QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
California | 77-0059951 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, par value $0.001 per share | CSCO | The Nasdaq Stock Market LLC |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||||||
Page | ||||||||||||||
Part I | ||||||||||||||
Item 1. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Part II. | ||||||||||||||
Item 1. | ||||||||||||||
Item 1A. | ||||||||||||||
Item 2. | ||||||||||||||
Item 3. | ||||||||||||||
Item 4. | ||||||||||||||
Item 5. | ||||||||||||||
Item 6. | ||||||||||||||
Item 1. | Financial Statements (Unaudited) |
January 27, 2018 | July 29, 2017 | October 24, 2020 | July 25, 2020 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 17,624 | $ | 11,708 | Cash and cash equivalents | $ | 10,822 | $ | 11,809 | |||||||||
Investments | 56,059 | 58,784 | Investments | 19,190 | 17,610 | |||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $181 at January 27, 2018 and $211 at July 29, 2017 | 3,963 | 5,146 | ||||||||||||||||
Accounts receivable, net of allowance for doubtful accounts of $125 at October 24, 2020 and $143 at July 25, 2020 | Accounts receivable, net of allowance for doubtful accounts of $125 at October 24, 2020 and $143 at July 25, 2020 | 3,980 | 5,472 | |||||||||||||||
Inventories | 1,896 | 1,616 | Inventories | 1,303 | 1,282 | |||||||||||||
Financing receivables, net | 4,925 | 4,856 | Financing receivables, net | 5,105 | 5,051 | |||||||||||||
Other current assets | 1,583 | 1,593 | Other current assets | 2,589 | 2,349 | |||||||||||||
Total current assets | 86,050 | 83,703 | Total current assets | 42,989 | 43,573 | |||||||||||||
Property and equipment, net | 3,113 | 3,322 | Property and equipment, net | 2,412 | 2,453 | |||||||||||||
Financing receivables, net | 4,913 | 4,738 | Financing receivables, net | 5,516 | 5,714 | |||||||||||||
Goodwill | 30,391 | 29,766 | Goodwill | 34,535 | 33,806 | |||||||||||||
Purchased intangible assets, net | 2,474 | 2,539 | Purchased intangible assets, net | 1,581 | 1,576 | |||||||||||||
Deferred tax assets | 3,097 | 4,239 | Deferred tax assets | 4,138 | 3,990 | |||||||||||||
Other assets | 1,472 | 1,511 | Other assets | 3,832 | 3,741 | |||||||||||||
TOTAL ASSETS | $ | 131,510 | $ | 129,818 | TOTAL ASSETS | $ | 95,003 | $ | 94,853 | |||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Short-term debt | $ | 13,741 | $ | 7,992 | Short-term debt | $ | 5,002 | $ | 3,005 | |||||||||
Accounts payable | 1,060 | 1,385 | Accounts payable | 2,294 | 2,218 | |||||||||||||
Income taxes payable | 2,204 | 98 | Income taxes payable | 810 | 839 | |||||||||||||
Accrued compensation | 2,736 | 2,895 | Accrued compensation | 2,978 | 3,122 | |||||||||||||
Deferred revenue | 11,102 | 10,821 | Deferred revenue | 11,271 | 11,406 | |||||||||||||
Other current liabilities | 4,521 | 4,392 | Other current liabilities | 4,636 | 4,741 | |||||||||||||
Total current liabilities | 35,364 | 27,583 | Total current liabilities | 26,991 | 25,331 | |||||||||||||
Long-term debt | 25,625 | 25,725 | Long-term debt | 9,564 | 11,578 | |||||||||||||
Income taxes payable | 9,185 | 1,250 | Income taxes payable | 8,786 | 8,837 | |||||||||||||
Deferred revenue | 7,686 | 7,673 | Deferred revenue | 9,202 | 9,040 | |||||||||||||
Other long-term liabilities | 1,668 | 1,450 | Other long-term liabilities | 2,303 | 2,147 | |||||||||||||
Total liabilities | 79,528 | 63,681 | Total liabilities | 56,846 | 56,933 | |||||||||||||
Commitments and contingencies (Note 12) | ||||||||||||||||||
Commitments and contingencies (Note 14) | Commitments and contingencies (Note 14) | |||||||||||||||||
Equity: | Equity: | |||||||||||||||||
Cisco shareholders’ equity: | Cisco shareholders’ equity: | |||||||||||||||||
Preferred stock, no par value: 5 shares authorized; none issued and outstanding | — | — | ||||||||||||||||
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,868 and 4,983 shares issued and outstanding at January 27, 2018 and July 29, 2017, respectively | 44,535 | 45,253 | ||||||||||||||||
Retained earnings | 7,364 | 20,838 | ||||||||||||||||
Accumulated other comprehensive income (loss) | 83 | 46 | ||||||||||||||||
Preferred stock, no par value: 5 shares authorized; NaN issued and outstanding | Preferred stock, no par value: 5 shares authorized; NaN issued and outstanding | 0 | 0 | |||||||||||||||
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,222 and 4,237 shares issued and outstanding at October 24, 2020 and July 25, 2020, respectively | Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 4,222 and 4,237 shares issued and outstanding at October 24, 2020 and July 25, 2020, respectively | 41,360 | 41,202 | |||||||||||||||
Accumulated deficit | Accumulated deficit | (2,756) | (2,763) | |||||||||||||||
Accumulated other comprehensive loss | Accumulated other comprehensive loss | (447) | (519) | |||||||||||||||
Total equity | 51,982 | 66,137 | Total equity | 38,157 | 37,920 | |||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 131,510 | $ | 129,818 | TOTAL LIABILITIES AND EQUITY | $ | 95,003 | $ | 94,853 |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | October 24, 2020 | October 26, 2019 | |||||||||||||||||||||
REVENUE: | REVENUE: | |||||||||||||||||||||||||
Product | $ | 8,709 | $ | 8,491 | $ | 17,763 | $ | 17,793 | Product | $ | 8,587 | $ | 9,878 | |||||||||||||
Service | 3,178 | 3,089 | 6,260 | 6,139 | Service | 3,342 | 3,281 | |||||||||||||||||||
Total revenue | 11,887 | 11,580 | 24,023 | 23,932 | Total revenue | 11,929 | 13,159 | |||||||||||||||||||
COST OF SALES: | COST OF SALES: | |||||||||||||||||||||||||
Product | 3,354 | 3,305 | 6,969 | 6,708 | Product | 3,206 | 3,524 | |||||||||||||||||||
Service | 1,035 | 999 | 2,129 | 2,064 | Service | 1,142 | 1,171 | |||||||||||||||||||
Total cost of sales | 4,389 | 4,304 | 9,098 | 8,772 | Total cost of sales | 4,348 | 4,695 | |||||||||||||||||||
GROSS MARGIN | 7,498 | 7,276 | 14,925 | 15,160 | GROSS MARGIN | 7,581 | 8,464 | |||||||||||||||||||
OPERATING EXPENSES: | OPERATING EXPENSES: | |||||||||||||||||||||||||
Research and development | 1,549 | 1,508 | 3,116 | 3,053 | Research and development | 1,612 | 1,666 | |||||||||||||||||||
Sales and marketing | 2,235 | 2,222 | 4,569 | 4,640 | Sales and marketing | 2,217 | 2,480 | |||||||||||||||||||
General and administrative | 483 | 456 | 1,040 | 1,011 | General and administrative | 544 | 519 | |||||||||||||||||||
Amortization of purchased intangible assets | 60 | 64 | 121 | 142 | Amortization of purchased intangible assets | 36 | 36 | |||||||||||||||||||
Restructuring and other charges | 98 | 133 | 250 | 544 | Restructuring and other charges | 602 | 184 | |||||||||||||||||||
Total operating expenses | 4,425 | 4,383 | 9,096 | 9,390 | Total operating expenses | 5,011 | 4,885 | |||||||||||||||||||
OPERATING INCOME | 3,073 | 2,893 | 5,829 | 5,770 | OPERATING INCOME | 2,570 | 3,579 | |||||||||||||||||||
Interest income | 396 | 329 | 775 | 624 | Interest income | 174 | 273 | |||||||||||||||||||
Interest expense | (247 | ) | (222 | ) | (482 | ) | (420 | ) | Interest expense | (112) | (178) | |||||||||||||||
Other income (loss), net | 10 | (37 | ) | 72 | (58 | ) | Other income (loss), net | 49 | 12 | |||||||||||||||||
Interest and other income (loss), net | 159 | 70 | 365 | 146 | Interest and other income (loss), net | 111 | 107 | |||||||||||||||||||
INCOME BEFORE PROVISION FOR INCOME TAXES | 3,232 | 2,963 | 6,194 | 5,916 | INCOME BEFORE PROVISION FOR INCOME TAXES | 2,681 | 3,686 | |||||||||||||||||||
Provision for income taxes | 12,010 | 615 | 12,578 | 1,246 | Provision for income taxes | 507 | 760 | |||||||||||||||||||
NET INCOME (LOSS) | $ | (8,778 | ) | $ | 2,348 | $ | (6,384 | ) | $ | 4,670 | ||||||||||||||||
NET INCOME | NET INCOME | $ | 2,174 | $ | 2,926 | |||||||||||||||||||||
Net income (loss) per share: | ||||||||||||||||||||||||||
Net income per share: | Net income per share: | |||||||||||||||||||||||||
Basic | $ | (1.78 | ) | $ | 0.47 | $ | (1.29 | ) | $ | 0.93 | Basic | $ | 0.51 | $ | 0.69 | |||||||||||
Diluted | $ | (1.78 | ) | $ | 0.47 | $ | (1.29 | ) | $ | 0.92 | Diluted | $ | 0.51 | $ | 0.68 | |||||||||||
Shares used in per-share calculation: | Shares used in per-share calculation: | |||||||||||||||||||||||||
Basic | 4,924 | 5,015 | 4,942 | 5,021 | Basic | 4,230 | 4,246 | |||||||||||||||||||
Diluted | 4,924 | 5,040 | 4,942 | 5,054 | Diluted | 4,244 | 4,273 | |||||||||||||||||||
Cash dividends declared per common share | $ | 0.29 | $ | 0.26 | $ | 0.58 | $ | 0.52 |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Net income (loss) | $ | (8,778 | ) | $ | 2,348 | $ | (6,384 | ) | $ | 4,670 | |||||
Available-for-sale investments: | |||||||||||||||
Change in net unrealized gains and losses, net of tax benefit (expense) of $1 and $(22) for the three and six months ended January 27, 2018, respectively, and $73 and $154 for the corresponding periods of fiscal 2017, respectively | (191 | ) | (276 | ) | (196 | ) | (397 | ) | |||||||
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $15 and $25 for the three and six months ended January 27, 2018, respectively, and $(11) and $(6) for the corresponding periods of fiscal 2017, respectively | (43 | ) | 19 | (66 | ) | 9 | |||||||||
(234 | ) | (257 | ) | (262 | ) | (388 | ) | ||||||||
Cash flow hedging instruments: | |||||||||||||||
Change in unrealized gains and losses, net of tax benefit (expense) of $(2) and $(3) for the three and six months ended January 27, 2018, respectively, and $1 and $4 for the corresponding periods of fiscal 2017, respectively | 28 | (1 | ) | 35 | (44 | ) | |||||||||
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $2 and $4 for the three and six months ended January 27, 2018, respectively, and $(2) and $(3) for the corresponding periods of fiscal 2017, respectively | (16 | ) | 25 | (27 | ) | 36 | |||||||||
12 | 24 | 8 | (8 | ) | |||||||||||
Net change in cumulative translation adjustment and actuarial gains and losses net of tax benefit (expense) of $(4) and $(6) for the three and six months ended January 27, 2018, respectively, and $0 and $(1) for the corresponding periods of fiscal 2017, respectively | 274 | (44 | ) | 291 | (71 | ) | |||||||||
Other comprehensive income (loss) | 52 | (277 | ) | 37 | (467 | ) | |||||||||
Comprehensive income (loss) | (8,726 | ) | 2,071 | (6,347 | ) | 4,203 | |||||||||
Comprehensive (income) loss attributable to noncontrolling interests | — | — | — | (8 | ) | ||||||||||
Comprehensive income (loss) attributable to Cisco Systems, Inc. | $ | (8,726 | ) | $ | 2,071 | $ | (6,347 | ) | $ | 4,195 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Net income | $ | 2,174 | $ | 2,926 | |||||||
Available-for-sale investments: | |||||||||||
Change in net unrealized gains and losses, net of tax benefit (expense) of $17 and $(14) for the first quarter of fiscal 2021 and 2020, respectively | (24) | 73 | |||||||||
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $5 for each of the first quarter of fiscal 2021 and 2020 | (10) | (5) | |||||||||
(34) | 68 | ||||||||||
Cash flow hedging instruments: | |||||||||||
Change in unrealized gains and losses, net of tax benefit (expense) of $0 and $1 for the first quarter of fiscal 2021 and 2020, respectively | (2) | 0 | |||||||||
Net (gains) losses reclassified into earnings, net of tax (benefit) expense of $1 and $0 for the first quarter of fiscal 2021 and 2020, respectively | (1) | 0 | |||||||||
(3) | 0 | ||||||||||
Net change in cumulative translation adjustment and actuarial gains and losses net of tax benefit (expense) of $(1) and $0 for the first quarter of fiscal 2021 and 2020, respectively | 109 | (91) | |||||||||
Other comprehensive income (loss) | 72 | (23) | |||||||||
Comprehensive income | $ | 2,246 | $ | 2,903 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | 2,174 | $ | 2,926 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization, and other | 451 | 461 | |||||||||
Share-based compensation expense | 438 | 395 | |||||||||
Provision for receivables | 13 | 50 | |||||||||
Deferred income taxes | (120) | 81 | |||||||||
(Gains) losses on divestitures, investments and other, net | (59) | (8) | |||||||||
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||||||
Accounts receivable | 1,526 | 515 | |||||||||
Inventories | (21) | 34 | |||||||||
Financing receivables | 167 | 146 | |||||||||
Other assets | (259) | 59 | |||||||||
Accounts payable | 73 | (45) | |||||||||
Income taxes, net | (84) | (330) | |||||||||
Accrued compensation | (165) | (473) | |||||||||
Deferred revenue | (45) | 158 | |||||||||
Other liabilities | 7 | (382) | |||||||||
Net cash provided by operating activities | 4,096 | 3,587 | |||||||||
Cash flows from investing activities: | |||||||||||
Purchases of investments | (3,756) | (2,028) | |||||||||
Proceeds from sales of investments | 657 | 2,342 | |||||||||
Proceeds from maturities of investments | 1,425 | 1,966 | |||||||||
Acquisitions and divestitures | (830) | (163) | |||||||||
Purchases of investments in privately held companies | (68) | (54) | |||||||||
Return of investments in privately held companies | 29 | 57 | |||||||||
Acquisition of property and equipment | (171) | (202) | |||||||||
Proceeds from sales of property and equipment | 4 | 4 | |||||||||
Net cash (used in) provided by investing activities | (2,710) | 1,922 | |||||||||
Cash flows from financing activities: | |||||||||||
Issuances of common stock | 1 | 2 | |||||||||
Repurchases of common stock—repurchase program | (800) | (784) | |||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (89) | (194) | |||||||||
Short-term borrowings, original maturities of 90 days or less, net | 0 | (3,470) | |||||||||
Repayments of debt | 0 | (2,720) | |||||||||
Dividends paid | (1,520) | (1,486) | |||||||||
Other | 35 | (16) | |||||||||
Net cash used in financing activities | (2,373) | (8,668) | |||||||||
Net decrease in cash, cash equivalents, and restricted cash | (987) | (3,159) | |||||||||
Cash, cash equivalents, and restricted cash, beginning of period | 11,812 | 11,772 | |||||||||
Cash, cash equivalents, and restricted cash, end of period | $ | 10,825 | $ | 8,613 | |||||||
Supplemental cash flow information: | |||||||||||
Cash paid for interest | $ | 160 | $ | 204 | |||||||
Cash paid for income taxes, net | $ | 710 | $ | 1,009 |
Six Months Ended | |||||||
January 27, 2018 | January 28, 2017 | ||||||
Cash flows from operating activities: | |||||||
Net income (loss) | $ | (6,384 | ) | $ | 4,670 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation, amortization, and other | 1,112 | 1,148 | |||||
Share-based compensation expense | 785 | 724 | |||||
Provision for receivables | (43 | ) | 4 | ||||
Deferred income taxes | 1,021 | (26 | ) | ||||
Excess tax benefits from share-based compensation | — | (101 | ) | ||||
(Gains) losses on divestitures, investments and other, net | (174 | ) | 79 | ||||
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||||||
Accounts receivable | 1,236 | 1,396 | |||||
Inventories | (276 | ) | (51 | ) | |||
Financing receivables | (156 | ) | (764 | ) | |||
Other assets | (15 | ) | 155 | ||||
Accounts payable | (338 | ) | (98 | ) | |||
Income taxes, net | 10,246 | (257 | ) | ||||
Accrued compensation | (189 | ) | (417 | ) | |||
Deferred revenue | 237 | 611 | |||||
Other liabilities | 88 | (571 | ) | ||||
Net cash provided by operating activities | 7,150 | 6,502 | |||||
Cash flows from investing activities: | |||||||
Purchases of investments | (13,954 | ) | (27,847 | ) | |||
Proceeds from sales of investments | 9,111 | 18,420 | |||||
Proceeds from maturities of investments | 7,365 | 5,245 | |||||
Acquisition of businesses, net of cash and cash equivalents acquired | (754 | ) | (251 | ) | |||
Proceeds from business divestitures | 27 | — | |||||
Purchases of investments in privately held companies | (89 | ) | (142 | ) | |||
Return of investments in privately held companies | 124 | 108 | |||||
Acquisition of property and equipment | (379 | ) | (526 | ) | |||
Proceeds from sales of property and equipment | 51 | 5 | |||||
Other | (7 | ) | 10 | ||||
Net cash provided by (used in) investing activities | 1,495 | (4,978 | ) | ||||
Cash flows from financing activities: | |||||||
Issuances of common stock | 302 | 386 | |||||
Repurchases of common stock—repurchase program | (5,457 | ) | (1,991 | ) | |||
Shares repurchased for tax withholdings on vesting of restricted stock units | (433 | ) | (432 | ) | |||
Short-term borrowings, original maturities of 90 days or less, net | 5,095 | 300 | |||||
Issuances of debt | 6,877 | 6,232 | |||||
Repayments of debt | (6,230 | ) | (1 | ) | |||
Excess tax benefits from share-based compensation | — | 101 | |||||
Dividends paid | (2,861 | ) | (2,612 | ) | |||
Other | (22 | ) | (240 | ) | |||
Net cash provided by (used in) financing activities | (2,729 | ) | 1,743 | ||||
Net increase (decrease) in cash and cash equivalents | 5,916 | 3,267 | |||||
Cash and cash equivalents, beginning of period | 11,708 | 7,631 | |||||
Cash and cash equivalents, end of period | $ | 17,624 | $ | 10,898 | |||
Supplemental cash flow information: | |||||||
Cash paid for interest | $ | 454 | $ | 419 | |||
Cash paid for income taxes, net | $ | 1,311 | $ | 1,529 |
Three Months Ended October 24, 2020 | Shares of Common Stock | Common Stock and Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||
BALANCE AT JULY 25, 2020 | 4,237 | $ | 41,202 | $ | (2,763) | $ | (519) | $ | 37,920 | ||||||||||||||||||||
Net income | 2,174 | 2,174 | |||||||||||||||||||||||||||
Other comprehensive income | 72 | 72 | |||||||||||||||||||||||||||
Issuance of common stock | 7 | 1 | 1 | ||||||||||||||||||||||||||
Repurchase of common stock | (20) | (192) | (608) | (800) | |||||||||||||||||||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (2) | (89) | (89) | ||||||||||||||||||||||||||
Cash dividends declared ($0.36 per common share) | (1,521) | (1,521) | |||||||||||||||||||||||||||
Effect of adoption of accounting standard | (38) | (38) | |||||||||||||||||||||||||||
Share-based compensation | 438 | 438 | |||||||||||||||||||||||||||
BALANCE AT OCTOBER 24, 2020 | 4,222 | $ | 41,360 | $ | (2,756) | $ | (447) | $ | 38,157 |
Three Months Ended October 26, 2019 | Shares of Common Stock | Common Stock and Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Equity | ||||||||||||||||||||||||
BALANCE AT JULY 27, 2019 | 4,250 | $ | 40,266 | $ | (5,903) | $ | (792) | $ | 33,571 | ||||||||||||||||||||
Net income | 2,926 | 2,926 | |||||||||||||||||||||||||||
Other comprehensive loss | (23) | (23) | |||||||||||||||||||||||||||
Issuance of common stock | 11 | 2 | 2 | ||||||||||||||||||||||||||
Repurchase of common stock | (16) | (148) | (620) | (768) | |||||||||||||||||||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (4) | (194) | (194) | ||||||||||||||||||||||||||
Cash dividends declared ($0.35 per common share) | (1,486) | (1,486) | |||||||||||||||||||||||||||
Share-based compensation | 395 | 395 | |||||||||||||||||||||||||||
BALANCE AT OCTOBER 26, 2019 | 4,241 | $ | 40,321 | $ | (5,083) | $ | (815) | $ | 34,423 |
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 | Total Equity | ||||||||||||||||||||
BALANCE AT JULY 29, 2017 | 4,983 | $ | 45,253 | $ | 20,838 | $ | 46 | $ | 66,137 | $ | — | $ | 66,137 | |||||||||||||
Net income (loss) | (6,384 | ) | (6,384 | ) | (6,384 | ) | ||||||||||||||||||||
Other comprehensive income (loss) | 37 | 37 | 37 | |||||||||||||||||||||||
Issuance of common stock | 52 | 302 | 302 | 302 | ||||||||||||||||||||||
Repurchase of common stock | (154 | ) | (1,393 | ) | (4,238 | ) | (5,631 | ) | (5,631 | ) | ||||||||||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (13 | ) | (433 | ) | (433 | ) | (433 | ) | ||||||||||||||||||
Cash dividends declared ($0.58 per common share) | (2,861 | ) | (2,861 | ) | (2,861 | ) | ||||||||||||||||||||
Cumulative effect of adoption of accounting standard | 9 | 9 | 9 | |||||||||||||||||||||||
Share-based compensation | 785 | 785 | 785 | |||||||||||||||||||||||
Purchase acquisitions and other | 21 | 21 | 21 | |||||||||||||||||||||||
BALANCE AT JANUARY 27, 2018 | 4,868 | $ | 44,535 | $ | 7,364 | $ | 83 | $ | 51,982 | $ | — | $ | 51,982 |
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 | Total Equity | ||||||||||||||||||||
BALANCE AT JULY 30, 2016 | 5,029 | $ | 44,516 | $ | 19,396 | $ | (326 | ) | $ | 63,586 | $ | (1 | ) | $ | 63,585 | |||||||||||
Net income | 4,670 | 4,670 | 4,670 | |||||||||||||||||||||||
Other comprehensive income (loss) | (475 | ) | (475 | ) | 8 | (467 | ) | |||||||||||||||||||
Issuance of common stock | 57 | 386 | 386 | 386 | ||||||||||||||||||||||
Repurchase of common stock | (65 | ) | (575 | ) | (1,427 | ) | (2,002 | ) | (2,002 | ) | ||||||||||||||||
Shares repurchased for tax withholdings on vesting of restricted stock units | (14 | ) | (432 | ) | (432 | ) | (432 | ) | ||||||||||||||||||
Cash dividends declared ($0.52 per common share) | (2,612 | ) | (2,612 | ) | (2,612 | ) | ||||||||||||||||||||
Tax effects from employee stock incentive plans | (54 | ) | (54 | ) | (54 | ) | ||||||||||||||||||||
Share-based compensation | 738 | 738 | 738 | |||||||||||||||||||||||
Purchase acquisitions and other | 6 | 6 | 6 | |||||||||||||||||||||||
BALANCE AT JANUARY 28, 2017 | 5,007 | $ | 44,585 | $ | 20,027 | $ | (801 | ) | $ | 63,811 | $ | 7 | $ | 63,818 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Revenue: | |||||||||||
Infrastructure Platforms | $ | 6,341 | $ | 7,553 | |||||||
Applications | 1,380 | 1,499 | |||||||||
Security | 861 | 816 | |||||||||
Other Products | 5 | 11 | |||||||||
Total Product | 8,587 | 9,878 | |||||||||
Services | 3,342 | 3,281 | |||||||||
Total | $ | 11,929 | $ | 13,159 |
2020 | |||||
1 to 4 | $ | 442 | |||
5 to 6 | 737 | ||||
7 and | 119 | ||||
Total | $ | 1,298 |
Purchase Consideration | Net Tangible Assets Acquired (Liabilities Assumed) | Purchased Intangible Assets | Goodwill | ||||||||||||
Viptela | $ | 497 | $ | (18 | ) | $ | 180 | $ | 335 | ||||||
Springpath | 248 | (11 | ) | 160 | 99 | ||||||||||
Others (three in total) | 43 | (2 | ) | 21 | 24 | ||||||||||
Total | $ | 788 | $ | (31 | ) | $ | 361 | $ | 458 |
Purchase Consideration | Net Tangible Assets Acquired (Liabilities Assumed) | Purchased Intangible Assets | Goodwill | ||||||||||||||||||||
Total acquisitions (3 in total) | $ | 878 | $ | 2 | $ | 210 | $ | 666 |
Balance at July 25, 2020 | Acquisitions | Foreign Currency Translation and Other | Balance at October 24, 2020 | ||||||||||||||||||||
Americas | $ | 21,304 | $ | 393 | $ | 40 | $ | 21,737 | |||||||||||||||
EMEA | 8,040 | 183 | 15 | 8,238 | |||||||||||||||||||
APJC | 4,462 | 90 | 8 | 4,560 | |||||||||||||||||||
Total | $ | 33,806 | $ | 666 | $ | 63 | $ | 34,535 |
Balance at | Balance at | ||||||||||||||
July 29, 2017 | Acquisitions | Other | January 27, 2018 | ||||||||||||
Americas | $ | 18,691 | $ | 337 | $ | 101 | $ | 19,129 | |||||||
EMEA | 7,057 | 93 | 42 | 7,192 | |||||||||||
APJC | 4,018 | 28 | 24 | 4,070 | |||||||||||
Total | $ | 29,766 | $ | 458 | $ | 167 | $ | 30,391 |
FINITE LIVES | INDEFINITE LIVES | TOTAL | |||||||||||||||||||||||||||||||||||||||||||||
TECHNOLOGY | CUSTOMER RELATIONSHIPS | OTHER | IPR&D | ||||||||||||||||||||||||||||||||||||||||||||
Weighted- Average Useful Life (in Years) | Amount | Weighted- Average Useful Life (in Years) | Amount | Weighted- Average Useful Life (in Years) | Amount | Amount | Amount | ||||||||||||||||||||||||||||||||||||||||
Total acquisitions (3 in total) | 3.9 | $ | 162 | 4.0 | $ | 42 | 2.0 | $ | 6 | 0 | $ | 210 |
FINITE LIVES | INDEFINITE LIVES | TOTAL | |||||||||||||||||||||||
TECHNOLOGY | CUSTOMER RELATIONSHIPS | OTHER | IPR&D | ||||||||||||||||||||||
Weighted- Average Useful Life (in Years) | Amount | Weighted- Average Useful Life (in Years) | Amount | Weighted- Average Useful Life (in Years) | Amount | Amount | Amount | ||||||||||||||||||
Viptela | 5.0 | $ | 144 | 6.0 | $ | 35 | 1.0 | $ | 1 | $ | — | $ | 180 | ||||||||||||
Springpath | 4.0 | 157 | 0.0 | — | 0.0 | — | 3 | 160 | |||||||||||||||||
Others (three in total) | 2.5 | 18 | 4.0 | 3 | 0.0 | — | — | 21 | |||||||||||||||||
Total | $ | 319 | $ | 38 | $ | 1 | $ | 3 | $ | 361 |
January 27, 2018 | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||
October 24, 2020 | October 24, 2020 | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||
Purchased intangible assets with finite lives: | Purchased intangible assets with finite lives: | |||||||||||||||||||||||||||||||
Technology | $ | 3,465 | $ | (1,659 | ) | $ | 1,806 | Technology | $ | 3,086 | $ | (2,104) | $ | 982 | ||||||||||||||||||
Customer relationships | 1,387 | (867 | ) | 520 | Customer relationships | 797 | (393) | 404 | ||||||||||||||||||||||||
Other | 82 | (51 | ) | 31 | Other | 14 | (5) | 9 | ||||||||||||||||||||||||
Total purchased intangible assets with finite lives | 4,934 | (2,577 | ) | 2,357 | Total purchased intangible assets with finite lives | 3,897 | (2,502) | 1,395 | ||||||||||||||||||||||||
In-process research and development, with indefinite lives | 117 | — | 117 | In-process research and development, with indefinite lives | 186 | — | 186 | |||||||||||||||||||||||||
Total | $ | 5,051 | $ | (2,577 | ) | $ | 2,474 | Total | $ | 4,083 | $ | (2,502) | $ | 1,581 |
July 29, 2017 | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||
July 25, 2020 | July 25, 2020 | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||
Purchased intangible assets with finite lives: | Purchased intangible assets with finite lives: | |||||||||||||||||||||||||||||||
Technology | $ | 3,182 | $ | (1,386 | ) | $ | 1,796 | Technology | $ | 3,298 | $ | (2,336) | $ | 962 | ||||||||||||||||||
Customer relationships | 1,353 | (765 | ) | 588 | Customer relationships | 760 | (365) | 395 | ||||||||||||||||||||||||
Other | 82 | (38 | ) | 44 | Other | 26 | (20) | 6 | ||||||||||||||||||||||||
Total purchased intangible assets with finite lives | 4,617 | (2,189 | ) | 2,428 | Total purchased intangible assets with finite lives | 4,084 | (2,721) | 1,363 | ||||||||||||||||||||||||
In-process research and development, with indefinite lives | 111 | — | 111 | In-process research and development, with indefinite lives | 213 | — | 213 | |||||||||||||||||||||||||
Total | $ | 4,728 | $ | (2,189 | ) | $ | 2,539 | Total | $ | 4,297 | $ | (2,721) | $ | 1,576 |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | October 24, 2020 | October 26, 2019 | |||||||||||||||||||||
Amortization of purchased intangible assets: | Amortization of purchased intangible assets: | |||||||||||||||||||||||||
Cost of sales | $ | 160 | $ | 124 | $ | 314 | $ | 253 | Cost of sales | $ | 170 | $ | 166 | |||||||||||||
Operating expenses | Operating expenses | 36 | 36 | |||||||||||||||||||||||
Amortization of purchased intangible assets | 60 | 64 | 121 | 142 | ||||||||||||||||||||||
Restructuring and other charges | — | — | — | 38 | ||||||||||||||||||||||
Total | $ | 220 | $ | 188 | $ | 435 | $ | 433 | Total | $ | 206 | $ | 202 |
Fiscal Year | Amount | ||||
2021 (remaining nine months) | $ | 487 | |||
2022 | $ | 431 | |||
2023 | $ | 286 | |||
2024 | $ | 170 | |||
2025 | $ | 15 | |||
Thereafter | $ | 6 |
Fiscal Year | Amount | ||
2018 (remaining six months) | $ | 431 | |
2019 | 781 | ||
2020 | 564 | ||
2021 | 364 | ||
2022 | 145 | ||
Thereafter | 72 | ||
Total | $ | 2,357 |
FISCAL 2020 AND PRIOR PLANS | FISCAL 2021 PLAN | |||||||||||||||||||||||||||||||
Employee Severance | Other | Employee Severance | Other | Total | ||||||||||||||||||||||||||||
Liability as of July 25, 2020 | $ | 58 | $ | 14 | $ | 0 | $ | 0 | $ | 72 | ||||||||||||||||||||||
Charges | 0 | 0 | 590 | 12 | 602 | |||||||||||||||||||||||||||
Cash payments | (58) | 0 | (272) | 0 | (330) | |||||||||||||||||||||||||||
Non-cash items | 0 | 0 | 0 | (11) | (11) | |||||||||||||||||||||||||||
Liability as of October 24, 2020 | $ | 0 | $ | 14 | $ | 318 | $ | 1 | $ | 333 |
FISCAL 2018 AND PRIOR PLANS | ||||||||||||||||||||
Employee Severance | Other | Total | ||||||||||||||||||
Liability as of July 27, 2019 | $ | 22 | $ | 11 | $ | 33 | ||||||||||||||
Charges | 175 | 9 | 184 | |||||||||||||||||
Cash payments | (154) | (1) | (155) | |||||||||||||||||
Non-cash items | 0 | (15) | (15) | |||||||||||||||||
Liability as of October 26, 2019 | $ | 43 | $ | 4 | $ | 47 |
FISCAL 2017 PLAN | ||||||||||||
Employee Severance | Other | Total | ||||||||||
Liability as of July 29, 2017 | $ | 74 | $ | 43 | $ | 117 | ||||||
Charges | 223 | 27 | 250 | |||||||||
Cash payments | (213 | ) | (27 | ) | (240 | ) | ||||||
Non-cash items | 3 | (18 | ) | (15 | ) | |||||||
Liability as of January 27, 2018 | $ | 87 | $ | 25 | $ | 112 |
FISCAL 2017 AND PRIOR PLANS | ||||||||||||
Employee Severance | Other | Total | ||||||||||
Liability as of July 30, 2016 | $ | 21 | $ | 24 | $ | 45 | ||||||
Charges | 452 | 92 | 544 | |||||||||
Cash payments | (381 | ) | (7 | ) | (388 | ) | ||||||
Non-cash items | (6 | ) | (67 | ) | (73 | ) | ||||||
Liability as of January 28, 2017 | $ | 86 | $ | 42 | $ | 128 |
October 24, 2020 | July 25, 2020 | |||||||||||||
Cash and cash equivalents | $ | 10,822 | $ | 11,809 | ||||||||||
Restricted cash included in other current assets | 3 | 0 | ||||||||||||
Restricted cash included in other assets | 0 | 3 | ||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 10,825 | $ | 11,812 |
Inventories: | ||||||||||||||
Raw materials | $ | 380 | $ | 456 | ||||||||||
Work in process | 19 | 25 | ||||||||||||
Finished goods: | ||||||||||||||
Deferred cost of sales | 54 | 59 | ||||||||||||
Manufactured finished goods | 646 | 542 | ||||||||||||
Total finished goods | 700 | 601 | ||||||||||||
Service-related spares | 191 | 184 | ||||||||||||
Demonstration systems | 13 | 16 | ||||||||||||
Total | $ | 1,303 | $ | 1,282 |
Property and equipment, net: | ||||||||||||||
Gross property and equipment: | ||||||||||||||
Land, buildings, and building and leasehold improvements | $ | 4,273 | $ | 4,252 | ||||||||||
Computer equipment and related software | 872 | 875 | ||||||||||||
Production, engineering, and other equipment | 5,157 | 5,163 | ||||||||||||
Operating lease assets | 338 | 337 | ||||||||||||
Furniture, fixtures and other | 385 | 387 | ||||||||||||
Total gross property and equipment | 11,025 | 11,014 | ||||||||||||
Less: accumulated depreciation and amortization | (8,613) | (8,561) | ||||||||||||
Total | $ | 2,412 | $ | 2,453 |
Deferred revenue: | ||||||||||||||
Product | $ | 8,139 | $ | 7,895 | ||||||||||
Service | 12,334 | 12,551 | ||||||||||||
Total | $ | 20,473 | $ | 20,446 | ||||||||||
Reported as: | ||||||||||||||
Current | $ | 11,271 | $ | 11,406 | ||||||||||
Noncurrent | 9,202 | 9,040 | ||||||||||||
Total | $ | 20,473 | $ | 20,446 |
Remaining Performance Obligations: | ||||||||||||||
Product | $ | 11,340 | $ | 11,261 | ||||||||||
Service | 16,129 | 17,093 | ||||||||||||
Total | $ | 27,469 | $ | 28,354 |
January 27, 2018 | July 29, 2017 | |||||||
Inventories: | ||||||||
Raw materials | $ | 385 | $ | 289 | ||||
Work in Process | — | 1 | ||||||
Finished goods: | ||||||||
Distributor inventory and deferred cost of sales | 465 | 451 | ||||||
Manufactured finished goods | 727 | 552 | ||||||
Total finished goods | 1,192 | 1,003 | ||||||
Service-related spares | 292 | 300 | ||||||
Demonstration systems | 27 | 23 | ||||||
Total | $ | 1,896 | $ | 1,616 |
Property and equipment, net: | ||||||||
Gross property and equipment: | ||||||||
Land, buildings, and building and leasehold improvements | $ | 4,790 | $ | 4,926 | ||||
Computer equipment and related software | 1,207 | 1,258 | ||||||
Production, engineering, and other equipment | 5,702 | 5,707 | ||||||
Operating lease assets | 364 | 356 | ||||||
Furniture and fixtures | 375 | 572 | ||||||
Total gross property and equipment | 12,438 | 12,819 | ||||||
Less: accumulated depreciation and amortization | (9,325 | ) | (9,497 | ) | ||||
Total | $ | 3,113 | $ | 3,322 |
Deferred revenue: | ||||||||
Service | $ | 10,963 | $ | 11,302 | ||||
Product: | ||||||||
Deferred revenue related to recurring software and subscription offers | 5,451 | 4,971 | ||||||
Other product deferred revenue | 2,374 | 2,221 | ||||||
Total product deferred revenue | 7,825 | 7,192 | ||||||
Total | $ | 18,788 | $ | 18,494 | ||||
Reported as: | ||||||||
Current | $ | 11,102 | $ | 10,821 | ||||
Noncurrent | 7,686 | 7,673 | ||||||
Total | $ | 18,788 | $ | 18,494 |
Balance Sheet Line Item | October 24, 2020 | July 25, 2020 | |||||||||||||||
Operating lease right-of-use assets | Other assets | $ | 953 | $ | 921 | ||||||||||||
Operating lease liabilities | Other current liabilities | $ | 332 | $ | 341 | ||||||||||||
Operating lease liabilities | Other long-term liabilities | 695 | 661 | ||||||||||||||
Total operating lease liabilities | $ | 1,027 | $ | 1,002 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Operating lease expense | $ | 98 | $ | 113 | |||||||
Short-term lease expense | 18 | 17 | |||||||||
Variable lease expense | 46 | 40 | |||||||||
Total lease expense | $ | 162 | $ | 170 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows | $ | 105 | $ | 104 | |||||||
Right-of-use assets obtained in exchange for operating leases liabilities | $ | 115 | $ | 48 |
Fiscal Year | Amount | ||||
2021 (remaining nine months) | $ | 272 | |||
2022 | 269 | ||||
2023 | 211 | ||||
2024 | 136 | ||||
2025 | 81 | ||||
Thereafter | 87 | ||||
Total lease payments | 1,056 | ||||
Less interest | (29) | ||||
Total | $ | 1,027 |
Fiscal Year | Amount | ||||
2021 (remaining nine months) | $ | 670 | |||
2022 | 664 | ||||
2023 | 418 | ||||
2024 | 202 | ||||
2025 | 109 | ||||
Total | 2,063 | ||||
Less: Present value of lease payments | 1,958 | ||||
Unearned income | $ | 105 |
October 24, 2020 | July 25, 2020 | ||||||||||
Operating lease assets | $ | 338 | $ | 337 | |||||||
Accumulated depreciation | (200) | (198) | |||||||||
Operating lease assets, net | $ | 138 | $ | 139 |
Fiscal Year | Amount | ||||
2021 (remaining nine months) | $ | 58 | |||
2022 | 33 | ||||
2023 | 12 | ||||
2024 | 1 | ||||
Total | $ | 104 |
October 24, 2020 | Lease Receivables | Loan Receivables | Financed Service Contracts | Total | |||||||||||||||||||
Gross | $ | 2,063 | $ | 5,954 | $ | 2,744 | $ | 10,761 | |||||||||||||||
Residual value | 119 | — | — | 119 | |||||||||||||||||||
Unearned income | (105) | 0 | 0 | (105) | |||||||||||||||||||
Allowance for credit loss | (46) | (101) | (7) | (154) | |||||||||||||||||||
Total, net | $ | 2,031 | $ | 5,853 | $ | 2,737 | $ | 10,621 | |||||||||||||||
Reported as: | |||||||||||||||||||||||
Current | $ | 936 | $ | 2,733 | $ | 1,436 | $ | 5,105 | |||||||||||||||
Noncurrent | 1,095 | 3,120 | 1,301 | 5,516 | |||||||||||||||||||
Total, net | $ | 2,031 | $ | 5,853 | $ | 2,737 | $ | 10,621 |
January 27, 2018 | Lease Receivables | Loan Receivables | Financed Service Contracts | Total | ||||||||||||||||||||||||||||||||||
July 25, 2020 | July 25, 2020 | Lease Receivables | Loan Receivables | Financed Service Contracts | Total | |||||||||||||||||||||||||||||||||
Gross | $ | 2,762 | $ | 4,846 | $ | 2,479 | $ | 10,087 | Gross | $ | 2,127 | $ | 5,937 | $ | 2,830 | $ | 10,894 | |||||||||||||||||||||
Residual value | 168 | — | — | 168 | Residual value | 123 | — | — | 123 | |||||||||||||||||||||||||||||
Unearned income | (145 | ) | — | — | (145 | ) | Unearned income | (114) | 0 | 0 | (114) | |||||||||||||||||||||||||||
Allowance for credit loss | (165 | ) | (94 | ) | (13 | ) | (272 | ) | Allowance for credit loss | (48) | (81) | (9) | (138) | |||||||||||||||||||||||||
Total, net | $ | 2,620 | $ | 4,752 | $ | 2,466 | $ | 9,838 | Total, net | $ | 2,088 | $ | 5,856 | $ | 2,821 | $ | 10,765 | |||||||||||||||||||||
Reported as: | Reported as: | |||||||||||||||||||||||||||||||||||||
Current | $ | 1,222 | $ | 2,258 | $ | 1,445 | $ | 4,925 | Current | $ | 918 | $ | 2,692 | $ | 1,441 | $ | 5,051 | |||||||||||||||||||||
Noncurrent | 1,398 | 2,494 | 1,021 | 4,913 | Noncurrent | 1,170 | 3,164 | 1,380 | 5,714 | |||||||||||||||||||||||||||||
Total, net | $ | 2,620 | $ | 4,752 | $ | 2,466 | $ | 9,838 | Total, net | $ | 2,088 | $ | 5,856 | $ | 2,821 | $ | 10,765 |
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 |
Fiscal Year | Amount | ||
2018 (remaining six months) | $ | 707 | |
2019 | 1,054 | ||
2020 | 602 | ||
2021 | 292 | ||
2022 | 98 | ||
Thereafter | 9 | ||
Total | $ | 2,762 |
Fiscal Year | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
Internal Credit Risk Rating | Prior | July 29, 2017 | July 28, 2018 | July 27, 2019 | July 25, 2020 | October 24, 2020 | Total | ||||||||||||||||||||||||||||||||||
Lease Receivables: | |||||||||||||||||||||||||||||||||||||||||
1 to 4 | $ | 17 | $ | 60 | $ | 166 | $ | 263 | $ | 389 | $ | 25 | $ | 920 | |||||||||||||||||||||||||||
5 to 6 | 17 | 65 | 151 | 300 | 389 | 54 | 976 | ||||||||||||||||||||||||||||||||||
7 and Higher | 4 | 3 | 9 | 21 | 21 | 4 | 62 | ||||||||||||||||||||||||||||||||||
Total Lease Receivables | $ | 38 | $ | 128 | $ | 326 | $ | 584 | $ | 799 | $ | 83 | $ | 1,958 | |||||||||||||||||||||||||||
Loan Receivables: | |||||||||||||||||||||||||||||||||||||||||
1 to 4 | $ | 30 | $ | 170 | $ | 458 | $ | 858 | $ | 1,430 | $ | 793 | $ | 3,739 | |||||||||||||||||||||||||||
5 to 6 | 16 | 87 | 174 | 456 | 887 | 441 | 2,061 | ||||||||||||||||||||||||||||||||||
7 and Higher | 3 | 3 | 9 | 72 | 62 | 5 | 154 | ||||||||||||||||||||||||||||||||||
Total Loan Receivables | $ | 49 | $ | 260 | $ | 641 | $ | 1,386 | $ | 2,379 | $ | 1,239 | $ | 5,954 | |||||||||||||||||||||||||||
Financed Service Contracts: | |||||||||||||||||||||||||||||||||||||||||
1 to 4 | $ | 4 | $ | 56 | $ | 88 | $ | 246 | $ | 555 | $ | 634 | $ | 1,583 | |||||||||||||||||||||||||||
5 to 6 | 2 | 36 | 73 | 285 | 465 | 267 | 1,128 | ||||||||||||||||||||||||||||||||||
7 and Higher | 0 | 0 | 3 | 16 | 13 | 1 | 33 | ||||||||||||||||||||||||||||||||||
Total Financed Service Contracts | $ | 6 | $ | 92 | $ | 164 | $ | 547 | $ | 1,033 | $ | 902 | $ | 2,744 |
INTERNAL CREDIT RISK RATING | |||||||||||||||
January 27, 2018 | 1 to 4 | 5 to 6 | 7 and Higher | Total | |||||||||||
Lease receivables | $ | 1,322 | $ | 1,244 | $ | 51 | $ | 2,617 | |||||||
Loan receivables | 3,054 | 1,716 | 76 | 4,846 | |||||||||||
Financed service contracts | 1,572 | 895 | 12 | 2,479 | |||||||||||
Total | $ | 5,948 | $ | 3,855 | $ | 139 | $ | 9,942 |
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 |
INTERNAL CREDIT RISK RATING | |||||||||||||||||||||||
July 25, 2020 | 1 to 4 | 5 to 6 | 7 and Higher | Total | |||||||||||||||||||
Lease receivables | $ | 992 | $ | 952 | $ | 69 | $ | 2,013 | |||||||||||||||
Loan receivables | 3,808 | 1,961 | 168 | 5,937 | |||||||||||||||||||
Financed service contracts | 1,645 | 1,153 | 32 | 2,830 | |||||||||||||||||||
Total | $ | 6,445 | $ | 4,066 | $ | 269 | $ | 10,780 |
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
October 24, 2020 | 31-60 | 61-90 | 91+ | Total Past Due | Current | Total | 120+ Still Accruing | Nonaccrual Financing Receivables | Impaired Financing Receivables | ||||||||||||||||||||||||||||||||||||||||||||
Lease receivables | $ | 45 | $ | 21 | $ | 103 | $ | 169 | $ | 1,789 | $ | 1,958 | $ | 4 | $ | 39 | $ | 39 | |||||||||||||||||||||||||||||||||||
Loan receivables | 113 | 32 | 80 | 225 | 5,729 | 5,954 | 10 | 54 | 54 | ||||||||||||||||||||||||||||||||||||||||||||
Financed service contracts | 77 | 34 | 182 | 293 | 2,451 | 2,744 | 33 | 4 | 4 | ||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 235 | $ | 87 | $ | 365 | $ | 687 | $ | 9,969 | $ | 10,656 | $ | 47 | $ | 97 | $ | 97 |
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) | |||||||||||||||||||||||||||||||
January 27, 2018 | 31-60 | 61-90 | 91+ | Total Past Due | Current | Total | Nonaccrual Financing Receivables | Impaired Financing Receivables | |||||||||||||||||||||||
Lease receivables | $ | 98 | $ | 96 | $ | 278 | $ | 472 | $ | 2,145 | $ | 2,617 | $ | 19 | $ | 19 | |||||||||||||||
Loan receivables | 66 | 124 | 151 | 341 | 4,505 | 4,846 | 45 | 45 | |||||||||||||||||||||||
Financed service contracts | 54 | 85 | 414 | 553 | 1,926 | 2,479 | 2 | 2 | |||||||||||||||||||||||
Total | $ | 218 | $ | 305 | $ | 843 | $ | 1,366 | $ | 8,576 | $ | 9,942 | $ | 66 | $ | 66 |
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
July 25, 2020 | July 25, 2020 | 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 | Lease receivables | $ | 29 | $ | 47 | $ | 48 | $ | 124 | $ | 1,889 | $ | 2,013 | $ | 43 | $ | 43 | |||||||||||||||||||||||||||||||||||||||||||||
Loan receivables | 230 | 48 | 259 | 537 | 4,023 | 4,560 | 43 | 43 | Loan receivables | 129 | 78 | 78 | 285 | 5,652 | 5,937 | 65 | 65 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financed service contracts | 160 | 77 | 523 | 760 | 1,757 | 2,517 | 18 | 2 | Financed service contracts | 69 | 75 | 124 | 268 | 2,562 | 2,830 | 4 | 4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 550 | $ | 185 | $ | 998 | $ | 1,733 | $ | 7,983 | $ | 9,716 | $ | 75 | $ | 59 | Total | $ | 227 | $ | 200 | $ | 250 | $ | 677 | $ | 10,103 | $ | 10,780 | $ | 112 | $ | 112 |
Three months ended October 24, 2020 | CREDIT LOSS ALLOWANCES | ||||||||||||||||||||||
Lease Receivables | Loan Receivables | Financed Service Contracts | Total | ||||||||||||||||||||
Allowance for credit loss as of July 25, 2020 | $ | 48 | $ | 81 | $ | 9 | $ | 138 | |||||||||||||||
Provisions (benefits) | (3) | 3 | (1) | (1) | |||||||||||||||||||
Other | 1 | 17 | (1) | 17 | |||||||||||||||||||
Allowance for credit loss as of October 24, 2020 | $ | 46 | $ | 101 | $ | 7 | $ | 154 |
Three months ended October 26, 2019 | CREDIT LOSS ALLOWANCES | ||||||||||||||||||||||
Lease Receivables | Loan Receivables | Financed Service Contracts | Total | ||||||||||||||||||||
Allowance for credit loss as of July 27, 2019 | $ | 46 | $ | 71 | $ | 9 | $ | 126 | |||||||||||||||
Provisions (benefits) | (3) | 27 | 0 | 24 | |||||||||||||||||||
Recoveries (write-offs), net | 0 | (16) | 0 | (16) | |||||||||||||||||||
Foreign exchange and other | 0 | (1) | 0 | (1) | |||||||||||||||||||
Allowance for credit loss as of October 26, 2019 | $ | 43 | $ | 81 | $ | 9 | $ | 133 |
Three months ended January 27, 2018 | CREDIT LOSS ALLOWANCES | ||||||||||||||
Lease Receivables | Loan Receivables | Financed Service Contracts | Total | ||||||||||||
Allowance for credit loss as of October 28, 2017 | $ | 160 | $ | 106 | $ | 23 | $ | 289 | |||||||
Provisions | 3 | (13 | ) | (10 | ) | (20 | ) | ||||||||
Foreign exchange and other | 2 | 1 | — | 3 | |||||||||||
Allowance for credit loss as of January 27, 2018 | $ | 165 | $ | 94 | $ | 13 | $ | 272 |
Six months ended January 27, 2018 | 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 | 1 | (11 | ) | (16 | ) | (26 | ) | ||||||||
Foreign exchange and other | 2 | 2 | (1 | ) | 3 | ||||||||||
Allowance for credit loss as of January 27, 2018 | $ | 165 | $ | 94 | $ | 13 | $ | 272 |
Three months ended January 28, 2017 | CREDIT LOSS ALLOWANCES | ||||||||||||||
Lease Receivables | Loan Receivables | Financed Service Contracts | Total | ||||||||||||
Allowance for credit loss as of October 29, 2016 | $ | 227 | $ | 111 | $ | 48 | $ | 386 | |||||||
Provisions | 2 | — | (1 | ) | 1 | ||||||||||
Recoveries (write-offs), net | (2 | ) | (4 | ) | — | (6 | ) | ||||||||
Foreign exchange and other | (2 | ) | (1 | ) | — | (3 | ) | ||||||||
Allowance for credit loss as of January 28, 2017 | $ | 225 | $ | 106 | $ | 47 | $ | 378 |
Six months ended January 28, 2017 | 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 | (2 | ) | 12 | (1 | ) | 9 | |||||||||
Recoveries (write-offs), net | (2 | ) | (4 | ) | — | (6 | ) | ||||||||
Foreign exchange and other | (1 | ) | 1 | — | — | ||||||||||
Allowance for credit loss as of January 28, 2017 | $ | 225 | $ | 106 | $ | 47 | $ | 378 |
January 27, 2018 | July 29, 2017 | ||||||
Operating lease assets | $ | 364 | $ | 356 | |||
Accumulated depreciation | (232 | ) | (212 | ) | |||
Operating lease assets, net | $ | 132 | $ | 144 |
Fiscal Year | Amount | ||
2018 (remaining six months) | $ | 103 | |
2019 | 137 | ||
2020 | 68 | ||
2021 | 15 | ||
Thereafter | 2 | ||
Total | $ | 325 |
January 27, 2018 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||||||||||||||||
Fixed income securities: | ||||||||||||||||||||||||||||||||||||||
October 24, 2020 | October 24, 2020 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized and Credit Losses | Fair Value | |||||||||||||||||||||||||||||||||
U.S. government securities | $ | 17,506 | $ | — | $ | (140 | ) | $ | 17,366 | U.S. government securities | $ | 2,656 | $ | 61 | $ | 0 | $ | 2,717 | ||||||||||||||||||||
U.S. government agency securities | 1,722 | — | (10 | ) | 1,712 | U.S. government agency securities | 178 | 0 | 0 | 178 | ||||||||||||||||||||||||||||
Non-U.S. government and agency securities | 340 | — | (1 | ) | 339 | |||||||||||||||||||||||||||||||||
Corporate debt securities | 31,508 | 80 | (233 | ) | 31,355 | Corporate debt securities | 11,266 | 298 | (27) | 11,537 | ||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | 2,106 | — | (49 | ) | 2,057 | U.S. agency mortgage-backed securities | 2,494 | 41 | (6) | 2,529 | ||||||||||||||||||||||||||||
Commercial paper | 1,414 | — | — | 1,414 | Commercial paper | 1,712 | 0 | 0 | 1,712 | |||||||||||||||||||||||||||||
Certificates of deposit | 196 | — | — | 196 | Certificates of deposit | 517 | 0 | 0 | 517 | |||||||||||||||||||||||||||||
Total fixed income securities | 54,792 | 80 | (433 | ) | 54,439 | |||||||||||||||||||||||||||||||||
Publicly traded equity securities | 924 | 697 | (1 | ) | 1,620 | |||||||||||||||||||||||||||||||||
Total (1) | $ | 55,716 | $ | 777 | $ | (434 | ) | $ | 56,059 | Total (1) | $ | 18,823 | $ | 400 | $ | (33) | $ | 19,190 |
July 25, 2020 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||||||||||
U.S. government securities | $ | 2,614 | $ | 71 | $ | 0 | $ | 2,685 | |||||||||||||||
U.S. government agency securities | 110 | 0 | 0 | 110 | |||||||||||||||||||
Corporate debt securities | 11,549 | 334 | (6) | 11,877 | |||||||||||||||||||
U.S. agency mortgage-backed securities | 1,987 | 49 | (1) | 2,035 | |||||||||||||||||||
Commercial paper | 727 | 0 | 0 | 727 | |||||||||||||||||||
Certificates of deposit | 176 | 0 | 0 | 176 | |||||||||||||||||||
Total | $ | 17,163 | $ | 454 | $ | (7) | $ | 17,610 |
July 29, 2017 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Fixed income securities: | |||||||||||||||
U.S. government securities | $ | 19,880 | $ | 3 | $ | (60 | ) | $ | 19,823 | ||||||
U.S. government agency securities | 2,057 | — | (5 | ) | 2,052 | ||||||||||
Non-U.S. government and agency securities | 389 | — | (1 | ) | 388 | ||||||||||
Corporate debt securities | 31,626 | 202 | (93 | ) | 31,735 | ||||||||||
U.S. agency mortgage-backed securities | 2,037 | 3 | (17 | ) | 2,023 | ||||||||||
Commercial paper | 996 | — | — | 996 | |||||||||||
Certificates of deposit | 60 | — | — | 60 | |||||||||||
Total fixed income securities | 57,045 | 208 | (176 | ) | 57,077 | ||||||||||
Publicly traded equity securities | 1,180 | 554 | (27 | ) | 1,707 | ||||||||||
Total (1) | $ | 58,225 | $ | 762 | $ | (203 | ) | $ | 58,784 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Gross realized gains | $ | 15 | $ | 12 | |||||||
Gross realized losses | 0 | (2) | |||||||||
Total | $ | 15 | $ | 10 |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Gross realized gains | $ | 165 | $ | 18 | $ | 232 | $ | 48 | |||||||
Gross realized losses | (107 | ) | (48 | ) | (141 | ) | (63 | ) | |||||||
Total | $ | 58 | $ | (30 | ) | $ | 91 | $ | (15 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Net gains (losses) on investments in publicly traded equity securities | $ | 154 | $ | 4 | $ | 183 | $ | 9 | |||||||
Net gains (losses) on investments in fixed income securities | (96 | ) | (34 | ) | (92 | ) | (24 | ) | |||||||
Total | $ | 58 | $ | (30 | ) | $ | 91 | $ | (15 | ) |
UNREALIZED LOSSES LESS THAN 12 MONTHS | UNREALIZED LOSSES 12 MONTHS OR GREATER | TOTAL | |||||||||||||||||||||||||||||||||
October 24, 2020 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
U.S. government securities | $ | 144 | $ | 0 | $ | 0 | $ | 0 | $ | 144 | $ | 0 | |||||||||||||||||||||||
U.S. government agency securities | 65 | 0 | 0 | 0 | 65 | 0 | |||||||||||||||||||||||||||||
Corporate debt securities | 1,008 | (2) | 0 | 0 | 1,008 | (2) | |||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | 1,076 | (6) | 0 | 0 | 1,076 | (6) | |||||||||||||||||||||||||||||
Certificates of deposit | 15 | 0 | 0 | 0 | 15 | 0 | |||||||||||||||||||||||||||||
Total | $ | 2,308 | $ | (8) | $ | 0 | $ | 0 | $ | 2,308 | $ | (8) |
UNREALIZED LOSSES LESS THAN 12 MONTHS | UNREALIZED LOSSES 12 MONTHS OR GREATER | TOTAL | |||||||||||||||||||||
January 27, 2018 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. government securities | $ | 11,553 | $ | (96 | ) | $ | 5,804 | $ | (44 | ) | $ | 17,357 | $ | (140 | ) | ||||||||
U.S. government agency securities | 1,152 | (5 | ) | 559 | (5 | ) | 1,711 | (10 | ) | ||||||||||||||
Non-U.S. government and agency securities | 136 | — | 203 | (1 | ) | 339 | (1 | ) | |||||||||||||||
Corporate debt securities | 16,003 | (146 | ) | 4,287 | (87 | ) | 20,290 | (233 | ) | ||||||||||||||
U.S. agency mortgage-backed securities | 1,161 | (19 | ) | 876 | (30 | ) | 2,037 | (49 | ) | ||||||||||||||
Total fixed income securities | 30,005 | (266 | ) | 11,729 | (167 | ) | 41,734 | (433 | ) | ||||||||||||||
Publicly traded equity securities | 10 | (1 | ) | — | — | 10 | (1 | ) | |||||||||||||||
Total | $ | 30,015 | $ | (267 | ) | $ | 11,729 | $ | (167 | ) | $ | 41,744 | $ | (434 | ) |
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 | ) |
UNREALIZED LOSSES LESS THAN 12 MONTHS | UNREALIZED LOSSES 12 MONTHS OR GREATER | TOTAL | |||||||||||||||||||||||||||||||||
July 25, 2020 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||||||||||
U.S. government agency securities | $ | 33 | $ | 0 | $ | 0 | $ | 0 | $ | 33 | $ | 0 | |||||||||||||||||||||||
Corporate debt securities | 1,060 | (6) | 3 | 0 | 1,063 | (6) | |||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | 265 | (1) | 0 | 0 | 265 | (1) | |||||||||||||||||||||||||||||
Total | $ | 1,358 | $ | (7) | $ | 3 | $ | 0 | $ | 1,361 | $ | (7) |
Amortized Cost | Fair Value | ||||||
Less than 1 year | $ | 15,881 | $ | 15,847 | |||
Due in 1 to 2 years | 12,267 | 12,188 | |||||
Due in 2 to 5 years | 22,095 | 21,926 | |||||
Due after 5 years | 2,443 | 2,421 | |||||
Mortgage-backed securities with no single maturity | 2,106 | 2,057 | |||||
Total | $ | 54,792 | $ | 54,439 |
Amortized Cost | Fair Value | ||||||||||
Within 1 year | $ | 7,480 | $ | 7,490 | |||||||
After 1 year through 5 years | 6,897 | 7,052 | |||||||||
After 5 years through 10 years | 1,943 | 2,109 | |||||||||
After 10 years | 9 | 10 | |||||||||
Mortgage-backed securities with no single maturity | 2,494 | 2,529 | |||||||||
Total | $ | 18,823 | $ | 19,190 |
January 27, 2018 | July 29, 2017 | ||||||
Equity method investments | $ | 121 | $ | 124 | |||
Cost method investments | 861 | 859 | |||||
Total | $ | 982 | $ | 983 |
OCTOBER 24, 2020 | JULY 25, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
JANUARY 27, 2018 FAIR VALUE MEASUREMENTS | JULY 29, 2017 FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Balance | Level 1 | Level 2 | Level 3 | Total Balance | Level 1 | Level 2 | Level 3 | Total Balance | Level 1 | Level 2 | Level 3 | Total Balance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents: | Cash equivalents: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 15,537 | $ | — | $ | — | $ | 15,537 | $ | 9,567 | $ | — | $ | — | $ | 9,567 | Money market funds | $ | 8,634 | $ | 0 | $ | 0 | $ | 8,634 | $ | 10,024 | $ | 0 | $ | 0 | $ | 10,024 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | — | — | — | — | — | 139 | — | 139 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | Corporate debt securities | 0 | 4 | 0 | 4 | 0 | 8 | 0 | 8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | — | 41 | — | 41 | — | 160 | — | 160 | Commercial paper | 0 | 120 | 0 | 120 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | — | — | — | — | — | 25 | — | 25 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt investments: | Available-for-sale debt investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government securities | — | 17,366 | — | 17,366 | — | 19,823 | — | 19,823 | U.S. government securities | 0 | 2,717 | 0 | 2,717 | 0 | 2,685 | 0 | 2,685 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. government agency securities | — | 1,712 | — | 1,712 | — | 2,052 | — | 2,052 | U.S. government agency securities | 0 | 178 | 0 | 178 | 0 | 110 | 0 | 110 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government and agency securities | — | 339 | — | 339 | — | 388 | — | 388 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities | — | 31,355 | — | 31,355 | — | 31,735 | — | 31,735 | Corporate debt securities | 0 | 11,537 | 0 | 11,537 | 0 | 11,877 | 0 | 11,877 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency mortgage-backed securities | — | 2,057 | — | 2,057 | — | 2,023 | — | 2,023 | U.S. agency mortgage-backed securities | 0 | 2,529 | 0 | 2,529 | 0 | 2,035 | 0 | 2,035 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | — | 1,414 | — | 1,414 | — | 996 | — | 996 | Commercial paper | 0 | 1,712 | 0 | 1,712 | 0 | 727 | 0 | 727 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | — | 196 | — | 196 | — | 60 | — | 60 | Certificates of deposit | 0 | 517 | 0 | 517 | 0 | 176 | 0 | 176 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Publicly traded equity securities | 1,620 | — | — | 1,620 | 1,707 | — | — | 1,707 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets | — | 90 | — | 90 | — | 149 | — | 149 | Derivative assets | 0 | 179 | 3 | 182 | 0 | 190 | 1 | 191 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 17,157 | $ | 54,570 | $ | — | $ | 71,727 | $ | 11,274 | $ | 57,550 | $ | — | $ | 68,824 | Total | $ | 8,634 | $ | 19,493 | $ | 3 | $ | 28,130 | $ | 10,024 | $ | 17,808 | $ | 1 | $ | 27,833 | |||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | Liabilities: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 76 | $ | — | $ | 76 | $ | — | $ | 4 | $ | — | $ | 4 | Derivative liabilities | $ | 0 | $ | 22 | $ | 0 | $ | 22 | $ | 0 | $ | 10 | $ | 0 | $ | 10 | |||||||||||||||||||||||||||||||||||||||||||||
Total | $ | — | $ | 76 | $ | — | $ | 76 | $ | — | $ | 4 | $ | — | $ | 4 | Total | $ | 0 | $ | 22 | $ | 0 | $ | 22 | $ | 0 | $ | 10 | $ | 0 | $ | 10 |
TOTAL GAINS (LOSSES) FOR THE THREE MONTHS ENDED | TOTAL GAINS (LOSSES) FOR THE SIX MONTHS ENDED | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Investments in privately held companies (impaired) | $ | (18 | ) | $ | (64 | ) | $ | (39 | ) | $ | (111 | ) | |||
Purchased intangible assets (impaired) | — | — | — | (42 | ) | ||||||||||
Property held for sale—land and buildings | 20 | (24 | ) | 20 | (24 | ) | |||||||||
Total gains (losses) for nonrecurring measurements | $ | 2 | $ | (88 | ) | $ | (19 | ) | $ | (177 | ) |
January 27, 2018 | July 29, 2017 | ||||||||||||
Amount | Effective Rate | Amount | Effective Rate | ||||||||||
Current portion of long-term debt | $ | 4,749 | 1.78 | % | $ | 4,747 | 1.66 | % | |||||
Commercial paper | 8,992 | 1.51 | % | 3,245 | 1.16 | % | |||||||
Total short-term debt | $ | 13,741 | $ | 7,992 |
October 24, 2020 | July 25, 2020 | ||||||||||||||||||||||
Amount | Effective Rate | Amount | Effective Rate | ||||||||||||||||||||
Current portion of long-term debt | $ | 5,002 | 2.00 | % | $ | 3,005 | 2.07 | % |
October 24, 2020 | July 25, 2020 | ||||||||||||||||||||||||||||
Maturity Date | Amount | Effective Rate | Amount | Effective Rate | |||||||||||||||||||||||||
Senior notes: | |||||||||||||||||||||||||||||
Fixed-rate notes: | |||||||||||||||||||||||||||||
2.20% | February 28, 2021 | $ | 2,500 | 2.30% | $ | 2,500 | 2.30% | ||||||||||||||||||||||
2.90% | March 4, 2021 | 500 | 0.91% | 500 | 0.94% | ||||||||||||||||||||||||
1.85% | September 20, 2021 | 2,000 | 1.90% | 2,000 | 1.90% | ||||||||||||||||||||||||
3.00% | June 15, 2022 | 500 | 1.19% | 500 | 1.21% | ||||||||||||||||||||||||
2.60% | February 28, 2023 | 500 | 2.68% | 500 | 2.68% | ||||||||||||||||||||||||
2.20% | September 20, 2023 | 750 | 2.27% | 750 | 2.27% | ||||||||||||||||||||||||
3.625% | March 4, 2024 | 1,000 | 1.03% | 1,000 | 1.06% | ||||||||||||||||||||||||
3.50% | June 15, 2025 | 500 | 1.35% | 500 | 1.37% | ||||||||||||||||||||||||
2.95% | February 28, 2026 | 750 | 3.01% | 750 | 3.01% | ||||||||||||||||||||||||
2.50% | September 20, 2026 | 1,500 | 2.55% | 1,500 | 2.55% | ||||||||||||||||||||||||
5.90% | February 15, 2039 | 2,000 | 6.11% | 2,000 | 6.11% | ||||||||||||||||||||||||
5.50% | January 15, 2040 | 2,000 | 5.67% | 2,000 | 5.67% | ||||||||||||||||||||||||
Total | 14,500 | 14,500 | |||||||||||||||||||||||||||
Unaccreted discount/issuance costs | (86) | (88) | |||||||||||||||||||||||||||
Hedge accounting fair value adjustments | 152 | 171 | |||||||||||||||||||||||||||
Total | $ | 14,566 | $ | 14,583 | |||||||||||||||||||||||||
Reported as: | |||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 5,002 | $ | 3,005 | |||||||||||||||||||||||||
Long-term debt | 9,564 | 11,578 | |||||||||||||||||||||||||||
Total | $ | 14,566 | $ | 14,583 |
January 27, 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 | 2.11% | $ | 1,000 | 1.84% | ||||||
Three-month LIBOR plus 0.31% | June 15, 2018 | 900 | 1.96% | 900 | 1.62% | ||||||||
Three-month LIBOR plus 0.50% | March 1, 2019 | 500 | 2.04% | 500 | 1.76% | ||||||||
Three-month LIBOR plus 0.34% | September 20, 2019 | 500 | 2.01% | 500 | 1.66% | ||||||||
Fixed-rate notes: | |||||||||||||
1.40% | February 28, 2018 | 1,250 | 1.47% | 1,250 | 1.47% | ||||||||
1.65% | June 15, 2018 | 1,600 | 1.72% | 1,600 | 1.72% | ||||||||
4.95% | February 15, 2019 | 2,000 | 5.04% | 2,000 | 4.96% | ||||||||
1.60% | February 28, 2019 | 1,000 | 1.67% | 1,000 | 1.67% | ||||||||
2.125% | March 1, 2019 | 1,750 | 2.18% | 1,750 | 1.84% | ||||||||
1.40% | September 20, 2019 | 1,500 | 1.48% | 1,500 | 1.48% | ||||||||
4.45% | January 15, 2020 | 2,500 | 4.11% | 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 | 2.34% | 500 | 2.00% | ||||||||
1.85% | September 20, 2021 | 2,000 | 1.90% | 2,000 | 1.90% | ||||||||
3.00% | June 15, 2022 | 500 | 2.60% | 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 | 2.46% | 1,000 | 2.12% | ||||||||
3.50% | June 15, 2025 | 500 | 2.76% | 500 | 2.43% | ||||||||
2.95% | February 28, 2026 | 750 | 3.01% | 750 | 3.01% | ||||||||
2.50% | September 20, 2026 | 1,500 | 2.55% | 1,500 | 2.55% | ||||||||
5.90% | February 15, 2039 | 2,000 | 6.11% | 2,000 | 6.11% | ||||||||
5.50% | January 15, 2040 | 2,000 | 5.67% | 2,000 | 5.67% | ||||||||
Total | 30,500 | 30,500 | |||||||||||
Unaccreted discount/issuance costs | (125 | ) | (136 | ) | |||||||||
Hedge accounting fair value adjustments | (1 | ) | 108 | ||||||||||
Total | $ | 30,374 | $ | 30,472 | |||||||||
Reported as: | |||||||||||||
Current portion of long-term debt | $ | 4,749 | $ | 4,747 | |||||||||
Long-term debt | 25,625 | 25,725 | |||||||||||
Total | $ | 30,374 | $ | 30,472 |
Fiscal Year | Amount | ||||
2021 (remaining nine months) | $ | 3,000 | |||
2022 | 2,500 | ||||
2023 | 500 | ||||
2024 | 1,750 | ||||
2025 | 500 | ||||
Thereafter | 6,250 | ||||
Total | $ | 14,500 |
Fiscal Year | Amount | ||
2018 (remaining six months) | $ | 4,750 | |
2019 | 5,250 | ||
2020 | 6,000 | ||
2021 | 3,000 | ||
2022 | 2,500 | ||
Thereafter | 9,000 | ||
Total | $ | 30,500 |
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||
Balance Sheet Line Item | January 27, 2018 | July 29, 2017 | Balance Sheet Line Item | January 27, 2018 | July 29, 2017 | ||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency derivatives | Other current assets | $ | 47 | $ | 46 | Other current liabilities | $ | — | $ | 1 | |||||||||
Equity derivatives | Other current assets | — | — | Other current liabilities | 49 | — | |||||||||||||
Interest rate derivatives | Other assets | 18 | 102 | Other long-term liabilities | 26 | — | |||||||||||||
Total | 65 | 148 | 75 | 1 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency derivatives | Other current assets | 24 | 1 | Other current liabilities | 1 | 3 | |||||||||||||
Total return swaps—deferred compensation | Other current assets | 1 | — | Other current liabilities | — | — | |||||||||||||
Total | 25 | 1 | 1 | 3 | |||||||||||||||
Total | $ | 90 | $ | 149 | $ | 76 | $ | 4 |
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||||||||||||||||||
Balance Sheet Line Item | October 24, 2020 | July 25, 2020 | Balance Sheet Line Item | October 24, 2020 | July 25, 2020 | ||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | Other current assets | $ | 11 | $ | 7 | Other current liabilities | $ | 10 | $ | 2 | |||||||||||||||||||||||||
Interest rate derivatives | Other current assets | 4 | 6 | Other current liabilities | 0 | 0 | |||||||||||||||||||||||||||||
Interest rate derivatives | Other assets | 151 | 169 | Other long-term liabilities | 0 | 0 | |||||||||||||||||||||||||||||
Total | 166 | 182 | 10 | 2 | |||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||
Foreign currency derivatives | Other current assets | 13 | 8 | Other current liabilities | 11 | 8 | |||||||||||||||||||||||||||||
Equity derivatives | Other current assets | 0 | 0 | Other current liabilities | 1 | 0 | |||||||||||||||||||||||||||||
Equity derivatives | Other assets | 3 | 1 | Other long-term liabilities | 0 | 0 | |||||||||||||||||||||||||||||
Total | 16 | 9 | 12 | 8 | |||||||||||||||||||||||||||||||
Total | $ | 182 | $ | 191 | $ | 22 | $ | 10 |
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION) | GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION) | |||||||||||||||||
January 27, 2018 | January 28, 2017 | Line Item in Statements of Operations | January 27, 2018 | January 28, 2017 | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | 30 | $ | (2 | ) | Operating expenses | $ | 14 | $ | (21 | ) | |||||||
Cost of sales—service | 4 | (6 | ) | |||||||||||||||
Total | $ | 30 | $ | (2 | ) | $ | 18 | $ | (27 | ) | ||||||||
Derivatives designated as net investment hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (12 | ) | $ | (3 | ) | Other income (loss), net | $ | — | $ | — |
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE SIX MONTHS ENDED (EFFECTIVE PORTION) | GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE SIX MONTHS ENDED (EFFECTIVE PORTION) | |||||||||||||||||
January 27, 2018 | January 28, 2017 | Line Item in Statements of Operations | January 27, 2018 | January 28, 2017 | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | 38 | $ | (48 | ) | Operating expenses | $ | 24 | $ | (30 | ) | |||||||
Cost of sales—service | 7 | (9 | ) | |||||||||||||||
Total | $ | 38 | $ | (48 | ) | $ | 31 | $ | (39 | ) | ||||||||
Derivatives designated as net investment hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (17 | ) | $ | 6 | Other income (loss), net | $ | — | $ | — |
CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) | CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES | |||||||||||||||||||||||||
Balance Sheet Line Item of Hedged Item | October 24, 2020 | July 25, 2020 | October 24, 2020 | July 25, 2020 | ||||||||||||||||||||||
Short-term debt | $ | (504) | $ | (506) | $ | (4) | $ | (6) | ||||||||||||||||||
Long-term debt | $ | (2,143) | $ | (2,159) | $ | (148) | $ | (165) |
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED | GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED | |||||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments | Line Item in Statements of Operations | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||||
Interest rate derivatives | Interest expense | $ | (63 | ) | $ | (175 | ) | $ | 63 | $ | 172 | |||||||
Equity derivatives | Other income (loss), net | (35 | ) | — | 35 | — | ||||||||||||
Total | $ | (98 | ) | $ | (175 | ) | $ | 98 | $ | 172 |
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE SIX MONTHS ENDED | GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE SIX MONTHS ENDED | |||||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments | Line Item in Statements of Operations | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||||
Interest rate derivatives | Interest expense | $ | (109 | ) | $ | (266 | ) | $ | 109 | $ | 262 | |||||||
Equity derivatives | Other income (loss), net | (49 | ) | — | 49 | — | ||||||||||||
Total | $ | (158 | ) | $ | (266 | ) | $ | 158 | $ | 262 |
Three Months Ended | ||||||||||||||
October 24, 2020 | October 26, 2019 | |||||||||||||
Interest rate derivatives: | ||||||||||||||
Hedged items | $ | 19 | $ | (21) | ||||||||||
Derivatives designated as hedging instruments | (20) | 22 | ||||||||||||
Total | $ | (1) | $ | 1 |
GAINS (LOSSES) FOR THE THREE MONTHS ENDED | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Line Item in Statements of Operations | October 24, 2020 | October 26, 2019 | |||||||||||||||||
Foreign currency derivatives | Other income (loss), net | $ | 14 | $ | (7) | |||||||||||||||
Total return swaps—deferred compensation | Operating expenses and other | 23 | 0 | |||||||||||||||||
Equity derivatives | Other income (loss), net | 5 | 2 | |||||||||||||||||
Total | $ | 42 | $ | (5) |
GAINS (LOSSES) FOR THE THREE MONTHS ENDED | GAINS (LOSSES) FOR THE SIX MONTHS ENDED | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Line Item in Statements of Operations | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||||
Foreign currency derivatives | Other income (loss), net | $ | 66 | $ | (20 | ) | $ | 73 | $ | (36 | ) | |||||||
Total return swaps—deferred compensation | Operating expenses | 41 | 26 | 57 | 23 | |||||||||||||
Equity derivatives | Other income (loss), net | 2 | 8 | 3 | 9 | |||||||||||||
Total | $ | 109 | $ | 14 | $ | 133 | $ | (4 | ) |
October 24, 2020 | July 25, 2020 | ||||||||||
Foreign currency derivatives | $ | 4,338 | $ | 4,315 | |||||||
Interest rate derivatives | 2,500 | 2,500 | |||||||||
Total return swaps—deferred compensation | 621 | 580 | |||||||||
Total | $ | 7,459 | $ | 7,395 |
January 27, 2018 | July 29, 2017 | ||||||
Derivatives designated as hedging instruments: | |||||||
Foreign currency derivatives—cash flow hedges | $ | 792 | $ | 1,696 | |||
Interest rate derivatives | 6,750 | 6,750 | |||||
Net investment hedging instruments | 214 | 351 | |||||
Equity derivatives | 302 | — | |||||
Derivatives not designated as hedging instruments: | |||||||
Foreign currency derivatives | 3,072 | 2,258 | |||||
Total return swaps—deferred compensation | 590 | 535 | |||||
Total | $ | 11,720 | $ | 11,590 |
January 27, 2018 | |||||||||||||||||||||||
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEETS | GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS BUT WITH LEGAL RIGHTS TO OFFSET | ||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Presented | Gross Derivative Amounts | Cash Collateral | Net Amount | ||||||||||||||||||
Derivatives assets | $ | 90 | $ | — | $ | 90 | $ | (32 | ) | $ | (18 | ) | $ | 40 | |||||||||
Derivatives liabilities | $ | 76 | $ | — | $ | 76 | $ | (32 | ) | $ | (18 | ) | $ | 26 |
July 29, 2017 | |||||||||||||||||||||||
GROSS AMOUNTS OFFSET IN THE CONSOLIDATED BALANCE SHEETS | GROSS AMOUNTS NOT OFFSET IN THE CONSOLIDATED BALANCE SHEETS BUT WITH LEGAL RIGHTS TO OFFSET | ||||||||||||||||||||||
Gross Amounts Recognized | Gross Amounts Offset | Net Amounts Presented | Gross Derivative Amounts | Cash Collateral | Net Amount | ||||||||||||||||||
Derivatives assets | $ | 149 | $ | — | $ | 149 | $ | (4 | ) | $ | (81 | ) | $ | 64 | |||||||||
Derivatives liabilities | $ | 4 | $ | — | $ | 4 | $ | (4 | ) | $ | — | $ | — |
14.Commitments |
Fiscal Year | Amount | ||
2018 (remaining six months) | $ | 220 | |
2019 | 323 | ||
2020 | 239 | ||
2021 | 147 | ||
2022 | 122 | ||
Thereafter | 178 | ||
Total | $ | 1,229 |
Commitments by Period | January 27, 2018 | July 29, 2017 | |||||
Less than 1 year | $ | 4,498 | $ | 4,620 | |||
1 to 3 years | 690 | 20 | |||||
3 to 5 years | 540 | — | |||||
Total | $ | 5,728 | $ | 4,640 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Compensation expense related to acquisitions | $ | 57 | $ | 61 |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Compensation expense related to acquisitions | $ | 46 | $ | 73 | $ | 88 | $ | 137 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Balance at beginning of period | $ | 331 | $ | 342 | |||||||
Provisions for warranties issued | 121 | 140 | |||||||||
Adjustments for pre-existing warranties | 1 | (3) | |||||||||
Settlements | (122) | (149) | |||||||||
Balance at end of period | $ | 331 | $ | 330 |
Six Months Ended | |||||||
January 27, 2018 | January 28, 2017 | ||||||
Balance at beginning of period | $ | 407 | $ | 414 | |||
Provisions for warranty issued | 287 | 367 | |||||
Adjustments for pre-existing warranties | (21 | ) | (3 | ) | |||
Settlements | (292 | ) | (352 | ) | |||
Balance at end of period | $ | 381 | $ | 426 |
October 24, 2020 | July 25, 2020 | ||||||||||
Maximum potential future payments relating to financing guarantees: | |||||||||||
Channel partner | $ | 193 | $ | 198 | |||||||
End user | 8 | 9 | |||||||||
Total | $ | 201 | $ | 207 | |||||||
Deferred revenue associated with financing guarantees: | |||||||||||
Channel partner | $ | (25) | $ | (19) | |||||||
End user | (8) | (9) | |||||||||
Total | $ | (33) | $ | (28) | |||||||
Total | $ | 168 | $ | 179 |
January 27, 2018 | July 29, 2017 | ||||||
Maximum potential future payments relating to financing guarantees: | |||||||
Channel partner | $ | 288 | $ | 240 | |||
End user | 53 | 74 | |||||
Total | $ | 341 | $ | 314 | |||
Deferred revenue associated with financing guarantees: | |||||||
Channel partner | $ | (91 | ) | $ | (82 | ) | |
End user | (40 | ) | (52 | ) | |||
Total | $ | (131 | ) | $ | (134 | ) | |
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue | $ | 210 | $ | 180 |
Quarter Ended | Shares | Weighted-Average Price per Share | Amount | |||||||||||||||||
Fiscal 2021 | ||||||||||||||||||||
October 24, 2020 | 20 | $ | 40.44 | $ | 800 | |||||||||||||||
Fiscal 2020 | ||||||||||||||||||||
July 25, 2020 | 0 | $ | 0 | $ | 0 | |||||||||||||||
April 25, 2020 | 25 | $ | 39.71 | $ | 981 | |||||||||||||||
January 25, 2020 | 18 | $ | 46.71 | $ | 870 | |||||||||||||||
October 26, 2019 | 16 | $ | 48.91 | $ | 768 |
Quarter Ended | Shares | Weighted-Average Price per Share | Amount | ||||||||
Fiscal 2018 | |||||||||||
January 27, 2018 | 103 | $ | 39.07 | $ | 4,011 | ||||||
October 28, 2017 | 51 | $ | 31.80 | $ | 1,620 | ||||||
Fiscal 2017 | |||||||||||
July 29, 2017 | 38 | $ | 31.61 | $ | 1,201 | ||||||
April 29, 2017 | 15 | $ | 33.71 | $ | 503 | ||||||
January 28, 2017 | 33 | $ | 30.33 | $ | 1,001 | ||||||
October 29, 2016 | 32 | $ | 31.12 | $ | 1,001 |
(c) |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Cost of sales—product | $ | 23 | $ | 19 | $ | 46 | $ | 40 | |||||||
Cost of sales—service | 31 | 34 | 65 | 67 | |||||||||||
Share-based compensation expense in cost of sales | 54 | 53 | 111 | 107 | |||||||||||
Research and development | 134 | 129 | 270 | 255 | |||||||||||
Sales and marketing | 135 | 125 | 270 | 265 | |||||||||||
General and administrative | 64 | 45 | 128 | 94 | |||||||||||
Restructuring and other charges | 12 | — | 18 | 3 | |||||||||||
Share-based compensation expense in operating expenses | 345 | 299 | 686 | 617 | |||||||||||
Total share-based compensation expense | $ | 399 | $ | 352 | $ | 797 | $ | 724 | |||||||
Income tax benefit for share-based compensation | $ | 96 | $ | 102 | $ | 271 | $ | 207 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Cost of sales—product | $ | 24 | $ | 23 | |||||||
Cost of sales—service | 41 | 34 | |||||||||
Share-based compensation expense in cost of sales | 65 | 57 | |||||||||
Research and development | 167 | 146 | |||||||||
Sales and marketing | 134 | 127 | |||||||||
General and administrative | 61 | 60 | |||||||||
Restructuring and other charges | 11 | 8 | |||||||||
Share-based compensation expense in operating expenses | 373 | 341 | |||||||||
Total share-based compensation expense | $ | 438 | $ | 398 | |||||||
Income tax benefit for share-based compensation | $ | 81 | $ | 131 |
Restricted Stock/ Stock Units | Weighted-Average Grant Date Fair Value per Share | Aggregate Fair Value | |||||||||||||||
UNVESTED BALANCE AT JULY 27, 2019 | 100 | $ | 38.66 | ||||||||||||||
Granted | 49 | 42.61 | |||||||||||||||
Vested | (44) | 35.20 | $ | 2,045 | |||||||||||||
Canceled/forfeited/other | (9) | 40.45 | |||||||||||||||
UNVESTED BALANCE AT JULY 25, 2020 | 96 | 42.03 | |||||||||||||||
Granted | 10 | 37.16 | |||||||||||||||
Vested | (6) | 39.95 | $ | 264 | |||||||||||||
Canceled/forfeited/other | (4) | 39.17 | |||||||||||||||
UNVESTED BALANCE AT OCTOBER 24, 2020 | 96 | $ | 41.77 |
Restricted Stock/ Stock Units | Weighted-Average Grant Date Fair Value per Share | Aggregate Fair Value | ||||||||
UNVESTED BALANCE AT JULY 30, 2016 | 145 | $ | 24.26 | |||||||
Granted | 50 | 27.89 | ||||||||
Assumed from acquisitions | 15 | 32.21 | ||||||||
Vested | (54 | ) | 23.14 | $ | 1,701 | |||||
Canceled/forfeited | (15 | ) | 23.56 | |||||||
UNVESTED BALANCE AT JULY 29, 2017 | 141 | 26.94 | ||||||||
Granted | 31 | 33.30 | ||||||||
Assumed from acquisitions | 1 | 28.26 | ||||||||
Vested | (36 | ) | 25.21 | $ | 1,174 | |||||
Canceled/forfeited | (10 | ) | 27.83 | |||||||
UNVESTED BALANCE AT JANUARY 27, 2018 | 127 | $ | 28.90 |
STOCK OPTIONS OUTSTANDING | ||||||
Number Outstanding | Weighted-Average Exercise Price per Share | |||||
BALANCE AT JULY 30, 2016 | 73 | $ | 26.78 | |||
Assumed from acquisitions | 8 | 4.47 | ||||
Exercised | (14 | ) | 12.11 | |||
Canceled/forfeited/expired | (55 | ) | 31.83 | |||
BALANCE AT JULY 29, 2017 | 12 | 6.15 | ||||
Assumed from acquisitions | 3 | 8.20 | ||||
Exercised | (4 | ) | 5.28 | |||
BALANCE AT JANUARY 27, 2018 | 11 | $ | 7.03 |
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 | 11 | 6.5 | $ | 7.03 | $ | 380 | 5 | $ | 6.40 | $ | 194 |
RESTRICTED STOCK UNITS | PERFORMANCE BASED RESTRICTED STOCK UNITS | ||||||||||||||
Three Months Ended | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||
Number of shares granted (in millions) | 21 | 15 | — | 3 | |||||||||||
Grant date fair value per share | $ | 34.89 | $ | 27.68 | $ | 32.47 | $ | 27.90 | |||||||
Weighted-average assumptions/inputs: | |||||||||||||||
Expected dividend yield | 3.1 | % | 3.4 | % | 3.2 | % | 3.4 | % | |||||||
Range of risk-free interest rates | 0.0% – 2.1% | 0.0% – 1.5% | 1.0% – 1.8% | 0.3% – 1.5% | |||||||||||
Range of expected volatilities for index | N/A | N/A | 13.2% – 81.0% | N/A |
RESTRICTED STOCK UNITS | PERFORMANCE BASED RESTRICTED STOCK UNITS | ||||||||||||||
Six Months Ended | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||
Number of shares granted (in millions) | 28 | 23 | 3 | 6 | |||||||||||
Grant date fair value per share | $ | 33.50 | $ | 27.96 | $ | 31.31 | $ | 28.78 | |||||||
Weighted-average assumptions/inputs: | |||||||||||||||
Expected dividend yield | 3.2 | % | 3.4 | % | 3.6 | % | 3.4 | % | |||||||
Range of risk-free interest rates | 0.0% – 2.1% | 0.0% – 1.5% | 1.0% – 1.8% | 0.1% – 1.5% | |||||||||||
Range of expected volatilities for index | N/A | N/A | 13.2% – 81.0% | 16.7% – 46.8% |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | Cumulative Translation Adjustment and Actuarial Gains (Losses) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
BALANCE AT JULY 25, 2020 | $ | 315 | $ | (6) | $ | (828) | $ | (519) | |||||||||||||||
Other comprehensive income (loss) before reclassifications | (41) | (2) | 110 | 67 | |||||||||||||||||||
(Gains) losses reclassified out of AOCI | (15) | (2) | 0 | (17) | |||||||||||||||||||
Tax benefit (expense) | 22 | 1 | (1) | 22 | |||||||||||||||||||
BALANCE AT OCTOBER 24, 2020 | $ | 281 | $ | (9) | $ | (719) | $ | (447) |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | Cumulative Translation Adjustment and Actuarial Gains (Losses) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
BALANCE AT JULY 27, 2019 | $ | 0 | $ | (14) | $ | (778) | $ | (792) | |||||||||||||||
Other comprehensive income (loss) before reclassifications | 87 | (1) | (92) | (6) | |||||||||||||||||||
(Gains) losses reclassified out of AOCI | (10) | 0 | 1 | (9) | |||||||||||||||||||
Tax benefit (expense) | (9) | 1 | 0 | (8) | |||||||||||||||||||
BALANCE AT OCTOBER 26, 2019 | $ | 68 | $ | (14) | $ | (869) | $ | (815) |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | Cumulative Translation Adjustment and Actuarial Gains (Losses) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
BALANCE AT JULY 29, 2017 | $ | 373 | $ | 32 | $ | (359 | ) | $ | 46 | ||||||
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc. | (174 | ) | 38 | 292 | 156 | ||||||||||
(Gains) losses reclassified out of AOCI | (91 | ) | (31 | ) | 5 | (117 | ) | ||||||||
Tax benefit (expense) | 3 | 1 | (6 | ) | (2 | ) | |||||||||
BALANCE AT JANUARY 27, 2018 | $ | 111 | $ | 40 | $ | (68 | ) | $ | 83 |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (Losses) Cash Flow Hedging Instruments | Cumulative Translation Adjustment and Actuarial Gains (Losses) | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
BALANCE AT JULY 30, 2016 | $ | 413 | $ | (59 | ) | $ | (680 | ) | $ | (326 | ) | ||||
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc. | (559 | ) | (48 | ) | (69 | ) | (676 | ) | |||||||
(Gains) losses reclassified out of AOCI | 15 | 39 | (1 | ) | 53 | ||||||||||
Tax benefit (expense) | 148 | 1 | (1 | ) | 148 | ||||||||||
BALANCE AT JANUARY 28, 2017 | $ | 17 | $ | (67 | ) | $ | (751 | ) | $ | (801 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||||
Comprehensive Income Components | Income Before Taxes | Income Before Taxes | Line Item in Statements of Operations | ||||||||||||||
Net unrealized gains and losses on available-for-sale investments | $ | 58 | $ | (30 | ) | $ | 91 | $ | (15 | ) | Other income (loss), net | ||||||
Net unrealized gains and losses on cash flow hedging instruments | |||||||||||||||||
Foreign currency derivatives | 14 | (21 | ) | 24 | (30 | ) | Operating expenses | ||||||||||
Foreign currency derivatives | 4 | (6 | ) | 7 | (9 | ) | Cost of sales—service | ||||||||||
18 | (27 | ) | 31 | (39 | ) | ||||||||||||
Cumulative translation adjustment and actuarial gains and losses | (4 | ) | 1 | (5 | ) | 1 | Operating expenses | ||||||||||
Total amounts reclassified out of AOCI | $ | 72 | $ | (56 | ) | $ | 117 | $ | (53 | ) |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Income before provision for income taxes | $ | 3,232 | $ | 2,963 | $ | 6,194 | $ | 5,916 | |||||||
Provision for income taxes | $ | 12,010 | $ | 615 | $ | 12,578 | $ | 1,246 | |||||||
Effective tax rate | 371.6 | % | 20.8 | % | 203.1 | % | 21.1 | % |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Income before provision for income taxes | $ | 2,681 | $ | 3,686 | |||||||
Provision for income taxes | $ | 507 | $ | 760 | |||||||
Effective tax rate | 18.9 | % | 20.6 | % |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Revenue: | |||||||||||
Americas | $ | 7,198 | $ | 7,977 | |||||||
EMEA | 2,964 | 3,283 | |||||||||
APJC | 1,767 | 1,899 | |||||||||
Total | $ | 11,929 | $ | 13,159 | |||||||
Gross margin: | |||||||||||
Americas | $ | 4,847 | $ | 5,316 | |||||||
EMEA | 1,894 | 2,166 | |||||||||
APJC | 1,113 | 1,194 | |||||||||
Segment total | 7,853 | 8,676 | |||||||||
Unallocated corporate items | (272) | (212) | |||||||||
Total | $ | 7,581 | $ | 8,464 |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Revenue: | |||||||||||||||
Americas | $ | 7,004 | $ | 6,660 | $ | 14,354 | $ | 14,103 | |||||||
EMEA | 3,062 | 3,065 | 5,971 | 6,078 | |||||||||||
APJC | 1,821 | 1,855 | 3,698 | 3,751 | |||||||||||
Total | $ | 11,887 | $ | 11,580 | $ | 24,023 | $ | 23,932 | |||||||
Gross margin: | |||||||||||||||
Americas | $ | 4,614 | $ | 4,288 | $ | 9,336 | $ | 9,121 | |||||||
EMEA | 1,977 | 2,012 | 3,816 | 4,025 | |||||||||||
APJC | 1,094 | 1,121 | 2,259 | 2,325 | |||||||||||
Segment total | 7,685 | 7,421 | 15,411 | 15,471 | |||||||||||
Unallocated corporate items | (187 | ) | (145 | ) | (486 | ) | (311 | ) | |||||||
Total | $ | 7,498 | $ | 7,276 | $ | 14,925 | $ | 15,160 |
Three Months Ended | |||||||||||
October 24, 2020 | October 26, 2019 | ||||||||||
Revenue: | |||||||||||
Infrastructure Platforms | $ | 6,341 | $ | 7,553 | |||||||
Applications | 1,380 | 1,499 | |||||||||
Security | 861 | 816 | |||||||||
Other Products | 5 | 11 | |||||||||
Total Product | 8,587 | 9,878 | |||||||||
Services | 3,342 | 3,281 | |||||||||
Total | $ | 11,929 | $ | 13,159 |
Three Months Ended | Six Months Ended | ||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||
Revenue: | |||||||||||||||
Infrastructure Platforms | $ | 6,694 | $ | 6,545 | $ | 13,664 | $ | 13,818 | |||||||
Applications | 1,184 | 1,116 | 2,387 | 2,252 | |||||||||||
Security | 558 | 528 | 1,143 | 1,068 | |||||||||||
Other Products | 273 | 302 | 569 | 655 | |||||||||||
Total Product | 8,709 | 8,491 | 17,763 | 17,793 | |||||||||||
Services | 3,178 | 3,089 | 6,260 | 6,139 | |||||||||||
Total | $ | 11,887 | $ | 11,580 | $ | 24,023 | $ | 23,932 |
January 27, 2018 | July 29, 2017 | ||||||
Property and equipment, net: | |||||||
United States | $ | 2,555 | $ | 2,711 | |||
International | 558 | 611 | |||||
Total | $ | 3,113 | $ | 3,322 |
Three Months Ended | ||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | October 24, 2020 | October 26, 2019 | |||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||||||||||||||
Net income (loss) | $ | (8,778 | ) | $ | 2,348 | $ | (6,384 | ) | $ | 4,670 | ||||||||||||||||
Net income | Net income | $ | 2,174 | $ | 2,926 | |||||||||||||||||||||
Weighted-average shares—basic | 4,924 | 5,015 | 4,942 | 5,021 | Weighted-average shares—basic | 4,230 | 4,246 | |||||||||||||||||||
Effect of dilutive potential common shares | — | 25 | — | 33 | Effect of dilutive potential common shares | 14 | 27 | |||||||||||||||||||
Weighted-average shares—diluted | 4,924 | 5,040 | 4,942 | 5,054 | Weighted-average shares—diluted | 4,244 | 4,273 | |||||||||||||||||||
Net income (loss) per share—basic | $ | (1.78 | ) | $ | 0.47 | $ | (1.29 | ) | $ | 0.93 | ||||||||||||||||
Net income (loss) per share—diluted | $ | (1.78 | ) | $ | 0.47 | $ | (1.29 | ) | $ | 0.92 | ||||||||||||||||
Net income per share—basic | Net income per share—basic | $ | 0.51 | $ | 0.69 | |||||||||||||||||||||
Net income per share—diluted | Net income per share—diluted | $ | 0.51 | $ | 0.68 | |||||||||||||||||||||
Antidilutive employee share-based awards, excluded | Antidilutive employee share-based awards, excluded | 35 | 11 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended | ||||||||||||||||||||
October 24, 2020 | October 26, 2019 | % Variance | ||||||||||||||||||
Revenue | $ | 11,929 | $ | 13,159 | (9) | % | ||||||||||||||
Gross margin percentage | 63.6 | % | 64.3 | % | (0.7) | pts | ||||||||||||||
Research and development | $ | 1,612 | $ | 1,666 | (3) | % | ||||||||||||||
Sales and marketing | $ | 2,217 | $ | 2,480 | (11) | % | ||||||||||||||
General and administrative | $ | 544 | $ | 519 | 5 | % | ||||||||||||||
Total research and development, sales and marketing, general and administrative | $ | 4,373 | $ | 4,665 | (6) | % | ||||||||||||||
Total as a percentage of revenue | 36.7 | % | 35.5 | % | 1.2 | pts | ||||||||||||||
Amortization of purchased intangible assets included in operating expenses | $ | 36 | $ | 36 | — | % | ||||||||||||||
Restructuring and other charges included in operating expenses | $ | 602 | $ | 184 | 227 | % | ||||||||||||||
Operating income as a percentage of revenue | 21.5 | % | 27.2 | % | (5.7) | pts | ||||||||||||||
Interest and other income (loss), net | $ | 111 | $ | 107 | 4 | % | ||||||||||||||
Income tax percentage | 18.9 | % | 20.6 | % | (1.7) | pts | ||||||||||||||
Net income | $ | 2,174 | $ | 2,926 | (26) | % | ||||||||||||||
Net income as a percentage of revenue | 18.2 | % | 22.2 | % | (4.0) | pts | ||||||||||||||
Earnings per share—diluted | $ | 0.51 | $ | 0.68 | (25) | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance | January 27, 2018 | January 28, 2017 | Variance | ||||||||||||||||||
Revenue | $ | 11,887 | $ | 11,580 | 3 | % | $ | 24,023 | $ | 23,932 | — | % | |||||||||||
Gross margin percentage | 63.1 | % | 62.8 | % | 0.3 | pts | 62.1 | % | 63.3 | % | (1.2 | ) | pts | ||||||||||
Research and development | $ | 1,549 | $ | 1,508 | 3 | % | $ | 3,116 | $ | 3,053 | 2 | % | |||||||||||
Sales and marketing | $ | 2,235 | $ | 2,222 | 1 | % | $ | 4,569 | $ | 4,640 | (2 | )% | |||||||||||
General and administrative | $ | 483 | $ | 456 | 6 | % | $ | 1,040 | $ | 1,011 | 3 | % | |||||||||||
Total research and development, sales and marketing, general and administrative | $ | 4,267 | $ | 4,186 | 2 | % | $ | 8,725 | $ | 8,704 | — | % | |||||||||||
Total as a percentage of revenue | 35.9 | % | 36.1 | % | (0.2 | ) | pts | 36.3 | % | 36.4 | % | (0.1 | ) | pts | |||||||||
Amortization of purchased intangible assets included in operating expenses | $ | 60 | $ | 64 | (6 | )% | $ | 121 | $ | 142 | (15 | )% | |||||||||||
Restructuring and other charges included in operating expenses | $ | 98 | $ | 133 | (26 | )% | $ | 250 | $ | 544 | (54 | )% | |||||||||||
Operating income as a percentage of revenue | 25.9 | % | 25.0 | % | 0.9 | pts | 24.3 | % | 24.1 | % | 0.2 | pts | |||||||||||
Income tax percentage | 371.6 | % | 20.8 | % | 350.8 | pts | 203.1 | % | 21.1 | % | 182.0 | pts | |||||||||||
Net income (loss) | $ | (8,778 | ) | $ | 2,348 | (474 | )% | $ | (6,384 | ) | $ | 4,670 | (237 | )% | |||||||||
Net income (loss) as a percentage of revenue | (73.8 | )% | 20.3 | % | (94.1 | ) | pts | (26.6 | )% | 19.5 | % | (46.1 | ) | pts | |||||||||
Earnings (loss) per share | $ | (1.78 | ) | $ | 0.47 | (479 | )% | $ | (1.29 | ) | $ | 0.92 | (240 | )% |
October 24, 2020 | July 25, 2020 | |||||||||||||
Cash and cash equivalents and investments | $ | 30,012 | $ | 29,419 | ||||||||||
Deferred revenue | $ | 20,473 | $ | 20,446 | ||||||||||
Inventories | $ | 1,303 | $ | 1,282 |
Three Months Ended | ||||||||||||||
October 24, 2020 | October 26, 2019 | |||||||||||||
Cash provided by operating activities | $ | 4,096 | $ | 3,587 | ||||||||||
Repurchases of common stock—stock repurchase program | $ | 800 | $ | 768 | ||||||||||
Dividends paid | $ | 1,520 | $ | 1,486 |
January 27, 2018 | July 29, 2017 | |||||||
Cash and cash equivalents and investments | $ | 73,683 | $ | 70,492 | ||||
Deferred revenue | $ | 18,788 | $ | 18,494 | ||||
Inventories | $ | 1,896 | $ | 1,616 |
Six Months Ended | ||||||||
January 27, 2018 | January 28, 2017 | |||||||
Cash provided by operating activities | $ | 7,150 | $ | 6,502 | ||||
Repurchases of common stock—stock repurchase program | $ | 5,631 | $ | 2,002 | ||||
Dividends | $ | 2,861 | $ | 2,612 |
January 27, 2018 | July 29, 2017 | |||||||
Allowance for doubtful accounts | $ | 181 | $ | 211 | ||||
Percentage of gross accounts receivable | 4.4 | % | 3.9 | % | ||||
Allowance for credit loss—lease receivables | $ | 165 | $ | 162 | ||||
Percentage of gross lease receivables(1) | 5.6 | % | 5.5 | % | ||||
Allowance for credit loss—loan receivables | $ | 94 | $ | 103 | ||||
Percentage of gross loan receivables | 1.9 | % | 2.3 | % |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | October 24, 2020 | October 26, 2019 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||||||||||||||||||||||||
Revenue: | Revenue: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product | $ | 8,709 | $ | 8,491 | $ | 218 | 3 | % | $ | 17,763 | $ | 17,793 | $ | (30 | ) | — | % | Product | $ | 8,587 | $ | 9,878 | $ | (1,291) | (13) | % | ||||||||||||||||||||||||||||||
Percentage of revenue | 73.3 | % | 73.3 | % | 73.9 | % | 74.3 | % | Percentage of revenue | 72.0 | % | 75.1 | % | |||||||||||||||||||||||||||||||||||||||||||
Service | 3,178 | 3,089 | 89 | 3 | % | 6,260 | 6,139 | 121 | 2 | % | Service | 3,342 | 3,281 | 61 | 2 | % | ||||||||||||||||||||||||||||||||||||||||
Percentage of revenue | 26.7 | % | 26.7 | % | 26.1 | % | 25.7 | % | Percentage of revenue | 28.0 | % | 24.9 | % | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 11,887 | $ | 11,580 | $ | 307 | 3 | % | $ | 24,023 | $ | 23,932 | $ | 91 | — | % | Total | $ | 11,929 | $ | 13,159 | $ | (1,230) | (9) | % |
Three Months Ended | ||||||||||||||||||||||||||
October 24, 2020 | October 26, 2019 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||
Americas | $ | 7,198 | $ | 7,977 | $ | (779) | (10) | % | ||||||||||||||||||
Percentage of revenue | 60.4 | % | 60.7 | % | ||||||||||||||||||||||
EMEA | 2,964 | 3,283 | (319) | (10) | % | |||||||||||||||||||||
Percentage of revenue | 24.8 | % | 24.9 | % | ||||||||||||||||||||||
APJC | 1,767 | 1,899 | (132) | (7) | % | |||||||||||||||||||||
Percentage of revenue | 14.8 | % | 14.4 | % | ||||||||||||||||||||||
Total | $ | 11,929 | $ | 13,159 | $ | (1,230) | (9) | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Revenue: | ||||||||||||||||||||||||||||||
Americas | $ | 7,004 | $ | 6,660 | $ | 344 | 5 | % | $ | 14,354 | $ | 14,103 | $ | 251 | 2 | % | ||||||||||||||
Percentage of revenue | 58.9 | % | 57.5 | % | 59.7 | % | 58.9 | % | ||||||||||||||||||||||
EMEA | 3,062 | 3,065 | (3 | ) | — | % | 5,971 | 6,078 | (107 | ) | (2 | )% | ||||||||||||||||||
Percentage of revenue | 25.8 | % | 26.5 | % | 24.9 | % | 25.4 | % | ||||||||||||||||||||||
APJC | 1,821 | 1,855 | (34 | ) | (2 | )% | 3,698 | 3,751 | (53 | ) | (1 | )% | ||||||||||||||||||
Percentage of revenue | 15.3 | % | 16.0 | % | 15.4 | % | 15.7 | % | ||||||||||||||||||||||
Total | $ | 11,887 | $ | 11,580 | $ | 307 | 3 | % | $ | 24,023 | $ | 23,932 | $ | 91 | — | % |
Three Months Ended | ||||||||||||||||||||||||||
October 24, 2020 | October 26, 2019 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Product revenue: | ||||||||||||||||||||||||||
Americas | $ | 5,129 | $ | 5,907 | $ | (778) | (13) | % | ||||||||||||||||||
Percentage of product revenue | 59.8 | % | 59.8 | % | ||||||||||||||||||||||
EMEA | 2,210 | 2,557 | (347) | (14) | % | |||||||||||||||||||||
Percentage of product revenue | 25.7 | % | 25.9 | % | ||||||||||||||||||||||
APJC | 1,248 | 1,413 | (165) | (12) | % | |||||||||||||||||||||
Percentage of product revenue | 14.5 | % | 14.3 | % | ||||||||||||||||||||||
Total | $ | 8,587 | $ | 9,878 | $ | (1,291) | (13) | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Product revenue: | ||||||||||||||||||||||||||||||
Americas | $ | 4,988 | $ | 4,695 | $ | 293 | 6 | % | $ | 10,380 | $ | 10,175 | $ | 205 | 2 | % | ||||||||||||||
Percentage of product revenue | 57.3 | % | 55.3 | % | 58.4 | % | 57.2 | % | ||||||||||||||||||||||
EMEA | 2,375 | 2,392 | (17 | ) | (1 | )% | 4,614 | 4,756 | (142 | ) | (3 | )% | ||||||||||||||||||
Percentage of product revenue | 27.3 | % | 28.2 | % | 26.0 | % | 26.7 | % | ||||||||||||||||||||||
APJC | 1,346 | 1,404 | (58 | ) | (4 | )% | 2,769 | 2,862 | (93 | ) | (3 | )% | ||||||||||||||||||
Percentage of product revenue | 15.4 | % | 16.5 | % | 15.6 | % | 16.1 | % | ||||||||||||||||||||||
Total | $ | 8,709 | $ | 8,491 | $ | 218 | 3 | % | $ | 17,763 | $ | 17,793 | $ | (30 | ) | — | % |
Three Months Ended | ||||||||||||||||||||||||||
October 24, 2020 | October 26, 2019 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Product revenue: | ||||||||||||||||||||||||||
Infrastructure Platforms | $ | 6,341 | $ | 7,553 | $ | (1,212) | (16) | % | ||||||||||||||||||
Applications | 1,380 | 1,499 | (119) | (8) | % | |||||||||||||||||||||
Security | 861 | 816 | 45 | 6 | % | |||||||||||||||||||||
Other Products | 5 | 11 | (6) | (56) | % | |||||||||||||||||||||
Total | $ | 8,587 | $ | 9,878 | $ | (1,291) | (13) | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Product revenue: | ||||||||||||||||||||||||||||||
Infrastructure Platforms | $ | 6,694 | $ | 6,545 | $ | 149 | 2 | % | $ | 13,664 | $ | 13,818 | $ | (154 | ) | (1 | )% | |||||||||||||
Applications | 1,184 | 1,116 | 68 | 6 | % | 2,387 | 2,252 | 135 | 6 | % | ||||||||||||||||||||
Security | 558 | 528 | 30 | 6 | % | 1,143 | 1,068 | 75 | 7 | % | ||||||||||||||||||||
Other Products | 273 | 302 | (29 | ) | (10 | )% | 569 | 655 | (86 | ) | (13 | )% | ||||||||||||||||||
Total | $ | 8,709 | $ | 8,491 | $ | 218 | 3 | % | $ | 17,763 | $ | 17,793 | $ | (30 | ) | — | % |
Three Months Ended | ||||||||||||||||||||||||||
October 24, 2020 | October 26, 2019 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Service revenue: | ||||||||||||||||||||||||||
Americas | $ | 2,070 | $ | 2,070 | $ | — | — | % | ||||||||||||||||||
Percentage of service revenue | 61.9 | % | 63.1 | % | ||||||||||||||||||||||
EMEA | 754 | 726 | 28 | 4 | % | |||||||||||||||||||||
Percentage of service revenue | 22.6 | % | 22.1 | % | ||||||||||||||||||||||
APJC | 519 | 486 | 33 | 7 | % | |||||||||||||||||||||
Percentage of service revenue | 15.5 | % | 14.8 | % | ||||||||||||||||||||||
Total | $ | 3,342 | $ | 3,281 | $ | 61 | 2 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | |||||||||||||||||||||||
Service revenue: | ||||||||||||||||||||||||||||||
Americas | $ | 2,016 | $ | 1,965 | $ | 51 | 3 | % | $ | 3,974 | $ | 3,928 | $ | 46 | 1 | % | ||||||||||||||
Percentage of service revenue | 63.4 | % | 63.6 | % | 63.5 | % | 64.0 | % | ||||||||||||||||||||||
EMEA | 687 | 673 | 14 | 2 | % | 1,357 | 1,322 | 35 | 3 | % | ||||||||||||||||||||
Percentage of service revenue | 21.6 | % | 21.8 | % | 21.7 | % | 21.5 | % | ||||||||||||||||||||||
APJC | 475 | 451 | 24 | 5 | % | 929 | 889 | 40 | 4 | % | ||||||||||||||||||||
Percentage of service revenue | 15.0 | % | 14.6 | % | 14.8 | % | 14.5 | % | ||||||||||||||||||||||
Total | $ | 3,178 | $ | 3,089 | $ | 89 | 3 | % | $ | 6,260 | $ | 6,139 | $ | 121 | 2 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
AMOUNT | PERCENTAGE | AMOUNT | PERCENTAGE | |||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||||||||||||
Gross margin: | ||||||||||||||||||||||||||||
Product | $ | 5,355 | $ | 5,186 | 61.5 | % | 61.1 | % | $ | 10,794 | $ | 11,085 | 60.8 | % | 62.3 | % | ||||||||||||
Service | 2,143 | 2,090 | 67.4 | % | 67.7 | % | 4,131 | 4,075 | 66.0 | % | 66.4 | % | ||||||||||||||||
Total | $ | 7,498 | $ | 7,276 | 63.1 | % | 62.8 | % | $ | 14,925 | $ | 15,160 | 62.1 | % | 63.3 | % |
Three Months Ended | ||||||||||||||||||||||||||
AMOUNT | PERCENTAGE | |||||||||||||||||||||||||
October 24, 2020 | October 26, 2019 | October 24, 2020 | October 26, 2019 | |||||||||||||||||||||||
Gross margin: | ||||||||||||||||||||||||||
Product | $ | 5,381 | $ | 6,354 | 62.7 | % | 64.3 | % | ||||||||||||||||||
Service | 2,200 | 2,110 | 65.8 | % | 64.3 | % | ||||||||||||||||||||
Total | $ | 7,581 | $ | 8,464 | 63.6 | % | 64.3 | % |
Product Gross Margin Percentage | ||||||||
Fiscal 2020 | 64.3 | % | ||||||
Productivity (1) | (0.3) | % | ||||||
Product pricing | (1.8) | % | ||||||
Mix of products sold | 1.4 | % | ||||||
Legal and indemnification charge | (0.5) | % | ||||||
Others | (0.4) | % | ||||||
Fiscal 2021 | 62.7 | % |
Product Gross Margin Percentage | ||||||
Three Months Ended | Six Months Ended | |||||
Fiscal 2017 | 61.1 | % | 62.3 | % | ||
Product pricing | (1.3 | )% | (1.7 | )% | ||
Legal and indemnification settlements | — | % | (0.7 | )% | ||
Amortization of purchased intangibles | (0.4 | )% | (0.4 | )% | ||
Mix of products sold | 0.5 | % | 0.3 | % | ||
Productivity (1) | 1.7 | % | 0.9 | % | ||
Other | (0.1 | )% | 0.1 | % | ||
Fiscal 2018 | 61.5 | % | 60.8 | % |
Three Months Ended | |||||||||||||||||||||||
AMOUNT | PERCENTAGE | ||||||||||||||||||||||
October 24, 2020 | October 26, 2019 | October 24, 2020 | October 26, 2019 | ||||||||||||||||||||
Gross margin: | |||||||||||||||||||||||
Americas | $ | 4,847 | $ | 5,316 | 67.3 | % | 66.6 | % | |||||||||||||||
EMEA | 1,894 | 2,166 | 63.9 | % | 66.0 | % | |||||||||||||||||
APJC | 1,113 | 1,194 | 63.0 | % | 62.9 | % | |||||||||||||||||
Segment total | 7,853 | 8,676 | 65.8 | % | 65.9 | % | |||||||||||||||||
Unallocated corporate items (1) | (272) | (212) | |||||||||||||||||||||
Total | $ | 7,581 | $ | 8,464 | 63.6 | % | 64.3 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||
AMOUNT | PERCENTAGE | AMOUNT | PERCENTAGE | ||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | ||||||||||||||||||||
Gross margin: | |||||||||||||||||||||||||||
Americas | $ | 4,614 | $ | 4,288 | 65.9 | % | 64.4 | % | $ | 9,336 | $ | 9,121 | 65.0 | % | 64.7 | % | |||||||||||
EMEA | 1,977 | 2,012 | 64.6 | % | 65.6 | % | 3,816 | 4,025 | 63.9 | % | 66.2 | % | |||||||||||||||
APJC | 1,094 | 1,121 | 60.1 | % | 60.4 | % | 2,259 | 2,325 | 61.1 | % | 62.0 | % | |||||||||||||||
Segment total | 7,685 | 7,421 | 64.7 | % | 64.1 | % | 15,411 | 15,471 | 64.2 | % | 64.6 | % | |||||||||||||||
Unallocated corporate items (1) | (187 | ) | (145 | ) | (486 | ) | (311 | ) | |||||||||||||||||||
Total | $ | 7,498 | $ | 7,276 | 63.1 | % | 62.8 | % | $ | 14,925 | $ | 15,160 | 62.1 | % | 63.3 | % | |||||||||||
Three Months Ended | |||||||||||||||||||||||
October 24, 2020 | October 26, 2019 | Variance in Dollars | Variance in Percent | ||||||||||||||||||||
Research and development | $ | 1,612 | $ | 1,666 | $ | (54) | (3) | % | |||||||||||||||
Percentage of revenue | 13.5 | % | 12.7 | % | |||||||||||||||||||
Sales and marketing | 2,217 | 2,480 | (263) | (11) | % | ||||||||||||||||||
Percentage of revenue | 18.6 | % | 18.8 | % | |||||||||||||||||||
General and administrative | 544 | 519 | 25 | 5 | % | ||||||||||||||||||
Percentage of revenue | 4.6 | % | 3.9 | % | |||||||||||||||||||
Total | $ | 4,373 | $ | 4,665 | $ | (292) | (6) | % | |||||||||||||||
Percentage of revenue | 36.7 | % | 35.5 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | January 27, 2018 | January 28, 2017 | Variance in Dollars | Variance in Percent | ||||||||||||||||||||||
Research and development | $ | 1,549 | $ | 1,508 | $ | 41 | 3 | % | $ | 3,116 | $ | 3,053 | $ | 63 | 2 | % | |||||||||||||
Percentage of revenue | 13.0 | % | 13.0 | % | 13.0 | % | 12.8 | % | |||||||||||||||||||||
Sales and marketing | 2,235 | 2,222 | 13 | 1 | % | 4,569 | 4,640 | (71 | ) | (2 | )% | ||||||||||||||||||
Percentage of revenue | 18.8 | % | 19.2 | % | 19.0 | % | 19.4 | % | |||||||||||||||||||||
General and administrative | 483 | 456 | 27 | 6 | % | 1,040 | 1,011 | 29 | 3 | % | |||||||||||||||||||
Percentage of revenue | 4.1 | % | 3.9 | % | 4.3 | % | 4.2 | % | |||||||||||||||||||||
Total | $ | 4,267 | $ | 4,186 | $ | 81 | 2 | % | $ | 8,725 | $ | 8,704 | $ | 21 | — | % | |||||||||||||
Percentage of revenue | 35.9 | % | 36.1 | % | 36.3 | % | 36.4 | % |
Three Months Ended | Six Months Ended | |||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||||
Cost of sales—product | $ | 23 | $ | 19 | $ | 46 | $ | 40 | ||||||||
Cost of sales—service | 31 | 34 | 65 | 67 | ||||||||||||
Share-based compensation expense in cost of sales | 54 | 53 | 111 | 107 | ||||||||||||
Research and development | 134 | 129 | 270 | 255 | ||||||||||||
Sales and marketing | 135 | 125 | 270 | 265 | ||||||||||||
General and administrative | 64 | 45 | 128 | 94 | ||||||||||||
Restructuring and other charges | 12 | — | 18 | 3 | ||||||||||||
Share-based compensation expense in operating expenses | 345 | 299 | 686 | 617 | ||||||||||||
Total share-based compensation expense | $ | 399 | $ | 352 | $ | 797 | $ | 724 |
Three Months Ended | ||||||||||||||
October 24, 2020 | October 26, 2019 | |||||||||||||
Amortization of purchased intangible assets: | ||||||||||||||
Cost of sales | $ | 170 | $ | 166 | ||||||||||
Operating expenses | 36 | 36 | ||||||||||||
Total | $ | 206 | $ | 202 |
Three Months Ended | Six Months Ended | |||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | |||||||||||||
Amortization of purchased intangible assets: | ||||||||||||||||
Cost of sales | $ | 160 | $ | 124 | $ | 314 | $ | 253 | ||||||||
Operating expenses: | ||||||||||||||||
Amortization of purchased intangible assets | 60 | 64 | 121 | 142 | ||||||||||||
Restructuring and other charges | — | — | — | 38 | ||||||||||||
Total | $ | 220 | $ | 188 | $ | 435 | $ | 433 |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | January 27, 2018 | January 28, 2017 | October 24, 2020 | October 26, 2019 | |||||||||||||||||||||||||
Operating income | $ | 3,073 | $ | 2,893 | $ | 5,829 | $ | 5,770 | Operating income | $ | 2,570 | $ | 3,579 | |||||||||||||||||
Operating income as a percentage of revenue | 25.9 | % | 25.0 | % | 24.3 | % | 24.1 | % | Operating income as a percentage of revenue | 21.5 | % | 27.2 | % |
Three Months Ended | ||||||||||||||||||||
October 24, 2020 | October 26, 2019 | Variance in Dollars | ||||||||||||||||||
Interest income | $ | 174 | $ | 273 | $ | (99) | ||||||||||||||
Interest expense | (112) | (178) | 66 | |||||||||||||||||
Interest income (expense), net | $ | 62 | $ | 95 | $ | (33) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | January 27, 2018 | January 28, 2017 | Variance in Dollars | |||||||||||||||||||
Interest income | $ | 396 | $ | 329 | $ | 67 | $ | 775 | $ | 624 | $ | 151 | ||||||||||||
Interest expense | (247 | ) | (222 | ) | (25 | ) | (482 | ) | (420 | ) | (62 | ) | ||||||||||||
Interest income (expense), net | $ | 149 | $ | 107 | $ | 42 | $ | 293 | $ | 204 | $ | 89 |
Three Months Ended | ||||||||||||||||||||
October 24, 2020 | October 26, 2019 | Variance in Dollars | ||||||||||||||||||
Gains (losses) on investments, net: | ||||||||||||||||||||
Available-for-sale debt investments | $ | 15 | $ | 10 | $ | 5 | ||||||||||||||
Marketable equity investments | (1) | — | (1) | |||||||||||||||||
Non-marketable equity and other investments | 42 | 10 | 32 | |||||||||||||||||
Net gains (losses) on investments | 56 | 20 | 36 | |||||||||||||||||
Other gains (losses), net | (7) | (8) | 1 | |||||||||||||||||
Other income (loss), net | $ | 49 | $ | 12 | $ | 37 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
January 27, 2018 | January 28, 2017 | Variance in Dollars | January 27, 2018 | January 28, 2017 | Variance in Dollars | |||||||||||||||||||
Gains (losses) on investments, net: | ||||||||||||||||||||||||
Publicly traded equity securities | $ | 154 | $ | 4 | $ | 150 | $ | 183 | $ | 9 | $ | 174 | ||||||||||||
Fixed income securities | (96 | ) | (34 | ) | (62 | ) | (92 | ) | (24 | ) | (68 | ) | ||||||||||||
Total available-for-sale investments | 58 | (30 | ) | 88 | 91 | (15 | ) | 106 | ||||||||||||||||
Privately held companies | 2 | (3 | ) | 5 | 37 | (53 | ) | 90 | ||||||||||||||||
Net gains (losses) on investments | 60 | (33 | ) | 93 | 128 | (68 | ) | 196 | ||||||||||||||||
Other gains (losses), net | (50 | ) | (4 | ) | (46 | ) | (56 | ) | 10 | (66 | ) | |||||||||||||
Other income (loss), net | $ | 10 | $ | (37 | ) | $ | 47 | $ | 72 | $ | (58 | ) | $ | 130 |
January 27, 2018 | July 29, 2017 | Increase (Decrease) | October 24, 2020 | July 25, 2020 | Increase (Decrease) | |||||||||||||||||||||||
Cash and cash equivalents | $ | 17,624 | $ | 11,708 | $ | 5,916 | Cash and cash equivalents | $ | 10,822 | $ | 11,809 | $ | (987) | |||||||||||||||
Fixed income securities | 54,439 | 57,077 | (2,638 | ) | ||||||||||||||||||||||||
Publicly traded equity securities | 1,620 | 1,707 | (87 | ) | ||||||||||||||||||||||||
Available-for-sale debt investments | Available-for-sale debt investments | 19,190 | 17,610 | 1,580 | ||||||||||||||||||||||||
Total | $ | 73,683 | $ | 70,492 | $ | 3,191 | Total | $ | 30,012 | $ | 29,419 | $ | 593 |
Six Months Ended | Three Months Ended | |||||||||||||||||
January 27, 2018 | January 28, 2017 | October 24, 2020 | October 26, 2019 | |||||||||||||||
Net cash provided by operating activities | $ | 7,150 | $ | 6,502 | Net cash provided by operating activities | $ | 4,096 | $ | 3,587 | |||||||||
Acquisition of property and equipment | (379 | ) | (526 | ) | Acquisition of property and equipment | (171) | (202) | |||||||||||
Free cash flow | $ | 6,771 | $ | 5,976 | Free cash flow | $ | 3,925 | $ | 3,385 |
DIVIDENDS | STOCK REPURCHASE PROGRAM | |||||||||||||||||||||||||||||||||||||
Quarter Ended | Per Share | Amount | Shares | Weighted-Average Price per Share | Amount | TOTAL | ||||||||||||||||||||||||||||||||
Fiscal 2021 | ||||||||||||||||||||||||||||||||||||||
October 24, 2020 | $ | 0.36 | $ | 1,520 | 20 | $ | 40.44 | $ | 800 | $ | 2,320 | |||||||||||||||||||||||||||
Fiscal 2020 | ||||||||||||||||||||||||||||||||||||||
July 25, 2020 | $ | 0.36 | $ | 1,525 | — | $ | — | $ | — | $ | 1,525 | |||||||||||||||||||||||||||
April 25, 2020 | $ | 0.36 | $ | 1,519 | 25 | $ | 39.71 | $ | 981 | $ | 2,500 | |||||||||||||||||||||||||||
January 25, 2020 | $ | 0.35 | $ | 1,486 | 18 | $ | 46.71 | $ | 870 | $ | 2,356 | |||||||||||||||||||||||||||
October 26, 2019 | $ | 0.35 | $ | 1,486 | 16 | $ | 48.91 | $ | 768 | $ | 2,254 |
DIVIDENDS | STOCK REPURCHASE PROGRAM | ||||||||||||||||||||||
Quarter Ended | Per Share | Amount | Shares | Weighted-Average Price per Share | Amount | TOTAL | |||||||||||||||||
Fiscal 2018 | |||||||||||||||||||||||
January 27, 2018 | $ | 0.29 | $ | 1,425 | 103 | $ | 39.07 | $ | 4,011 | $ | 5,436 | ||||||||||||
October 28, 2017 | $ | 0.29 | $ | 1,436 | 51 | $ | 31.80 | $ | 1,620 | $ | 3,056 | ||||||||||||
Fiscal 2017 | |||||||||||||||||||||||
July 29, 2017 | $ | 0.29 | $ | 1,448 | 38 | $ | 31.61 | $ | 1,201 | $ | 2,649 | ||||||||||||
April 29, 2017 | $ | 0.29 | $ | 1,451 | 15 | $ | 33.71 | $ | 503 | $ | 1,954 | ||||||||||||
January 28, 2017 | $ | 0.26 | $ | 1,304 | 33 | $ | 30.33 | $ | 1,001 | $ | 2,305 | ||||||||||||
October 29, 2016 | $ | 0.26 | $ | 1,308 | 32 | $ | 31.12 | $ | 1,001 | $ | 2,309 |
January 27, 2018 | July 29, 2017 | Increase (Decrease) | |||||||||
Accounts receivable, net | $ | 3,963 | $ | 5,146 | $ | (1,183 | ) |
October 24, 2020 | July 25, 2020 | Increase (Decrease) | |||||||||||||||
Accounts receivable, net | $ | 3,980 | $ | 5,472 | $ | (1,492) |
January 27, 2018 | July 29, 2017 | Increase (Decrease) | |||||||||
Inventories | $ | 1,896 | $ | 1,616 | $ | 280 |
October 24, 2020 | July 25, 2020 | Increase (Decrease) | |||||||||||||||
Inventories | $ | 1,303 | $ | 1,282 | $ | 21 | |||||||||||
Purchase commitments with contract manufacturers and suppliers | $ | 4,189 | $ | 4,406 | $ | (217) |
Commitments by Period | January 27, 2018 | July 29, 2017 | |||||
Less than 1 year | $ | 4,498 | $ | 4,620 | |||
1 to 3 years | 690 | 20 | |||||
3 to 5 years | 540 | — | |||||
Total | $ | 5,728 | $ | 4,640 |
October 24, 2020 | July 25, 2020 | Increase (Decrease) | |||||||||||||||
Lease receivables, net | $ | 2,031 | $ | 2,088 | $ | (57) | |||||||||||
Loan receivables, net | 5,853 | 5,856 | (3) | ||||||||||||||
Financed service contracts, net | 2,737 | 2,821 | (84) | ||||||||||||||
Total, net | $ | 10,621 | $ | 10,765 | $ | (144) |
January 27, 2018 | July 29, 2017 | Increase (Decrease) | |||||||||
Lease receivables, net | $ | 2,620 | $ | 2,650 | $ | (30 | ) | ||||
Loan receivables, net | 4,752 | 4,457 | 295 | ||||||||
Financed service contracts, net | 2,466 | 2,487 | (21 | ) | |||||||
Total, net | $ | 9,838 | $ | 9,594 | $ | 244 |
Maturity Date | October 24, 2020 | July 25, 2020 | |||||||||||||||
Senior notes: | |||||||||||||||||
Fixed-rate notes: | |||||||||||||||||
2.20% | February 28, 2021 | $ | 2,500 | $ | 2,500 | ||||||||||||
2.90% | March 4, 2021 | 500 | 500 | ||||||||||||||
1.85% | September 20, 2021 | 2,000 | 2,000 | ||||||||||||||
3.00% | June 15, 2022 | 500 | 500 | ||||||||||||||
2.60% | February 28, 2023 | 500 | 500 | ||||||||||||||
2.20% | September 20, 2023 | 750 | 750 | ||||||||||||||
3.625% | March 4, 2024 | 1,000 | 1,000 | ||||||||||||||
3.50% | June 15, 2025 | 500 | 500 | ||||||||||||||
2.95% | February 28, 2026 | 750 | 750 | ||||||||||||||
2.50% | September 20, 2026 | 1,500 | 1,500 | ||||||||||||||
5.90% | February 15, 2039 | 2,000 | 2,000 | ||||||||||||||
5.50% | January 15, 2040 | 2,000 | 2,000 | ||||||||||||||
Total | $ | 14,500 | $ | 14,500 |
Maturity Date | January 27, 2018 | July 29, 2017 | |||||||
Senior notes: | |||||||||
Floating-rate notes: | |||||||||
Three-month LIBOR plus 0.60% | February 21, 2018 | $ | 1,000 | $ | 1,000 | ||||
Three-month LIBOR plus 0.31% | June 15, 2018 | 900 | 900 | ||||||
Three-month LIBOR plus 0.50% | March 1, 2019 | 500 | 500 | ||||||
Three-month LIBOR plus 0.34% | September 20, 2019 | 500 | 500 | ||||||
Fixed-rate notes: | |||||||||
1.40% | February 28, 2018 | 1,250 | 1,250 | ||||||
1.65% | June 15, 2018 | 1,600 | 1,600 | ||||||
4.95% | February 15, 2019 | 2,000 | 2,000 | ||||||
1.60% | February 28, 2019 | 1,000 | 1,000 | ||||||
2.125% | March 1, 2019 | 1,750 | 1,750 | ||||||
1.40% | September 20, 2019 | 1,500 | 1,500 | ||||||
4.45% | January 15, 2020 | 2,500 | 2,500 | ||||||
2.45% | June 15, 2020 | 1,500 | 1,500 | ||||||
2.20% | February 28, 2021 | 2,500 | 2,500 | ||||||
2.90% | March 4, 2021 | 500 | 500 | ||||||
1.85% | September 20, 2021 | 2,000 | 2,000 | ||||||
3.00% | June 15, 2022 | 500 | 500 | ||||||
2.60% | February 28, 2023 | 500 | 500 | ||||||
2.20% | September 20, 2023 | 750 | 750 | ||||||
3.625% | March 4, 2024 | 1,000 | 1,000 | ||||||
3.50% | June 15, 2025 | 500 | 500 | ||||||
2.95% | February 28, 2026 | 750 | 750 | ||||||
2.50% | September 20, 2026 | 1,500 | 1,500 | ||||||
5.90% | February 15, 2039 | 2,000 | 2,000 | ||||||
5.50% | January 15, 2040 | 2,000 | 2,000 | ||||||
Total | $ | 30,500 | $ | 30,500 |
October 24, 2020 | July 25, 2020 | Increase (Decrease) | |||||||||||||||
Product | $ | 8,139 | $ | 7,895 | $ | 244 | |||||||||||
Service | 12,334 | 12,551 | (217) | ||||||||||||||
Total | $ | 20,473 | $ | 20,446 | $ | 27 | |||||||||||
Reported as: | |||||||||||||||||
Current | $ | 11,271 | $ | 11,406 | $ | (135) | |||||||||||
Noncurrent | 9,202 | 9,040 | 162 | ||||||||||||||
Total | $ | 20,473 | $ | 20,446 | $ | 27 |
January 27, 2018 | July 29, 2017 | Increase (Decrease) | |||||||||
Service | $ | 10,963 | $ | 11,302 | $ | (339 | ) | ||||
Product: | |||||||||||
Deferred revenue related to recurring software and subscription offers | 5,451 | 4,971 | 480 | ||||||||
Other product deferred revenue | 2,374 | 2,221 | 153 | ||||||||
Total product deferred revenue | 7,825 | 7,192 | 633 | ||||||||
Total | $ | 18,788 | $ | 18,494 | $ | 294 | |||||
Reported as: | |||||||||||
Current | $ | 11,102 | $ | 10,821 | $ | 281 | |||||
Noncurrent | 7,686 | 7,673 | 13 | ||||||||
Total | $ | 18,788 | $ | 18,494 | $ | 294 |
October 24, 2020 | July 25, 2020 | Increase (Decrease) | |||||||||||||||
Product | $ | 11,340 | $ | 11,261 | $ | 79 | |||||||||||
Service | 16,129 | 17,093 | (964) | ||||||||||||||
Total | $ | 27,469 | $ | 28,354 | $ | (885) |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
VALUATION OF SECURITIES GIVEN AN X% DECREASE IN EACH STOCK’S PRICE | FAIR VALUE AS OF JANUARY 27, 2018 | VALUATION OF SECURITIES GIVEN AN X% INCREASE IN EACH STOCK’S PRICE | |||||||||||||||||||||||||
(30)% | (20)% | (10)% | 10% | 20% | 30% | ||||||||||||||||||||||
Publicly traded equity securities | $ | 888 | $ | 1,015 | $ | 1,142 | $ | 1,269 | $ | 1,396 | $ | 1,523 | $ | 1,650 |
VALUATION OF SECURITIES GIVEN AN X% DECREASE IN EACH STOCK’S PRICE | FAIR VALUE AS OF JULY 29, 2017 | VALUATION OF SECURITIES GIVEN AN X% INCREASE IN EACH STOCK’S PRICE | |||||||||||||||||||||||||
(30)% | (20)% | (10)% | 10% | 20% | 30% | ||||||||||||||||||||||
Publicly traded equity securities | $ | 1,195 | $ | 1,366 | $ | 1,536 | $ | 1,707 | $ | 1,878 | $ | 2,048 | $ | 2,219 |
October 24, 2020 | July 25, 2020 | ||||||||||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||||||||||
Forward contracts: | |||||||||||||||||||||||
Purchased | $ | 2,580 | $ | 9 | $ | 2,441 | $ | 1 | |||||||||||||||
Sold | $ | 1,758 | $ | (6) | $ | 1,874 | $ | 4 |
January 27, 2018 | July 29, 2017 | ||||||||||||||
Notional Amount | Fair Value | Notional Amount | Fair Value | ||||||||||||
Forward contracts: | |||||||||||||||
Purchased | $ | 3,204 | $ | 64 | $ | 2,562 | $ | 39 | |||||||
Sold | $ | 506 | $ | — | $ | 729 | $ | (2 | ) | ||||||
Option contracts: | |||||||||||||||
Purchased | $ | 194 | $ | 6 | $ | 528 | $ | 7 | |||||||
Sold | $ | 174 | $ | — | $ | 486 | $ | (1 | ) |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||
October 29, 2017 to November 25, 2017 | 12 | $ | 35.06 | 12 | $ | 9,651 | |||||||
November 26, 2017 to December 23, 2017 | 30 | $ | 38.09 | 30 | $ | 8,508 | |||||||
December 24, 2017 to January 27, 2018 | 61 | $ | 40.36 | 61 | $ | 6,066 | |||||||
Total | 103 | $ | 39.07 | 103 |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
July 26, 2020 to August 22, 2020 | 3 | $ | 42.10 | 3 | $ | 10,701 | |||||||||||||||||
August 23, 2020 to September 19, 2020 | 10 | $ | 41.09 | 10 | $ | 10,311 | |||||||||||||||||
September 20, 2020 to October 24, 2020 | 7 | $ | 38.76 | 7 | $ | 10,041 | |||||||||||||||||
Total | 20 | $ | 40.44 | 20 |
Item 3. | Defaults Upon Senior Securities |
Item 4. | Mine Safety Disclosures |
Item 5. | Other Information |
Item 6. | Exhibits |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||||||||||||||||||||||||||||
Form | File No. | Exhibit | Filing Date | |||||||||||||||||||||||||||||||||||
3.1 | 8-K | 000-18225 | 3.1 | 10/9/2020 | ||||||||||||||||||||||||||||||||||
10.1* | X | |||||||||||||||||||||||||||||||||||||
10.2* | X | |||||||||||||||||||||||||||||||||||||
10.3* | 8-K | 000-18225 | 10.1 | 11/13/2020 | ||||||||||||||||||||||||||||||||||
10.4* | 8-K | 000-18225 | 10.2 | 11/13/2020 | ||||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||||||||
101.INS | Inline XBRL Instance - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | X | ||||||||||||||||||||||||||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | X | ||||||||||||||||||||||||||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | X |
* | Indicates a management contract or compensatory plan or arrangement. |
Exhibit Number | Exhibit Description | Incorporated by Reference | Filed Herewith | |||||||||
Form | File No. | Exhibit | Filing Date | |||||||||
10.1 | 8-K | 000-18225 | 10.1 | 12/12/2017 | ||||||||
10.2 | 8-K | 000-18225 | 10.2 | 12/12/2017 | ||||||||
31.1 | X | |||||||||||
31.2 | X | |||||||||||
32.1 | X | |||||||||||
32.2 | X | |||||||||||
101.INS | XBRL Instance Document | X | ||||||||||
101.SCH | XBRL Taxonomy Extension Schema Document | X | ||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | X | ||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | X | ||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | X | ||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | X |
Cisco Systems, Inc. | ||||||||||||||||||||||||||
Date: | By | /S/ Kelly A. Kramer | ||||||||||||||||||||||||
Kelly A. Kramer Executive Vice President and Chief Financial Officer (Principal Financial Officer and duly authorized signatory) |