of $108 million during fiscal 2018. These aggregate pretax charges are primarily cash-based and consist of employee severance and other one-time termination benefits, and other associated costs. We expect the Fiscal 2018 Plan to be substantially completed in fiscal 2019.
We announced a restructuring plan in August 2016 (the “Fiscal 2017 Plan”), in order to reinvest in our key priority areas. In connection with the Fiscal 2017 Plan, we incurred cumulative charges of $1.0 billion, which were primarily cash-based and consisted of employee severance and other one-time termination benefits, and other associated costs. We completed the Fiscal 2017 Plan in fiscal 2018.
We announced a restructuring action in August 2014 (the “Fiscal 2015 Plan”), in order to realign our workforce towards key growth areas of our business such as data center, software, security, and cloud. In connection with this plan, we incurred cumulative charges of approximately $756 million. We completed the Fiscal 2015 Plan at the end of fiscal 2016.
The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions):
 
 
FISCAL 2017 AND
PRIOR YEAR PLANS
 
FISCAL 2018 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 25, 2015
 
$
60

 
$
29

 
$

 
$

 
$
89

Charges
 
225

 
43

 

 

 
268

Cash payments
 
(264
)
 
(15
)
 

 

 
(279
)
Non-cash items
 

 
(33
)
 

 

 
(33
)
Liability as of July 30, 2016
 
21

 
24

 

 

 
45

Charges
 
625

 
131

 

 

 
756

Cash payments
 
(569
)
 
(37
)
 

 

 
(606
)
Non-cash items
 
(3
)
 
(75
)
 

 

 
(78
)
Liability as of July 29, 2017
 
74

 
43

 

 

 
117

Charges
 
227

 
23

 
92

 
16

 
358

Cash payments
 
(262
)
 
(35
)
 
(73
)
 
(2
)
 
(372
)
Non-cash items
 
2

 
(18
)
 

 
(14
)
 
(30
)
Liability as of July 28, 2018
 
$
41

 
$
13

 
$
19

 
$

 
$
73


In addition to the above amounts, we incurred $2 million credit of restructuring and other charges within cost of sales during fiscal 2016.
v3.10.0.1
Balance Sheet Details
12 Months Ended
Jul. 28, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Details
Balance Sheet Details
The following tables provide details of selected balance sheet items (in millions):
 
 
July 28, 2018
 
July 29, 2017
Inventories:
 
 
 
 
Raw materials
 
$
423

 
$
289

Work in process
 

 
1

Finished goods:
 
 
 
 
Distributor inventory and deferred cost of sales
 
443

 
451

Manufactured finished goods
 
689

 
552

Total finished goods
 
1,132

 
1,003

Service-related spares
 
258

 
300

Demonstration systems
 
33

 
23

Total
 
$
1,846

 
$
1,616


Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,710

 
$
4,926

Computer equipment and related software
 
1,085

 
1,258

Production, engineering, and other equipment
 
5,734

 
5,707

Operating lease assets
 
356

 
356

Furniture and fixtures
 
358

 
572

Total gross property and equipment
 
12,243

 
12,819

Less: accumulated depreciation and amortization
 
(9,237
)
 
(9,497
)
Total
 
$
3,006

 
$
3,322


Deferred revenue:
 
 
 
 
Service
 
$
11,431

 
$
11,302

Product:
 

 
 
Deferred revenue related to recurring software and subscription offers
 
6,120

 
4,971

Other product deferred revenue
 
2,134

 
2,221

Total product deferred revenue
 
8,254

 
7,192

Total
 
$
19,685

 
$
18,494

Reported as:
 

 
 
Current
 
$
11,490

 
$
10,821

Noncurrent
 
8,195

 
7,673

Total
 
$
19,685

 
$
18,494

v3.10.0.1
Financing Receivables and Operating Leases
12 Months Ended
Jul. 28, 2018
Receivables [Abstract]  
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 Cisco's and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Lease receivables consist of arrangements with terms of four years on average. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services, which may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables 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 our financing receivables is presented as follows (in millions):
July 28, 2018
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,688

 
$
4,999

 
$
2,326

 
$
10,013

Residual value
164

 

 

 
164

Unearned income
(141
)
 

 

 
(141
)
Allowance for credit loss
(135
)
 
(60
)
 
(10
)
 
(205
)
Total, net
$
2,576

 
$
4,939

 
$
2,316

 
$
9,831

Reported as:
 
 
 
 
 
 
 
Current
$
1,249

 
$
2,376

 
$
1,324

 
$
4,949

Noncurrent
1,327

 
2,563

 
992

 
4,882

Total, net
$
2,576

 
$
4,939

 
$
2,316

 
$
9,831

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 Cisco on lease receivables as of July 28, 2018 are summarized as follows (in millions):
Fiscal Year
Amount
2019
$
1,311

2020
745

2021
415

2022
177

2023
12

Thereafter
28

Total
$
2,688


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 our internal credit risk rating as of July 28, 2018 and July 29, 2017 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
July 28, 2018
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,294

 
$
1,199

 
$
54

 
$
2,547

Loan receivables
3,184

 
1,752

 
63

 
4,999

Financed service contracts
1,468

 
835

 
23

 
2,326

Total
$
5,946

 
$
3,786

 
$
140

 
$
9,872

 
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


We determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by us to our customers, which consist of the following: lease receivables, loan receivables, and financed service contracts.
Our internal credit risk ratings of 1 through 4 correspond to investment-grade ratings, while credit risk ratings of 5 and 6 correspond to non-investment grade ratings. Credit risk ratings of 7 and higher correspond to substandard ratings.
In circumstances when collectibility is not deemed reasonably assured, the associated revenue is deferred in accordance with our revenue recognition policies, and the related allowance for credit loss, if any, is included in deferred revenue. We also record deferred revenue associated with financing receivables when there are remaining performance obligations, as we do for financed service contracts.
The following tables present the aging analysis of gross receivables, excluding residual value and less unearned income as of July 28, 2018 and July 29, 2017 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 28, 2018
31 - 60
 
61 - 90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
72

 
$
27

 
$
155

 
$
254

 
$
2,293

 
$
2,547

 
$
9

 
$
9

Loan receivables
104

 
55

 
252

 
411

 
4,588

 
4,999

 
30

 
30

Financed service contracts
138

 
78

 
304

 
520

 
1,806

 
2,326

 
3

 
3

Total
$
314

 
$
160

 
$
711

 
$
1,185

 
$
8,687

 
$
9,872

 
$
42

 
$
42

 
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 $503 million and $666 million as of July 28, 2018 and July 29, 2017, respectively.
As of July 28, 2018, we had financing receivables of $182 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 (benefits)
(26
)
 
(43
)
 
(20
)
 
(89
)
Recoveries (write-offs), net
(1
)
 
(5
)
 

 
(6
)
Foreign exchange and other

 
5

 

 
5

Allowance for credit loss as of July 28, 2018
$
135

 
$
60

 
$
10

 
$
205

 
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 (benefits)
(25
)
 
7

 
(17
)
 
(35
)
Recoveries (write-offs), net
(37
)
 
(11
)
 
(1
)
 
(49
)
Foreign exchange and other
(6
)
 
10

 

 
4

Allowance for credit loss as of July 29, 2017
$
162

 
$
103

 
$
30

 
$
295

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

 
$
87

 
$
36

 
$
382

Provisions (benefits)
(13
)
 
13

 
17

 
17

Recoveries (write-offs), net
(10
)
 

 
(5
)
 
(15
)
Foreign exchange and other
(6
)
 
(3
)
 

 
(9
)
Allowance for credit loss as of July 30, 2016
$
230

 
$
97

 
$
48

 
$
375


(d)
Operating Leases
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):
 
July 28, 2018
 
July 29, 2017
Operating lease assets
$
356

 
$
356

Accumulated depreciation
(238
)
 
(212
)
Operating lease assets, net
$
118

 
$
144



Minimum future rentals on noncancelable operating leases as of July 28, 2018 are summarized as follows (in millions):
Fiscal Year
Amount
2019
$
166

2020
97

2021
34

2022
2

Thereafter
1

Total
$
300

v3.10.0.1
Investments
12 Months Ended
Jul. 28, 2018
Investments, Debt and Equity Securities [Abstract]  
Investments
Investments
(a)
Summary of Available-for-Sale Investments
The following tables summarize our available-for-sale investments (in millions):
July 28, 2018
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
7,318

 
$

 
$
(43
)
 
$
7,275

U.S. government agency securities
732

 

 
(5
)
 
727

Non-U.S. government and agency securities
209

 

 
(1
)
 
208

Corporate debt securities
27,765

 
44

 
(445
)
 
27,364

U.S. agency mortgage-backed securities
1,488

 

 
(53
)
 
1,435

Total fixed income securities
37,512

 
44

 
(547
)
 
37,009

Publicly traded equity securities
372

 
233

 

 
605

Total
$
37,884

 
$
277

 
$
(547
)
 
$
37,614

 
 
 
 
 
 
 
 
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
$
58,225

 
$
762

 
$
(203
)

$
58,784


Net unsettled investment sales as of July 28, 2018 and July 29, 2017 were $1.5 billion and $30 million, respectively and were included in other current assets and other current liabilities.
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 our available-for-sale investments (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Gross realized gains
$
628

 
$
114

 
$
152

Gross realized losses
(341
)
 
(201
)
 
(153
)
Total
$
287

 
$
(87
)
 
$
(1
)
The following table presents the realized net gains and losses related to our available-for-sale investments by security type (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Net gains/(losses) on investments in publicly traded equity securities
$
529

 
$
(45
)
 
$
33

Net gains/(losses) on investments in fixed income securities
(242
)
 
(42
)
 
(34
)
Total
$
287

 
$
(87
)
 
$
(1
)

The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at July 28, 2018 and July 29, 2017 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 28, 2018
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
2,966

 
$
(20
)
 
$
4,303

 
$
(23
)
 
$
7,269

 
$
(43
)
U.S. government agency securities
206

 
(2
)
 
521

 
(3
)
 
727

 
(5
)
Non-U.S. government and agency securities
105

 
(1
)
 
103

 

 
208

 
(1
)
Corporate debt securities
16,990

 
(344
)
 
3,511

 
(101
)
 
20,501

 
(445
)
U.S. agency mortgage-backed securities
826

 
(24
)
 
581

 
(29
)
 
1,407

 
(53
)
Total fixed income securities
21,093

 
(391
)

9,019


(156
)

30,112


(547
)
Publicly traded equity securities

 

 

 

 

 

Total
$
21,093

 
$
(391
)
 
$
9,019

 
$
(156
)
 
$
30,112

 
$
(547
)
 
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 fiscal 2018, the realized net losses for available-for-sale investments included impairment charges of $52 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. For fiscal 2017, the realized net losses related to available-for-sale investments included impairment charges of $74 million, primarily related to publicly traded equity securities. These impairment charges were due to a decline in the fair value of those securities below their cost basis that were determined to be other than temporary. For fiscal 2016, the realized net losses related to available-for-sale investments included impairment charges of $3 million for fixed income securities.
As of July 28, 2018, for available-for-sale investments that were in unrealized loss positions, we have determined that no additional other-than-temporary impairments were required to be recognized.


(c)
Maturities of Fixed Income Securities
The following table summarizes the maturities of our fixed income securities at July 28, 2018 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
12,361

 
$
12,316

Due in 1 to 2 years
7,573

 
7,514

Due in 2 to 5 years
14,290

 
14,012

Due after 5 years
1,800

 
1,732

Mortgage-backed securities with no single maturity
1,488

 
1,435

Total
$
37,512

 
$
37,009


Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. The remaining contractual principal maturities for mortgage-backed securities were allocated assuming no prepayments.
(d)
Securities Lending
We periodically engage in securities lending activities with certain of our 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 fiscal 2018 and 2017 was $0.3 billion and $0.7 billion, respectively. We require 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. We engage in these secured lending transactions only with highly creditworthy counterparties, and the associated portfolio custodian has agreed to indemnify us against collateral losses. We did not experience any losses in connection with the secured lending of securities during the periods presented. As of July 28, 2018 and July 29, 2017, we had no outstanding securities lending transactions.
(e)
Investments in Privately Held Companies
The carrying value of our 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 July 28, 2018 and July 29, 2017, the amounts are summarized in the following table (in millions):
 
July 28, 2018
 
July 29, 2017
Equity method investments
$
118

 
$
124

Cost method investments
978

 
859

Total
$
1,096

 
$
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, we have investments in privately held companies and provide financing to certain customers. These privately held companies and customers may be considered to be variable interest entities. We evaluate on an ongoing basis our investments in these privately held companies and our customer financings and have determined that as of July 28, 2018, except as disclosed herein, there were no variable interest entities required to be consolidated in our Consolidated Financial Statements.
As of July 28, 2018, the carrying value of our investments in privately held companies was $1.1 billion, of which $531 million of such investments are considered to be in variable interest entities which are unconsolidated. In addition, we have additional funding commitments of $223 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 our maximum exposure related to these variable interest entities.
v3.10.0.1
Fair Value
12 Months Ended
Jul. 28, 2018
Fair Value Disclosures [Abstract]  
Fair Value
Fair Value
(a)
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis were as follows (in millions):
 
JULY 28, 2018
 
JULY 29, 2017
 
FAIR VALUE MEASUREMENTS
 
FAIR VALUE MEASUREMENTS
 
Level 1
 
Level 2
 
Total
Balance
 
Level 1
 
Level 2
 
Total
Balance
Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
6,890

 
$

 
$
6,890

 
$
9,567

 
$

 
$
9,567

U.S. government securities

 

 

 

 
139

 
139

Commercial paper

 

 

 

 
160

 
160

Certificates of deposit

 

 

 

 
25

 
25

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 

U.S. government securities

 
7,275

 
7,275

 

 
19,823

 
19,823

U.S. government agency securities

 
727

 
727

 

 
2,052

 
2,052

Non-U.S. government and agency securities

 
208

 
208

 

 
388

 
388

Corporate debt securities

 
27,364

 
27,364

 

 
31,735

 
31,735

U.S. agency mortgage-backed securities

 
1,435

 
1,435

 

 
2,023

 
2,023

Commercial paper

 

 

 

 
996

 
996

Certificates of deposit

 

 

 

 
60

 
60

Publicly traded equity securities
605

 

 
605

 
1,707

 

 
1,707

Derivative assets

 
2

 
2

 

 
149

 
149

Total
$
7,495

 
$
37,011

 
$
44,506

 
$
11,274

 
$
57,550

 
$
68,824

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
74

 
$
74

 
$

 
$
4

 
$
4

Total
$

 
$
74

 
$
74

 
$

 
$
4

 
$
4


We classify our cash equivalents and available-for-sale investments within Level 1 or Level 2 in the fair value hierarchy because we use quoted prices in active markets or alternative pricing sources and models using market observable inputs to determine their fair value. Our derivative instruments are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. We did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.

(b)
Assets Measured at Fair Value on a Nonrecurring Basis
The following table presents gains and losses on assets that were measured at fair value on a nonrecurring basis(in millions):
 
TOTAL GAINS (LOSSES) FOR THE YEARS ENDED
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Investments in privately held companies (impaired)
$
(56
)
 
$
(175
)
 
$
(57
)
Purchased intangible assets (impaired)
(1
)
 
(47
)
 
(74
)
Property held for sale - land and buildings
20

 
(30
)
 

Gains (losses) on assets no longer held at end of fiscal year
(6
)
 
(2
)
 
(10
)
Total gains (losses) for nonrecurring measurements
$
(43
)
 
$
(254
)
 
$
(141
)
These assets were measured at fair value due to events or circumstances we identified as having significant impact on their fair value during the respective periods. To arrive at the valuation of these assets, we consider any significant changes in the financial metrics and economic variables and also use 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 $57 million and $81 million as of July 28, 2018 and July 29, 2017, respectively.
The fair value for purchased intangibles 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 $63 million as of July 28, 2018 and July 29, 2017, respectively.
The fair value of property held for sale was measured with the assistance of third-party valuation models, which used discounted cash flow techniques as part of their analysis. The fair value measurement was categorized as Level 3, as significant unobservable inputs were used in the valuation report. The impairment charges as a result of the valuations, which represented the difference between the fair value less cost to sell and the carrying amount of the assets held for sale, was included in restructuring and other charges. The remaining carrying value of the property held for sale that was impaired was zero and $5 million as of July 28, 2018 and July 29, 2017, respectively.
(c)
Other Fair Value Disclosures
The carrying value of our investments in privately held companies that were accounted for under the cost method was $978 million and $859 million as of July 28, 2018 and July 29, 2017, respectively. It was not practicable to estimate the fair value of this portfolio.
The fair value of our short-term loan receivables and financed service contracts approximates their carrying value due to their short duration. The aggregate carrying value of our long-term loan receivables and financed service contracts as of July 28, 2018 and July 29, 2017 was $3.6 billion and $3.4 billion, respectively. The estimated fair value of our long-term loan receivables and financed service contracts approximates their carrying value. We use significant unobservable inputs in determining discounted cash flows to estimate the fair value of our long-term loan receivables and financed service contracts, and therefore they are categorized as Level 3.
As of July 28, 2018 and July 29, 2017, the estimated fair value of our short-term debt approximates its carrying value due to the short maturities. As of July 28, 2018, the fair value of our senior notes and other long-term debt was $26.4 billion, with a carrying amount of $25.6 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.
v3.10.0.1
Borrowings
12 Months Ended
Jul. 28, 2018
Debt Disclosure [Abstract]  
Borrowings
Borrowings
(a)
Short-Term Debt
The following table summarizes our short-term debt (in millions, except percentages):
 
July 28, 2018
 
July 29, 2017
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
5,238

 
3.46
%
 
$
4,747

 
1.66
%
Commercial paper

 

 
3,245

 
1.16
%
Total short-term debt
$
5,238

 
 
 
$
7,992

 


We have a short-term debt financing program of up to $10.0 billion through the issuance of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes.
The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging.
(b)
Long-Term Debt
The following table summarizes our long-term debt (in millions, except percentages):
 
 
 
July 28, 2018
 
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

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

 
 
900

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

 
2.86%
 
500

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

 
2.71%
 
500

 
1.66%
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
1.40%
February 28, 2018
 

 
 
1,250

 
1.47%
1.65%
June 15, 2018
 

 
 
1,600

 
1.72%
4.95%
February 15, 2019
 
2,000

 
5.17%
 
2,000

 
4.96%
1.60%
February 28, 2019
 
1,000

 
1.67%
 
1,000

 
1.67%
2.125%
March 1, 2019
 
1,750

 
2.71%
 
1,750

 
1.84%
1.40%
September 20, 2019
 
1,500

 
1.48%
 
1,500

 
1.48%
4.45%
January 15, 2020
 
2,500

 
4.52%
 
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

 
2.86%
 
500

 
2.00%
1.85%
September 20, 2021
 
2,000

 
1.90%
 
2,000

 
1.90%
3.00%
June 15, 2022
 
500

 
3.11%
 
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

 
2.98%
 
1,000

 
2.12%
3.50%
June 15, 2025
 
500

 
3.27%
 
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
 
 
25,750

 
 
 
30,500

 
 
Unaccreted discount/issuance costs
 
 
(116
)
 
 
 
(136
)
 
 
Hedge accounting fair value adjustments
 
 
(65
)
 
 
 
108

 
 
Total
 
 
$
25,569

 
 
 
$
30,472

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Short-term debt
 
 
$
5,238

 
 
 
$
4,747

 
 
Long-term debt
 
 
20,331

 
 
 
25,725

 
 
Total
 
 
$
25,569

 
 
 
$
30,472

 
 

We 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 our fixed-rate senior notes. These swaps convert the fixed interest rates of the fixed-rate notes to floating interest rates based on the London InterBank Offered Rate (LIBOR). The gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. For additional information, see Note 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 us at any time, subject to a make-whole premium. The senior notes rank at par with the commercial paper notes that have been issued in the future pursuant to our short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of July 28, 2018, we were in compliance with all debt covenants.
As of July 28, 2018, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2019
$
5,250

2020
6,000

2021
3,000

2022
2,500

2023
500

Thereafter
8,500

Total
$
25,750


(c)
Credit Facility
On May 15, 2015, we 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 our senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than zero. We may also, upon 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.
This credit agreement requires that we comply with certain covenants, including that we maintain an interest coverage ratio as defined in the agreement. As of July 28, 2018, we were in compliance with the required interest coverage ratio and the other covenants, and we had not borrowed any funds under the credit facility.
v3.10.0.1
Derivative Instruments
12 Months Ended
Jul. 28, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
Derivative Instruments
(a)
Summary of Derivative Instruments
We use derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.
The fair values of our derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions):
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
 
Balance Sheet Line Item
 
July 28, 2018
 
July 29, 2017
 
Balance Sheet Line Item
 
July 28, 2018
 
July 29, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
1

 
$
46

 
Other current liabilities
 
$

 
$
1

Interest rate derivatives
Other current assets
 

 

 
Other current liabilities
 
10

 

Interest rate derivatives
Other assets
 

 
102

 
Other long-term liabilities
 
62

 

Total
 
 
1

 
148

 
 
 
72

 
1

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

 
1

 
Other current liabilities
 
2

 
3

Total
 
 
1

 
1

 
 
 
2

 
3

Total
 
 
$
2

 
$
149

 
 
 
$
74

 
$
4

The effects of our 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 YEARS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR
THE YEARS ENDED (EFFECTIVE PORTION)
 
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
 
Line Item in Statements of Operations
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
20

 
$
22

 
$
(66
)
 
Operating expenses
 
$
52

 
$
(59
)
 
$
(15
)
 
 
 
 
 
 
 
 
Cost of sales service
 
16

 
(20
)
 
(5
)
Total
 
$
20

 
$
22

 
$
(66
)
 
Total
 
$
68

 
$
(79
)
 
$
(20
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(1
)
 
$
(15
)
 
$
16

 
Other income (loss), net
 
$

 
$

 
$


As of July 28, 2018, we estimate that approximately $1 million of net derivative gains related to our cash flow hedges included in 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 YEARS ENDED
 
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE YEARS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Interest rate derivatives
 
Interest expense
 
$
(174
)
 
$
(275
)
 
$
175

 
$
173

 
$
271

 
$
(169
)

The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) FOR 
THE YEARS ENDED
Derivatives Not Designated as Hedging Instruments
 
Line Item in Statements of Operations
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Foreign currency derivatives
 
Other income (loss), net
 
$
(24
)
 
$
13

 
$
(19
)
Total return swaps—deferred compensation
 
Operating expenses
 
50

 
53

 
6

 
 
Cost of sales — product
 
1

 
2

 

 
 
Cost of sales service
 
3

 
3

 
1

 
 
Other income (loss), net
 
(11
)
 

 

Equity derivatives
 
Other income (loss), net
 
(4
)
 
11

 
13

Total
 
 
 
$
15

 
$
82

 
$
1


The notional amounts of our outstanding derivatives are summarized as follows (in millions):
 
July 28, 2018
 
July 29, 2017
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
147

 
$
1,696

Interest rate derivatives
6,750

 
6,750

Net investment hedging instruments
250

 
351

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
2,298

 
2,258

Total return swaps—deferred compensation
566

 
535

Total
$
10,011

 
$
11,590


(b)
Offsetting of Derivative Instruments
We present our derivative instruments at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. To further limit credit risk, we also enter into collateral security arrangements related to certain derivative instruments whereby cash is posted as collateral between the counterparties based on the fair market value of the derivative instrument. Information related to these offsetting arrangements is summarized as follows (in millions):
 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEET
BUT WITH LEGAL RIGHTS TO OFFSET
July 28, 2018
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
2

 
$

 
$
2

 
$
(2
)
 
$

 
$

Derivatives liabilities
$
74

 
$

 
$
74

 
$
(2
)
 
$
(53
)
 
$
19

 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEET
BUT WITH LEGAL RIGHTS TO OFFSET
July 29, 2017
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
We conduct business globally in numerous currencies. Therefore, we are exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, we enter into foreign currency contracts. We do not enter into such contracts for speculative purposes.
We may hedge forecasted foreign currency transactions related to certain revenues, operating expenses and service cost of sales with currency options and forward contracts. These currency options and forward contracts, designated as cash flow hedges, generally have maturities of less than 24 months. We assess 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 fiscal years presented, we did not discontinue any cash flow hedges for which it was probable that a forecasted transaction would not occur.
We enter into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, including long-term customer financings, investments, and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances or other current assets, investments, or liabilities denominated in currencies other than the functional currency of the reporting entity.
We hedge certain net investments in our foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on our net investment in those foreign subsidiaries. These derivative instruments generally have maturities of up to six months.
(d)
Interest Rate Risk
Interest Rate Derivatives, Investments   Our 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, we may utilize interest rate swaps or other derivatives designated as fair value or cash flow hedges. As of July 28, 2018 and July 29, 2017, we did not have any outstanding interest rate derivatives related to our fixed income securities.
Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt In fiscal 2018, we did not enter into any interest rate swaps. In prior fiscal years, we 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, we receive fixed-rate interest payments and make interest payments based on LIBOR plus a fixed number of basis points. The effect of such swaps is to convert the fixed interest rates of the senior fixed-rate notes to floating interest rates based on LIBOR. The gains and losses related to changes in the fair value of the interest rate swaps are included in interest expense and substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. The fair value of the interest rate swaps were reflected in other assets and other current and long-term liabilities.
(e)
Equity Price Risk
We may hold equity securities for strategic purposes or to diversify our overall investment portfolio. The publicly traded equity securities in our portfolio are subject to price risk. To manage our exposure to changes in the fair value of certain equity securities, we have 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, we periodically enter 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.
We are also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, we utilize derivatives such as total return swaps to economically hedge this exposure.
(f)
Hedge Effectiveness
For the fiscal years 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 fiscal years presented.
v3.10.0.1
Commitments and Contingencies
12 Months Ended
Jul. 28, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
(a)
Operating Leases
We lease office space in many U.S. locations. Outside the United States, larger leased sites include sites in Belgium, Canada, China, Germany, India, Israel, Japan, Mexico, Poland, and the United Kingdom. We also lease equipment and vehicles. Future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of July 28, 2018 are as follows (in millions):
Fiscal Year
Amount
2019
$
392

2020
293

2021
190

2022
138

2023
96

Thereafter
111

Total
$
1,220


Rent expense for office space and equipment totaled $442 million, $403 million, and $385 million in fiscal 2018, 2017, and 2016, respectively.
(b)
Purchase Commitments with Contract Manufacturers and Suppliers
We purchase components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. Certain of these purchase commitments with contract manufacturers and suppliers relate to arrangements to secure long-term pricing for certain product components for multi-year periods. In certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed.
The following table summarizes our purchase commitments with contract manufacturers and suppliers (in millions):
Commitments by Period
July 28,
2018
 
July 29,
2017
Less than 1 year
$
5,407

 
$
4,620

1 to 3 years
710

 
20

3 to 5 years
360

 

Total
$
6,477

 
$
4,640


We record a liability for firm, noncancelable, and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of July 28, 2018 and July 29, 2017, the liability for these purchase commitments was $159 million and $162 million, respectively, and was included in other current liabilities.
(c)
Other Commitments
In connection with our acquisitions, we have agreed to pay certain additional amounts contingent upon the achievement of certain agreed-upon technology, development, product, or other milestones or upon the continued employment with Cisco of certain employees of the acquired entities.
The following table summarizes the compensation expense related to acquisitions (in millions):
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Compensation expense related to acquisitions
$
203

 
$
212

 
$
282


As of July 28, 2018, we estimated that future cash compensation expense of up to $352 million may be required to be recognized pursuant to the applicable business combination agreements.
In fiscal 2012, we 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 our technology. During fiscal 2014, we 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 $441 million during fiscal 2017. We recorded compensation expense of $47 million and $160 million during fiscal 2017 and fiscal 2016, respectively, related to these milestone payments.
We also have certain funding commitments, primarily related to our 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 $223 million and $216 million as of July 28, 2018 and July 29, 2017, respectively.
(d)
Product Warranties
The following table summarizes the activity related to the product warranty liability (in millions):
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Balance at beginning of fiscal year
$
407

 
$
414

 
$
449

Provisions for warranties issued
582

 
691

 
715

Adjustments for pre-existing warranties
(38
)
 
(21
)
 
(8
)
Settlements
(592
)
 
(677
)
 
(714
)
Divestiture

 

 
(28
)
Balance at end of fiscal year
$
359

 
$
407

 
$
414


We accrue for warranty costs as part of our cost of sales based on associated material product costs, labor costs for technical support staff, and associated overhead. Our products are generally covered by a warranty for periods ranging from 90 days to five years, and for some products we provide a limited lifetime warranty.
(e)
Financing and Other Guarantees
In the ordinary course of business, we provide financing guarantees for various third-party financing arrangements extended to channel partners and end-user customers. Payments under these financing guarantee arrangements were not material for the periods presented.
Channel Partner Financing Guarantees   We facilitate arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, 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, we guarantee a portion of these arrangements. The volume of channel partner financing was $28.2 billion, $27.0 billion, and $26.9 billion in fiscal 2018, 2017, and 2016, respectively. The balance of the channel partner financing subject to guarantees was $953 million and $1.0 billion as of July 28, 2018 and July 29, 2017, respectively.
End-User Financing Guarantees   We also provide financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years. The volume of financing provided by third parties for leases and loans as to which we had provided guarantees was $35 million, $51 million, and $63 million in fiscal 2018, 2017, and 2016, respectively.
Financing Guarantee Summary   The aggregate amounts of financing guarantees outstanding at July 28, 2018 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):
 
July 28, 2018
 
July 29, 2017
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
277

 
$
240

End user
31

 
74

Total
$
308

 
$
314

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(94
)
 
$
(82
)
End user
(28
)
 
(52
)
Total
$
(122
)
 
$
(134
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
186

 
$
180


Other Guarantees Our other guarantee arrangements as of July 28, 2018 and July 29, 2017 that were subject to recognition and disclosure requirements were not material.
(f)
Supplier Component Remediation Liability
In fiscal 2014, we 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. We perform regular assessments of the sufficiency of this liability and reduced the amount by $164 million and $74 million in fiscal 2015 and fiscal 2016, respectively, based on updated analyses. We further reduced the liability by $141 million and $58 million in fiscal 2017 and fiscal 2018, respectively, 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.
During the second quarter of fiscal 2017, we 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 our products.
The liabilities related to the supplier component remediation matters were $44 million and $174 million as of July 28, 2018 and July 29, 2017, respectively.
(g)
Indemnifications
In the normal course of business, we indemnify other parties, including customers, lessors, and parties to other transactions with us, with respect to certain matters. We have agreed to 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.
We have been asked to indemnify certain of our service provider customers that have been 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 us 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. On December 6, 2017, Sprint and Cox Communications, Inc. reached resolution of the claims in Sprint's lawsuit against Cox, and the Delaware court dismissed Sprint's lawsuit against Cox on December 7, 2017.
We believe that Time Warner Cable continues 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, we are unable to reasonably estimate the ultimate outcome of the Time Warner Cable litigation at this time. Should Sprint prevail in litigation, mediation, or settlement, we, in accordance with our agreements, may have an obligation to indemnify Time Warner Cable for damages, mediation awards, or settlement amounts arising from its use of our products.
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 infringed 12 patents. Huawei's infringement allegations for some of the patents were based on T-Mobile's use of products provided by us in combination with those of other manufacturers. T-Mobile requested indemnity by Cisco with respect to portions of the network that use our equipment. On December 22, 2017, the Eastern District of Texas court dismissed Huawei's four lawsuits after the parties reached settlement, and T-Mobile's indemnity request was subsequently resolved.
During fiscal 2018, we recorded legal and indemnification settlement charges of $127 million to product cost of sales in relation to these matters. At this time, we do not anticipate that our obligations regarding the final outcome of the above matters would be material.
In addition, we have entered into indemnification agreements with our officers and directors, and our Amended and Restated Bylaws contain similar indemnification obligations to our agents.
It is not possible to determine the maximum potential amount under these indemnification agreements due to our limited history with prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by us under these agreements have not had a material effect on our operating results, financial position, or cash flows.
(h)
Legal Proceedings
Brazil Brazilian authorities have investigated our Brazilian subsidiary and certain of our former employees, as well as a Brazilian importer of our products, and its affiliates and employees, relating to alleged evasion of import taxes and alleged improper transactions involving the subsidiary and the importer. Brazilian tax authorities have assessed claims against our Brazilian subsidiary based on a theory of joint liability with the Brazilian importer for import taxes, interest, and penalties. In addition to claims asserted by the Brazilian federal tax authorities in prior fiscal years, tax authorities from the Brazilian state of Sao Paulo have asserted similar claims on the same legal basis in prior fiscal years.
The asserted claims by Brazilian federal tax authorities 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 $218 million for the alleged evasion of import and other taxes, $1.4 billion for interest, and $1.0 billion for various penalties, all determined using an exchange rate as of July 28, 2018. We have completed a thorough review of the matters and believe the asserted claims against our Brazilian subsidiary are without merit, and we are defending the claims vigorously. While we believe there is no legal basis for the alleged liability, due to the complexities and uncertainty surrounding the judicial process in Brazil and the nature of the claims asserting joint liability with the importer, we are unable to determine the likelihood of an unfavorable outcome against our Brazilian subsidiary and are unable to reasonably estimate a range of loss, if any. We do not expect a final judicial determination for several years.
SRI International On September 4, 2013, SRI International, Inc. (“SRI”) asserted patent infringement claims against us in the U.S. District Court for the District of Delaware, accusing our products and services in the area of network intrusion detection of infringing two U.S. patents. SRI sought monetary damages of at least a reasonable royalty and enhanced damages. The trial 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. We have appealed to the United States Court of Appeals for the Federal Circuit on various grounds. We believe we have 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, we do not expect it to be material.
SSL SSL Services, LLC (“SSL”) has asserted claims for patent infringement against us in the U.S. District Court for the Eastern District of Texas. The proceeding was instituted on March 25, 2015. SSL alleges that our AnyConnect products that include Virtual Private Networking functions infringed a U.S. patent owned by SSL. SSL seeks money damages from us. On August 18, 2015, we 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 us is valid over prior art. On February 23, 2016, a PTAB multi-judge panel found a reasonable likelihood that we 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 appealed this decision to the Court of Appeals for the Federal Circuit and, on May 7, 2018, the Federal Circuit summarily affirmed the PTAB's decision of unpatentability.
Straight Path On September 24, 2014, Straight Path IP Group, Inc. (“Straight Path”) asserted patent infringement claims against us in the U.S. District Court for the Northern District of California, accusing our 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 our motion for summary judgment of non-infringement, thereby dismissing Straight Path's claims against us and cancelling a trial which had been set for March 12, 2018. On January 16, 2018, Straight Path appealed to the U.S. Court of Appeal for the Federal Circuit.
DXC Technology On August 21, 2015, Cisco 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 had prepaid the service agreement through a financing arrangement with Cisco Capital, and had terminated its agreement with us. Pursuant to the terms of the service agreement with HP, we determined the credit HP was entitled to receive under the agreement for certain prepaid amounts. HP disputed our credit calculation and contended that we owe a larger credit to HP than we had calculated. In December 2015, we 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. 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 January 8, 2018, the court continued the trial date from March 12, 2018 to June 11, 2018. The parties entered into a settlement agreement effective June 30, 2018, resolving all of the claims and cross-claims in the case, and on August 1, 2018, the Court dismissed all claims and cross-claims with prejudice. The settlement did not have a material impact on our results of operations.
Arista Networks, Inc. On February 24, 2016, Arista Networks, Inc. (“Arista”) filed a complaint against us in the U.S. District Court for the Northern District of California, asserting monopolization claims in violation of Section 2 of the Sherman Act and an unfair competition claim under California Bus. and Prof. Code § 17200. On October 31, 2017, Arista filed an amended complaint for Sherman Act monopolization and § 17200 claims, alleging an anticompetitive scheme comprising our copyright infringement action against Arista (which was based on Arista’s copying of our copyright-protected user interfaces) and communications related to that litigation. Arista sought injunctive relief, lost profits, enhanced damages, and restitution. A jury trial was scheduled for August 6, 2018. On August 6, 2018, Cisco and Arista entered into a binding term sheet resolving, except as described below, all of the outstanding litigation between the companies. The terms are as follows: (i) Arista shall pay $400 million to Cisco; (ii) Cisco will not assert against Arista patents that were included in the litigation as long as Arista continues to implement workarounds it had put in place to certain of those patents; (iii) for three years (subject to earlier termination in some circumstances), any claim against the other party regarding patent infringement for its new products, or new features of existing products, will be resolved by an arbitration process; the process will not apply to claims of copyright infringement, trade secret misappropriation or certain other claims; (iv) for five years, neither party will bring an action against the other for patent or copyright (except for any claims of source code misappropriation) infringement regarding their respective products on the market before August 6, 2018; and (v) certain limited changes shall be implemented by Arista to its user interfaces for operation of its products, and the parties will continue to undertake the appeal of the ruling in U.S. District Court for the Northern District of California regarding copyright infringement, with further limited changes if the case is remanded or reversed. The parties also agreed that for five years neither party would bring an action against the other's contract manufacturers, partners or customers for patent or copyright (excluding claims of source code misappropriation) infringement regarding the other party's products on the market before August 6, 2018. We received payment from Arista of $400 million on August 20, 2018, which will be reflected in Cisco's first quarter fiscal 2019 results.
Oyster Optics On November 24, 2016, Oyster Optics, LLC (“Oyster”) asserted patent infringement claims against us in the U.S. District Court for the Eastern District of Texas. Oyster alleges that certain Cisco ONS 15454 and NCS 2000 line cards infringe U.S. Patent No. 7,620,327 (“the ‘327 Patent”). Oyster seeks monetary damages. Oyster filed infringement claims based on the ‘327 Patent against other defendants, including ZTE, Nokia, NEC, Infinera, Huawei, Ciena, Alcatel-Lucent, and Fujitsu, and the court consolidated the cases alleging infringement of the ‘327 Patent. During the course of the case, defendants ZTE, Nokia, NEC, Fujitsu, Infinera and Huawei reached settlements with Oyster. On August 9, 2018, the court reset the trial for November 5, 2018. While we believe that we have strong non-infringement arguments and that the patent is invalid, if we do not prevail in the District Court, we believe damages ultimately assessed would not be material. Due to uncertainty surrounding patent litigation processes, we are unable to reasonably estimate the ultimate outcome of this litigation at this time. However, we do not anticipate that any final outcome of the dispute would be material.
In addition, we are subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. While the outcome of these matters is currently not determinable, we do not expect that the ultimate costs to resolve these matters will have a material adverse effect on our consolidated financial position, results of operations, or cash flows.
For additional information regarding intellectual property litigation, see “Part I, Item 1A. Risk Factors-We may be found to infringe on intellectual property rights of others” of this Annual Report on Form 10-K.
v3.10.0.1
Shareholders' Equity
12 Months Ended
Jul. 28, 2018
Stockholders' Equity Note [Abstract]  
Shareholders' Equity
Shareholders’ Equity
(a)
Cash Dividends on Shares of Common Stock
We declared and paid cash dividends of $1.24, $1.10 and $0.94 per common share, or $6.0 billion, $5.5 billion and $4.8 billion, on our outstanding common stock during fiscal 2018, 2017, and 2016, respectively.
Any future dividends will be subject to the approval of our Board of Directors.
(b)
Stock Repurchase Program
In September 2001, our Board of Directors authorized a stock repurchase program. On February 14, 2018, our Board of Directors authorized a $25 billion increase to the stock repurchase program. As of July 28, 2018, the remaining authorized amount for stock repurchases under this program, including the additional authorization, is approximately $19.0 billion, with no termination date.
A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is as follows (in millions, except per-share amounts):
Years Ended
 
Shares
 
Weighted-Average Price per Share
 
Amount
July 28, 2018
 
432

 
$
40.88

 
$
17,661

July 29, 2017
 
118

 
$
31.38

 
$
3,706

July 30, 2016
 
148

 
$
26.45

 
$
3,918


There were $180 million, $66 million and $45 million in stock repurchases pending settlement as of July 28, 2018, July 29, 2017 and July 30, 2016, respectively.
The purchase price for the shares of our stock repurchased is reflected as a reduction to shareholders’ equity. We are required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings and (ii) a reduction of common stock and additional paid-in capital.
(c)
Restricted Stock Unit Withholdings
We repurchased approximately 20 million, 20 million and 21 million shares, or $703 million, $619 million and $557 million of common stock in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units during fiscal 2018, 2017, and 2016, respectively.
(d)
Preferred Stock
Under the terms of our Articles of Incorporation, the Board of Directors may determine the rights, preferences, and terms of our authorized but unissued shares of preferred stock.
v3.10.0.1
Employee Benefit Plans
12 Months Ended
Jul. 28, 2018
Retirement Benefits [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
(a)
Employee Stock Incentive Plans
Stock Incentive Plan Program Description    As of July 28, 2018, we had one stock incentive plan: the 2005 Stock Incentive Plan (the “2005 Plan”). In addition, we have, in connection with our acquisitions of various companies, assumed the share-based awards granted under stock incentive plans of the acquired companies or issued share-based awards in replacement thereof. Share-based awards are designed to reward employees for their long-term contributions to us and provide incentives for them to remain with Cisco. The number and frequency of share-based awards are based on competitive practices, operating results of Cisco, government regulations, and other factors. Our primary stock incentive plan is summarized as follows:
2005 Plan    As of July 28, 2018, 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 Cisco 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 our 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 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 Cisco and its subsidiaries and affiliates, and non-employee directors of Cisco. 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 our 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
We have 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 our common stock have been reserved for issuance as of July 28, 2018. 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 our 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. We issued 22 million, 23 million, and 25 million shares under the Purchase Plan in fiscal 2018, 2017, and 2016, respectively. As of July 28, 2018, 78 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):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Cost of sales—product
$
94

 
$
85

 
$
70

Cost of sales—service
133

 
134

 
142

Share-based compensation expense in cost of sales
227

 
219

 
212

Research and development
538

 
529

 
470

Sales and marketing
555

 
542

 
545

General and administrative
246

 
236

 
205

Restructuring and other charges
33

 
3

 
26

Share-based compensation expense in operating expenses
1,372

 
1,310

 
1,246

Total share-based compensation expense
$
1,599

 
$
1,529

 
$
1,458

Income tax benefit for share-based compensation
$
558

 
$
451

 
$
429


As of July 28, 2018, the total compensation cost related to unvested share-based awards not yet recognized was $3.1 billion, which is expected to be recognized over approximately 2.5 years on a weighted-average basis.

(d)
Share-Based Awards Available for Grant
A summary of share-based awards available for grant is as follows (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Balance at beginning of fiscal year
272

 
242

 
276

Restricted stock, stock units, and other share-based awards granted
(70
)
 
(76
)
 
(96
)
Share-based awards canceled/forfeited/expired
18

 
78

 
30

Shares withheld for taxes and not issued
25

 
28

 
30

Other

 

 
2

Balance at end of fiscal year
245

 
272

 
242


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

 
$
22.08

 
 
Granted
62

 
25.90

 
 
Assumed from acquisitions
6

 
24.58

 
 
Vested
(54
)
 
20.68

 
$
1,428

Canceled/forfeited/other
(12
)
 
22.91

 
 
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/other
(15
)
 
23.56

 
 
UNVESTED BALANCE AT JULY 29, 2017
141

 
26.94

 
 
Granted
46

 
35.62

 
 
Assumed from acquisitions
1

 
28.26

 
 
Vested
(53
)
 
26.02

 
$
1,909

Canceled/forfeited/other
(16
)
 
28.37

 
 
UNVESTED BALANCE AT JULY 28, 2018
119

 
$
30.56

 
 

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

 
$
28.68

Assumed from acquisitions
18

 
5.17

Exercised
(32
)
 
19.22

Canceled/forfeited/expired
(16
)
 
30.01

BALANCE AT JULY 30, 2016
73

 
26.78

Assumed from acquisitions
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

 
8.20

Exercised
(8
)
 
5.77

Canceled/forfeited/expired
(1
)
 
8.75

BALANCE AT JULY 28, 2018
6

 
$
7.18


The total pretax intrinsic value of stock options exercised during fiscal 2018, 2017, and 2016 was $257 million, $283 million, and $266 million, respectively.
The following table summarizes significant ranges of outstanding and exercisable stock options as of July 28, 2018 (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 – 35.00
 
6

 
5.9
 
$
7.18

 
$
228

 
4

 
$
6.84

 
$
153


The aggregate intrinsic value represents the total pretax intrinsic value, based on Cisco's closing stock price of $42.57 as of July 27, 2018. The total number of in-the-money stock options exercisable as of July 28, 2018 was 4 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 PRSUs that are based on our financial performance metrics or non-financial operating goals are valued using the market value of our common stock on the date of grant, discounted for the present value of expected dividends. On the date of grant, we estimated the fair value of the total shareholder return (TSR) component of the PRSUs using a Monte Carlo simulation model. The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows:

RESTRICTED STOCK UNITS
Years Ended
July 28, 2018

July 29, 2017

July 30, 2016
Number of shares granted (in millions)
43


43


57

Grant date fair value per share
$
35.81


$
28.38


$
26.01

Weighted-average assumptions/inputs:
 
 
 
 
 
   Expected dividend yield
3.2
%

3.5
%

3.2
%
   Range of risk-free interest rates
0.0%  2.7%


0.0%  1.5%


0.0% – 1.2%


 
PERFORMANCE BASED RESTRICTED STOCK UNITS
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Number of shares granted (in millions)
3

 
7

 
5

Grant date fair value per share
$
32.69

 
$
28.94

 
$
24.70

Weighted-average assumptions/inputs:
 
 
 
 
 
   Expected dividend yield
3.5
%
 
3.4
%
 
3.1
%
   Range of risk-free interest rates
1.0%  2.7%

 
0.1%  1.5%

 
0.0% – 1.2%

   Range of expected volatilities for index
12.5% - 82.8%

 
16.7% – 46.8%

 
15.3% – 54.3%


The PRSUs granted during the fiscal years presented are contingent on the achievement of our financial performance metrics, our comparative market-based returns, or the achievement of financial and non-financial operating goals. For the awards based on financial performance metrics or comparative market-based returns, generally 50% of the PRSUs are earned based on the average of annual operating cash flow and earnings per share goals established at the beginning of each fiscal year over a three-year performance period. Generally, the remaining 50% of the PRSUs are earned based on our TSR measured against the benchmark TSR of a peer group over the same period. Each PRSU recipient could vest in 0% to 150% of the target shares granted contingent on the achievement of our financial performance metrics or our comparative market-based returns, and 0% to 100% of the target shares granted contingent on the achievement of non-financial operating goals.
The assumptions for the valuation of employee stock purchase rights are summarized as follows:
 
EMPLOYEE STOCK PURCHASE RIGHTS
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Weighted-average assumptions:
 
 
 
 
 
   Expected volatility
22.1
%
 
24.6
%
 
23.9
%
   Risk-free interest rate
1.3
%
 
0.7
%
 
0.4
%
   Expected dividend
3.1
%
 
3.2
%
 
3.1
%
   Expected life (in years)
1.3

 
1.3

 
1.3

Weighted-average estimated grant date fair value per share
$
7.48

 
$
6.52

 
$
5.73


The valuation of employee stock purchase rights and the related assumptions are for the employee stock purchases made during the respective fiscal years.
We used third-party analyses to assist in developing the assumptions used in our Black-Scholes model. We are responsible for determining the assumptions used in estimating the fair value of our share-based payment awards.
We used the implied volatility for traded options (with contract terms corresponding to the expected life of the employee stock purchase rights) on our stock as the expected volatility assumption required in the Black-Scholes model. The implied volatility is more representative of future stock price trends than historical volatility. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of our employee stock purchase rights. The dividend yield assumption is based on the history and expectation of dividend payouts at the grant date.
(h)
Employee 401(k) Plans
We sponsor the Cisco Systems, Inc. 401(k) Plan (the “Plan”) to provide retirement benefits for our employees. As allowed under Section 401(k) of the Internal Revenue Code, the Plan provides for tax-deferred salary contributions and after-tax contributions for eligible employees. The Plan allows employees to contribute up to 75% of their annual eligible earnings to the Plan on a pretax and after-tax basis, including Roth contributions. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Code. We match pretax and Roth employee contributions up to 100% of the first 4.5% of eligible earnings that are contributed by employees. Therefore, the maximum matching contribution that we may allocate to each participant’s account will not exceed $12,375 for the 2018 calendar year due to the $275,000 annual limit on eligible earnings imposed by the Internal Revenue Code. All matching contributions vest immediately. Our matching contributions to the Plan totaled $269 million, $265 million, and $262 million in fiscal 2018, 2017, and 2016, respectively.
The Plan allows employees who meet the age requirements and reach the Plan contribution limits to make catch-up contributions (pretax or Roth) not to exceed the lesser of 75% of their annual eligible earnings or the limit set forth in the Internal Revenue Code. Catch-up contributions are not eligible for matching contributions. In addition, the Plan provides for discretionary profit-sharing contributions as determined by the Board of Directors. Such contributions to the Plan are allocated among eligible participants in the proportion of their salaries to the total salaries of all participants. There were no discretionary profit-sharing contributions made in fiscal 2018, 2017, and 2016.
We also sponsor other 401(k) plans as a result of acquisitions of other companies. Our contributions to these plans were not material to Cisco on either an individual or aggregate basis for any of the fiscal years presented.
(i)
Deferred Compensation Plans
The Cisco Systems, Inc. Deferred Compensation Plan (the “Deferred Compensation Plan”), a nonqualified deferred compensation plan, became effective in 2007. As required by applicable law, participation in the Deferred Compensation Plan is limited to a select group of our management employees. Under the Deferred Compensation Plan, which is an unfunded and unsecured deferred compensation arrangement, a participant may elect to defer base salary, bonus, and/or commissions, pursuant to such rules as may be established by Cisco, up to the maximum percentages for each deferral election as described in the plan. We may also, at our discretion, make a matching contribution to the employee under the Deferred Compensation Plan. A matching contribution equal to 4.5% of eligible compensation in excess of the Internal Revenue Code limit for qualified plans for calendar year 2018 that is deferred by participants under the Deferred Compensation Plan (with a $1.5 million cap on eligible compensation) will be made to eligible participants’ accounts at the end of calendar year 2018. The total deferred compensation liability under the Deferred Compensation Plan, together with deferred compensation plans assumed from acquired companies, was approximately $651 million and $622 million as of July 28, 2018 and July 29, 2017, respectively, and was recorded primarily in other long-term liabilities.
v3.10.0.1
Comprehensive Income (Loss)
12 Months Ended
Jul. 28, 2018
Comprehensive Income [Abstract]  
Comprehensive Income
Comprehensive Income (Loss)
The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, are summarized as follows (in millions):
 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 25, 2015
$
310

 
$
(16
)
 
$
(233
)
 
$
61

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
151

 
(66
)
 
(399
)
 
(314
)
(Gains) losses reclassified out of AOCI
1

 
20

 
(6
)
 
15

Tax benefit (expense)
(49
)
 
3

 
(42
)
 
(88
)
Total change for the period
103

 
(43
)
 
(447
)
 
(387
)
BALANCE AT JULY 30, 2016
413

 
(59
)
 
(680
)
 
(326
)
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(164
)
 
22

 
318

 
176

(Gains) losses reclassified out of AOCI
87

 
79

 
16

 
182

Tax benefit (expense)
37

 
(10
)
 
(13
)
 
14

Total change for the period
(40
)
 
91

 
321

 
372

BALANCE AT JULY 29, 2017
373

 
32

 
(359
)
 
46

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(543
)
 
21

 
(159
)
 
(681
)
(Gains) losses reclassified out of AOCI
(287
)
 
(68
)
 
7

 
(348
)
Tax benefit (expense)
93

 
4

 
(8
)
 
89

Total change for the period
(737
)
 
(43
)
 
(160
)
 
(940
)
Effect of adoption of accounting standard
54

 

 
(9
)
 
45

BALANCE AT JULY 28, 2018
$
(310
)
 
$
(11
)
 
$
(528
)
 
$
(849
)


The net gains (losses) reclassified out of AOCI into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions):
 
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
 
 
Comprehensive Income Components
 
Income Before Taxes
 
Line Item in Statements of Operations
Net unrealized gains and losses on available-for-sale investments
 
$
287

 
$
(87
)
 
$
(1
)
 
Other income (loss), net
 
 
 
 
 
 
 
 
 
Net unrealized gains and losses on cash flow hedging instruments
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
52

 
(59
)
 
(15
)
 
Operating expenses
Foreign currency derivatives
 
16

 
(20
)
 
(5
)
 
Cost of sales—service
 
 
68

 
(79
)
 
(20
)
 
 
 
 
 
 
 
 
 
 
 
Cumulative translation adjustment and actuarial gains and losses
 
(7
)
 
(16
)
 
6

 
Operating expenses
 
 
 
 
 
 
 
 
 
Total amounts reclassified out of AOCI
 
$
348

 
$
(182
)
 
$
(15
)
 
 
v3.10.0.1
Income Taxes
12 Months Ended
Jul. 28, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
(a)
Provision for Income Taxes
The provision for income taxes consists of the following (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Federal:
 
 
 
 
 
Current
$
9,900

 
$
1,300

 
$
865

Deferred
1,156

 
(42
)
 
(93
)
 
11,056

 
1,258

 
772

State:
 
 
 
 
 
Current
340

 
86

 
78

Deferred
(232
)
 
56

 
13

 
108

 
142

 
91

Foreign:
 
 
 
 
 
Current
1,789

 
1,416

 
1,432

Deferred
(24
)
 
(138
)
 
(114
)
 
1,765

 
1,278

 
1,318

Total
$
12,929

 
$
2,678

 
$
2,181



Income before provision for income taxes consists of the following (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
United States
$
3,765

 
$
2,393

 
$
2,907

International
9,274

 
9,894

 
10,013

Total
$
13,039

 
$
12,287

 
$
12,920


The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following:
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Federal statutory rate
27.0
 %
 
35.0
 %
 
35.0
 %
Effect of:
 
 
 
 
 
State taxes, net of federal tax benefit
0.6

 
1.1

 
0.5

Foreign income at other than U.S. rates
(5.2
)
 
(13.4
)
 
(14.5
)
Tax credits
(2.5
)
 
(1.2
)
 
(1.7
)
Domestic manufacturing deduction
(0.5
)
 
(0.4
)
 
(0.6
)
Stock-based compensation
(0.1
)
 
1.4

 
1.4

Tax audit settlement

 

 
(2.8
)
Impact of the Tax Act
80.1

 

 

Other, net
(0.2
)
 
(0.7
)
 
(0.4
)
Total
99.2
 %

21.8
 %
 
16.9
 %
On December 22, 2017, the Tax Act was enacted. The Tax Act significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate income tax rate (“federal tax rate”) from 35% to 21% effective January 1, 2018, implementing a modified territorial tax system, and imposing a mandatory one-time transition tax on accumulated earnings of foreign subsidiaries. As a fiscal-year taxpayer, certain provisions of the Tax Act impact Cisco in fiscal 2018, including the change in the federal tax rate and the one-time transition tax, while other provisions will be effective at the beginning of fiscal 2019, including the implementation of a modified territorial tax system and other changes to how foreign earnings are subject to U.S. tax, and elimination of the domestic manufacturing deduction.
As a result of the decrease in the federal tax rate from 35% to 21% effective January 1, 2018, we have computed our income tax expense for the July 28, 2018 fiscal year using a blended federal tax rate of 27%. The 21% federal tax rate will apply to our fiscal year ending July 27, 2019 and each year thereafter. We must remeasure our deferred tax assets and liabilities ("DTA") using the federal tax rate that will apply when the related temporary differences are expected to reverse.
As of December 31, 2017, we had approximately $76 billion in undistributed earnings for certain foreign subsidiaries. These undistributed earnings were subject to the U.S. mandatory one-time transition tax and are eligible to be repatriated to the U.S. without additional U.S. tax under the Tax Act. We have historically asserted our intention to indefinitely reinvest foreign earnings in certain foreign subsidiaries. We have reevaluated our historic assertion as a result of enactment of the Tax Act and no longer consider these earnings to be indefinitely reinvested in our foreign subsidiaries. As a result of this change in assertion, we recorded a $1.2 billion tax expense for foreign withholding tax in the second quarter of fiscal 2018. In fiscal 2018, we repatriated $70 billion of foreign subsidiary earnings to the U.S. (in the form of cash, cash equivalents, or investments), and paid foreign withholding tax of $1.2 billion.
In the fourth quarter of fiscal 2018, we recorded adjustments to the provisional amounts originally recorded in the second quarter of fiscal 2018 related to the U.S transition tax on accumulated earnings of foreign subsidiaries and re-measurement of net DTA. These adjustments include an $863 million benefit to the U.S. transition tax provisional amount related to the U.S taxation of deemed foreign dividends in the transition fiscal year. This benefit may be reduced or eliminated in future legislation. If such legislation is enacted, we will record the impact of the legislation in the quarter of enactment.
During fiscal 2018, we recorded a provisional tax expense of $10.4 billion related to the Tax Act, comprised of $8.1 billion of U.S. transition tax, $1.2 billion of foreign withholding tax (discussed above), and $1.1 billion re-measurement of net DTA. We plan to pay the transition tax in installments over eight years in accordance with the Tax Act. The $1.2 billion foreign withholding tax was paid in February 2018.
In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118, which addresses how a company recognizes provisional estimates when a company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the effect of the changes in the Tax Act. The measurement period ends when a company has obtained, prepared, and analyzed the information necessary to finalize its accounting, but cannot extend beyond one year. The final impact of the Tax Act may differ from the above provisional estimates due to changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, by changes in accounting standard for income taxes and related interpretations in response to the Tax Act, and any updates or changes to estimates used in the provisional amounts. We have determined that the $8.1 billion of tax expense for the U.S. transition tax on accumulated earnings of foreign subsidiaries, the $1.2 billion of foreign withholding tax, and the $1.1 billion of tax expense for DTA re-measurement were each provisional amounts and reasonable estimates for fiscal 2018. Estimates used in the provisional amounts include: the anticipated reversal pattern of the gross DTAs; and earnings, cash positions, foreign taxes and withholding taxes attributable to foreign subsidiaries.
During fiscal 2016, the Internal Revenue Service (IRS) and Cisco settled all outstanding items related to the audit of our federal income tax returns for the fiscal years ended July 26, 2008 through July 31, 2010. As a result of the settlement, we recognized a net benefit to the provision for income taxes of $367 million, which included a reduction of interest expense of $21 million. In addition, the Protecting Americans from Tax Hikes Act of 2015 reinstated the U.S. federal R&D tax credit permanently. As a result, the tax provision in fiscal 2016 included a tax benefit of $226 million related to the U.S. federal R&D tax credit, of which $81 million was attributable to fiscal 2015.
Foreign taxes associated with the repatriation of earnings of foreign subsidiaries were not provided for on a cumulative total of $77 million of undistributed earnings for certain foreign subsidiaries as of the end of fiscal 2018. We intend to reinvest these earnings indefinitely in such foreign subsidiaries. If these earnings were distributed in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, we would be subject to additional foreign taxes. The amount of unrecognized deferred income tax liability related to these earnings is approximately $15 million.
As a result of certain employment and capital investment actions, our income in certain foreign countries is subject to reduced tax rates. A portion of these incentives expired at the end of fiscal 2015. The majority of the remaining tax incentives are reasonably expected to expire at the end of fiscal 2019. The gross income tax benefit attributable to tax incentives was estimated to be $0.9 billion ($0.19 per diluted share) in fiscal 2018. As of the end of fiscal 2017 and 2016, the gross income tax benefits attributable to tax incentives were estimated to be $1.3 billion and $1.2 billion ($0.25 and $0.23 per diluted share) for the respective years. The gross income tax benefits were partially offset by accruals of U.S. income taxes on foreign earnings.
Unrecognized Tax Benefits
The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Beginning balance
$
1,973

 
$
1,627

 
$
2,029

Additions based on tax positions related to the current year
251

 
336

 
255

Additions for tax positions of prior years
84

 
180

 
116

Reductions for tax positions of prior years
(129
)
 
(78
)
 
(457
)
Settlements
(124
)
 
(43
)
 
(241
)
Lapse of statute of limitations
(55
)
 
(49
)
 
(75
)
Ending balance
$
2,000

 
$
1,973

 
$
1,627


As a result of the IRS tax settlement related to the federal income tax returns for the fiscal years ended July 26, 2008 through July 31, 2010, the amount of gross unrecognized tax benefits in fiscal 2016 was reduced by approximately $563 million. We also reduced the amount of accrued interest by $63 million.
As of July 28, 2018, $1.7 billion of the unrecognized tax benefits would affect the effective tax rate if realized. During fiscal 2018, we recognized $10 million of net interest expense and reduced penalties by less than $1 million. During fiscal 2017, we recognized $26 million of net interest expense and a $4 million reduction in penalties. During fiscal 2016, we recognized a $55 million reduction in net interest expense and a $40 million reduction in penalties. Our total accrual for interest and penalties was $180 million, $186 million, and $154 million as of the end of fiscal 2018, 2017, and 2016, respectively. We are no longer subject to U.S. federal income tax audit for returns covering tax years through fiscal 2010. We are no longer subject to foreign or state income tax audits for returns covering tax years through fiscal 1999, and fiscal 2008, respectively.
We regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. We believe it is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. Specific positions that may be resolved include issues involving transfer pricing and various other matters. We estimate that the unrecognized tax benefits at July 28, 2018 could be reduced by approximately $300 million in the next 12 months.
(b)
Deferred Tax Assets and Liabilities
The following table presents the breakdown for net deferred tax assets (in millions):
 
July 28, 2018
 
July 29, 2017
Deferred tax assets
$
3,219

 
$
4,239

Deferred tax liabilities
(141
)
 
(271
)
Total net deferred tax assets
$
3,078

 
$
3,968


The following table presents the components of the deferred tax assets and liabilities (in millions):
 
July 28, 2018
 
July 29, 2017
ASSETS
 
 
 
Allowance for doubtful accounts and returns
$
285

 
$
443

Sales-type and direct-financing leases
171

 
277

Inventory write-downs and capitalization
289

 
446

Investment provisions
54

 
171

IPR&D, goodwill, and purchased intangible assets
63

 
125

Deferred revenue
1,584

 
2,057

Credits and net operating loss carryforwards
1,087

 
976

Share-based compensation expense
190

 
273

Accrued compensation
370

 
504

Other
408

 
559

Gross deferred tax assets
4,501

 
5,831

Valuation allowance
(374
)
 
(244
)
Total deferred tax assets
4,127

 
5,587

LIABILITIES
 
 
 
Purchased intangible assets
(753
)
 
(1,037
)
Depreciation
(118
)
 
(340
)
Unrealized gains on investments
(33
)
 
(203
)
Other
(145
)
 
(39
)
Total deferred tax liabilities
(1,049
)
 
(1,619
)
Total net deferred tax assets
$
3,078

 
$
3,968

As of July 28, 2018, our federal, state, and foreign net operating loss carryforwards for income tax purposes were $703 million, $891 million, and $808 million, respectively. A significant amount of the net operating loss carryforwards relates to acquisitions and, as a result, is limited in the amount that can be recognized in any one year. If not utilized, the federal, state and foreign net operating loss carryforwards will begin to expire in fiscal 2019. We have provided a valuation allowance of $125 million for deferred tax assets related to foreign net operating losses that are not expected to be realized.
As of July 28, 2018, our federal, state, and foreign tax credit carryforwards for income tax purposes were approximately $47 million, $1.0 billion, and $5 million, respectively. The federal tax credit carryforwards will begin to expire in fiscal 2019. The majority of state and foreign tax credits can be carried forward indefinitely. We have provided a valuation allowance of $249 million for deferred tax assets related to state and foreign tax credits that are not expected to be realized.
v3.10.0.1
Segment Information and Major Customers
12 Months Ended
Jul. 28, 2018
Segment Reporting [Abstract]  
Segment Information and Major Customers
Segment Information and Major Customers
(a)
Revenue and Gross Margin by Segment
We conduct business globally and are primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. Our management makes financial decisions and allocates resources based on the information it receives from our internal management system. Sales are attributed to a segment based on the ordering location of the customer. We do not allocate research and development, sales and marketing, or general and administrative expenses to our segments in this internal management system because management does not include the information in our measurement of the performance of the operating segments. In addition, we do not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation settlements and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in our measurement of the performance of the operating segments.
Summarized financial information by segment for fiscal 2018, 2017, and 2016, based on our internal management system and as utilized by our Chief Operating Decision Maker (“CODM”), is as follows (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Revenue:
 
 
 
 
 
Americas
$
29,070

 
$
28,351

 
$
29,392

EMEA
12,425

 
12,004

 
12,302

APJC
7,834

 
7,650

 
7,553

Total
$
49,330

 
$
48,005

 
$
49,247

Gross margin:
 
 
 
 
 
Americas
$
18,792

 
$
18,284

 
$
18,986

EMEA
7,945

 
7,855

 
7,998

APJC
4,726

 
4,741

 
4,620

Segment total
31,463

 
30,880

 
31,604

Unallocated corporate items
(857
)
 
(656
)
 
(644
)
Total
$
30,606

 
$
30,224

 
$
30,960


Amounts may not sum and percentages may not recalculate due to rounding.
Revenue in the United States was $25.5 billion, $25.0 billion, and $25.9 billion for fiscal 2018, 2017, and 2016, respectively.
(b)
Revenue for Groups of Similar Products and Services
We design, manufacture, and sell IP-based networking and other products related to the communications and IT industry and provide services associated with these products and their use. Effective in the first quarter of fiscal 2018, we began reporting our product and service revenue in the following five categories: Infrastructure Platforms, Applications, Security, Other Products, and Services. The change better aligns our product categories with our evolving business model. Prior period amounts have been reclassified to conform to the current period's presentation.
The following table presents revenue for groups of similar products and services (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Revenue:
 
 
 
 
 
Infrastructure Platforms
$
28,270

 
$
27,779

 
$
28,851

Applications
5,035

 
4,568

 
4,438

Security
2,353

 
2,153

 
1,969

Other Products (1)
1,050

 
1,205

 
1,996

Total Product
36,709

 
35,705

 
37,254

Services
12,621

 
12,300

 
11,993

Total
$
49,330

 
$
48,005

 
$
49,247


(1) During the second quarter of fiscal 2016, we completed the sale of our SP Video CPE Business. SP Video CPE Business revenue was $504 million for fiscal 2016.
(c)
Additional Segment Information
The majority of our assets as of July 28, 2018 and July 29, 2017 were attributable to our U.S. operations. In fiscal 2018, 2017, and 2016, no single customer accounted for 10% or more of revenue.
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):
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Property and equipment, net:
 
 
 
 
 
United States
$
2,487

 
$
2,711

 
$
2,822

International
519

 
611

 
684

Total
$
3,006

 
$
3,322

 
$
3,506

v3.10.0.1
Net Income per Share
12 Months Ended
Jul. 28, 2018
Earnings Per Share [Abstract]  
Net Income per Share
Net Income per Share
The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Net income
$
110

 
$
9,609

 
$
10,739

Weighted-average shares—basic
4,837

 
5,010

 
5,053

Effect of dilutive potential common shares
44

 
39

 
35

Weighted-average shares—diluted
4,881

 
5,049

 
5,088

Net income per share—basic
$
0.02

 
$
1.92

 
$
2.13

Net income per share—diluted
$
0.02

 
$
1.90

 
$
2.11

Antidilutive employee share-based awards, excluded
61

 
136

 
148


Employee equity share options, unvested shares, and similar equity instruments granted and assumed by Cisco are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that has not yet recognized are collectively assumed to be used to repurchase shares.
v3.10.0.1
Supplementary Financial Data (Unaudited)
12 Months Ended
Jul. 28, 2018
Quarterly Financial Information Disclosure [Abstract]  
Supplementary Financial Data (Unaudited)
Supplementary Financial Data (Unaudited)
(in millions, except per-share amounts)
Quarters Ended
July 28, 2018 (1)
 
April 28, 2018
 
January 27, 2018 (2)
 
October 28, 2017
Revenue
$
12,844

 
$
12,463

 
$
11,887

 
$
12,136

Gross margin
$
7,922

 
$
7,759

 
$
7,498

 
$
7,427

Operating income
$
3,346

 
$
3,134

 
$
3,073

 
$
2,756

Net income (loss)
$
3,803

 
$
2,691

 
$
(8,778
)
 
$
2,394

Net income (loss) per share - basic
$
0.81

 
$
0.56

 
$
(1.78
)
 
$
0.48

Net income (loss) per share - diluted
$
0.81

 
$
0.56

 
$
(1.78
)
 
$
0.48

Cash dividends declared per common share
$
0.33

 
$
0.33

 
$
0.29

 
$
0.29

Cash and cash equivalents and investments
$
46,548

 
$
54,431

 
$
73,683

 
$
71,588

 
Quarters Ended
July 29, 2017
 
April 29, 2017
 
January 28, 2017
 
October 29, 2016
Revenue
$
12,133

 
$
11,940

 
$
11,580

 
$
12,352

Gross margin
$
7,546

 
$
7,518

 
$
7,276

 
$
7,884

Operating income
$
3,034

 
$
3,169

 
$
2,893

 
$
2,877

Net income 
$
2,424

 
$
2,515

 
$
2,348

 
$
2,322

Net income per share - basic
$
0.49

 
$
0.50

 
$
0.47

 
$
0.46

Net income per share - diluted
$
0.48

 
$
0.50

 
$
0.47

 
$
0.46

Cash dividends declared per common share
$
0.29

 
$
0.29

 
$
0.26

 
$
0.26

Cash and cash equivalents and investments
$
70,492

 
$
67,974

 
$
71,845

 
$
70,968


(1) In the fourth quarter of fiscal 2018, we recorded adjustments to the provisional amounts related to the U.S. transition tax on accumulated earnings of foreign subsidiaries and re-measurement of net deferred tax assets. These adjustments included an $863 million benefit to the U.S. transition tax provisional amount related to the U.S. taxation of deemed foreign dividends after the date of enactment in the transition fiscal year.
(2) In the second quarter of fiscal 2018, we recorded a provisional tax expense of $11.1 billion related to the Tax Act, comprised of $9.0 billion of U.S. transition tax, $1.2 billion of foreign withholding tax, and $0.9 billion re-measurement of net DTA.
v3.10.0.1
Schedule II - Valuation and Qualifying Accounts
12 Months Ended
Jul. 28, 2018
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]  
Schedule II - Valuation And Qualifying Accounts
SCHEDULE II
VALUATION AND QUALIFYING ACCOUNTS
(in millions)
 
 
Allowances For
 
Financing
Receivables
 
Accounts
Receivable
Year ended July 30, 2016
 
 
 
Balance at beginning of fiscal year
$
382

 
$
302

Provisions (benefits)
17

 
(26
)
Recoveries (write-offs), net
(15
)
 
(28
)
Foreign exchange and other
(9
)
 
1

Balance at end of fiscal year
$
375

 
$
249

Year ended July 29, 2017
 
 
 
Balance at beginning of fiscal year
$
375

 
$
249

Provisions (benefits)
(35
)
 
27

Recoveries (write-offs), net
(49
)
 
(61
)
Foreign exchange and other
4

 
(4
)
Balance at end of fiscal year
$
295

 
$
211

Year ended July 28, 2018
 
 
 
Balance at beginning of fiscal year
$
295

 
$
211

Provisions (benefits)
(89
)
 
(45
)
Recoveries (write-offs), net
(6
)
 
(37
)
Foreign exchange and other
5

 

Balance at end of fiscal year
$
205

 
$
129

 
Foreign exchange and other includes the impact of foreign exchange and certain immaterial reclassifications.
v3.10.0.1
Summary of Significant Accounting Policies (Policies)
12 Months Ended
Jul. 28, 2018
Accounting Policies [Abstract]  
Fiscal Period
The fiscal year for Cisco Systems, Inc. (the “Company,” “Cisco,” “we,” “us,” or “our”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2018 and fiscal 2017 were each 52-week fiscal years, while fiscal 2016 was a 53-week fiscal year.
Basis of Presentation
The Consolidated Financial Statements include the accounts of ours and those of our subsidiaries. All intercompany accounts and transactions have been eliminated. We conduct business globally and are primarily managed on a geographic basis in the following three geographic segments: the Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC).
We consolidate our investments in a venture fund managed by SOFTBANK Corp. and its affiliates (“SOFTBANK”) as this is a variable interest entity and we are the primary beneficiary. The noncontrolling interests attributed to SOFTBANK are presented as a separate component from our 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.
Reclassification
Certain reclassifications have been made to the amounts for prior years in order to conform to the current year’s presentation. We have evaluated subsequent events through the date that the financial statements were issued.
Cash and Cash Equivalents
(a) Cash and Cash Equivalents   We consider all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents are maintained with various financial institutions.
Available-for-sale Investments
(b) Available-for-Sale Investments   We classify our investments in both fixed income securities and publicly traded equity securities as available-for-sale investments. Fixed income securities primarily consist of U.S. government securities, U.S. government agency securities, non-U.S. government and agency securities, corporate debt securities, and U.S. agency mortgage-backed securities. These available-for-sale investments are primarily held in the custody of a major financial institution. A specific identification method is used to determine the cost basis of fixed income and public equity securities sold. These investments are recorded in the Consolidated Balance Sheets at fair value. Unrealized gains and losses on these investments, to the extent the investments are unhedged, are included as a separate component of accumulated other comprehensive income (AOCI), net of tax. We classify our investments as current based on the nature of the investments and their availability for use in current operations.
Other-than-Temporary Impairments on Investments
(c) Other-than-Temporary Impairments on Investments   When the fair value of a debt security is less than its amortized cost, it is deemed impaired, and we will assess whether the impairment is other than temporary. An impairment is considered other than temporary if (i) we have the intent to sell the security, (ii) it is more likely than not that we will be required to sell the security before recovery of the entire amortized cost basis, or (iii) we do not expect to recover the entire amortized cost basis of the security. If impairment is considered other than temporary based on condition (i) or (ii) described earlier, the entire difference between the amortized cost and the fair value of the debt security is recognized in earnings. If an impairment is considered other than temporary based on condition (iii), the amount representing credit losses (defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis of the debt security) will be recognized in earnings, and the amount relating to all other factors will be recognized in other comprehensive income (OCI).
We recognize an impairment charge on publicly traded equity securities when a decline in the fair value of a security below the respective cost basis is judged to be other than temporary. We consider various factors in determining whether a decline in the fair value of these investments is other than temporary, including the length of time and extent to which the fair value of the security has been less than our cost basis, the financial condition and near-term prospects of the issuer, and our intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in market value.
Investments in privately held companies are included in other assets in the Consolidated Balance Sheets and are accounted for using either the cost or equity method. We monitor these investments for impairments and make reductions in carrying values if we determine that an impairment charge is required based primarily on the financial condition and near-term prospects of these companies.
Inventories
(d) Inventories   Inventories are stated at the lower of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. We provide inventory write-downs based on excess and obsolete inventories determined primarily by future demand forecasts. The write-down is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. In addition, we record a liability for firm, noncancelable, and unconditional purchase commitments with contract manufacturers and suppliers for quantities in excess of our future demand forecasts consistent with our valuation of excess and obsolete inventory.
Allowance for Doubtful Accounts
(e) Allowance for Doubtful Accounts   The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. We regularly review the allowance by considering factors such as historical experience, credit quality, age of the accounts receivable balances, economic conditions that may affect a customer’s ability to pay, and expected default frequency rates. Trade receivables are written off at the point when they are considered uncollectible.
Financing Receivables and Guarantees
(f) Financing Receivables and Guarantees   We provide financing arrangements, including leases, financed service contracts, and loans, for certain qualified end-user customers to build, maintain, and upgrade their networks. Lease receivables primarily represent sales-type and direct-financing leases. Leases have on average a four-year term and are usually collateralized by a security interest in the underlying assets. Loan receivables include customers financing purchases of our hardware, software and services and also may include additional funds for other costs associated with network installation and integration of our products and services. Loan receivables generally have terms of up to three years. Financed service contracts typically have terms of one to three years and primarily relate to technical support services.
We determine the adequacy of our allowance for credit loss by assessing the risks and losses inherent in our financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by us to our customers: lease receivables, loan receivables, and financed service contracts.
We assess the allowance for credit loss related to financing receivables on either an individual or a collective basis. We consider various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include our historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer’s ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, are assessed and reserved at the customer level. Our internal credit risk ratings are categorized as 1 through 10, with the lowest credit risk rating representing the highest quality financing receivables. Typically, we also consider financing receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. We evaluate the remainder of our financing receivables portfolio for impairment on a collective basis and record an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, we use historical default rates and expected default frequency rates published by major third-party credit-rating agencies as well as our own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation.
Expected default frequency rates and historical default rates are published quarterly by major third-party credit-rating agencies, and the internal credit risk rating is derived by taking into consideration various customer-specific factors and macroeconomic conditions. These factors, which include the strength of the customer’s business and financial performance, the quality of the customer’s banking relationships, our specific historical experience with the customer, the performance and outlook of the customer’s industry, the customer’s legal and regulatory environment, the potential sovereign risk of the geographic locations in which the customer is operating, and independent third-party evaluations, are updated regularly or when facts and circumstances indicate that an update is deemed necessary.
Financing receivables are written off at the point when they are considered uncollectible, and all outstanding balances, including any previously earned but uncollected interest income, will be reversed and charged against the allowance for credit loss. We do not typically have any partially written-off financing receivables.
Outstanding financing receivables that are aged 31 days or more from the contractual payment date are considered past due. We do not accrue interest on financing receivables that are considered impaired or more than 90 days past due unless either the receivable has not been collected due to administrative reasons or the receivable is well secured and in the process of collection. Financing receivables may be placed on nonaccrual status earlier if, in management’s opinion, a timely collection of the full principal and interest becomes uncertain. After a financing receivable has been categorized as nonaccrual, interest will be recognized when cash is received. A financing receivable may be returned to accrual status after all of the customer’s delinquent balances of principal and interest have been settled, and the customer remains current for an appropriate period.
We facilitate arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60 to 90 days. In certain instances, these financing arrangements result in a transfer of our receivables to the third party. The receivables are derecognized upon transfer, as these transfers qualify as true sales, and we receive a payment for the receivables from the third party based on our standard payment terms. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, we guarantee a portion of these arrangements. We also provide financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years. We could be called upon to make payments under these guarantees in the event of nonpayment by the channel partners or end-user customers. Deferred revenue relating to these financing arrangements is recorded in accordance with revenue recognition policies or for the fair value of the financing guarantees.
Depreciation and Amortization
(g) Depreciation and Amortization   Property and equipment are stated at cost, less accumulated depreciation or amortization, whenever applicable. Depreciation and amortization expenses for property and equipment were approximately $1.1 billion, $1.1 billion, and $1.0 billion for fiscal 2018, 2017, and 2016, respectively. Depreciation and amortization are computed using the straight-line method, generally over the following periods:
Asset Category
 
Period
Buildings
 
25 years
Building improvements
 
10 years
Leasehold improvements
 
Shorter of remaining lease term or up to 10 years
Computer equipment and related software
 
30 to 36 months
Production, engineering, and other equipment
 
Up to 5 years
Operating lease assets
 
Based on lease term
Furniture and fixtures
 
5 years
Business Combinations
(h) Business Combinations We allocate the fair value of the purchase consideration of our acquisitions to the tangible assets, liabilities, and intangible assets acquired, including in-process research and development (IPR&D), based on their estimated fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. IPR&D is initially capitalized at fair value as an intangible asset with an indefinite life and assessed for impairment thereafter. When an IPR&D project is completed, the IPR&D is reclassified as an amortizable purchased intangible asset and amortized over the asset’s estimated useful life. Acquisition-related expenses and related restructuring costs are recognized separately from the business combination and are expensed as incurred.
Goodwill and Purchased Intangible Assets
(i) Goodwill and Purchased Intangible Assets   Goodwill is tested for impairment on an annual basis in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. When impaired, the carrying value of goodwill is written down to fair value. The goodwill impairment test involves a two-step process. The first step, identifying a potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be conducted; otherwise, no further steps are necessary as no potential impairment exists. If necessary, the second step to measure the impairment loss would be to compare the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Any excess of the reporting unit goodwill carrying value over the respective implied fair value is recognized as an impairment loss. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. See “Long-Lived Assets” for our policy regarding impairment testing of purchased intangible assets with finite lives. Purchased intangible assets with indefinite lives are assessed for potential impairment annually or when events or circumstances indicate that their carrying amounts might be impaired.
Long-Lived Assets
(j) Long-Lived Assets   Long-lived assets that are held and used by us are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Determination of recoverability of long-lived assets is based on an estimate of the undiscounted future cash flows resulting from the use of the asset and its eventual disposition. Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the difference between the fair value of the asset and its carrying value. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less costs to sell.
Fair Value
(k) Fair Value   Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, we consider the principal or most advantageous market in which we would transact, and we also consider assumptions that market participants would use when pricing the asset or liability.
The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. We use inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of assets or liabilities.
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The fair values are determined based on model-based techniques such as discounted cash flow models using inputs that we could not corroborate with market data.
We classify our cash equivalents and available-for-sale investments within Level 1 or Level 2 in the fair value hierarchy because we use quoted prices in active markets or alternative pricing sources and models using market observable inputs to determine their fair value. Our derivative instruments are classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs.
Derivative Instruments
(l) Derivative Instruments   We recognize derivative instruments as either assets or liabilities and measure those instruments at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. For a derivative instrument designated as a fair value hedge, the gain or loss is recognized in earnings in the period of change together with the offsetting loss or gain on the hedged item attributed to the risk being hedged. For a derivative instrument designated as a cash flow hedge, the effective portion of the derivative’s gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion of the gain or loss is reported in earnings immediately. For a derivative instrument designated as a net investment hedge of our foreign operations, the gain or loss is recorded in the cumulative translation adjustment within AOCI together with the offsetting loss or gain of the hedged exposure of the underlying foreign operations. Any ineffective portion of the net investment hedges is reported in earnings during the period of change. For derivative instruments that are not designated as accounting hedges, changes in fair value are recognized in earnings in the period of change. We record derivative instruments in the statements of cash flows to operating, investing, or financing activities consistent with the cash flows of the hedged item.
Hedge effectiveness for foreign exchange forward contracts used as cash flow hedges is assessed by comparing the change in the fair value of the hedge contract with the change in the fair value of the forecasted cash flows of the hedged item. Hedge effectiveness for equity forward contracts and foreign exchange net investment hedge forward contracts is assessed by comparing changes in fair value due to changes in spot rates for both the derivative and the hedged item. For foreign exchange option contracts, hedge effectiveness is assessed based on the hedging instrument’s entire change in fair value. Hedge effectiveness for interest rate swaps is assessed by comparing the change in fair value of the swap with the change in the fair value of the hedged item due to changes in the benchmark interest rate.
We use derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We do, however, seek to mitigate such risks by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.
Foreign Currency Translation
(m) Foreign Currency Translation   Assets and liabilities of non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, are translated to U.S. dollars at exchange rates in effect at the balance sheet date, with the resulting translation adjustments directly recorded to a separate component of AOCI. Income and expense accounts are translated at average exchange rates during the year. Remeasurement adjustments are recorded in other income (loss), net. The effect of foreign currency exchange rates on cash and cash equivalents was not material for any of the fiscal years presented.
Concentrations of Risk
(n) Concentrations of Risk   Cash and cash equivalents are maintained with several financial institutions. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with reputable credit and therefore bear minimal credit risk. We seek to mitigate our credit risks by spreading such risks across multiple counterparties and monitoring the risk profiles of these counterparties.
We perform ongoing credit evaluations of our customers and, with the exception of certain financing transactions, do not require collateral from our customers. We receive certain of our components from sole suppliers. Additionally, we rely on a limited number of contract manufacturers and suppliers to provide manufacturing services for our products. The inability of a contract manufacturer or supplier to fulfill our supply requirements could materially impact future operating results.
Revenue Recognition
(o) Revenue Recognition   We recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectibility is reasonably assured. In instances where final acceptance of the product, system, or solution is specified by the customer, revenue is deferred until all acceptance criteria have been met. For hosting arrangements, we recognize revenue ratably over the hosting period, while usage revenue is recognized based on utilization. Software subscription revenue is deferred and recognized ratably over the subscription term upon delivery of the first product and commencement of the term. Technical support and consulting services revenue is deferred and recognized ratably over the period during which the services are to be performed, which is typically from one to three years. Transactional advanced services revenue is recognized upon delivery or completion of performance milestones.
We use distributors that typically stock inventory and sell to systems integrators, service providers, and other resellers. We refer to this as our two-tier sales to the end customer. Revenue from distributors is recognized based on a sell-through method using point-of-sale information provided by the distributors. Distributors and other partners participate in various rebate, cooperative marketing, and other incentive programs, and we maintain estimated accruals and allowances for these programs. The ending liability for these programs was included in other current liabilities, and the balance was $1.0 billion as of each of July 28, 2018 and July 29, 2017. We accrue for warranty costs, sales returns, and other allowances based on our historical experience. Shipping and handling fees billed to customers are included in revenue, with the associated costs included in cost of sales.
Many of our products have both software and non-software components that function together to deliver the products’ essential functionality. We also provide technical support and advanced services. We have a broad customer base that encompasses virtually all types of public and private entities, including enterprise businesses, service providers, and commercial customers. Cisco and our salesforce are not organized by product divisions, and our products and services can be sold standalone or together in various combinations across our geographic segments or customer markets. For example, service provider arrangements are typically larger in scale with longer deployment schedules and involve the delivery of a variety of product technologies, including high-end routing, video and network management software, and other product technologies along with technical support and advanced services. Our enterprise and commercial arrangements are unique for each customer and smaller in scale and may include network infrastructure products such as routers and switches or collaboration technologies such as Unified Communications and Cisco TelePresence systems products along with technical support services.
We enter into revenue arrangements that may consist of multiple deliverables of our product and service offerings due to the needs of our customers. For example, a customer may purchase routing products along with a contract for technical support services. This arrangement would consist of multiple elements, with the products delivered in one reporting period and the technical support services delivered across multiple reporting periods. Another customer may purchase networking products along with advanced service offerings, in which all the elements are delivered within the same reporting period. In addition, distributors purchase products or technical support services on a standalone basis for resale to an end user or for purposes of stocking certain products, and these transactions would not result in a multiple-element arrangement. We consider several factors when reviewing multiple purchases made by the same customer within a short time frame in order to identify multiple-element arrangements, including whether the deliverables are closely interrelated, whether the deliverables are essential to each other’s functionality, whether payment terms are linked, whether the customer is entitled to a refund or concession if another purchase is not completed satisfactorily, and/or whether the purchases were negotiated together as one overall arrangement.
In many instances, products are sold separately in standalone arrangements as customers may support the products themselves or purchase support on a time-and-materials basis. Advanced services are sometimes sold in standalone engagements such as general consulting, network management, or security advisory projects, and technical support services are sold separately through renewals of annual contracts. We determine our vendor-specific objective evidence (VSOE) based on our normal pricing and discounting practices for products or services when sold separately. VSOE determination requires that a substantial majority of the historical standalone transactions has the selling prices for a product or service that fall within a reasonably narrow pricing range, generally evidenced by approximately 80% of such historical standalone transactions falling within plus or minus 15% of the median rates. In addition, we consider the geographies in which the products or services are sold, major product and service groups and customer classifications, and other environmental or marketing variables in determining VSOE.
When we are not able to establish VSOE for all deliverables in an arrangement with multiple elements, which may be due to us infrequently selling each element separately, not pricing products within a narrow range, or only having a limited sales history, such as in the case of certain newly introduced product categories, we attempt to determine the selling price of each element based on third-party evidence of selling price (TPE). TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, our go-to-market strategy differs from that of our peers, and our offerings contain a significant level of differentiation such that the comparable pricing of products with similar functionality cannot be obtained. Furthermore, we are unable to reliably determine what similar competitor products’ selling prices are on a standalone basis. Therefore, we are typically not able to determine TPE.
When we are unable to establish fair value using VSOE or TPE, we use estimated selling prices (ESP) in our allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact a sale if the product or service were regularly sold on a standalone basis. ESP is generally used for new or highly proprietary offerings and solutions or for offerings not priced within a reasonably narrow range. We determine ESP for a product or service by considering multiple factors, including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and pricing practices. The determination of ESP is made through consultation with and formal approval by our management, taking into consideration the go-to-market strategy.
We regularly review VSOE, TPE, and ESP and maintains internal controls over the establishment and updates of these estimates. There were no material impacts during fiscal 2018 from changes in VSOE, TPE, or ESP.
Our arrangements with multiple deliverables may include one or more software deliverables that are subject to the software revenue recognition guidance. In these cases, revenue for the software is generally recognized upon shipment or electronic delivery and granting of the license. The revenue for these multiple-element arrangements is allocated to the software deliverables and the non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the applicable accounting guidance. In the circumstances where we cannot determine VSOE or TPE of the selling price for all of the deliverables in the arrangement, including the software deliverables, ESP is used for the purposes of performing this allocation. VSOE is required to allocate the revenue between multiple software deliverables. If VSOE is available for the undelivered software elements, we apply the residual method; where VSOE is not available, software revenue is either recognized when all software elements have been delivered or recognized ratably when post-contract support is the only undelivered software element remaining.
Advertising Costs
(p) Advertising Costs   We expense all advertising costs as incurred.
Share-Based Compensation Expense
(q) Share-Based Compensation Expense   We measure and recognize the compensation expense for all share-based awards made to employees and directors, including employee stock options, restricted stock units (RSUs), performance-based restricted stock units (PRSUs), and employee stock purchases related to the Employee Stock Purchase Plan (Employee Stock Purchase Rights) based on estimated fair values. The fair value of employee stock options is estimated on the date of grant using a lattice-binomial option-pricing model (Lattice-Binomial Model) or the Black-Scholes model, and for employee stock purchase rights we estimate the fair value using the Black-Scholes model. The fair value for time-based stock awards and stock awards that are contingent upon the achievement of financial performance metrics is based on the grant date share price reduced by the present value of the expected dividend yield prior to vesting. The fair value of market-based stock awards is estimated using an option-pricing model on the date of grant. Share-based compensation expense is reduced for forfeitures.
Software Development Costs
(r) Software Development Costs   Software development costs, including costs to develop software sold, leased, or otherwise marketed, that are incurred subsequent to the establishment of technological feasibility are capitalized if significant. Costs incurred during the application development stage for internal-use software are capitalized if significant. Capitalized software development costs are amortized using the straight-line amortization method over the estimated useful life of the applicable software. Such software development costs required to be capitalized have not been material to date.
Income Taxes
(s) Income Taxes   Income tax expense is based on pretax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce deferred tax assets to the amount that will more likely than not be realized.
We account for uncertainty in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement. We classify the liability for unrecognized tax benefits as current to the extent that we anticipate payment (or receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for income taxes.
Computation of Net Income per Share
(t) Computation of Net Income per Share   Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and dilutive potential common shares outstanding during the period. Diluted shares outstanding includes the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that we have not yet recognized are collectively assumed to be used to repurchase shares.
Employee equity share options, unvested shares, and similar equity instruments granted and assumed by Cisco are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options and the amount of compensation cost for future service that has not yet recognized are collectively assumed to be used to repurchase shares.
Consolidation of Variable Interest Entities
(u) Consolidation of Variable Interest Entities  We use a qualitative approach in assessing the consolidation requirement for variable interest entities. The approach focuses on identifying which enterprise has the power to direct the activities that most significantly impact the variable interest entity’s economic performance and which enterprise has the obligation to absorb losses or the right to receive benefits from the variable interest entity. In the event that we are the primary beneficiary of a variable interest entity, the assets, liabilities, and results of operations of the variable interest entity will be included in our Consolidated Financial Statements.
Use of Estimates
(v) Use of Estimates   The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and judgments that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Estimates are used for the following, among others:
Revenue recognition
Allowances for accounts receivable, sales returns, and financing receivables
Inventory valuation and liability for purchase commitments with contract manufacturers and suppliers
Loss contingencies and product warranties
Fair value measurements and other-than-temporary impairments
Goodwill and purchased intangible asset impairments
Income taxes
The actual results experienced by us may differ materially from management’s estimates.
New Accounting Updates Recently Adopted and Recent Accounting Standards or Updates Not Yet Effective
(w) 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. We 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 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 our Consolidated Financial Statements.
Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued an accounting standard update that allows companies to reclassify from AOCI to retained earnings stranded tax effects resulting from the enactment of the Tax Cuts and Jobs Act (the "Tax Act"). The guidance is effective January 1, 2019 with early adoption permitted. We early adopted this accounting standard update in the third quarter of fiscal 2018 and elected not to reclassify prior periods. Adoption of this standard resulted in a decrease of $45 million to retained earnings due to the reclassification from AOCI to retained earnings.
(x) Recent Accounting Standards or Updates Not Yet Effective as of Fiscal Year End
Revenue Recognition In May 2014, the FASB issued ASC 606, a new accounting standard related to revenue recognition. ASC 606 will supersede nearly all U.S. GAAP on revenue recognition and eliminate industry-specific guidance. The underlying principle of ASC 606 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.
ASC 606 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"). We will adopt ASC 606 using the modified retrospective method at the beginning of our first quarter of fiscal 2019.
We are in process of finalizing our new accounting policies, systems, processes, and internal controls necessary to support the requirements of ASC 606. We have substantially completed our assessment of the financial statement impact of ASC 606, the impacts of which are as discussed below.
ASC 606 will primarily impact our 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 the timing of when revenue is typically recognized under the current revenue standard compared to the timing of when revenue will typically be recognized under ASC 606 for these major 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
In addition to the above revenue recognition timing impacts, ASC 606 requires incremental contract acquisition costs (such as sales commissions) for customer contracts to be capitalized and amortized over the contract term. Currently, these costs are expensed as incurred.
Upon adopting ASC 606 at the beginning of fiscal 2019, our cumulative effect adjustment will increase retained earnings by approximately $2.3 billion. This cumulative effect adjustment is primarily driven by a reduction to our deferred product revenue of approximately $2.8 billion, of which $1.3 billion relates to our recurring software and subscription offers, $0.6 billion relates to two-tier distribution, and the remainder relates to non-recurring software, services and other adjustments. In addition to the adjustment to deferred product revenue, other adjustments at transition include adjustments to accounts receivable, inventories, other current and noncurrent assets, and other liabilities. The adjustment to other current and noncurrent assets is primarily for capitalized incremental contract acquisitions costs and the establishment of contract assets. The cumulative effect adjustment is recorded net of tax with the direct tax effect recorded primarily as a reduction of deferred tax assets. We also expect to record in the first quarter of fiscal 2019 a net indirect tax benefit to our provision for income taxes related to intercompany adjustments associated with the new standard. See Critical Accounting Estimates, "Revenue Recognition" for further discussion on the fiscal 2019 revenue impacts of ASC 606.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019. The most significant impact of this accounting standard update for us 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. We estimate an increase to retained earnings of approximately $0.3 billion upon adoption of the accounting standard at the beginning of fiscal 2019. The adjustment is primarily driven by a reclassification of net unrealized gains (losses), net of tax on available-for-sale equity investments from accumulated other comprehensive income, and an increase related to our privately held investments. We expect that this accounting standard update will increase the variability of other income (loss), net in future periods.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019 on a modified retrospective basis. We estimate an increase to retained earnings of approximately $1.3 billion upon adoption of the accounting standard at the beginning of fiscal 2019. The increase to retained earnings reflects estimated changes to deferred tax assets and other assets related to the recognition of income tax effects of intra-entity asset transfers (other than inventory) that occurred prior to the adoption date. The ongoing impact of this standard will be facts and circumstances dependent on any transactions within its scope.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019 on a retrospective basis. We do not expect that this accounting standard update will have a material impact on our Consolidated Statements of Cash Flows.
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. We will adopt this accounting standard update in the first quarter of fiscal 2019 using a retrospective transition method for each period presented. We do not expect this accounting update will have a material impact, though it will change the presentation of the 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. We will adopt this accounting standard update beginning in the first quarter of fiscal 2019 on a prospective basis. The impact of this accounting standard update will be fact dependent, but we expect 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. We will early adopt this standard in the first quarter of fiscal 2019 on a prospective basis. We do not expect this accounting standard update will have a material impact on our Consolidated Financial Statements.
Leases In February 2016, the FASB issued an accounting standard update, as well as subsequent amendments, 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 us beginning in the first quarter of fiscal 2020 on a modified retrospective basis, and early adoption is permitted. We are currently evaluating the impact of this accounting standard update on our 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 us beginning in the first quarter of fiscal 2021 on a modified retrospective basis, and early adoption in fiscal 2020 is permitted. We are currently evaluating the impact of this accounting standard update on our Consolidated Financial Statements.

Fair Value of Financial Instruments
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 Cisco's and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Lease receivables consist of arrangements with terms of four years on average. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services, which may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables 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.
Offsetting of Derivative Instruments
We present our derivative instruments at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. To further limit credit risk, we also enter into collateral security arrangements related to certain derivative instruments whereby cash is posted as collateral between the counterparties based on the fair market value of the derivative instrument
Hedging Derivatives
We conduct business globally in numerous currencies. Therefore, we are exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, we enter into foreign currency contracts. We do not enter into such contracts for speculative purposes.
We may hedge forecasted foreign currency transactions related to certain revenues, operating expenses and service cost of sales with currency options and forward contracts. These currency options and forward contracts, designated as cash flow hedges, generally have maturities of less than 24 months. We assess 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 fiscal years presented, we did not discontinue any cash flow hedges for which it was probable that a forecasted transaction would not occur.
We enter into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, including long-term customer financings, investments, and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances or other current assets, investments, or liabilities denominated in currencies other than the functional currency of the reporting entity.
We hedge certain net investments in our foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on our net investment in those foreign subsidiaries. These derivative instruments generally have maturities of up to six months.
(d)
Interest Rate Risk
Interest Rate Derivatives, Investments   Our 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, we may utilize interest rate swaps or other derivatives designated as fair value or cash flow hedges. As of July 28, 2018 and July 29, 2017, we did not have any outstanding interest rate derivatives related to our fixed income securities.
Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt In fiscal 2018, we did not enter into any interest rate swaps. In prior fiscal years, we 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, we receive fixed-rate interest payments and make interest payments based on LIBOR plus a fixed number of basis points. The effect of such swaps is to convert the fixed interest rates of the senior fixed-rate notes to floating interest rates based on LIBOR. The gains and losses related to changes in the fair value of the interest rate swaps are included in interest expense and substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. The fair value of the interest rate swaps were reflected in other assets and other current and long-term liabilities.
(e)
Equity Price Risk
We may hold equity securities for strategic purposes or to diversify our overall investment portfolio. The publicly traded equity securities in our portfolio are subject to price risk. To manage our exposure to changes in the fair value of certain equity securities, we have 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, we periodically enter 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.
We are also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, we utilize derivatives such as total return swaps to economically hedge this exposure.
Commitments and Contingencies
We purchase components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. Certain of these purchase commitments with contract manufacturers and suppliers relate to arrangements to secure long-term pricing for certain product components for multi-year periods. In certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed.
Indemnifications
In the normal course of business, we indemnify other parties, including customers, lessors, and parties to other transactions with us, with respect to certain matters. We have agreed to 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
We conduct business globally and are primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. Our management makes financial decisions and allocates resources based on the information it receives from our internal management system. Sales are attributed to a segment based on the ordering location of the customer. We do not allocate research and development, sales and marketing, or general and administrative expenses to our segments in this internal management system because management does not include the information in our measurement of the performance of the operating segments. In addition, we do not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation settlements and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in our measurement of the performance of the operating segments.
v3.10.0.1
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Jul. 28, 2018
Accounting Policies [Abstract]  
Depreciation Period by Type of Assets
Depreciation and amortization are computed using the straight-line method, generally over the following periods:
Asset Category
 
Period
Buildings
 
25 years
Building improvements
 
10 years
Leasehold improvements
 
Shorter of remaining lease term or up to 10 years
Computer equipment and related software
 
30 to 36 months
Production, engineering, and other equipment
 
Up to 5 years
Operating lease assets
 
Based on lease term
Furniture and fixtures
 
5 years
Summary of Current and Expected Revenue Recognition Timing
The table below details the timing of when revenue is typically recognized under the current revenue standard compared to the timing of when revenue will typically be recognized under ASC 606 for these major 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
v3.10.0.1
Acquisitions and Divestitures (Tables)
12 Months Ended
Jul. 28, 2018
Business Combinations [Abstract]  
Summary of Purchase Acquisitions
A summary of the allocation of the total purchase consideration is presented as follows (in millions):
Fiscal 2018
Purchase Consideration
 
Net Tangible Assets Acquired (Liabilities Assumed)
 
Purchased Intangible Assets
 
Goodwill
Viptela
$
497

 
$
(18
)
 
$
180

 
$
335

Springpath
248

 
(11
)
 
160

 
99

BroadSoft
2,179

 
353

 
430

 
1,396

Accompany
222

 
6

 
55

 
161

Others (four in total)
72

 
4

 
42

 
26

Total
$
3,218

 
$
334

 
$
867

 
$
2,017

Allocation of the purchase consideration for acquisitions completed in fiscal 2017 is summarized as follows (in millions):
Fiscal 2017
Purchase Consideration
 
Net Tangible Assets Acquired (Liabilities Assumed)
 
Purchased Intangible Assets
 
Goodwill
CloudLock
$
249

 
$

 
$
36

 
$
213

AppDynamics
3,258

 
(175
)
 
785

 
2,648

MindMeld
104

 
(11
)
 
51

 
64

Others (four in total)
26

 

 
6

 
20

Total
$
3,637

 
$
(186
)
 
$
878

 
$
2,945

v3.10.0.1
Goodwill and Purchased Intangible Assets (Tables)
12 Months Ended
Jul. 28, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill by Reportable Segment
The following tables present the goodwill allocated to our reportable segments as of July 28, 2018 and July 29, 2017, as well as the changes to goodwill during fiscal 2018 and 2017 (in millions):
 
Balance at July 29, 2017
 
Acquisitions
 
Other
 
Balance at July 28, 2018
Americas
$
18,691

 
$
1,355

 
$
(48
)
 
$
19,998

EMEA
7,057

 
491

 
(19
)
 
7,529

APJC
4,018

 
171

 
(10
)
 
4,179

Total
$
29,766

 
$
2,017

 
$
(77
)
 
$
31,706

 
Balance at July 30, 2016
 
Acquisitions
 
Other
 
Balance at July 29, 2017
Americas
$
16,529

 
$
2,042

 
$
120

 
$
18,691

EMEA
6,269

 
740

 
48

 
7,057

APJC
3,827

 
163

 
28

 
4,018

Total
$
26,625

 
$
2,945

 
$
196

 
$
29,766

Schedule of Intangible Assets Acquired Through Business Combinations
The following tables present details of our intangible assets acquired through acquisitions completed during fiscal 2018 and 2017 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
Fiscal 2018
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

 

 

 

 

 
3

 
160

BroadSoft
4.0
 
255

 
6.0

 
169

 
2.0

 
6

 

 
430

Accompany
4.0
 
55

 

 

 

 

 

 
55

Others (four in total)
3.9
 
39

 
4.0

 
3

 

 

 

 
42

Total
 
 
$
650

 
 
 
$
207

 
 
 
$
7

 
$
3

 
$
867

 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
Fiscal 2017
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Amount
 
Amount
CloudLock
6.0
 
$
32

 
4.0

 
$
3

 
1.5

 
$
1

 
$

 
$
36

AppDynamics
4.0
 
525

 
7.0

 
235

 
2.3

 
25

 

 
785

MindMeld
4.0
 
51

 
1.0

 

 

 

 

 
51

Others (four in total)
3.0
 
6

 

 

 

 

 

 
6

Total

 
$
614

 

 
$
238

 

 
$
26

 
$

 
$
878

Schedule of Purchased Intangible Assets
The following tables present details of our purchased intangible assets (in millions): 
July 28, 2018
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,711

 
$
(1,888
)
 
$
1,823

Customer relationships
 
1,538

 
(937
)
 
601

Other
 
63

 
(38
)
 
25

Total purchased intangible assets with finite lives
 
5,312

 
(2,863
)
 
2,449

In-process research and development, with indefinite lives
 
103

 

 
103

Total
 
$
5,415

 
$
(2,863
)
 
$
2,552

 
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 (in millions):
Years Ended
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Amortization of purchased intangible assets:
 
 
 
 
 
 
Cost of sales
 
$
640

 
$
556

 
$
577

Operating expenses
 

 

 

Amortization of purchased intangible assets
 
221

 
259

 
303

Restructuring and other charges
 

 
38

 

Total
 
$
861

 
$
853

 
$
880

Schedule of Estimated Future Amortization Expense of Purchased Intangible Assets
The estimated future amortization expense of purchased intangible assets with finite lives as of July 28, 2018 is as follows (in millions):
Fiscal Year
Amount
2019
$
714

2020
$
667

2021
$
475

2022
$
222

2023
$
82

Thereafter
$
37

v3.10.0.1
Restructuring and Other Charges (Tables)
12 Months Ended
Jul. 28, 2018
Restructuring Charges [Abstract]  
Liabilities Related to Restructuring and Other Charges
The following table summarizes the activities related to the restructuring and other charges, as discussed above (in millions):
 
 
FISCAL 2017 AND
PRIOR YEAR PLANS
 
FISCAL 2018 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 25, 2015
 
$
60

 
$
29

 
$

 
$

 
$
89

Charges
 
225

 
43

 

 

 
268

Cash payments
 
(264
)
 
(15
)
 

 

 
(279
)
Non-cash items
 

 
(33
)
 

 

 
(33
)
Liability as of July 30, 2016
 
21

 
24

 

 

 
45

Charges
 
625

 
131

 

 

 
756

Cash payments
 
(569
)
 
(37
)
 

 

 
(606
)
Non-cash items
 
(3
)
 
(75
)
 

 

 
(78
)
Liability as of July 29, 2017
 
74

 
43

 

 

 
117

Charges
 
227

 
23

 
92

 
16

 
358

Cash payments
 
(262
)
 
(35
)
 
(73
)
 
(2
)
 
(372
)
Non-cash items
 
2

 
(18
)
 

 
(14
)
 
(30
)
Liability as of July 28, 2018
 
$
41

 
$
13

 
$
19

 
$

 
$
73

v3.10.0.1
Balance Sheet Details (Tables)
12 Months Ended
Jul. 28, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Inventories
The following tables provide details of selected balance sheet items (in millions):
 
 
July 28, 2018
 
July 29, 2017
Inventories:
 
 
 
 
Raw materials
 
$
423

 
$
289

Work in process
 

 
1

Finished goods:
 
 
 
 
Distributor inventory and deferred cost of sales
 
443

 
451

Manufactured finished goods
 
689

 
552

Total finished goods
 
1,132

 
1,003

Service-related spares
 
258

 
300

Demonstration systems
 
33

 
23

Total
 
$
1,846

 
$
1,616

Property and Equipment, Net
Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,710

 
$
4,926

Computer equipment and related software
 
1,085

 
1,258

Production, engineering, and other equipment
 
5,734

 
5,707

Operating lease assets
 
356

 
356

Furniture and fixtures
 
358

 
572

Total gross property and equipment
 
12,243

 
12,819

Less: accumulated depreciation and amortization
 
(9,237
)
 
(9,497
)
Total
 
$
3,006

 
$
3,322

Deferred Revenue
Deferred revenue:
 
 
 
 
Service
 
$
11,431

 
$
11,302

Product:
 

 
 
Deferred revenue related to recurring software and subscription offers
 
6,120

 
4,971

Other product deferred revenue
 
2,134

 
2,221

Total product deferred revenue
 
8,254

 
7,192

Total
 
$
19,685

 
$
18,494

Reported as:
 

 
 
Current
 
$
11,490

 
$
10,821

Noncurrent
 
8,195

 
7,673

Total
 
$
19,685

 
$
18,494

v3.10.0.1
Financing Receivables and Operating Leases (Tables)
12 Months Ended
Jul. 28, 2018
Receivables [Abstract]  
Financing Receivables
A summary of our financing receivables is presented as follows (in millions):
July 28, 2018
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts
 
Total
Gross
$
2,688

 
$
4,999

 
$
2,326

 
$
10,013

Residual value
164

 

 

 
164

Unearned income
(141
)
 

 

 
(141
)
Allowance for credit loss
(135
)
 
(60
)
 
(10
)
 
(205
)
Total, net
$
2,576

 
$
4,939

 
$
2,316

 
$
9,831

Reported as:
 
 
 
 
 
 
 
Current
$
1,249

 
$
2,376

 
$
1,324

 
$
4,949

Noncurrent
1,327

 
2,563

 
992

 
4,882

Total, net
$
2,576

 
$
4,939

 
$
2,316

 
$
9,831

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 Cisco on lease receivables as of July 28, 2018 are summarized as follows (in millions):
Fiscal Year
Amount
2019
$
1,311

2020
745

2021
415

2022
177

2023
12

Thereafter
28

Total
$
2,688

Schedule of Internal Credit Risk Rating for Each Portfolio Segment and Class
Gross receivables, excluding residual value, less unearned income categorized by our internal credit risk rating as of July 28, 2018 and July 29, 2017 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
July 28, 2018
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,294

 
$
1,199

 
$
54

 
$
2,547

Loan receivables
3,184

 
1,752

 
63

 
4,999

Financed service contracts
1,468

 
835

 
23

 
2,326

Total
$
5,946

 
$
3,786

 
$
140

 
$
9,872

 
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 July 28, 2018 and July 29, 2017 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 28, 2018
31 - 60
 
61 - 90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
72

 
$
27

 
$
155

 
$
254

 
$
2,293

 
$
2,547

 
$
9

 
$
9

Loan receivables
104

 
55

 
252

 
411

 
4,588

 
4,999

 
30

 
30

Financed service contracts
138

 
78

 
304

 
520

 
1,806

 
2,326

 
3

 
3

Total
$
314

 
$
160

 
$
711

 
$
1,185

 
$
8,687

 
$
9,872

 
$
42

 
$
42

 
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 (benefits)
(26
)
 
(43
)
 
(20
)
 
(89
)
Recoveries (write-offs), net
(1
)
 
(5
)
 

 
(6
)
Foreign exchange and other

 
5

 

 
5

Allowance for credit loss as of July 28, 2018
$
135

 
$
60

 
$
10

 
$
205

 
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 (benefits)
(25
)
 
7

 
(17
)
 
(35
)
Recoveries (write-offs), net
(37
)
 
(11
)
 
(1
)
 
(49
)
Foreign exchange and other
(6
)
 
10

 

 
4

Allowance for credit loss as of July 29, 2017
$
162

 
$
103

 
$
30

 
$
295

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

 
$
87

 
$
36

 
$
382

Provisions (benefits)
(13
)
 
13

 
17

 
17

Recoveries (write-offs), net
(10
)
 

 
(5
)
 
(15
)
Foreign exchange and other
(6
)
 
(3
)
 

 
(9
)
Allowance for credit loss as of July 30, 2016
$
230

 
$
97

 
$
48

 
$
375

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):
 
July 28, 2018
 
July 29, 2017
Operating lease assets
$
356

 
$
356

Accumulated depreciation
(238
)
 
(212
)
Operating lease assets, net
$
118

 
$
144

Schedule of Future Minimum Rental Payments for Operating Leases
Minimum future rentals on noncancelable operating leases as of July 28, 2018 are summarized as follows (in millions):
Fiscal Year
Amount
2019
$
166

2020
97

2021
34

2022
2

Thereafter
1

Total
$
300

v3.10.0.1
Investments (Tables)
12 Months Ended
Jul. 28, 2018
Investments, Debt and Equity Securities [Abstract]  
Summary of Available-for-Sale Investments
The following tables summarize our available-for-sale investments (in millions):
July 28, 2018
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
7,318

 
$

 
$
(43
)
 
$
7,275

U.S. government agency securities
732

 

 
(5
)
 
727

Non-U.S. government and agency securities
209

 

 
(1
)
 
208

Corporate debt securities
27,765

 
44

 
(445
)
 
27,364

U.S. agency mortgage-backed securities
1,488

 

 
(53
)
 
1,435

Total fixed income securities
37,512

 
44

 
(547
)
 
37,009

Publicly traded equity securities
372

 
233

 

 
605

Total
$
37,884

 
$
277

 
$
(547
)
 
$
37,614

 
 
 
 
 
 
 
 
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
$
58,225

 
$
762

 
$
(203
)

$
58,784

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 our available-for-sale investments (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Gross realized gains
$
628

 
$
114

 
$
152

Gross realized losses
(341
)
 
(201
)
 
(153
)
Total
$
287

 
$
(87
)
 
$
(1
)
The following table presents the realized net gains and losses related to our available-for-sale investments by security type (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Net gains/(losses) on investments in publicly traded equity securities
$
529

 
$
(45
)
 
$
33

Net gains/(losses) on investments in fixed income securities
(242
)
 
(42
)
 
(34
)
Total
$
287

 
$
(87
)
 
$
(1
)
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 July 28, 2018 and July 29, 2017 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 28, 2018
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
2,966

 
$
(20
)
 
$
4,303

 
$
(23
)
 
$
7,269

 
$
(43
)
U.S. government agency securities
206

 
(2
)
 
521

 
(3
)
 
727

 
(5
)
Non-U.S. government and agency securities
105

 
(1
)
 
103

 

 
208

 
(1
)
Corporate debt securities
16,990

 
(344
)
 
3,511

 
(101
)
 
20,501

 
(445
)
U.S. agency mortgage-backed securities
826

 
(24
)
 
581

 
(29
)
 
1,407

 
(53
)
Total fixed income securities
21,093

 
(391
)

9,019


(156
)

30,112


(547
)
Publicly traded equity securities

 

 

 

 

 

Total
$
21,093

 
$
(391
)
 
$
9,019

 
$
(156
)
 
$
30,112

 
$
(547
)
 
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 our fixed income securities at July 28, 2018 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
12,361

 
$
12,316

Due in 1 to 2 years
7,573

 
7,514

Due in 2 to 5 years
14,290

 
14,012

Due after 5 years
1,800

 
1,732

Mortgage-backed securities with no single maturity
1,488

 
1,435

Total
$
37,512

 
$
37,009

Equity Method Investments
For such investments that were accounted for under the equity and cost method as of July 28, 2018 and July 29, 2017, the amounts are summarized in the following table (in millions):
 
July 28, 2018
 
July 29, 2017
Equity method investments
$
118

 
$
124

Cost method investments
978

 
859

Total
$
1,096

 
$
983

v3.10.0.1
Fair Value (Tables)
12 Months Ended
Jul. 28, 2018
Fair Value Disclosures [Abstract]  
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis were as follows (in millions):
 
JULY 28, 2018
 
JULY 29, 2017
 
FAIR VALUE MEASUREMENTS
 
FAIR VALUE MEASUREMENTS
 
Level 1
 
Level 2
 
Total
Balance
 
Level 1
 
Level 2
 
Total
Balance
Assets:
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
6,890

 
$

 
$
6,890

 
$
9,567

 
$

 
$
9,567

U.S. government securities

 

 

 

 
139

 
139

Commercial paper

 

 

 

 
160

 
160

Certificates of deposit

 

 

 

 
25

 
25

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 

U.S. government securities

 
7,275

 
7,275

 

 
19,823

 
19,823

U.S. government agency securities

 
727

 
727

 

 
2,052

 
2,052

Non-U.S. government and agency securities

 
208

 
208

 

 
388

 
388

Corporate debt securities

 
27,364

 
27,364

 

 
31,735

 
31,735

U.S. agency mortgage-backed securities

 
1,435

 
1,435

 

 
2,023

 
2,023

Commercial paper

 

 

 

 
996

 
996

Certificates of deposit

 

 

 

 
60

 
60

Publicly traded equity securities
605

 

 
605

 
1,707

 

 
1,707

Derivative assets

 
2

 
2

 

 
149

 
149

Total
$
7,495

 
$
37,011

 
$
44,506

 
$
11,274

 
$
57,550

 
$
68,824

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
74

 
$
74

 
$

 
$
4

 
$
4

Total
$

 
$
74

 
$
74

 
$

 
$
4

 
$
4

Fair Value on A Nonrecurring Basis
The following table presents gains and losses on assets that were measured at fair value on a nonrecurring basis(in millions):
 
TOTAL GAINS (LOSSES) FOR THE YEARS ENDED
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Investments in privately held companies (impaired)
$
(56
)
 
$
(175
)
 
$
(57
)
Purchased intangible assets (impaired)
(1
)
 
(47
)
 
(74
)
Property held for sale - land and buildings
20

 
(30
)
 

Gains (losses) on assets no longer held at end of fiscal year
(6
)
 
(2
)
 
(10
)
Total gains (losses) for nonrecurring measurements
$
(43
)
 
$
(254
)
 
$
(141
)
v3.10.0.1
Borrowings (Tables)
12 Months Ended
Jul. 28, 2018
Debt Disclosure [Abstract]  
Schedule of Short-Term Debt
The following table summarizes our short-term debt (in millions, except percentages):
 
July 28, 2018
 
July 29, 2017
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
5,238

 
3.46
%
 
$
4,747

 
1.66
%
Commercial paper

 

 
3,245

 
1.16
%
Total short-term debt
$
5,238

 
 
 
$
7,992

 

Schedule of Long-Term Debt
The following table summarizes our long-term debt (in millions, except percentages):
 
 
 
July 28, 2018
 
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

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

 
 
900

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

 
2.86%
 
500

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

 
2.71%
 
500

 
1.66%
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
1.40%
February 28, 2018
 

 
 
1,250

 
1.47%
1.65%
June 15, 2018
 

 
 
1,600

 
1.72%
4.95%
February 15, 2019
 
2,000

 
5.17%
 
2,000

 
4.96%
1.60%
February 28, 2019
 
1,000

 
1.67%
 
1,000

 
1.67%
2.125%
March 1, 2019
 
1,750

 
2.71%
 
1,750

 
1.84%
1.40%
September 20, 2019
 
1,500

 
1.48%
 
1,500

 
1.48%
4.45%
January 15, 2020
 
2,500

 
4.52%
 
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

 
2.86%
 
500

 
2.00%
1.85%
September 20, 2021
 
2,000

 
1.90%
 
2,000

 
1.90%
3.00%
June 15, 2022
 
500

 
3.11%
 
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

 
2.98%
 
1,000

 
2.12%
3.50%
June 15, 2025
 
500

 
3.27%
 
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
 
 
25,750

 
 
 
30,500

 
 
Unaccreted discount/issuance costs
 
 
(116
)
 
 
 
(136
)
 
 
Hedge accounting fair value adjustments
 
 
(65
)
 
 
 
108

 
 
Total
 
 
$
25,569

 
 
 
$
30,472

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Short-term debt
 
 
$
5,238

 
 
 
$
4,747

 
 
Long-term debt
 
 
20,331

 
 
 
25,725

 
 
Total
 
 
$
25,569

 
 
 
$
30,472

 
 
Schedule of Principal Payments for Long-Term Debt
As of July 28, 2018, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2019
$
5,250

2020
6,000

2021
3,000

2022
2,500

2023
500

Thereafter
8,500

Total
$
25,750

v3.10.0.1
Derivative Instruments (Tables)
12 Months Ended
Jul. 28, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Recorded at Fair Value
The fair values of our derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions):
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
 
Balance Sheet Line Item
 
July 28, 2018
 
July 29, 2017
 
Balance Sheet Line Item
 
July 28, 2018
 
July 29, 2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
1

 
$
46

 
Other current liabilities
 
$

 
$
1

Interest rate derivatives
Other current assets
 

 

 
Other current liabilities
 
10

 

Interest rate derivatives
Other assets
 

 
102

 
Other long-term liabilities
 
62

 

Total
 
 
1

 
148

 
 
 
72

 
1

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

 
1

 
Other current liabilities
 
2

 
3

Total
 
 
1

 
1

 
 
 
2

 
3

Total
 
 
$
2

 
$
149

 
 
 
$
74

 
$
4

Gains and Losses on Derivatives Designated as Cash Flow Hedges
The effects of our 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 YEARS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR
THE YEARS ENDED (EFFECTIVE PORTION)
 
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
 
Line Item in Statements of Operations
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
20

 
$
22

 
$
(66
)
 
Operating expenses
 
$
52

 
$
(59
)
 
$
(15
)
 
 
 
 
 
 
 
 
Cost of sales service
 
16

 
(20
)
 
(5
)
Total
 
$
20

 
$
22

 
$
(66
)
 
Total
 
$
68

 
$
(79
)
 
$
(20
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(1
)
 
$
(15
)
 
$
16

 
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 YEARS ENDED
 
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE YEARS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Interest rate derivatives
 
Interest expense
 
$
(174
)
 
$
(275
)
 
$
175

 
$
173

 
$
271

 
$
(169
)
Effect of Derivative Instruments Not Designated as Fair Value Hedges on Consolidated Statement of Operations Summary
The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) FOR 
THE YEARS ENDED
Derivatives Not Designated as Hedging Instruments
 
Line Item in Statements of Operations
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Foreign currency derivatives
 
Other income (loss), net
 
$
(24
)
 
$
13

 
$
(19
)
Total return swaps—deferred compensation
 
Operating expenses
 
50

 
53

 
6

 
 
Cost of sales — product
 
1

 
2

 

 
 
Cost of sales service
 
3

 
3

 
1

 
 
Other income (loss), net
 
(11
)
 

 

Equity derivatives
 
Other income (loss), net
 
(4
)
 
11

 
13

Total
 
 
 
$
15

 
$
82

 
$
1

Schedule of Notional Amounts of Derivatives Outstanding
The notional amounts of our outstanding derivatives are summarized as follows (in millions):
 
July 28, 2018
 
July 29, 2017
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
147

 
$
1,696

Interest rate derivatives
6,750

 
6,750

Net investment hedging instruments
250

 
351

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
2,298

 
2,258

Total return swaps—deferred compensation
566

 
535

Total
$
10,011

 
$
11,590

Offsetting of Derivatives
Information related to these offsetting arrangements is summarized as follows (in millions):
 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEET
BUT WITH LEGAL RIGHTS TO OFFSET
July 28, 2018
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
2

 
$

 
$
2

 
$
(2
)
 
$

 
$

Derivatives liabilities
$
74

 
$

 
$
74

 
$
(2
)
 
$
(53
)
 
$
19

 
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET
 
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEET
BUT WITH LEGAL RIGHTS TO OFFSET
July 29, 2017
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
)
 
$

 
$


v3.10.0.1
Commitments and Contingencies (Tables)
12 Months Ended
Jul. 28, 2018
Commitments and Contingencies Disclosure [Abstract]  
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 July 28, 2018 are as follows (in millions):
Fiscal Year
Amount
2019
$
392

2020
293

2021
190

2022
138

2023
96

Thereafter
111

Total
$
1,220

Schedule of Purchase Commitments
The following table summarizes our purchase commitments with contract manufacturers and suppliers (in millions):
Commitments by Period
July 28,
2018
 
July 29,
2017
Less than 1 year
$
5,407

 
$
4,620

1 to 3 years
710

 
20

3 to 5 years
360

 

Total
$
6,477

 
$
4,640

Compensation Expenses Related to Business Combinations
The following table summarizes the compensation expense related to acquisitions (in millions):
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Compensation expense related to acquisitions
$
203

 
$
212

 
$
282

Schedule of Product Warranty Liability
The following table summarizes the activity related to the product warranty liability (in millions):
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Balance at beginning of fiscal year
$
407

 
$
414

 
$
449

Provisions for warranties issued
582

 
691

 
715

Adjustments for pre-existing warranties
(38
)
 
(21
)
 
(8
)
Settlements
(592
)
 
(677
)
 
(714
)
Divestiture

 

 
(28
)
Balance at end of fiscal year
$
359

 
$
407

 
$
414

Schedule of Guarantor Obligations
The aggregate amounts of financing guarantees outstanding at July 28, 2018 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):
 
July 28, 2018
 
July 29, 2017
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
277

 
$
240

End user
31

 
74

Total
$
308

 
$
314

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(94
)
 
$
(82
)
End user
(28
)
 
(52
)
Total
$
(122
)
 
$
(134
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
186

 
$
180

v3.10.0.1
Shareholders' Equity (Tables)
12 Months Ended
Jul. 28, 2018
Stockholders' Equity Note [Abstract]  
Stock Repurchase Program
A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is as follows (in millions, except per-share amounts):
Years Ended
 
Shares
 
Weighted-Average Price per Share
 
Amount
July 28, 2018
 
432

 
$
40.88

 
$
17,661

July 29, 2017
 
118

 
$
31.38

 
$
3,706

July 30, 2016
 
148

 
$
26.45

 
$
3,918

v3.10.0.1
Employee Benefit Plans (Tables)
12 Months Ended
Jul. 28, 2018
Retirement Benefits [Abstract]  
Summary of Share-Based Compensation Expense
Share-based compensation expense consists primarily of expenses for stock options, stock purchase rights, restricted stock, and RSUs granted to employees. The following table summarizes share-based compensation expense (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Cost of sales—product
$
94

 
$
85

 
$
70

Cost of sales—service
133

 
134

 
142

Share-based compensation expense in cost of sales
227

 
219

 
212

Research and development
538

 
529

 
470

Sales and marketing
555

 
542

 
545

General and administrative
246

 
236

 
205

Restructuring and other charges
33

 
3

 
26

Share-based compensation expense in operating expenses
1,372

 
1,310

 
1,246

Total share-based compensation expense
$
1,599

 
$
1,529

 
$
1,458

Income tax benefit for share-based compensation
$
558

 
$
451

 
$
429

Summary of Share-Based Awards Available for Grant
A summary of share-based awards available for grant is as follows (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Balance at beginning of fiscal year
272

 
242

 
276

Restricted stock, stock units, and other share-based awards granted
(70
)
 
(76
)
 
(96
)
Share-based awards canceled/forfeited/expired
18

 
78

 
30

Shares withheld for taxes and not issued
25

 
28

 
30

Other

 

 
2

Balance at end of fiscal year
245

 
272

 
242

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 25, 2015
143

 
$
22.08

 
 
Granted
62

 
25.90

 
 
Assumed from acquisitions
6

 
24.58

 
 
Vested
(54
)
 
20.68

 
$
1,428

Canceled/forfeited/other
(12
)
 
22.91

 
 
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/other
(15
)
 
23.56

 
 
UNVESTED BALANCE AT JULY 29, 2017
141

 
26.94

 
 
Granted
46

 
35.62

 
 
Assumed from acquisitions
1

 
28.26

 
 
Vested
(53
)
 
26.02

 
$
1,909

Canceled/forfeited/other
(16
)
 
28.37

 
 
UNVESTED BALANCE AT JULY 28, 2018
119

 
$
30.56

 
 
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 25, 2015
103

 
$
28.68

Assumed from acquisitions
18

 
5.17

Exercised
(32
)
 
19.22

Canceled/forfeited/expired
(16
)
 
30.01

BALANCE AT JULY 30, 2016
73

 
26.78

Assumed from acquisitions
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

 
8.20

Exercised
(8
)
 
5.77

Canceled/forfeited/expired
(1
)
 
8.75

BALANCE AT JULY 28, 2018
6

 
$
7.18

Summary of Significant Ranges of Outstanding and Exercisable Stock Options
The following table summarizes significant ranges of outstanding and exercisable stock options as of July 28, 2018 (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 – 35.00
 
6

 
5.9
 
$
7.18

 
$
228

 
4

 
$
6.84

 
$
153

Schedule of Assumptions Used
The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows:

RESTRICTED STOCK UNITS
Years Ended
July 28, 2018

July 29, 2017

July 30, 2016
Number of shares granted (in millions)
43


43


57

Grant date fair value per share
$
35.81


$
28.38


$
26.01

Weighted-average assumptions/inputs:
 
 
 
 
 
   Expected dividend yield
3.2
%

3.5
%

3.2
%
   Range of risk-free interest rates
0.0%  2.7%


0.0%  1.5%


0.0% – 1.2%


 
PERFORMANCE BASED RESTRICTED STOCK UNITS
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Number of shares granted (in millions)
3

 
7

 
5

Grant date fair value per share
$
32.69

 
$
28.94

 
$
24.70

Weighted-average assumptions/inputs:
 
 
 
 
 
   Expected dividend yield
3.5
%
 
3.4
%
 
3.1
%
   Range of risk-free interest rates
1.0%  2.7%

 
0.1%  1.5%

 
0.0% – 1.2%

   Range of expected volatilities for index
12.5% - 82.8%

 
16.7% – 46.8%

 
15.3% – 54.3%

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The assumptions for the valuation of employee stock purchase rights are summarized as follows:
 
EMPLOYEE STOCK PURCHASE RIGHTS
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Weighted-average assumptions:
 
 
 
 
 
   Expected volatility
22.1
%
 
24.6
%
 
23.9
%
   Risk-free interest rate
1.3
%
 
0.7
%
 
0.4
%
   Expected dividend
3.1
%
 
3.2
%
 
3.1
%
   Expected life (in years)
1.3

 
1.3

 
1.3

Weighted-average estimated grant date fair value per share
$
7.48

 
$
6.52

 
$
5.73

v3.10.0.1
Comprehensive Income (Loss) (Tables)
12 Months Ended
Jul. 28, 2018
Comprehensive Income [Abstract]  
Components of AOCI, Net Of Tax
The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, are summarized as follows (in millions):
 
Net Unrealized Gains (Losses) on Available-for-Sale Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 25, 2015
$
310

 
$
(16
)
 
$
(233
)
 
$
61

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
151

 
(66
)
 
(399
)
 
(314
)
(Gains) losses reclassified out of AOCI
1

 
20

 
(6
)
 
15

Tax benefit (expense)
(49
)
 
3

 
(42
)
 
(88
)
Total change for the period
103

 
(43
)
 
(447
)
 
(387
)
BALANCE AT JULY 30, 2016
413

 
(59
)
 
(680
)
 
(326
)
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(164
)
 
22

 
318

 
176

(Gains) losses reclassified out of AOCI
87

 
79

 
16

 
182

Tax benefit (expense)
37

 
(10
)
 
(13
)
 
14

Total change for the period
(40
)
 
91

 
321

 
372

BALANCE AT JULY 29, 2017
373

 
32

 
(359
)
 
46

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(543
)
 
21

 
(159
)
 
(681
)
(Gains) losses reclassified out of AOCI
(287
)
 
(68
)
 
7

 
(348
)
Tax benefit (expense)
93

 
4

 
(8
)
 
89

Total change for the period
(737
)
 
(43
)
 
(160
)
 
(940
)
Effect of adoption of accounting standard
54

 

 
(9
)
 
45

BALANCE AT JULY 28, 2018
$
(310
)
 
$
(11
)
 
$
(528
)
 
$
(849
)
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):
 
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
 
 
Comprehensive Income Components
 
Income Before Taxes
 
Line Item in Statements of Operations
Net unrealized gains and losses on available-for-sale investments
 
$
287

 
$
(87
)
 
$
(1
)
 
Other income (loss), net
 
 
 
 
 
 
 
 
 
Net unrealized gains and losses on cash flow hedging instruments
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
52

 
(59
)
 
(15
)
 
Operating expenses
Foreign currency derivatives
 
16

 
(20
)
 
(5
)
 
Cost of sales—service
 
 
68

 
(79
)
 
(20
)
 
 
 
 
 
 
 
 
 
 
 
Cumulative translation adjustment and actuarial gains and losses
 
(7
)
 
(16
)
 
6

 
Operating expenses
 
 
 
 
 
 
 
 
 
Total amounts reclassified out of AOCI
 
$
348

 
$
(182
)
 
$
(15
)
 
 
v3.10.0.1
Income Taxes (Tables)
12 Months Ended
Jul. 28, 2018
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The provision for income taxes consists of the following (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Federal:
 
 
 
 
 
Current
$
9,900

 
$
1,300

 
$
865

Deferred
1,156

 
(42
)
 
(93
)
 
11,056

 
1,258

 
772

State:
 
 
 
 
 
Current
340

 
86

 
78

Deferred
(232
)
 
56

 
13

 
108

 
142

 
91

Foreign:
 
 
 
 
 
Current
1,789

 
1,416

 
1,432

Deferred
(24
)
 
(138
)
 
(114
)
 
1,765

 
1,278

 
1,318

Total
$
12,929

 
$
2,678

 
$
2,181

Income Before Provision for Income Taxes
Income before provision for income taxes consists of the following (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
United States
$
3,765

 
$
2,393

 
$
2,907

International
9,274

 
9,894

 
10,013

Total
$
13,039

 
$
12,287

 
$
12,920

Difference Between Income Taxes at Federal Statutory Rate and Provision for Income Taxes
The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following:
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Federal statutory rate
27.0
 %
 
35.0
 %
 
35.0
 %
Effect of:
 
 
 
 
 
State taxes, net of federal tax benefit
0.6

 
1.1

 
0.5

Foreign income at other than U.S. rates
(5.2
)
 
(13.4
)
 
(14.5
)
Tax credits
(2.5
)
 
(1.2
)
 
(1.7
)
Domestic manufacturing deduction
(0.5
)
 
(0.4
)
 
(0.6
)
Stock-based compensation
(0.1
)
 
1.4

 
1.4

Tax audit settlement

 

 
(2.8
)
Impact of the Tax Act
80.1

 

 

Other, net
(0.2
)
 
(0.7
)
 
(0.4
)
Total
99.2
 %

21.8
 %
 
16.9
 %
Aggregate Changes in Gross Unrecognized Tax Benefits
The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Beginning balance
$
1,973

 
$
1,627

 
$
2,029

Additions based on tax positions related to the current year
251

 
336

 
255

Additions for tax positions of prior years
84

 
180

 
116

Reductions for tax positions of prior years
(129
)
 
(78
)
 
(457
)
Settlements
(124
)
 
(43
)
 
(241
)
Lapse of statute of limitations
(55
)
 
(49
)
 
(75
)
Ending balance
$
2,000

 
$
1,973

 
$
1,627

Components of Deferred Tax Assets and Liabilities
The following table presents the breakdown for net deferred tax assets (in millions):
 
July 28, 2018
 
July 29, 2017
Deferred tax assets
$
3,219

 
$
4,239

Deferred tax liabilities
(141
)
 
(271
)
Total net deferred tax assets
$
3,078

 
$
3,968


The following table presents the components of the deferred tax assets and liabilities (in millions):
 
July 28, 2018
 
July 29, 2017
ASSETS
 
 
 
Allowance for doubtful accounts and returns
$
285

 
$
443

Sales-type and direct-financing leases
171

 
277

Inventory write-downs and capitalization
289

 
446

Investment provisions
54

 
171

IPR&D, goodwill, and purchased intangible assets
63

 
125

Deferred revenue
1,584

 
2,057

Credits and net operating loss carryforwards
1,087

 
976

Share-based compensation expense
190

 
273

Accrued compensation
370

 
504

Other
408

 
559

Gross deferred tax assets
4,501

 
5,831

Valuation allowance
(374
)
 
(244
)
Total deferred tax assets
4,127

 
5,587

LIABILITIES
 
 
 
Purchased intangible assets
(753
)
 
(1,037
)
Depreciation
(118
)
 
(340
)
Unrealized gains on investments
(33
)
 
(203
)
Other
(145
)
 
(39
)
Total deferred tax liabilities
(1,049
)
 
(1,619
)
Total net deferred tax assets
$
3,078

 
$
3,968

v3.10.0.1
Segment Information and Major Customers (Tables)
12 Months Ended
Jul. 28, 2018
Segment Reporting [Abstract]  
Reportable Segments
Summarized financial information by segment for fiscal 2018, 2017, and 2016, based on our internal management system and as utilized by our Chief Operating Decision Maker (“CODM”), is as follows (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Revenue:
 
 
 
 
 
Americas
$
29,070

 
$
28,351

 
$
29,392

EMEA
12,425

 
12,004

 
12,302

APJC
7,834

 
7,650

 
7,553

Total
$
49,330

 
$
48,005

 
$
49,247

Gross margin:
 
 
 
 
 
Americas
$
18,792

 
$
18,284

 
$
18,986

EMEA
7,945

 
7,855

 
7,998

APJC
4,726

 
4,741

 
4,620

Segment total
31,463

 
30,880

 
31,604

Unallocated corporate items
(857
)
 
(656
)
 
(644
)
Total
$
30,606

 
$
30,224

 
$
30,960

Net Sales for Groups of Similar Products and Services
The following table presents revenue for groups of similar products and services (in millions):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Revenue:
 
 
 
 
 
Infrastructure Platforms
$
28,270

 
$
27,779

 
$
28,851

Applications
5,035

 
4,568

 
4,438

Security
2,353

 
2,153

 
1,969

Other Products (1)
1,050

 
1,205

 
1,996

Total Product
36,709

 
35,705

 
37,254

Services
12,621

 
12,300

 
11,993

Total
$
49,330

 
$
48,005

 
$
49,247


(1) During the second quarter of fiscal 2016, we completed the sale of our SP Video CPE Business. SP Video CPE Business revenue was $504 million for fiscal 2016.
Property and Equipment, Net
The following table presents property and equipment information for geographic areas (in millions):
 
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Property and equipment, net:
 
 
 
 
 
United States
$
2,487

 
$
2,711

 
$
2,822

International
519

 
611

 
684

Total
$
3,006

 
$
3,322

 
$
3,506



v3.10.0.1
Net Income per Share (Tables)
12 Months Ended
Jul. 28, 2018
Earnings Per Share [Abstract]  
Calculation of Basic and Diluted Net Income per Share
The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts):
Years Ended
July 28, 2018
 
July 29, 2017
 
July 30, 2016
Net income
$
110

 
$
9,609

 
$
10,739

Weighted-average shares—basic
4,837

 
5,010

 
5,053

Effect of dilutive potential common shares
44

 
39

 
35

Weighted-average shares—diluted
4,881

 
5,049

 
5,088

Net income per share—basic
$
0.02

 
$
1.92

 
$
2.13

Net income per share—diluted
$
0.02

 
$
1.90

 
$
2.11

Antidilutive employee share-based awards, excluded
61

 
136

 
148

v3.10.0.1
Supplementary Financial Data (Unaudited) (Tables)
12 Months Ended
Jul. 28, 2018
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information
Quarters Ended
July 28, 2018 (1)
 
April 28, 2018
 
January 27, 2018 (2)
 
October 28, 2017
Revenue
$
12,844

 
$
12,463

 
$
11,887

 
$
12,136

Gross margin
$
7,922

 
$
7,759

 
$
7,498

 
$
7,427

Operating income
$
3,346

 
$
3,134

 
$
3,073

 
$
2,756

Net income (loss)
$
3,803

 
$
2,691

 
$
(8,778
)
 
$
2,394

Net income (loss) per share - basic
$
0.81

 
$
0.56

 
$
(1.78
)
 
$
0.48

Net income (loss) per share - diluted
$
0.81

 
$
0.56

 
$
(1.78
)
 
$
0.48

Cash dividends declared per common share
$
0.33

 
$
0.33

 
$
0.29

 
$
0.29

Cash and cash equivalents and investments
$
46,548

 
$
54,431

 
$
73,683

 
$
71,588

 
Quarters Ended
July 29, 2017
 
April 29, 2017
 
January 28, 2017
 
October 29, 2016
Revenue
$
12,133

 
$
11,940

 
$
11,580

 
$
12,352

Gross margin
$
7,546

 
$
7,518

 
$
7,276

 
$
7,884

Operating income
$
3,034

 
$
3,169

 
$
2,893

 
$
2,877

Net income 
$
2,424

 
$
2,515

 
$
2,348

 
$
2,322

Net income per share - basic
$
0.49

 
$
0.50

 
$
0.47

 
$
0.46

Net income per share - diluted
$
0.48

 
$
0.50

 
$
0.47

 
$
0.46

Cash dividends declared per common share
$
0.29

 
$
0.29

 
$
0.26

 
$
0.26

Cash and cash equivalents and investments
$
70,492

 
$
67,974

 
$
71,845

 
$
70,968


(1) In the fourth quarter of fiscal 2018, we recorded adjustments to the provisional amounts related to the U.S. transition tax on accumulated earnings of foreign subsidiaries and re-measurement of net deferred tax assets. These adjustments included an $863 million benefit to the U.S. transition tax provisional amount related to the U.S. taxation of deemed foreign dividends after the date of enactment in the transition fiscal year.
(2) In the second quarter of fiscal 2018, we recorded a provisional tax expense of $11.1 billion related to the Tax Act, comprised of $9.0 billion of U.S. transition tax, $1.2 billion of foreign withholding tax, and $0.9 billion re-measurement of net DTA.
v3.10.0.1
Basis of Presentation - Narrative (Details)
12 Months Ended
Jul. 28, 2018
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of geographic segments (segment) 3
v3.10.0.1
Summary of Significant Accounting Policies (Additional Information) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Apr. 28, 2018
USD ($)
Jul. 28, 2018
USD ($)
rating
Jul. 29, 2017
USD ($)
Jul. 30, 2016
USD ($)
Oct. 27, 2018
USD ($)
Summary Of Significant Accounting Policies [Line Items]          
Average lease term   4 years      
Investment credit risk ratings lowest range (credit risk rating) | rating   1      
Investment credit risk ratings range highest (credit risk rating) | rating   10      
Rating at or higher when receivables deemed impaired (credit risk rating) | rating   8      
Threshold for past due receivables   31 days      
Threshold for not accruing interest   90 days      
Depreciation and amortization expenses   $ 1,100 $ 1,100 $ 1,000  
Advertising costs   166 209 $ 186  
Effect of adoption of accounting standards   9      
Increase to retained earnings   1,233 20,838    
Reduction of deferred revenue   (19,685) (18,494)    
Increase in net deferred tax assets   3,219 4,239    
Forecast | Accounting Standards Update 2016-01          
Summary Of Significant Accounting Policies [Line Items]          
Increase to retained earnings         $ 300
Forecast | Accounting Standards Update 2016-16          
Summary Of Significant Accounting Policies [Line Items]          
Increase to retained earnings         1,400
Increase in net deferred tax assets         1,300
Forecast | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09          
Summary Of Significant Accounting Policies [Line Items]          
Increase to retained earnings         2,300
Reduction of deferred revenue         2,800
Accumulated Other Comprehensive Income (Loss)          
Summary Of Significant Accounting Policies [Line Items]          
Effect of adoption of accounting standards $ 45 45      
Estimated accruals for rebates, cooperative marketing and other programs with distributors and partners          
Summary Of Significant Accounting Policies [Line Items]          
Other current liabilities   $ 1,000 $ 1,000    
Recurring software and subscription offers | Forecast | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09          
Summary Of Significant Accounting Policies [Line Items]          
Reduction of deferred revenue         1,300
Two-tier distribution | Forecast | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09          
Summary Of Significant Accounting Policies [Line Items]          
Reduction of deferred revenue         $ 600
Maximum          
Summary Of Significant Accounting Policies [Line Items]          
Loan receivables term   3 years      
Financed service contracts term   3 years      
Channel partners revolving short-term financing payment term   90 days      
End user lease and loan term   3 years      
Maximum | Technical support services          
Summary Of Significant Accounting Policies [Line Items]          
Deferred revenue recognition period   3 years      
Minimum          
Summary Of Significant Accounting Policies [Line Items]          
Financed service contracts term   1 year      
Channel partners revolving short-term financing payment term   60 days      
Minimum | Technical support services          
Summary Of Significant Accounting Policies [Line Items]          
Deferred revenue recognition period   1 year      
v3.10.0.1
Summary of Significant Accounting Policies (Depreciation Period by Type of Assets) (Details)
12 Months Ended
Jul. 28, 2018
Buildings  
Summary Of Significant Accounting Policies [Line Items]  
Property and equipment, useful life 25 years
Building improvements  
Summary Of Significant Accounting Policies [Line Items]  
Property and equipment, useful life 10 years
Leasehold improvements | Maximum  
Summary Of Significant Accounting Policies [Line Items]  
Property and equipment, useful life 10 years
Computer equipment and related software | Minimum  
Summary Of Significant Accounting Policies [Line Items]  
Property and equipment, useful life 30 months
Computer equipment and related software | Maximum  
Summary Of Significant Accounting Policies [Line Items]  
Property and equipment, useful life 36 months
Production, engineering, and other equipment | Maximum  
Summary Of Significant Accounting Policies [Line Items]  
Property and equipment, useful life 5 years
Furniture and fixtures  
Summary Of Significant Accounting Policies [Line Items]  
Property and equipment, useful life 5 years
v3.10.0.1
Acquisitions and Divestitures (Additional Information) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Oct. 27, 2018
USD ($)
Jul. 28, 2018
USD ($)
acquisition
divestiture
Jul. 29, 2017
USD ($)
Jul. 30, 2016
USD ($)
acquisition
Divestiture [Line Items]        
Number of business combinations (acquisition) | acquisition   8   12
Cash and cash equivalents acquired   $ 187 $ 138  
Total purchase consideration   3,218 3,637 $ 3,400
Cash payments for acquisition   3,006 3,324 3,161
General and Administrative Expense        
Divestiture [Line Items]        
Total transaction costs   41 $ 10 $ 32
Forecast | Duo Security        
Divestiture [Line Items]        
Cash payments for acquisition $ 2,350      
Discontinued Operations, Held-for-sale | Service Provider Video        
Divestiture [Line Items]        
Disposal group, tangible assets   175    
Disposal group, goodwill and intangible assets   300    
Disposal group, liabilities   $ 320    
Disposal Group, Disposed of by Sale, Not Discontinued Operations        
Divestiture [Line Items]        
Number of divestitures (divestiture) | divestiture   2    
v3.10.0.1
Acquisitions and Divestitures (Summary of Allocation of Total Purchase Consideration) (Details)
$ in Millions
12 Months Ended
Jul. 28, 2018
USD ($)
acquisition
Jul. 29, 2017
USD ($)
acquisition
Jul. 30, 2016
USD ($)
acquisition
Business Acquisition [Line Items]      
Purchase Consideration $ 3,218 $ 3,637 $ 3,400
Net Tangible Assets Acquired (Liabilities Assumed) 334 (186)  
Purchased Intangible Assets 867 878  
Goodwill $ 2,017 2,945  
Number of business combinations (acquisition) | acquisition 8   12
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    
BroadSoft      
Business Acquisition [Line Items]      
Purchase Consideration 2,179    
Net Tangible Assets Acquired (Liabilities Assumed) 353    
Purchased Intangible Assets 430    
Goodwill 1,396    
Accompany      
Business Acquisition [Line Items]      
Purchase Consideration 222    
Net Tangible Assets Acquired (Liabilities Assumed) 6    
Purchased Intangible Assets 55    
Goodwill 161    
CloudLock      
Business Acquisition [Line Items]      
Purchase Consideration   249  
Net Tangible Assets Acquired (Liabilities Assumed)   0  
Purchased Intangible Assets   36  
Goodwill   213  
AppDynamics      
Business Acquisition [Line Items]      
Purchase Consideration   3,258  
Net Tangible Assets Acquired (Liabilities Assumed)   (175)  
Purchased Intangible Assets   785  
Goodwill   2,648  
MindMeld      
Business Acquisition [Line Items]      
Purchase Consideration   104  
Net Tangible Assets Acquired (Liabilities Assumed)   (11)  
Purchased Intangible Assets   51  
Goodwill   64  
Others      
Business Acquisition [Line Items]      
Purchase Consideration 72 26  
Net Tangible Assets Acquired (Liabilities Assumed) 4 0  
Purchased Intangible Assets 42 6  
Goodwill $ 26 $ 20  
Number of business combinations (acquisition) | acquisition 4 4  
v3.10.0.1
Goodwill and Purchased Intangible Assets (Schedule of Goodwill by Reportable Segments) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Goodwill [Roll Forward]    
Beginning balance $ 29,766 $ 26,625
Acquisitions 2,017 2,945
Other (77) 196
Ending balance 31,706 29,766
Americas    
Goodwill [Roll Forward]    
Beginning balance 18,691 16,529
Acquisitions 1,355 2,042
Other (48) 120
Ending balance 19,998 18,691
EMEA    
Goodwill [Roll Forward]    
Beginning balance 7,057 6,269
Acquisitions 491 740
Other (19) 48
Ending balance 7,529 7,057
APJC    
Goodwill [Roll Forward]    
Beginning balance 4,018 3,827
Acquisitions 171 163
Other (10) 28
Ending balance $ 4,179 $ 4,018
v3.10.0.1
Goodwill and Purchased Intangible Assets (Schedule of Intangible Assets Acquired Through Business Combinations) (Details)
$ in Millions
12 Months Ended
Jul. 28, 2018
USD ($)
acquisition
Jul. 29, 2017
USD ($)
acquisition
Jul. 30, 2016
acquisition
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill) $ 867 $ 878  
Number of business combinations (acquisition) | acquisition 8   12
IPR&D      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Indefinite-lived intangible assets acquired $ 3    
TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite lived intangible assets acquired 650 614  
CUSTOMER RELATIONSHIPS      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite lived intangible assets acquired 207 238  
OTHER      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite lived intangible assets acquired 7 26  
Viptela      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill) $ 180    
Viptela | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 5 years    
Finite lived intangible assets acquired $ 144    
Viptela | CUSTOMER RELATIONSHIPS      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 6 years    
Finite lived intangible assets acquired $ 35    
Viptela | OTHER      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 1 year    
Finite lived intangible assets acquired $ 1    
Springpath      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill) 160    
Springpath | IPR&D      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Indefinite-lived intangible assets acquired $ 3    
Springpath | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 4 years    
Finite lived intangible assets acquired $ 157    
BroadSoft      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill) $ 430    
BroadSoft | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 4 years    
Finite lived intangible assets acquired $ 255    
BroadSoft | CUSTOMER RELATIONSHIPS      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 6 years    
Finite lived intangible assets acquired $ 169    
BroadSoft | OTHER      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 2 years    
Finite lived intangible assets acquired $ 6    
Accompany      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill) $ 55    
Accompany | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 4 years    
Finite lived intangible assets acquired $ 55    
CloudLock      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill)   $ 36  
CloudLock | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   6 years  
Finite lived intangible assets acquired   $ 32  
CloudLock | CUSTOMER RELATIONSHIPS      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   4 years  
Finite lived intangible assets acquired   $ 3  
CloudLock | OTHER      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   1 year 6 months  
Finite lived intangible assets acquired   $ 1  
AppDynamics      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill)   $ 785  
AppDynamics | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   4 years  
Finite lived intangible assets acquired   $ 525  
AppDynamics | CUSTOMER RELATIONSHIPS      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   7 years  
Finite lived intangible assets acquired   $ 235  
AppDynamics | OTHER      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   2 years 3 months 18 days  
Finite lived intangible assets acquired   $ 25  
MindMeld      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill)   $ 51  
MindMeld | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   4 years  
Finite lived intangible assets acquired   $ 51  
MindMeld | CUSTOMER RELATIONSHIPS      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years)   1 year  
Finite lived intangible assets acquired   $ 0  
Others      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Finite and indefinite-lived intangible assets acquired (excluding goodwill) $ 42 $ 6  
Number of business combinations (acquisition) | acquisition 4 4  
Others | TECHNOLOGY      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 3 years 10 months 23 days 3 years  
Finite lived intangible assets acquired $ 39 $ 6  
Others | CUSTOMER RELATIONSHIPS      
Schedule of Finite Lived and Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]      
Weighted- Average Useful Life (in Years) 4 years    
Finite lived intangible assets acquired $ 3    
v3.10.0.1
Goodwill and Purchased Intangible Assets (Schedule of Purchased Intangible Assets With Finite And Indefinite Lives) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Business Acquisition [Line Items]    
Gross $ 5,312 $ 4,617
Accumulated Amortization (2,863) (2,189)
Net 2,449 2,428
In-process research and development, with indefinite lives 103 111
Total 5,415 4,728
Total, Net 2,552 2,539
TECHNOLOGY    
Business Acquisition [Line Items]    
Gross 3,711 3,182
Accumulated Amortization (1,888) (1,386)
Net 1,823 1,796
CUSTOMER RELATIONSHIPS    
Business Acquisition [Line Items]    
Gross 1,538 1,353
Accumulated Amortization (937) (765)
Net 601 588
OTHER    
Business Acquisition [Line Items]    
Gross 63 82
Accumulated Amortization (38) (38)
Net $ 25 $ 44
v3.10.0.1
Goodwill and Purchased Intangible Assets (Additional Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]      
Impairment of Intangible assets $ 1 $ 47 $ 74
v3.10.0.1
Goodwill and Purchased Intangible Assets (Schedule of Amortization of Purchased Intangible Assets) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]      
Amortization of purchased intangible assets $ 221 $ 259 $ 303
Cost of sales      
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]      
Amortization of purchased intangible assets 640 556 577
Amortization of purchased intangible assets      
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]      
Amortization of purchased intangible assets 221 259 303
Restructuring and other charges      
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]      
Amortization of purchased intangible assets 0 38 0
Total      
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]      
Amortization of purchased intangible assets $ 861 $ 853 $ 880
v3.10.0.1
Goodwill and Purchased Intangible Assets (Schedule of Estimated Future Amortization Expense of Purchased Intangible Assets) (Details)
$ in Millions
Jul. 28, 2018
USD ($)
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]  
2019 $ 714
2020 667
2021 475
2022 222
2023 82
Thereafter $ 37
v3.10.0.1
Restructuring and Other Charges (Additional Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Aug. 31, 2014
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (credit) $ 358 $ 756 $ 268  
Cost of sales        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (credit)     $ (2)  
Fiscal 2018 Plan        
Restructuring Cost and Reserve [Line Items]        
Expected pretax restructuring charges 300      
Fiscal 2017 plan        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 1,000      
Fiscal 2015 plan        
Restructuring Cost and Reserve [Line Items]        
Cumulative pre-tax restructuring charges       $ 756
Employee Severance and Other Restructuring | Fiscal 2018 Plan        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (credit) $ 108      
v3.10.0.1
Restructuring and Other Charges (Schedule of Activities Related to Restructuring and Other Charges) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Restructuring Reserve [Roll Forward]      
Liability, beginning of period $ 117 $ 45 $ 89
Charges 358 756 268
Cash payments (372) (606) (279)
Non-cash items (30) (78) (33)
Liability, end of period 73 117 45
FISCAL 2017 AND PRIOR YEAR PLANS | Employee Severance      
Restructuring Reserve [Roll Forward]      
Liability, beginning of period 74 21 60
Charges 227 625 225
Cash payments (262) (569) (264)
Non-cash items 2 (3) 0
Liability, end of period 41 74 21
FISCAL 2017 AND PRIOR YEAR PLANS | Other      
Restructuring Reserve [Roll Forward]      
Liability, beginning of period 43 24 29
Charges 23 131 43
Cash payments (35) (37) (15)
Non-cash items (18) (75) (33)
Liability, end of period 13 43 24
FISCAL 2018 PLAN | Employee Severance      
Restructuring Reserve [Roll Forward]      
Liability, beginning of period 0 0 0
Charges 92 0 0
Cash payments (73) 0 0
Non-cash items 0 0 0
Liability, end of period 19 0 0
FISCAL 2018 PLAN | Other      
Restructuring Reserve [Roll Forward]      
Liability, beginning of period 0 0 0
Charges 16 0 0
Cash payments (2) 0 0
Non-cash items (14) 0 0
Liability, end of period $ 0 $ 0 $ 0
v3.10.0.1
Balance Sheet Details (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Inventories:      
Raw materials $ 423 $ 289  
Work in process 0 1  
Finished goods:      
Distributor inventory and deferred cost of sales 443 451  
Manufactured finished goods 689 552  
Total finished goods 1,132 1,003  
Service-related spares 258 300  
Demonstration systems 33 23  
Total 1,846 1,616  
Gross property and equipment:      
Land, buildings, and building and leasehold improvements 4,710 4,926  
Computer equipment and related software 1,085 1,258  
Production, engineering, and other equipment 5,734 5,707  
Operating lease assets 356 356  
Furniture and fixtures 358 572  
Total gross property and equipment 12,243 12,819  
Less: accumulated depreciation and amortization (9,237) (9,497)  
Total 3,006 3,322 $ 3,506
Deferred Revenue Arrangement [Line Items]      
Deferred revenue: 19,685 18,494  
Current 11,490 10,821  
Noncurrent 8,195 7,673  
Service      
Deferred Revenue Arrangement [Line Items]      
Deferred revenue: 11,431 11,302  
Product:      
Deferred Revenue Arrangement [Line Items]      
Deferred revenue: 8,254 7,192  
Product: | Deferred revenue related to recurring software and subscription offers      
Deferred Revenue Arrangement [Line Items]      
Deferred revenue: 6,120 4,971  
Product: | Other product deferred revenue      
Deferred Revenue Arrangement [Line Items]      
Deferred revenue: $ 2,134 $ 2,221  
v3.10.0.1
Financing Receivables and Operating Leases (Additional Information) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Financing Receivables And Guarantees [Line Items]    
Average lease term 4 years  
Threshold for past due receivables 31 days  
Unbilled or current financing receivables included in greater than 91 days plus past due $ 503 $ 666
Financing receivable 91 days past due and still accruing $ 182 $ 315
Maximum    
Financing Receivables And Guarantees [Line Items]    
Loan receivables term 3 years  
Financed service contracts term 3 years  
Maximum | Financed Service Contracts    
Financing Receivables And Guarantees [Line Items]    
Financed service contracts term 3 years  
Minimum    
Financing Receivables And Guarantees [Line Items]    
Financed service contracts term 1 year  
Minimum | Financed Service Contracts    
Financing Receivables And Guarantees [Line Items]    
Financed service contracts term 1 year  
v3.10.0.1
Financing Receivables and Operating Leases (Schedule of Financing Receivables) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Jul. 25, 2015
Financing Receivables [Line Items]        
Allowance for credit loss $ (205) $ (295) $ (375) $ (382)
Reported as:        
Current 4,949 4,856    
Noncurrent 4,882 4,738    
Lease Receivables        
Financing Receivables [Line Items]        
Gross 2,688 2,784    
Residual value 164 173    
Unearned income (141) (145)    
Allowance for credit loss (135) (162) (230) (259)
Reported as:        
Current 1,249 1,301    
Noncurrent 1,327 1,349    
Total, net 2,576 2,650    
Loan Receivables        
Financing Receivables [Line Items]        
Gross 4,999 4,560    
Residual value 0 0    
Unearned income 0 0    
Allowance for credit loss (60) (103) (97) (87)
Reported as:        
Current 2,376 2,104    
Noncurrent 2,563 2,353    
Total, net 4,939 4,457    
Financed Service Contracts        
Financing Receivables [Line Items]        
Gross 2,326 2,517    
Residual value 0 0    
Unearned income 0 0    
Allowance for credit loss (10) (30) $ (48) $ (36)
Reported as:        
Current 1,324 1,451    
Noncurrent 992 1,036    
Total, net 2,316 2,487    
Total        
Financing Receivables [Line Items]        
Gross 10,013 9,861    
Residual value 164 173    
Unearned income (141) (145)    
Allowance for credit loss (205) (295)    
Reported as:        
Current 4,949 4,856    
Noncurrent 4,882 4,738    
Total, net $ 9,831 $ 9,594    
v3.10.0.1
Financing Receivables and Operating Leases (Schedule of Contractual Maturities of Gross Lease Receivables) (Details)
$ in Millions
Jul. 28, 2018
USD ($)
Financing Receivables And Guarantees [Abstract]  
2019 $ 1,311
2020 745
2021 415
2022 177
2023 12
Thereafter 28
Total $ 2,688
v3.10.0.1
Financing Receivables and Operating Leases (Schedule of Financing Receivables Categorized by Internal Credit Risk Rating) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables $ 9,872 $ 9,716
1 to 4    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 5,946 5,866
5 to 6    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 3,786 3,599
7 and Higher    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 140 251
Total    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 9,872 9,716
Lease receivables    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 2,547 2,639
Lease receivables | 1 to 4    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 1,294 1,408
Lease receivables | 5 to 6    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 1,199 1,181
Lease receivables | 7 and Higher    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 54 50
Lease receivables | Total    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 2,547 2,639
Loan receivables | 1 to 4    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 3,184 2,865
Loan receivables | 5 to 6    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 1,752 1,516
Loan receivables | 7 and Higher    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 63 179
Loan receivables | Total    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 4,999 4,560
Financed service contracts    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 2,326 2,517
Financed service contracts | 1 to 4    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 1,468 1,593
Financed service contracts | 5 to 6    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 835 902
Financed service contracts | 7 and Higher    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables 23 22
Financed service contracts | Total    
Financing Receivable, Recorded Investment [Line Items]    
Gross receivables $ 2,326 $ 2,517
v3.10.0.1
Financing Receivables and Operating Leases (Schedule of Aging Analysis of Financing Receivables) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due $ 1,185 $ 1,733
Current 8,687 7,983
Total 9,872 9,716
Nonaccrual Financing Receivables 42 75
Impaired Financing Receivables 42 59
Past due 31 - 60 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 314 550
Past due 61 -90 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 160 185
Past due 91 or above days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 711 998
Lease receivables    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 254 436
Current 2,293 2,203
Total 2,547 2,639
Nonaccrual Financing Receivables 9 14
Impaired Financing Receivables 9 14
Lease receivables | Past due 31 - 60 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 72 160
Lease receivables | Past due 61 -90 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 27 60
Lease receivables | Past due 91 or above days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 155 216
Loan receivables    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 411 537
Current 4,588 4,023
Total 4,999 4,560
Nonaccrual Financing Receivables 30 43
Impaired Financing Receivables 30 43
Loan receivables | Past due 31 - 60 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 104 230
Loan receivables | Past due 61 -90 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 55 48
Loan receivables | Past due 91 or above days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 252 259
Financed service contracts    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 520 760
Current 1,806 1,757
Total 2,326 2,517
Nonaccrual Financing Receivables 3 18
Impaired Financing Receivables 3 2
Financed service contracts | Past due 31 - 60 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 138 160
Financed service contracts | Past due 61 -90 days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due 78 77
Financed service contracts | Past due 91 or above days    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total Past Due $ 304 $ 523
v3.10.0.1
Financing Receivables and Operating Leases (Summary of Allowances for Credit Loss and Related Financing Receivables) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Allowance for credit loss, beginning of period $ 295 $ 375 $ 382
Provisions (benefits) (89) (35) 17
Recoveries (write-offs), net (6) (49) (15)
Foreign exchange and other 5 4 (9)
Allowance for credit loss, end of period 205 295 375
Lease Receivables      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Allowance for credit loss, beginning of period 162 230 259
Provisions (benefits) (26) (25) (13)
Recoveries (write-offs), net (1) (37) (10)
Foreign exchange and other 0 (6) (6)
Allowance for credit loss, end of period 135 162 230
Loan Receivables      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Allowance for credit loss, beginning of period 103 97 87
Provisions (benefits) (43) 7 13
Recoveries (write-offs), net (5) (11) 0
Foreign exchange and other 5 10 (3)
Allowance for credit loss, end of period 60 103 97
Financed Service Contracts      
Financing Receivable, Allowance for Credit Losses [Roll Forward]      
Allowance for credit loss, beginning of period 30 48 36
Provisions (benefits) (20) (17) 17
Recoveries (write-offs), net 0 (1) (5)
Foreign exchange and other 0 0 0
Allowance for credit loss, end of period $ 10 $ 30 $ 48
v3.10.0.1
Financing Receivables and Operating Leases (Operating Lease Schedule) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Receivables [Abstract]    
Operating lease assets $ 356 $ 356
Accumulated depreciation (238) (212)
Operating lease assets, net $ 118 $ 144
v3.10.0.1
Financing Receivables and Operating Leases (Future Minimum Rental Payment-Operating Lease) (Details)
$ in Millions
Jul. 28, 2018
USD ($)
Receivables [Abstract]  
2019 $ 166
2020 97
2021 34
2022 2
Thereafter 1
Total $ 300
v3.10.0.1
Investments (Summary of Available-for-Sale Investments) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Available-for-sale investments: [Line Items]    
Amortized Cost $ 37,884 $ 58,225
Gross Unrealized Gains 277 762
Gross Unrealized Losses (547) (203)
Fair Value 37,614 58,784
Fixed Income Investments    
Available-for-sale investments: [Line Items]    
Amortized Cost 37,512 57,045
Gross Unrealized Gains 44 208
Gross Unrealized Losses (547) (176)
Fair Value 37,009 57,077
Fixed Income Investments | U.S. government securities    
Available-for-sale investments: [Line Items]    
Amortized Cost 7,318 19,880
Gross Unrealized Gains 0 3
Gross Unrealized Losses (43) (60)
Fair Value 7,275 19,823
Fixed Income Investments | U.S. government agency securities    
Available-for-sale investments: [Line Items]    
Amortized Cost 732 2,057
Gross Unrealized Gains 0 0
Gross Unrealized Losses (5) (5)
Fair Value 727 2,052
Fixed Income Investments | Non-U.S. government and agency securities    
Available-for-sale investments: [Line Items]    
Amortized Cost 209 389
Gross Unrealized Gains 0 0
Gross Unrealized Losses (1) (1)
Fair Value 208 388
Fixed Income Investments | Corporate debt securities    
Available-for-sale investments: [Line Items]    
Amortized Cost 27,765 31,626
Gross Unrealized Gains 44 202
Gross Unrealized Losses (445) (93)
Fair Value 27,364 31,735
Fixed Income Investments | U.S. agency mortgage-backed securities    
Available-for-sale investments: [Line Items]    
Amortized Cost 1,488 2,037
Gross Unrealized Gains 0 3
Gross Unrealized Losses (53) (17)
Fair Value 1,435 2,023
Fixed Income Investments | Commercial paper    
Available-for-sale investments: [Line Items]    
Amortized Cost   996
Gross Unrealized Gains   0
Gross Unrealized Losses   0
Fair Value   996
Fixed Income Investments | Certificates of deposit    
Available-for-sale investments: [Line Items]    
Amortized Cost   60
Gross Unrealized Gains   0
Gross Unrealized Losses   0
Fair Value   60
Publicly traded equity securities    
Available-for-sale investments: [Line Items]    
Amortized Cost 372 1,180
Gross Unrealized Gains 233 554
Gross Unrealized Losses 0 (27)
Fair Value $ 605 $ 1,707
v3.10.0.1
Investments (Additional Information) (Details)
12 Months Ended
Jul. 28, 2018
USD ($)
entity
Jul. 29, 2017
USD ($)
Jul. 30, 2016
USD ($)
Investments, Debt and Equity Securities [Abstract]      
Net unsettled available-for-sale investments, purchases $ 1,500,000,000 $ 30,000,000  
Impairment charges of available-for-sale investments 52,000,000 74,000,000 $ 3,000,000
Other than temporary impairment, credit losses recognized in earnings, credit losses on debt securities held 0    
Average daily balance of securities lending $ 300,000,000 700,000,000  
Minimum market value percentage for collateral on loaned securities (at least) 102.00%    
Secured lending transactions outstanding $ 0 0  
Number of variable interest entities required to be consolidated (entity) | entity 0    
Variable Interest Entity [Line Items]      
Investments in privately held companies $ 1,096,000,000 $ 983,000,000  
Variable Interest Entity, Not Primary Beneficiary      
Variable Interest Entity [Line Items]      
Investments in privately held companies 531,000,000    
Funding commitments $ 223,000,000    
v3.10.0.1
Investments (Gross Realized Gains And Gross Realized Losses Related To Available-For-Sale Investment) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Investments [Abstract]      
Gross realized gains $ 628 $ 114 $ 152
Gross realized losses (341) (201) (153)
Total $ 287 $ (87) $ (1)
v3.10.0.1
Investments (Realized Net Gains (Losses) Related To Available-For-Sale Investments) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Debt Securities, Available-for-sale [Line Items]      
Total $ 287 $ (87) $ (1)
Net gains/(losses) on investments in publicly traded equity securities      
Debt Securities, Available-for-sale [Line Items]      
Total 529 (45) 33
Net gains/(losses) on investments in fixed income securities      
Debt Securities, Available-for-sale [Line Items]      
Total $ (242) $ (42) $ (34)
v3.10.0.1
Investments (Available-For-Sale Investments With Gross Unrealized Losses) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Schedule of Investments [Line Items]    
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value $ 21,093 $ 28,215
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses (391) (195)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value 9,019 1,040
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses (156) (8)
TOTAL, Fair Value 30,112 29,255
TOTAL, Gross Unrealized Losses (547) (203)
Publicly traded equity securities    
Schedule of Investments [Line Items]    
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value 0 122
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses 0 (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 0 122
TOTAL, Gross Unrealized Losses 0 (27)
Total fixed income securities    
Schedule of Investments [Line Items]    
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value 21,093 28,093
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses (391) (168)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value 9,019 1,040
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses (156) (8)
TOTAL, Fair Value 30,112 29,133
TOTAL, Gross Unrealized Losses (547) (176)
Total fixed income securities | U.S. government securities    
Schedule of Investments [Line Items]    
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value 2,966 14,962
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses (20) (55)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value 4,303 771
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses (23) (5)
TOTAL, Fair Value 7,269 15,733
TOTAL, Gross Unrealized Losses (43) (60)
Total fixed income securities | U.S. government agency securities    
Schedule of Investments [Line Items]    
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value 206 1,791
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses (2) (4)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value 521 130
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses (3) (1)
TOTAL, Fair Value 727 1,921
TOTAL, Gross Unrealized Losses (5) (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 105 368
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses (1) (1)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value 103 0
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses 0 0
TOTAL, Fair Value 208 368
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 16,990 9,487
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses (344) (92)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value 3,511 101
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses (101) (1)
TOTAL, Fair Value 20,501 9,588
TOTAL, Gross Unrealized Losses (445) (93)
Total fixed income securities | U.S. agency mortgage-backed securities    
Schedule of Investments [Line Items]    
UNREALIZED LOSSES LESS THAN 12 MONTHS, Fair Value 826 1,485
UNREALIZED LOSSES LESS THAN 12 MONTHS, Gross Unrealized Losses (24) (16)
UNREALIZED LOSSES 12 MONTHS OR GREATER, Fair Value 581 38
UNREALIZED LOSSES 12 MONTHS OR GREATER, Gross Unrealized Losses (29) (1)
TOTAL, Fair Value 1,407 1,523
TOTAL, Gross Unrealized Losses $ (53) $ (17)
v3.10.0.1
Investments (Maturities of fixed income securities) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Fair Value    
Total, fair value $ 37,614 $ 58,784
Fixed Income Securities    
Amortized Cost    
Less than 1 year, cost 12,361  
Due in 1 to 2 years, cost 7,573  
Due in 2 to 5 years, cost 14,290  
Due after 5 years, cost 1,800  
Mortgage-backed securities with no single maturity, cost 1,488  
Total, Cost 37,512  
Fair Value    
Less than 1 year, fair value 12,316  
Due in 1 to 2 years, fair Value 7,514  
Due in 2 to 5 year, fair Value 14,012  
Due after 5 years, fair value 1,732  
Mortgage-backed securities with no single maturity, fair value 1,435  
Total, fair value $ 37,009  
v3.10.0.1
Investments (Equity Method and Cost Method Investment) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Investments, Debt and Equity Securities [Abstract]    
Equity method investments $ 118 $ 124
Cost method investments 978 859
Total $ 1,096 $ 983
v3.10.0.1
Fair Value (Assets and Liabilities Measured At Fair Value On Recurring Basis) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Assets:    
Derivative assets $ 2 $ 149
Total 44,506 68,824
Liabilities:    
Derivative liabilities 74 4
Total 74 4
Derivative assets    
Assets:    
Derivative assets 2 149
Derivative liabilities    
Liabilities:    
Derivative liabilities 74 4
Cash equivalents: | Money market funds    
Assets:    
Investments 6,890 9,567
Cash equivalents: | U.S. government securities    
Assets:    
Investments 0 139
Cash equivalents: | Commercial paper    
Assets:    
Investments 0 160
Cash equivalents: | Certificates of deposit    
Assets:    
Investments 0 25
Available-for-sale investments: | U.S. government securities    
Assets:    
Investments 7,275 19,823
Available-for-sale investments: | U.S. government agency securities    
Assets:    
Investments 727 2,052
Available-for-sale investments: | Non-U.S. government and agency securities    
Assets:    
Investments 208 388
Available-for-sale investments: | Corporate debt securities    
Assets:    
Investments 27,364 31,735
Available-for-sale investments: | U.S. agency mortgage-backed securities    
Assets:    
Investments 1,435 2,023
Available-for-sale investments: | Commercial paper    
Assets:    
Investments 0 996
Available-for-sale investments: | Certificates of deposit    
Assets:    
Investments 0 60
Available-for-sale investments: | Publicly traded equity securities    
Assets:    
Investments 605 1,707
Level 1    
Assets:    
Total 7,495 11,274
Liabilities:    
Total 0 0
Level 1 | Derivative assets    
Assets:    
Derivative assets 0 0
Level 1 | Derivative liabilities    
Liabilities:    
Derivative liabilities 0 0
Level 1 | Cash equivalents: | Money market funds    
Assets:    
Investments 6,890 9,567
Level 1 | Cash equivalents: | U.S. government securities    
Assets:    
Investments 0 0
Level 1 | Cash equivalents: | Commercial paper    
Assets:    
Investments 0 0
Level 1 | Cash equivalents: | Certificates of deposit    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | U.S. government securities    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | U.S. government agency securities    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | Non-U.S. government and agency securities    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | Corporate debt securities    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | U.S. agency mortgage-backed securities    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | Commercial paper    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | Certificates of deposit    
Assets:    
Investments 0 0
Level 1 | Available-for-sale investments: | Publicly traded equity securities    
Assets:    
Investments 605 1,707
Level 2    
Assets:    
Total 37,011 57,550
Liabilities:    
Total 74 4
Level 2 | Derivative assets    
Assets:    
Derivative assets 2 149
Level 2 | Derivative liabilities    
Liabilities:    
Derivative liabilities 74 4
Level 2 | Cash equivalents: | Money market funds    
Assets:    
Investments 0 0
Level 2 | Cash equivalents: | U.S. government securities    
Assets:    
Investments 0 139
Level 2 | Cash equivalents: | Commercial paper    
Assets:    
Investments 0 160
Level 2 | Cash equivalents: | Certificates of deposit    
Assets:    
Investments 0 25
Level 2 | Available-for-sale investments: | U.S. government securities    
Assets:    
Investments 7,275 19,823
Level 2 | Available-for-sale investments: | U.S. government agency securities    
Assets:    
Investments 727 2,052
Level 2 | Available-for-sale investments: | Non-U.S. government and agency securities    
Assets:    
Investments 208 388
Level 2 | Available-for-sale investments: | Corporate debt securities    
Assets:    
Investments 27,364 31,735
Level 2 | Available-for-sale investments: | U.S. agency mortgage-backed securities    
Assets:    
Investments 1,435 2,023
Level 2 | Available-for-sale investments: | Commercial paper    
Assets:    
Investments 0 996
Level 2 | Available-for-sale investments: | Certificates of deposit    
Assets:    
Investments 0 60
Level 2 | Available-for-sale investments: | Publicly traded equity securities    
Assets:    
Investments $ 0 $ 0
v3.10.0.1
Fair Value (Fair Value On Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - Level 3 - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]      
Total gains (losses) for nonrecurring measurements $ (43) $ (254) $ (141)
Investments in privately held companies (impaired)      
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]      
Total gains (losses) for nonrecurring measurements (56) (175) (57)
Purchased intangible assets (impaired)      
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]      
Total gains (losses) for nonrecurring measurements (1) (47) (74)
Property held for sale - land and buildings      
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]      
Total gains (losses) for nonrecurring measurements 20 (30) 0
Gains (losses) on assets no longer held at end of fiscal year      
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]      
Total gains (losses) for nonrecurring measurements $ (6) $ (2) $ (10)
v3.10.0.1
Fair Value (Additional Information) (Details) - USD ($)
Jul. 28, 2018
Jul. 29, 2017
Fair Value Measurements [Line Items]    
Remaining carrying value of the investments that were impaired $ 44,506,000,000 $ 68,824,000,000
Senior notes, carrying value 25,569,000,000 30,472,000,000
Reported Value Measurement    
Fair Value Measurements [Line Items]    
Carrying value of the property held for sale 0 5,000,000
Carrying value of cost method investments in privately held companies 978,000,000 859,000,000
Level 3    
Fair Value Measurements [Line Items]    
Long term loan receivables and financed service contracts and others carrying value 3,600,000,000 3,400,000,000
Level 2    
Fair Value Measurements [Line Items]    
Remaining carrying value of the investments that were impaired 37,011,000,000 57,550,000,000
Senior notes, fair value 26,400,000,000 32,100,000,000
Fair Value, Measurements, Nonrecurring | Investments in Privately Held Companies | Level 3    
Fair Value Measurements [Line Items]    
Remaining carrying value of the investments that were impaired 57,000,000 81,000,000
Fair Value, Measurements, Nonrecurring | Purchased Intangible Assets | Level 3    
Fair Value Measurements [Line Items]    
Remaining carrying value of the investments that were impaired $ 0 $ 63,000,000
v3.10.0.1
Borrowings (Schedule of Short-Term Debt) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Short-term Debt [Line Items]    
Amount $ 5,238 $ 7,992
Current portion of long-term debt    
Short-term Debt [Line Items]    
Amount $ 5,238 $ 4,747
Effective Rate 3.46% 1.66%
Commercial paper    
Short-term Debt [Line Items]    
Amount $ 0 $ 3,245
Effective Rate 0.00% 1.16%
v3.10.0.1
Borrowings (Additional Information) (Details) - USD ($)
May 15, 2015
Jul. 28, 2018
Jul. 29, 2017
Debt Instrument [Line Items]      
Derivative, notional amount   $ 10,011,000,000 $ 11,590,000,000
Unsecured Debt      
Debt Instrument [Line Items]      
Current borrowing capacity $ 3,000,000,000    
Additional credit facility upon agreement $ 2,000,000,000.0    
Line of credit facility, amounts outstanding   0  
Unsecured Debt | Federal Funds Rate      
Debt Instrument [Line Items]      
Three-month LIBOR plus this percentage 0.50%    
Unsecured Debt | LIBOR      
Debt Instrument [Line Items]      
Three-month LIBOR plus this percentage 1.00%    
Unsecured Debt | Eurodollar      
Debt Instrument [Line Items]      
Three-month LIBOR plus this percentage 0.00%    
Derivatives designated as hedging instruments: | Interest rate derivatives      
Debt Instrument [Line Items]      
Derivative, notional amount   6,750,000,000 $ 6,750,000,000
Commercial paper      
Debt Instrument [Line Items]      
Commercial paper, maximum borrowing limit   $ 10,000,000,000.0  
v3.10.0.1
Borrowings (Schedule of Long-Term Debt) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Debt Instrument [Line Items]    
Total $ 25,750 $ 30,500
Unaccreted discount/issuance costs (116) (136)
Hedge accounting fair value adjustments (65) 108
Total 25,569 30,472
Short-term debt 5,238 4,747
Long-term debt 20,331 25,725
Three-month LIBOR plus 0.60%    
Debt Instrument [Line Items]    
Notes $ 0 $ 1,000
Effective Rate 0.00% 1.84%
Three-month LIBOR plus 0.31%    
Debt Instrument [Line Items]    
Notes $ 0 $ 900
Effective Rate 0.00% 1.62%
Three-month LIBOR plus 0.50%    
Debt Instrument [Line Items]    
Notes $ 500 $ 500
Effective Rate 2.86% 1.76%
Three-month LIBOR plus 0.34%    
Debt Instrument [Line Items]    
Notes $ 500 $ 500
Effective Rate 2.71% 1.66%
Fixed Rate Notes, 1.40%, Due February 28, 2018    
Debt Instrument [Line Items]    
Interest rate, stated percentage 1.40%  
Notes $ 0 $ 1,250
Effective Rate 0.00% 1.47%
Fixed Rate Notes 1.65% Due June 2018    
Debt Instrument [Line Items]    
Interest rate, stated percentage 1.65%  
Notes $ 0 $ 1,600
Effective Rate 0.00% 1.72%
Fixed-Rate Notes, 4.95%, Due February 2019    
Debt Instrument [Line Items]    
Interest rate, stated percentage 4.95%  
Notes $ 2,000 $ 2,000
Effective Rate 5.17% 4.96%
Fixed-Rate Notes, 1.60%, Due February 2019    
Debt Instrument [Line Items]    
Interest rate, stated percentage 1.60%  
Notes $ 1,000 $ 1,000
Effective Rate 1.67% 1.67%
Fixed-Rate Notes, 2.125%, Due March 2019    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.125%  
Notes $ 1,750 $ 1,750
Effective Rate 2.71% 1.84%
FIxed Rate Notes 1.40% Due September 2019    
Debt Instrument [Line Items]    
Interest rate, stated percentage 1.40%  
Notes $ 1,500 $ 1,500
Effective Rate 1.48% 1.48%
Fixed-Rate Notes, 4.45%, Due January 2020    
Debt Instrument [Line Items]    
Interest rate, stated percentage 4.45%  
Notes $ 2,500 $ 2,500
Effective Rate 4.52% 3.84%
Fixed-Rate Notes, 2.45%, Due June 2020    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.45%  
Notes $ 1,500 $ 1,500
Effective Rate 2.54% 2.54%
Fixed-Rate Notes, 2.20%, Due February 2021    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.20%  
Notes $ 2,500 $ 2,500
Effective Rate 2.30% 2.30%
Fixed-Rate Notes, 2.90%, Due March 2021    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.90%  
Notes $ 500 $ 500
Effective Rate 2.86% 2.00%
Fixed Rate Notes, 1.85% Due September 2021    
Debt Instrument [Line Items]    
Interest rate, stated percentage 1.85%  
Notes $ 2,000 $ 2,000
Effective Rate 1.90% 1.90%
Fixed-Rate Notes, 3.00%, Due June 15, 2022    
Debt Instrument [Line Items]    
Interest rate, stated percentage 3.00%  
Notes $ 500 $ 500
Effective Rate 3.11% 2.26%
Fixed-Rate Notes, 2.60%, Due February, 2023    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.60%  
Notes $ 500 $ 500
Effective Rate 2.68% 2.68%
Fixed Rate Notes 2.20%, Due September 2023    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.20%  
Notes $ 750 $ 750
Effective Rate 2.27% 2.27%
Fixed-Rate Notes,3.625%, Due March 2024    
Debt Instrument [Line Items]    
Interest rate, stated percentage 3.625%  
Notes $ 1,000 $ 1,000
Effective Rate 2.98% 2.12%
Fixed-Rate Notes,3.50%, Due June 15, 2025    
Debt Instrument [Line Items]    
Interest rate, stated percentage 3.50%  
Notes $ 500 $ 500
Effective Rate 3.27% 2.43%
Fixed-Rate Notes,2.95%, Due February, 2026    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.95%  
Notes $ 750 $ 750
Effective Rate 3.01% 3.01%
Fixed Rate Notes 2.50%, Due September 2026    
Debt Instrument [Line Items]    
Interest rate, stated percentage 2.50%  
Notes $ 1,500 $ 1,500
Effective Rate 2.55% 2.55%
Fixed-Rate Notes, 5.90%, Due February 2039    
Debt Instrument [Line Items]    
Interest rate, stated percentage 5.90%  
Notes $ 2,000 $ 2,000
Effective Rate 6.11% 6.11%
Fixed-Rate Notes, 5.50%, Due January 2040    
Debt Instrument [Line Items]    
Interest rate, stated percentage 5.50%  
Notes $ 2,000 $ 2,000
Effective Rate 5.67% 5.67%
LIBOR | Three-month LIBOR plus 0.60%    
Debt Instrument [Line Items]    
Three-month LIBOR plus this percentage 0.60%  
LIBOR | Three-month LIBOR plus 0.31%    
Debt Instrument [Line Items]    
Three-month LIBOR plus this percentage 0.31%  
LIBOR | Three-month LIBOR plus 0.50%    
Debt Instrument [Line Items]    
Three-month LIBOR plus this percentage 0.50%  
LIBOR | Three-month LIBOR plus 0.34%    
Debt Instrument [Line Items]    
Three-month LIBOR plus this percentage 0.34%  
v3.10.0.1
Borrowings (Schedule of Future Principal Payments for Long-Term Debt) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Debt Disclosure [Abstract]    
2019 $ 5,250  
2020 6,000  
2021 3,000  
2022 2,500  
2023 500  
Thereafter 8,500  
Total $ 25,750 $ 30,500
v3.10.0.1
Derivative Instruments (Derivatives Recorded At Fair Value) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Derivative [Line Items]    
DERIVATIVE ASSETS $ 2 $ 149
DERIVATIVE LIABILITIES 74 4
Derivatives designated as hedging instruments:    
Derivative [Line Items]    
DERIVATIVE ASSETS 1 148
DERIVATIVE LIABILITIES 72 1
Derivatives designated as hedging instruments: | Foreign currency derivatives | Other current assets    
Derivative [Line Items]    
DERIVATIVE ASSETS 1 46
Derivatives designated as hedging instruments: | Foreign currency derivatives | Other current liabilities    
Derivative [Line Items]    
DERIVATIVE LIABILITIES 0 1
Derivatives designated as hedging instruments: | Interest rate derivatives | Other current assets    
Derivative [Line Items]    
DERIVATIVE ASSETS 0 0
Derivatives designated as hedging instruments: | Interest rate derivatives | Other assets    
Derivative [Line Items]    
DERIVATIVE ASSETS 0 102
Derivatives designated as hedging instruments: | Interest rate derivatives | Other current liabilities    
Derivative [Line Items]    
DERIVATIVE LIABILITIES 10 0
Derivatives designated as hedging instruments: | Interest rate derivatives | Other long-term liabilities    
Derivative [Line Items]    
DERIVATIVE LIABILITIES 62 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
v3.10.0.1
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
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Derivatives designated as cash flow hedging instruments:      
Derivative [Line Items]      
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE YEARS ENDED (EFFECTIVE PORTION) $ 20 $ 22 $ (66)
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE YEARS ENDED (EFFECTIVE PORTION) 68 (79) (20)
Derivatives designated as cash flow hedging instruments: | Foreign currency derivatives      
Derivative [Line Items]      
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE YEARS ENDED (EFFECTIVE PORTION) 20 22 (66)
Derivatives designated as cash flow hedging instruments: | Foreign currency derivatives | Operating expenses      
Derivative [Line Items]      
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE YEARS ENDED (EFFECTIVE PORTION) 52 (59) (15)
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 YEARS ENDED (EFFECTIVE PORTION) 16 (20) (5)
Derivatives designated as net investment hedging instruments: | Foreign currency derivatives      
Derivative [Line Items]      
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE YEARS ENDED (EFFECTIVE PORTION) (1) (15) 16
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 YEARS ENDED (EFFECTIVE PORTION) $ 0 $ 0 $ 0
v3.10.0.1
Derivative Instruments (Additional Information) (Details)
$ in Millions
12 Months Ended
Jul. 28, 2018
USD ($)
derivative
Jul. 29, 2017
derivative
Derivative [Line Items]    
Net derivative gains to be reclassified from AOCI into earnings in next twelve months | $ $ 1  
Derivatives designated as cash flow hedging instruments:    
Derivative [Line Items]    
Average derivative maturities, months 24 months  
Net investment hedging instruments    
Derivative [Line Items]    
Average derivative maturities, months 6 months  
Fixed Income Securities    
Derivative [Line Items]    
Number of interest rate derivatives held (derivative) | derivative 0 0
v3.10.0.1
Derivative Instruments (Effect Of Derivative Instruments Designated As Fair Value Hedges And Underlying Hedged Items On Consolidated Statements Of Operations) (Details) - Derivatives Designated as Fair Value Hedging Instruments - Interest rate derivatives - Interest expense - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Hedge Underlying Gain Loss [Line Items]      
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE YEARS ENDED $ (174) $ (275) $ 175
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE YEARS ENDED $ 173 $ 271 $ (169)
v3.10.0.1
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
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]      
GAINS (LOSSES) FOR THE YEARS ENDED $ 15 $ 82 $ 1
Foreign currency derivatives | Other income (loss), net      
Derivative Instruments, Gain (Loss) [Line Items]      
GAINS (LOSSES) FOR THE YEARS ENDED (24) 13 (19)
Total return swaps—deferred compensation | Other income (loss), net      
Derivative Instruments, Gain (Loss) [Line Items]      
GAINS (LOSSES) FOR THE YEARS ENDED (11) 0 0
Total return swaps—deferred compensation | Operating expenses      
Derivative Instruments, Gain (Loss) [Line Items]      
GAINS (LOSSES) FOR THE YEARS ENDED 50 53 6
Total return swaps—deferred compensation | Cost of sales | Product      
Derivative Instruments, Gain (Loss) [Line Items]      
GAINS (LOSSES) FOR THE YEARS ENDED 1 2 0
Total return swaps—deferred compensation | Cost of sales | Service      
Derivative Instruments, Gain (Loss) [Line Items]      
GAINS (LOSSES) FOR THE YEARS ENDED 3 3 1
Equity derivatives | Other income (loss), net      
Derivative Instruments, Gain (Loss) [Line Items]      
GAINS (LOSSES) FOR THE YEARS ENDED $ (4) $ 11 $ 13
v3.10.0.1
Derivative Instruments (Schedule Of Notional Amounts Of Derivatives Outstanding) (Details) - USD ($)
Jul. 28, 2018
Jul. 29, 2017
Derivative [Line Items]    
Derivatives $ 10,011,000,000 $ 11,590,000,000
Derivatives designated as hedging instruments: | Foreign currency derivatives    
Derivative [Line Items]    
Derivatives 147,000,000 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 250,000,000 351,000,000
Derivatives not designated as hedging instruments: | Foreign currency derivatives    
Derivative [Line Items]    
Derivatives 2,298,000,000 2,258,000,000
Derivatives not designated as hedging instruments: | Total return swaps—deferred compensation    
Derivative [Line Items]    
Derivatives $ 566,000,000 $ 535,000,000
v3.10.0.1
Derivative Instruments (Offsetting of Derivative Assets and Liabilities) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Derivatives assets    
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET, Gross Amounts Recognized $ 2 $ 149
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET, Gross Amounts Offset 0 0
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET, Net Amounts Presented 2 149
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETBUT WITH LEGAL RIGHTS TO OFFSET, Gross Derivative Amounts (2) (4)
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETBUT WITH LEGAL RIGHTS TO OFFSET, Cash Collateral 0 (81)
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETBUT WITH LEGAL RIGHTS TO OFFSET, Net Amount 0 64
Derivatives liabilities    
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET, Gross Amounts Recognized 74 4
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET, Gross Amounts Offset 0 0
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEET, Net Amounts Presented 74 4
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETBUT WITH LEGAL RIGHTS TO OFFSET, Gross Derivative Amounts (2) (4)
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETBUT WITH LEGAL RIGHTS TO OFFSET, Cash Collateral (53) 0
GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETBUT WITH LEGAL RIGHTS TO OFFSET, Net Amount $ 19 $ 0
v3.10.0.1
Commitments and Contingencies (Schedule of Future Minimum Lease Payments Under all Noncancelable Operating Leases) (Details)
$ in Millions
Jul. 28, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2019 $ 392
2020 293
2021 190
2022 138
2023 96
Thereafter 111
Total $ 1,220
v3.10.0.1
Commitments and Contingencies (Additional Information) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Aug. 20, 2018
USD ($)
May 30, 2017
USD ($)
May 25, 2017
USD ($)
Mar. 14, 2017
USD ($)
Mar. 03, 2017
USD ($)
patent
May 12, 2016
USD ($)
Jan. 15, 2016
patent
claim
Sep. 04, 2013
patent
Oct. 27, 2018
USD ($)
Jan. 28, 2017
USD ($)
Jul. 28, 2018
USD ($)
Jul. 29, 2017
USD ($)
Jul. 30, 2016
USD ($)
Jul. 25, 2015
USD ($)
Jul. 26, 2014
USD ($)
Jul. 28, 2012
USD ($)
Site Contingency [Line Items]                                
Rent expense                     $ 442.0 $ 403.0 $ 385.0      
Liability for purchase commitments                     159.0 162.0        
Future compensation expense & contingent consideration (maximum)                     352.0          
Commitments and contingencies                            
Volume of channel partner financing                     28,200.0 27,000.0 26,900.0      
Balance of the channel partner financing subject to guarantees                     953.0 1,000.0        
Financing provided by third parties for leases and loans related to End Users on which the Company has provided guarantees                     35.0 51.0 63.0      
Total cost of sales                     18,724.0 17,781.0 18,287.0      
Brazilian authority claim of import tax evasion by importer tax portion                     218.0          
Brazilian authority claim of import tax evasion by importer interest portion                     1,400.0          
Brazilian authority claim of import tax evasion by importer penalties portion                     1,000.0          
SRI International                                
Site Contingency [Line Items]                                
Damages awarded, value           $ 23.7                    
Arista Networks, Inc Vs. Company | Subsequent Event                                
Site Contingency [Line Items]                                
Proceeds from Legal Settlements $ 400.0                              
Arista Networks, Inc Vs. Company | Forecast                                
Site Contingency [Line Items]                                
Claims for patent infringement resolved by arbitration process, period                 3 years              
No actions brought for patent or copyright infringement for products currently on the market, period                 5 years              
Arista Networks, Inc Vs. Company | Arista Networks, Inc. | Forecast                                
Site Contingency [Line Items]                                
Payments for Legal Settlements                 $ 400.0              
Pending Litigation | SRI International                                
Site Contingency [Line Items]                                
Damages awarded, value     $ 57.0                          
Number of allegedly infringed patents (patent) | patent               2                
Percentage of royalty awarded     3.50%                          
Damages from Product Defects                                
Site Contingency [Line Items]                                
Charge for expected remediation                   $ 125.0            
Patent Infringement | Pending Litigation | Sprint Communications Company L.P. Vs. Time Warner Cable Inc.                                
Site Contingency [Line Items]                                
Number of patents found infringed (patent) | patent         5                      
Damages awarded, value       $ 139.8 $ 139.8                      
Percentage of post-judgment interest awarded       1.06%                        
Pre-judgment interest requested   $ 20.3                            
Patent Infringement | Pending Litigation | Huawei Technologies Co. Ltd. Vs. T-Mobile US, Inc.                                
Site Contingency [Line Items]                                
Number of patent infringement actions filed (claim) | claim             4                  
Number of allegedly infringed patents (patent) | patent             12                  
Patent Indemnification                                
Site Contingency [Line Items]                                
Legal and indemnification settlement                     127.0          
Product                                
Site Contingency [Line Items]                                
Total cost of sales                     $ 14,427.0 13,699.0 14,161.0      
Minimum                                
Site Contingency [Line Items]                                
Warranty period for products, in days                     90 days          
Channel partners revolving short-term financing payment term                     60 days          
Maximum                                
Site Contingency [Line Items]                                
Warranty period for products, in years                     5 years          
Channel partners revolving short-term financing payment term                     90 days          
End user lease and loan term                     3 years          
Insieme Networks Inc                                
Site Contingency [Line Items]                                
Initial funding                               $ 100.0
Payments to acquire additional interest in subsidiaries                       441.0        
Compensation expense                       47.0 160.0      
Investments in privately held companies (impaired)                                
Site Contingency [Line Items]                                
Commitments and contingencies                     $ 223.0 216.0        
Supplier Component Remediation Liability                                
Site Contingency [Line Items]                                
Loss contingency accrual                     44.0 174.0        
Supplier Component Remediation Liability | Cost of Goods, Product Line                                
Site Contingency [Line Items]                                
Adjustments to product cost of sales                     $ 58.0 $ 141.0 $ 74.0 $ 164.0    
Supplier Component Remediation Liability | Product                                
Site Contingency [Line Items]                                
Total cost of sales                             $ 655.0  
v3.10.0.1
Commitments and Contingencies (Schedule of Purchase Commitments) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Commitments and Contingencies Disclosure [Abstract]    
Less than 1 year $ 5,407 $ 4,620
1 to 3 years 710 20
3 to 5 years 360 0
Total $ 6,477 $ 4,640
v3.10.0.1
Commitments and Contingencies (Schedule of Other Commitments) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Others      
Site Contingency [Line Items]      
Compensation expense related to acquisitions $ 203 $ 212 $ 282
v3.10.0.1
Commitments and Contingencies (Schedule of Product Warranty Liability) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]      
Balance at beginning of fiscal year $ 407 $ 414 $ 449
Provisions for warranties issued 582 691 715
Adjustments for pre-existing warranties (38) (21) (8)
Settlements (592) (677) (714)
Divestiture 0 0 (28)
Balance at end of fiscal year $ 359 $ 407 $ 414
v3.10.0.1
Commitments and Contingencies (Schedule of Financing Guarantees Outstanding) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Loss Contingencies [Line Items]    
Maximum potential future payments relating to financing guarantees: $ 308 $ 314
Deferred revenue associated with financing guarantees: (122) (134)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue 186 180
Channel partner    
Loss Contingencies [Line Items]    
Maximum potential future payments relating to financing guarantees: 277 240
Deferred revenue associated with financing guarantees: (94) (82)
End user    
Loss Contingencies [Line Items]    
Maximum potential future payments relating to financing guarantees: 31 74
Deferred revenue associated with financing guarantees: $ (28) $ (52)
v3.10.0.1
Shareholders' Equity (Additional Information) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Jul. 28, 2018
Apr. 28, 2018
Jan. 27, 2018
Oct. 28, 2017
Jul. 29, 2017
Apr. 29, 2017
Jan. 28, 2017
Oct. 29, 2016
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Feb. 14, 2018
Stockholders' Equity Note [Abstract]                        
Cash dividends paid per common share (in dollars per share) $ 0.33 $ 0.33 $ 0.29 $ 0.29 $ 0.29 $ 0.29 $ 0.26 $ 0.26 $ 1.24 $ 1.1 $ 0.94  
Payments of dividends                 $ 5,968 $ 5,511 $ 4,750  
Authorized additional repurchase amount                       $ 25,000
Remaining authorized repurchase amount $ 19,000               $ 19,000      
Class of Stock [Line Items]                        
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)                 20 20 21  
Payments related to tax withholding for share-based compensation                 $ 703 $ 619 $ 557  
Stock repurchase program                        
Class of Stock [Line Items]                        
Stock repurchases pending settlement $ 180       $ 66       $ 180 $ 66 $ 45  
v3.10.0.1
Shareholders' Equity (Stock Repurchase Program) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Stockholders' Equity Note [Abstract]      
Repurchase of common stock under the stock repurchase program, Shares repurchased (in shares) 432 118 148
Cumulative weighted average price per share repurchased, Weighted average price per share (in dollars per share) $ 40.88 $ 31.38 $ 26.45
Repurchase of common stock under the stock repurchase program, Amount repurchased $ 17,661 $ 3,706 $ 3,918
v3.10.0.1
Employee Benefit Plans (Employee Stock Incentive Plans) (Details)
12 Months Ended
Jul. 28, 2018
stock_incentive_plan
shares
Jul. 29, 2017
shares
Jul. 30, 2016
shares
Jul. 25, 2015
shares
Nov. 12, 2009
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Number of stock incentive plans (stock incentive plan) | stock_incentive_plan 1        
Outstanding stock options (in shares) 6,000,000 12,000,000 73,000,000 103,000,000  
2005 Plan          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Shares reserved for issuance (in shares) 694,000,000        
Reduction in number of shares available for issuance after amendment (in shares) 1.5        
Exercise price as a percentage of market value for Options 100.00%        
Award requisite service period 3 years        
2005 Plan | Stock awards subsequent to November 12, 2009          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Reduction in number of shares available for issuance after amendment (in shares)         1.5
2005 Plan | Stock awards subsequent to November 12, 2009 | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Expiration period for stock options and stock appreciation rights 10 years        
2005 Plan | Employee Stock Option          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period 1 year        
2005 Plan | Employee Stock Option | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting percentage 20.00%        
Award requisite service period 36 months        
2005 Plan | Employee Stock Option | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting percentage 25.00%        
Award requisite service period 48 months        
2005 Plan | Time-based Stock and Time-based RSUs          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award vesting period 4 years        
2005 Plan | Performance base and Market base RSU          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award requisite service period 3 years        
2005 Plan | Performance based RSU based on financial or nonfinancial operating goals | Minimum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award requisite service period 6 months        
2005 Plan | Performance based RSU based on financial or nonfinancial operating goals | Maximum          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Award requisite service period 3 years        
v3.10.0.1
Employee Benefit Plans (Employee Stock Purchase Plan) (Details) - Employee Stock Purchase Plan - shares
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]      
Shares reserved for issuance (in shares) 621,000,000    
Expiration period for stock options and stock appreciation rights 24 months    
Shares eligible for employees purchase, percentage of discount 15.00%    
Shares issued under employee purchase plan, shares (in shares) 22,000,000 23,000,000 25,000,000
ESPP- shares available for issuance (in shares) 78,000,000    
v3.10.0.1
Employee Benefit Plans (Summary of Share-Based Compensation Expense) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 1,599 $ 1,529 $ 1,458
Income tax benefit for share-based compensation 558 451 429
Cost of sales      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 227 219 212
Research and development      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 538 529 470
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 555 542 545
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 246 236 205
Restructuring and other charges      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 33 3 26
Share-based compensation expense in operating expenses      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 1,372 1,310 1,246
Product | Cost of sales      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 94 85 70
Service | Cost of sales      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 133 $ 134 $ 142
v3.10.0.1
Employee Benefit Plans (Additional Information - Summary of Share-Based Compensation Expense) (Details)
$ in Billions
12 Months Ended
Jul. 28, 2018
USD ($)
Retirement Benefits [Abstract]  
Total compensation cost related to unvested share-based awards $ 3.1
Expected period of recognition of compensation cost, years 2 years 6 months
v3.10.0.1
Employee Benefit Plans (Summary of Share-Based Awards Available for Grant) (Details) - shares
shares in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]      
Balance at beginning of fiscal year (in shares) 272 242 276
Restricted stock, stock units, and other share-based awards granted (in shares) (70) (76) (96)
Share-based awards canceled/forfeited/expired (in shares) 18 78 30
Shares withheld for taxes and not issued (in shares) 25 28 30
Other (in shares) 0 0 2
Balance at end of fiscal year (in shares) 245 272 242
v3.10.0.1
Employee Benefit Plans (Additional Information - Summary of Share-Based Awards Available for Grant) (Details)
Jul. 28, 2018
shares
2005 Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Reduction in number of shares available for issuance after amendment (in shares) 1.5
v3.10.0.1
Employee Benefit Plans (Summary Of Restricted Stock And Stock Unit Activity) (Details) - Restricted Stock/Stock Units - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Restricted Stock/ Stock Units      
Unvested, Beginning balance (in shares) 141 145 143
Granted (in shares) 46 50 62
Assumed from acquisitions (in shares) 1 15 6
Vested (in shares) (53) (54) (54)
Canceled/forfeited/other (in shares) (16) (15) (12)
Unvested, Ending balance (in shares) 119 141 145
Weighted-Average Grant Date Fair Value per Share      
Unvested, Beginning balance (in dollars per share) $ 26.94 $ 24.26 $ 22.08
Granted (in dollars per share) 35.62 27.89 25.90
Assumed from acquisitions (in dollars per share) 28.26 32.21 24.58
Vested (in dollars per share) 26.02 23.14 20.68
Canceled/forfeited (in dollars per share) 28.37 23.56 22.91
Unvested, Ending balance (in dollars per share) $ 30.56 $ 26.94 $ 24.26
Aggregate Fair Value      
Vested $ 1,909 $ 1,701 $ 1,428
v3.10.0.1
Employee Benefit Plans (Summary Of Stock Option Activity) (Details) - $ / shares
shares in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Number Outstanding      
Beginning balance (in shares) 12 73 103
Assumed from acquisitions (in shares) 3 8 18
Exercised (in shares) (8) (14) (32)
Canceled/forfeited/expired (in shares) (1) (55) (16)
Ending balance (in shares) 6 12 73
Weighted-Average Exercise Price per Share      
Beginning balance (in dollars per share) $ 6.15 $ 26.78 $ 28.68
Assumed from acquisitions (in dollars per share) 8.20 4.47 5.17
Exercised (in dollars per share) 5.77 12.11 19.22
Canceled/forfeited/expired (in dollars per share) 8.75 31.83 30.01
Ending balance (in dollars per share) $ 7.18 $ 6.15 $ 26.78
v3.10.0.1
Employee Benefit Plans (Additional Information - Stock Option Activity) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Jul. 27, 2018
Retirement Benefits [Abstract]        
Total pretax intrinsic value $ 257 $ 283 $ 266  
Closing stock price (in dollars per share)       $ 42.57
In-the-money exercisable stock option (in shares) 4      
Number exercisable (in shares)   6    
Weighted- average exercise price (in dollars per share)   $ 5.61    
v3.10.0.1
Employee Benefit Plans (Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Jul. 25, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
STOCK OPTIONS OUTSTANDING, Number Outstanding (in shares) 6 12 73 103
STOCK OPTIONS OUTSTANDING, Weighted- Average Exercise Price per Share (in dollars per share) $ 7.18 $ 6.15 $ 26.78 $ 28.68
STOCK OPTIONS EXERCISABLE, Number Exercisable (in shares)   6    
STOCK OPTIONS EXERCISABLE, Weighted- Average Exercise Price per Share (in dollars per share)   $ 5.61    
$ 0.01 – 35.00        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Range of exercise prices, lower range price (in dollars per share) 0.01      
Range of exercise prices, upper range price (in dollars per share) $ 35.00      
STOCK OPTIONS OUTSTANDING, Number Outstanding (in shares) 6      
STOCK OPTIONS OUTSTANDING, Weighted- Average Remaining Contractual Life (in Years) 5 years 10 months 24 days      
STOCK OPTIONS OUTSTANDING, Weighted- Average Exercise Price per Share (in dollars per share) $ 7.18      
STOCK OPTIONS OUTSTANDING, Aggregate Intrinsic Value $ 228      
STOCK OPTIONS EXERCISABLE, Number Exercisable (in shares) 4      
STOCK OPTIONS EXERCISABLE, Weighted- Average Exercise Price per Share (in dollars per share) $ 6.84      
STOCK OPTIONS EXERCISABLE, Aggregate Intrinsic Value $ 153      
v3.10.0.1
Employee Benefit Plans (Valuation of Employee Share-Based Awards (Time-Based Restricted Stock Units)) (Details) - $ / shares
shares in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
RESTRICTED STOCK UNITS      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares granted (in millions) (in shares) 43 43 57
Grant date fair value per share (in dollars per share) $ 35.81 $ 28.38 $ 26.01
Expected dividend 3.20% 3.50% 3.20%
Range of risk-free interest rates, minimum 0.00% 0.00% 0.00%
Range of risk-free interest rates, maximum 2.70% 1.50% 1.20%
PERFORMANCE BASED RESTRICTED STOCK UNITS      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of shares granted (in millions) (in shares) 3 7 5
Grant date fair value per share (in dollars per share) $ 32.69 $ 28.94 $ 24.70
Expected dividend 3.50% 3.40% 3.10%
Range of risk-free interest rates, minimum 1.00% 0.10% 0.00%
Range of risk-free interest rates, maximum 2.70% 1.50% 1.20%
Range of expected volatilities for index, minimum 12.50% 16.70% 15.30%
Range of expected volatilities for index, maximum 82.80% 46.80% 54.30%
v3.10.0.1
Employee Benefit Plans (Additional Information - Valuation of Employee Share-Based Award) (Details) - 2005 Plan
12 Months Ended
Jul. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award requisite service period 3 years
Performance base and Market base RSU  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
PRSU allocation between Financial operating goals and TSR 50.00%
Award requisite service period 3 years
PRSU based on TSR | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting percentage 0.00%
PRSU based on TSR | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting percentage 150.00%
PRSU based on financial performance metrics | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting percentage 0.00%
PRSU based on financial performance metrics | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting percentage 150.00%
PRSU based on nonfinancial operating goals | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting percentage 0.00%
PRSU based on nonfinancial operating goals | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting percentage 100.00%
v3.10.0.1
Employee Benefit Plans (Valuation of Employee Share-Based Awards (Employee Stock Purchase Rights)) (Details) - Employee Stock Purchase Rights - $ / shares
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility 22.10% 24.60% 23.90%
Risk-free interest rate 1.30% 0.70% 0.40%
Expected dividend 3.10% 3.20% 3.10%
Expected life (in years) 1 year 3 months 18 days 1 year 3 months 18 days 1 year 3 months 18 days
Weighted-average estimated grant date fair value per share (in dollars per share) $ 7.48 $ 6.52 $ 5.73
v3.10.0.1
Employee Benefit Plans (Additional Information - 401K and Def Comp) (Details) - USD ($)
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Deferred Compensation Plans      
401(k) and Deferred Compensation Plan [Line Items]      
Employer matching contribution 4.50%    
Maximum annual contributions $ 1,500,000    
Deferred compensation liability $ 651,000,000 $ 622,000,000  
401(K) Plan      
401(k) and Deferred Compensation Plan [Line Items]      
Allowed employee contributions (up to) 75.00%    
Employer matching contribution, percentage of the first 4.5% of eligible earnings 100.00%    
Employer matching contribution 4.50%    
Maximum matching contribution $ 12,375    
Total matching contribution by the Company for the period $ 269,000,000 265,000,000 $ 262,000,000
401(k) Catch Up Contribution      
401(k) and Deferred Compensation Plan [Line Items]      
Allowed employee contributions (up to) 75.00%    
Total matching contribution by the Company for the period $ 0 $ 0 $ 0
v3.10.0.1
Comprehensive Income (Loss) (AOCI components) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Apr. 28, 2018
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Balance, beginning of period   $ 66,137    
Other comprehensive income (loss)   (940) $ 373 $ (397)
Effect of adoption of accounting standards   9    
Balance, end of period   43,204 66,137  
Net Unrealized Gains (Losses) on Available-for-Sale Investments        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Balance, beginning of period   373 413 310
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.   (543) (164) 151
(Gains) losses reclassified out of AOCI   (287) 87 1
Tax benefit (expense)   93 37 (49)
Other comprehensive income (loss)   (737) (40) 103
Effect of adoption of accounting standards   54    
Balance, end of period   (310) 373 413
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Balance, beginning of period   32 (59) (16)
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.   21 22 (66)
(Gains) losses reclassified out of AOCI   (68) 79 20
Tax benefit (expense)   4 (10) 3
Other comprehensive income (loss)   (43) 91 (43)
Effect of adoption of accounting standards   0    
Balance, end of period   (11) 32 (59)
Cumulative Translation Adjustment and Actuarial Gains and Losses        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Balance, beginning of period   (359) (680) (233)
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.   (159) 318 (399)
(Gains) losses reclassified out of AOCI   7 16 (6)
Tax benefit (expense)   (8) (13) (42)
Other comprehensive income (loss)   (160) 321 (447)
Effect of adoption of accounting standards   (9)    
Balance, end of period   (528) (359) (680)
Accumulated Other Comprehensive Income (Loss)        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Balance, beginning of period   46 (326) 61
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.   (681) 176 (314)
(Gains) losses reclassified out of AOCI   (348) 182 15
Tax benefit (expense)   89 14 (88)
Other comprehensive income (loss)   (940) 372 (387)
Effect of adoption of accounting standards $ 45 45    
Balance, end of period   $ (849) $ 46 $ (326)
v3.10.0.1
Comprehensive Income (Loss) (Reclassification out of other comprehensive income) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]      
Total amounts reclassified out of AOCI $ 348 $ (182) $ (15)
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 (7) (16) 6
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 287 (87) (1)
Reclassification out of Accumulated Other Comprehensive Income | Net unrealized gains and losses on cash flow hedging instruments | Derivatives designated as cash flow hedging instruments:      
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]      
Operating expenses 52 (59) (15)
Cost of sales—service 16 (20) (5)
Net unrealized gains and losses on cash flow hedging instruments $ 68 $ (79) $ (20)
v3.10.0.1
Income Taxes (Provision for Income Taxes) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Federal:      
Current $ 9,900 $ 1,300 $ 865
Deferred 1,156 (42) (93)
Total 11,056 1,258 772
State:      
Current 340 86 78
Deferred (232) 56 13
Total 108 142 91
Foreign:      
Current 1,789 1,416 1,432
Deferred (24) (138) (114)
Total 1,765 1,278 1,318
Total $ 12,929 $ 2,678 $ 2,181
v3.10.0.1
Income Taxes (Income Before Provision For Income Taxes) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Income Tax Disclosure [Abstract]      
United States $ 3,765 $ 2,393 $ 2,907
International 9,274 9,894 10,013
Total $ 13,039 $ 12,287 $ 12,920
v3.10.0.1
Income Taxes (Difference Between Income Taxes at Federal Statutory Rate and Provision for Income Taxes) (Details)
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Income Tax Disclosure [Abstract]      
Federal statutory rate 27.00% 35.00% 35.00%
State taxes, net of federal tax benefit 0.60% 1.10% 0.50%
Foreign income at other than U.S. rates (5.20%) (13.40%) (14.50%)
Tax credits (2.50%) (1.20%) (1.70%)
Domestic manufacturing deduction (0.50%) (0.40%) (0.60%)
Stock-based compensation (0.10%) 1.40% 1.40%
Tax audit settlement (0.00%) (0.00%) (2.80%)
Impact of the Tax Act 80.10% 0.00% 0.00%
Other, net (0.20%) (0.70%) (0.40%)
Total 99.20% 21.80% 16.90%
v3.10.0.1
Income Taxes (Additional Information) (Details) - USD ($)
$ / shares in Units, $ in Millions
1 Months Ended 3 Months Ended 12 Months Ended
Feb. 28, 2018
Jul. 28, 2018
Jan. 27, 2018
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Dec. 31, 2017
Income Tax [Line Items]              
Blended federal tax rate       27.00% 35.00% 35.00%  
Undistributed earnings of certain foreign subsidiaries on which tax is not provided   $ 77   $ 77     $ 76,000
Tax Cuts and Jobs Act of 2017, tax expense for foreign withholding tax     $ 1,200 1,200      
Foreign earnings repatriated       70,000      
Tax Cuts and Jobs Act of 2017, transition tax expense   (863) 9,000 8,100      
Tax Cuts and Jobs Act of 2017, provisional tax expense     11,100 10,400      
Tax Cuts and Jobs Act of 2017, re-measurement of net deferred tax assets     $ 900 1,100      
Unrecognized deferred income tax liability   15   15      
Gross income tax benefit attributable to tax incentives       $ 900 $ 1,300 $ 1,200  
Gross Income Tax Benefit attributable to tax incentives (in dollars per share)       $ 0.19 $ 0.25 $ 0.23  
Unrecognized Tax Benefits, reduced       $ 129 $ 78 $ 457  
Unrecognized tax benefits that would affect the effective tax rate if realized   1,700   1,700      
Net interest expense, reduction related to unrecognized tax benefits       10 26    
Penalties, reduction related to unrecognized tax benefits       1 4    
Reduction in net interest expense           55  
Reduction in penalties           40  
Accrual for interest and penalties   180   180 $ 186 154  
Unrecognized tax benefit that could be reduced in next 12 months   300   300      
Tax Year 2016              
Income Tax [Line Items]              
R&D tax benefit           226  
Tax Year 2015              
Income Tax [Line Items]              
R&D tax benefit           81  
Foreign Tax Authority              
Income Tax [Line Items]              
Income taxes paid $ 1,200     1,200      
Operating loss carryforwards   808   808      
Valuation allowance   125   125      
Tax credit carryforward   5   5      
Federal income tax settlement (Year 2008-2010)              
Income Tax [Line Items]              
Unrecognized Tax Benefits, reduced           563  
Accrued income tax interest reduction, tax settlement           63  
Federal income tax settlement (Year 2008-2010) | Include reduction of interest expense              
Income Tax [Line Items]              
Net tax benefit to the income tax provision           367  
Federal income tax settlement (Year 2008-2010) | Reduced tax interest expense upon tax settlement              
Income Tax [Line Items]              
Net tax benefit to the income tax provision           $ 21  
Federal              
Income Tax [Line Items]              
Operating loss carryforwards   703   703      
Tax credit carryforward   47   47      
State and Local Jurisdiction              
Income Tax [Line Items]              
Operating loss carryforwards   891   891      
Tax credit carryforward   1,000   1,000      
Valuation allowance   $ 249   $ 249      
v3.10.0.1
Income Taxes (Aggregate Changes in Gross Unrecognized Tax Benefits) (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Beginning balance $ 1,973 $ 1,627 $ 2,029
Additions based on tax positions related to the current year 251 336 255
Additions for tax positions of prior years 84 180 116
Reductions for tax positions of prior years (129) (78) (457)
Settlements (124) (43) (241)
Lapse of statute of limitations (55) (49) (75)
Ending balance $ 2,000 $ 1,973 $ 1,627
v3.10.0.1
Income Taxes (Breakdown Between Current and Noncurrent Net Deferred Tax Assets) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Income Tax Disclosure [Abstract]    
Deferred tax assets $ 3,219 $ 4,239
Deferred tax liabilities (141) (271)
Total net deferred tax assets $ 3,078 $ 3,968
v3.10.0.1
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
ASSETS    
Allowance for doubtful accounts and returns $ 285 $ 443
Sales-type and direct-financing leases 171 277
Inventory write-downs and capitalization 289 446
Investment provisions 54 171
IPR&D, goodwill, and purchased intangible assets 63 125
Deferred revenue 1,584 2,057
Credits and net operating loss carryforwards 1,087 976
Share-based compensation expense 190 273
Accrued compensation 370 504
Other 408 559
Gross deferred tax assets 4,501 5,831
Valuation allowance (374) (244)
Total deferred tax assets 4,127 5,587
LIABILITIES    
Purchased intangible assets (753) (1,037)
Depreciation (118) (340)
Unrealized gains on investments (33) (203)
Other (145) (39)
Total deferred tax liabilities (1,049) (1,619)
Total net deferred tax assets $ 3,078 $ 3,968
v3.10.0.1
Segment Information and Major Customers (Additional Information) (Details)
$ in Millions
3 Months Ended 12 Months Ended
Jul. 28, 2018
USD ($)
Apr. 28, 2018
USD ($)
Jan. 27, 2018
USD ($)
Oct. 28, 2017
USD ($)
Jul. 29, 2017
USD ($)
Apr. 29, 2017
USD ($)
Jan. 28, 2017
USD ($)
Oct. 29, 2016
USD ($)
Jul. 28, 2018
USD ($)
segment
Jul. 29, 2017
USD ($)
Jul. 30, 2016
USD ($)
Segment Reporting Information [Line Items]                      
Number of geographic segments (segment) | segment                 3    
Revenue $ 12,844 $ 12,463 $ 11,887 $ 12,136 $ 12,133 $ 11,940 $ 11,580 $ 12,352 $ 49,330 $ 48,005 $ 49,247
SP Video CPE Business                      
Segment Reporting Information [Line Items]                      
Revenue                     504
United States                      
Segment Reporting Information [Line Items]                      
Revenue                 $ 25,500 $ 25,000 $ 25,900
v3.10.0.1
Segment Information and Major Customers (Summary of Reportable Segments) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jul. 28, 2018
Apr. 28, 2018
Jan. 27, 2018
Oct. 28, 2017
Jul. 29, 2017
Apr. 29, 2017
Jan. 28, 2017
Oct. 29, 2016
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Segment Reporting Information [Line Items]                      
Revenue: $ 12,844 $ 12,463 $ 11,887 $ 12,136 $ 12,133 $ 11,940 $ 11,580 $ 12,352 $ 49,330 $ 48,005 $ 49,247
Gross margin: $ 7,922 $ 7,759 $ 7,498 $ 7,427 $ 7,546 $ 7,518 $ 7,276 $ 7,884 30,606 30,224 30,960
Operating Segments | Americas                      
Segment Reporting Information [Line Items]                      
Revenue:                 29,070 28,351 29,392
Gross margin:                 18,792 18,284 18,986
Operating Segments | EMEA                      
Segment Reporting Information [Line Items]                      
Revenue:                 12,425 12,004 12,302
Gross margin:                 7,945 7,855 7,998
Operating Segments | APJC                      
Segment Reporting Information [Line Items]                      
Revenue:                 7,834 7,650 7,553
Gross margin:                 4,726 4,741 4,620
Segment Reconciling Items                      
Segment Reporting Information [Line Items]                      
Gross margin:                 31,463 30,880 31,604
Unallocated corporate items                      
Segment Reporting Information [Line Items]                      
Gross margin:                 $ (857) $ (656) $ (644)
v3.10.0.1
Segment Information and Major Customers (Summary of Net Revenue for Groups of Similar Products and Services) (Details) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jul. 28, 2018
Apr. 28, 2018
Jan. 27, 2018
Oct. 28, 2017
Jul. 29, 2017
Apr. 29, 2017
Jan. 28, 2017
Oct. 29, 2016
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue $ 12,844 $ 12,463 $ 11,887 $ 12,136 $ 12,133 $ 11,940 $ 11,580 $ 12,352 $ 49,330 $ 48,005 $ 49,247
Infrastructure Platforms                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue                 28,270 27,779 28,851
Applications                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue                 5,035 4,568 4,438
Security                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue                 2,353 2,153 1,969
Other Products                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue                 1,050 1,205 1,996
Product:                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue                 36,709 35,705 37,254
Service                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue                 $ 12,621 $ 12,300 11,993
SP Video CPE Business                      
Segment Reporting, Revenue Reconciling Item [Line Items]                      
Revenue                     $ 504
v3.10.0.1
Segment Information and Major Customers (Property and Equipment Information for Geographic Areas) (Details) - USD ($)
$ in Millions
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Segment Reporting, Asset Reconciling Item [Line Items]      
Property and equipment, net $ 3,006 $ 3,322 $ 3,506
United States      
Segment Reporting, Asset Reconciling Item [Line Items]      
Property and equipment, net 2,487 2,711 2,822
International      
Segment Reporting, Asset Reconciling Item [Line Items]      
Property and equipment, net $ 519 $ 611 $ 684
v3.10.0.1
Net Income per Share (Calculation Of Basic And Diluted Net Income Per Share) (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
3 Months Ended 12 Months Ended
Jul. 28, 2018
Apr. 28, 2018
Jan. 27, 2018
Oct. 28, 2017
Jul. 29, 2017
Apr. 29, 2017
Jan. 28, 2017
Oct. 29, 2016
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Earnings Per Share [Abstract]                      
Net income $ 3,803 $ 2,691 $ (8,778) $ 2,394 $ 2,424 $ 2,515 $ 2,348 $ 2,322 $ 110 $ 9,609 $ 10,739
Weighted-average shares—basic (In shares)                 4,837 5,010 5,053
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements                 44 39 35
Weighted-average shares—diluted (in shares)                 4,881 5,049 5,088
Net income per share—basic (in dollars per share) $ 0.81 $ 0.56 $ (1.78) $ 0.48 $ 0.49 $ 0.50 $ 0.47 $ 0.46 $ 0.02 $ 1.92 $ 2.13
Net income per share—diluted (in dollars per share) $ 0.81 $ 0.56 $ (1.78) $ 0.48 $ 0.48 $ 0.50 $ 0.47 $ 0.46 $ 0.02 $ 1.90 $ 2.11
Antidilutive employee share-based awards, excluded (in shares)                 61 136 148
v3.10.0.1
Supplementary Financial Data (Unaudited) (Details) - USD ($)
$ / shares in Units, $ in Millions
3 Months Ended 12 Months Ended
Jul. 28, 2018
Apr. 28, 2018
Jan. 27, 2018
Oct. 28, 2017
Jul. 29, 2017
Apr. 29, 2017
Jan. 28, 2017
Oct. 29, 2016
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Quarterly Financial Information Disclosure [Abstract]                      
Revenue $ 12,844 $ 12,463 $ 11,887 $ 12,136 $ 12,133 $ 11,940 $ 11,580 $ 12,352 $ 49,330 $ 48,005 $ 49,247
Gross margin 7,922 7,759 7,498 7,427 7,546 7,518 7,276 7,884 30,606 30,224 30,960
Operating income 3,346 3,134 3,073 2,756 3,034 3,169 2,893 2,877 12,309 11,973 12,660
Net income (loss) $ 3,803 $ 2,691 $ (8,778) $ 2,394 $ 2,424 $ 2,515 $ 2,348 $ 2,322 $ 110 $ 9,609 $ 10,739
Net income per share—basic (in dollars per share) $ 0.81 $ 0.56 $ (1.78) $ 0.48 $ 0.49 $ 0.50 $ 0.47 $ 0.46 $ 0.02 $ 1.92 $ 2.13
Net income per share—diluted (in dollars per share) 0.81 0.56 (1.78) 0.48 0.48 0.50 0.47 0.46 0.02 1.90 2.11
Cash dividends declared per common share (in dollars per share) $ 0.33 $ 0.33 $ 0.29 $ 0.29 $ 0.29 $ 0.29 $ 0.26 $ 0.26 $ 1.24 $ 1.1 $ 0.94
Cash and cash equivalents and investments $ 46,548 $ 54,431 $ 73,683 $ 71,588 $ 70,492 $ 67,974 $ 71,845 $ 70,968 $ 46,548 $ 70,492  
Tax Cuts and Jobs Act of 2017, transition tax expense $ (863)   9,000           8,100    
Tax Cuts and Jobs Act of 2017, provisional tax expense     11,100           10,400    
Tax Cuts and Jobs Act of 2017, tax expense for foreign withholding tax     1,200           1,200    
Tax Cuts and Jobs Act of 2017, re-measurement of net deferred tax assets     $ 900           $ 1,100    
v3.10.0.1
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($)
$ in Millions
12 Months Ended
Jul. 28, 2018
Jul. 29, 2017
Jul. 30, 2016
Financing Receivables      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of fiscal year $ 295 $ 375 $ 382
Provisions (benefits) (89) (35) 17
Recoveries (write-offs), net (6) (49) (15)
Foreign exchange and other 5 4 (9)
Balance at end of fiscal year 205 295 375
Accounts Receivable      
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]      
Balance at beginning of fiscal year 211 249 302
Provisions (benefits) (45) 27 (26)
Recoveries (write-offs), net (37) (61) (28)
Foreign exchange and other 0 (4) 1
Balance at end of fiscal year $ 129 $ 211 $ 249