Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 30, 2020 | Dec. 01, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | NTAP | |
Entity Registrant Name | NetApp, Inc. | |
Entity Central Index Key | 0001002047 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 223,384,837 | |
Entity File Number | 000-27130 | |
Entity Tax Identification Number | 77-0307520 | |
Entity Address, Address Line One | 1395 Crossman Avenue | |
Entity Address, City or Town | Sunnyvale | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94089 | |
City Area Code | 408 | |
Local Phone Number | 822-6000 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE | |
Entity Interactive Data Current | Yes | |
Security Exchange Name | NASDAQ | |
Title of 12(b) Security | Common Stock, $0.001 Par Value |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 3,529 | $ 2,658 |
Short-term investments | 117 | 224 |
Accounts receivable | 796 | 973 |
Inventories | 116 | 145 |
Other current assets | 263 | 274 |
Total current assets | 4,821 | 4,274 |
Property and equipment, net | 737 | 727 |
Goodwill | 2,039 | 1,778 |
Other intangible assets, net | 125 | 44 |
Other non-current assets | 698 | 699 |
Total assets | 8,420 | 7,522 |
Current liabilities: | ||
Accounts payable | 367 | 426 |
Accrued expenses | 738 | 774 |
Commercial paper notes | 0 | 522 |
Short-term deferred revenue and financed unearned services revenue | 1,815 | 1,894 |
Total current liabilities | 2,920 | 3,616 |
Long-term debt | 2,631 | 1,146 |
Other long-term liabilities | 663 | 714 |
Long-term deferred revenue and financed unearned services revenue | 1,836 | 1,804 |
Total liabilities | 8,050 | 7,280 |
Commitments and contingencies (Note 16) | 0 | 0 |
Stockholders' equity: | ||
Common stock and additional paid-in capital, $0.001 par value; 222 and 219 shares issued and outstanding as of October 30, 2020 and April 24, 2020, respectively | 372 | 284 |
Retained earnings | 30 | 0 |
Accumulated other comprehensive loss | (32) | (42) |
Total stockholders' equity | 370 | 242 |
Total liabilities and stockholders' equity | $ 8,420 | $ 7,522 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares shares in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 222 | 219 |
Common stock, shares outstanding | 222 | 219 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Revenues: | ||||
Net revenues | $ 1,416 | $ 1,371 | $ 2,719 | $ 2,607 |
Cost of revenues: | ||||
Total cost of revenues | 483 | 446 | 914 | 866 |
Gross profit | 933 | 925 | 1,805 | 1,741 |
Operating expenses: | ||||
Sales and marketing | 432 | 389 | 861 | 794 |
Research and development | 212 | 209 | 445 | 424 |
General and administrative | 67 | 69 | 128 | 140 |
Restructuring charges | 37 | 0 | 42 | 21 |
Acquisition-related expense | 3 | 0 | 11 | 0 |
Gain on sale or derecognition of assets | 0 | (38) | 0 | (38) |
Total operating expenses | 751 | 629 | 1,487 | 1,341 |
Income from operations | 182 | 296 | 318 | 400 |
Other income (expense), net | (7) | 3 | (39) | 18 |
Income before income taxes | 175 | 299 | 279 | 418 |
Provision for income taxes | 38 | 56 | 65 | 72 |
Net income | $ 137 | $ 243 | $ 214 | $ 346 |
Net income per share: | ||||
Basic | $ 0.62 | $ 1.03 | $ 0.96 | $ 1.46 |
Diluted | $ 0.61 | $ 1.03 | $ 0.96 | $ 1.44 |
Shares used in net income per share calculations: | ||||
Basic | 222 | 235 | 222 | 237 |
Diluted | 224 | 236 | 223 | 240 |
Product [Member] | ||||
Revenues: | ||||
Net revenues | $ 749 | $ 771 | $ 1,376 | $ 1,415 |
Cost of revenues: | ||||
Total cost of revenues | 360 | 341 | 676 | 653 |
Software Maintenance [Member] | ||||
Revenues: | ||||
Net revenues | 303 | 254 | 604 | 504 |
Cost of revenues: | ||||
Total cost of revenues | 24 | 11 | 39 | 21 |
Hardware Maintenance and Other Services [Member] | ||||
Revenues: | ||||
Net revenues | 364 | 346 | 739 | 688 |
Cost of revenues: | ||||
Total cost of revenues | $ 99 | $ 94 | $ 199 | $ 192 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 137 | $ 243 | $ 214 | $ 346 |
Other comprehensive income: | ||||
Foreign currency translation adjustments | 0 | (1) | 9 | (2) |
Defined benefit obligations: | ||||
Reclassification adjustments related to defined benefit obligations | 0 | (1) | 0 | (1) |
Income tax effect | 0 | 1 | 0 | 1 |
Unrealized gains on available-for-sale securities: | ||||
Unrealized holding gains (losses) arising during the period | (1) | 2 | 1 | 22 |
Reclassification adjustments for gains included in net income | 0 | 0 | 0 | (14) |
Unrealized losses on cash flow hedges: | ||||
Unrealized holding gains (losses) arising during the period | 1 | 2 | (8) | 1 |
Reclassification adjustments for losses included in net income | 7 | 0 | 8 | 0 |
Other comprehensive income | 7 | 3 | 10 | 7 |
Comprehensive income | $ 144 | $ 246 | $ 224 | $ 353 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 214 | $ 346 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 105 | 99 |
Non-cash operating lease cost | 26 | 26 |
Stock-based compensation | 103 | 82 |
Deferred income taxes | 0 | (23) |
Gain on sale or derecognition of assets | 0 | (38) |
Other items, net | 28 | (13) |
Changes in assets and liabilities, net of acquisitions of businesses: | ||
Accounts receivable | 197 | 435 |
Inventories | 29 | 20 |
Other operating assets | 8 | 41 |
Accounts payable | (59) | (157) |
Accrued expenses | (69) | (315) |
Deferred revenue and financed unearned services revenue | (118) | (197) |
Long-term taxes payable | (46) | (49) |
Other operating liabilities | (17) | 0 |
Net cash provided by operating activities | 401 | 257 |
Cash flows from investing activities: | ||
Purchases of investments | (3) | (9) |
Maturities, sales and collections of investments | 110 | 1,155 |
Purchases of property and equipment | (92) | (68) |
Proceeds from sale of properties | 6 | 96 |
Acquisitions of businesses, net of cash acquired | (350) | (56) |
Other investing activities, net | 8 | (2) |
Net cash provided by (used in) investing activities | (321) | 1,116 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock under employee stock award plans | 49 | 55 |
Payments for taxes related to net share settlement of stock awards | (34) | (74) |
Repurchase of common stock | 0 | (750) |
Proceeds from (repayments of) commercial paper notes, original maturities of three months or less, net | (420) | 249 |
Issuance of debt, net of issuance costs | 2,057 | 0 |
Repayments and extinguishment of debt | (689) | (400) |
Dividends paid | (214) | (226) |
Other financing activities, net | (3) | (2) |
Net cash provided by (used in) financing activities | 746 | (1,148) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 44 | (5) |
Net increase in cash, cash equivalents and restricted cash | 870 | 220 |
Cash, cash equivalents and restricted cash: | ||
Beginning of period | 2,666 | 2,331 |
End of period | $ 3,536 | $ 2,551 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common Stock and Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
Balances at Apr. 26, 2019 | $ 1,090 | $ 1,133 | $ (43) | |
Balances (in shares) at Apr. 26, 2019 | 240,000,000 | |||
Cumulative-effect of adoption of ASC 842 (ASC 842) at Apr. 26, 2019 | 6 | $ 6 | ||
Net income | 346 | 346 | ||
Other comprehensive income | 7 | 7 | ||
Issuance of common stock under employee stock award plans, net of taxes | (19) | $ (19) | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 3,000,000 | |||
Repurchase of common stock | (750) | $ (398) | (352) | |
Repurchase of common stock, shares | (14,000,000) | |||
Stock-based compensation | 82 | $ 82 | ||
Cash dividends declared ($0.48, $0.48, $0.96 and $0.96 per common share) | (226) | (226) | ||
Balances at Oct. 25, 2019 | 536 | $ 572 | (36) | |
Balances (in shares) at Oct. 25, 2019 | 229,000,000 | |||
Balances at Jul. 26, 2019 | 863 | $ 902 | (39) | |
Balances (in shares) at Jul. 26, 2019 | 239,000,000 | |||
Net income | 243 | 243 | ||
Other comprehensive income | 3 | 3 | ||
Issuance of common stock under employee stock award plans, net of taxes | (2) | $ (2) | ||
Repurchase of common stock | (500) | $ (257) | (243) | |
Repurchase of common stock, shares | (10,000,000) | |||
Stock-based compensation | 40 | $ 40 | ||
Cash dividends declared ($0.48, $0.48, $0.96 and $0.96 per common share) | (111) | (111) | ||
Balances at Oct. 25, 2019 | 536 | $ 572 | (36) | |
Balances (in shares) at Oct. 25, 2019 | 229,000,000 | |||
Balances at Apr. 24, 2020 | $ 242 | $ 284 | (42) | |
Balances (in shares) at Apr. 24, 2020 | 219,000,000 | 219,000,000 | ||
Net income | $ 214 | 214 | ||
Other comprehensive income | 10 | 10 | ||
Issuance of common stock under employee stock award plans, net of taxes | $ 15 | $ 15 | ||
Issuance of common stock under employee stock award plans, net of taxes (in shares) | 3,000,000 | |||
Repurchase of common stock, shares | 0 | |||
Stock-based compensation | $ 103 | $ 103 | ||
Cash dividends declared ($0.48, $0.48, $0.96 and $0.96 per common share) | (214) | (30) | (184) | |
Balances at Oct. 30, 2020 | $ 370 | $ 372 | 30 | (32) |
Balances (in shares) at Oct. 30, 2020 | 222,000,000 | 222,000,000 | ||
Balances at Jul. 31, 2020 | $ 284 | $ 323 | (39) | |
Balances (in shares) at Jul. 31, 2020 | 222,000,000 | |||
Net income | 137 | 137 | ||
Other comprehensive income | 7 | 7 | ||
Stock-based compensation | 49 | $ 49 | ||
Cash dividends declared ($0.48, $0.48, $0.96 and $0.96 per common share) | (107) | (107) | ||
Balances at Oct. 30, 2020 | $ 370 | $ 372 | $ 30 | $ (32) |
Balances (in shares) at Oct. 30, 2020 | 222,000,000 | 222,000,000 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
Cash dividends declared, per common share | $ 0.48 | $ 0.48 | $ 0.96 | $ 0.96 |
Description of Business and Sig
Description of Business and Significant Accounting Policies | 6 Months Ended |
Oct. 30, 2020 | |
Accounting Policies [Abstract] | |
Description of Business and Significant Accounting Policies | 1. Description of Business and Significant Accounting Policies NetApp, Inc. (we, us, or the Company) provides global organizations the ability to manage and share their data across on-premises, private and public clouds. Together with our partners, we provide a full range of enterprise-class software, systems and services solutions that customers use to modernize their infrastructures, build next generation data centers and harness the power of hybrid clouds. Basis of Presentation and Preparation Our fiscal year is reported on a 52- or 53-week year ending on the last Friday in April. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal months with calendar months. Fiscal year 2021, ending on April 30, 2021 is a 53-week year, with 14 weeks included in its first quarter and 13 weeks in each subsequent quarter. Fiscal year 2020, which ended on April 24, 2020, was a 52-week year, with 13 weeks in each of its quarters. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company, and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, comprehensive income, cash flows and stockholders’ equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all information and footnotes required by GAAP for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended April 24, 2020 contained in our Annual Report on Form 10-K. The results of operations for the three and six months ended October 30, 2020 are not necessarily indicative of the operating results to be expected for the full fiscal year or future operating periods. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, reserves and allowances; inventory valuation; valuation of goodwill and intangibles; restructuring reserves; product warranties; employee compensation and benefit accruals; stock-based compensation; loss contingencies; investment impairments; income taxes and fair value measurements. Actual results could differ materially from those estimates. Management’s estimates include, as applicable, the anticipated impacts of the COVID-19 pandemic. |
Recently Adopted Accounting Sta
Recently Adopted Accounting Standards | 6 Months Ended |
Oct. 30, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recently Adopted Accounting Standards | 2. Recently Adopted Accounting Standards In June 2016, the FASB issued an accounting standards update on the measurement of credit losses on financial instruments. The standard introduces a new model for measuring and recognizing credit losses on financial instruments, requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. It also requires that credit losses be recorded through an allowance for credit losses. On April 25, 2020, we adopted the standard with no material impact to our condensed consolidated financial statements. There have been no other significant changes in our significant accounting policies as of and for the six months ended October 30, 2020, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 24, 2020. Recent accounting pronouncements pending adoption not discussed are either not applicable or will not have or are not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. |
Business Combination
Business Combination | 6 Months Ended |
Oct. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combination | 3. Cloud Jumper Corporation Acquisition On April 28, 2020, we acquired all the outstanding shares of privately-held Cloud Jumper Corporation (Cloud Jumper), a provider of virtual desktop infrastructure and remote desktop services solutions based in North Carolina, for approximately $34 million in cash. The preliminary acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions): Developed technology $ 16 Customer contracts/relationships 6 Goodwill 12 Other assets 1 Total assets acquired 35 Liabilities assumed (1 ) Total purchase price $ 34 Spot, Inc. Acquisition On July 9, 2020, we acquired all the outstanding shares of privately-held Spot, Inc. (Spot), a provider of compute management cost optimization services on the public clouds based in Israel, for $340 million in cash. The acquisition of Spot will allow us to establish an application driven infrastructure for the continuous optimization of both compute and storage, which we believe will facilitate customers deploying more applications to the cloud. The preliminary acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions): Cash $ 24 Intangible assets 84 Goodwill 249 Other assets 6 Total assets acquired 363 Liabilities assumed (23 ) Total purchase price $ 340 The components of the Spot intangible assets acquired were as follows (in millions, except useful life): Estimated useful life (years) Developed technology $ 53 5 Customer contracts/relationships 28 5 Trade name 3 3 Total intangible assets $ 84 The acquired assets and assumed liabilities were recorded at their estimated fair values. We determined the estimated fair values with the assistance of valuations and appraisals performed by third party specialists and estimates made by management. We expect to realize revenue synergies, leverage and expand the existing Spot sales channels and product development resources, and utilize the existing workforce. We also anticipate opportunities for growth through the ability to leverage additional future products and capabilities. These factors, among others, contributed to a purchase price in excess of the estimated fair value of Spot’s identifiable net assets acquired, and as a result, we have recorded goodwill in connection with this acquisition. The goodwill is not deductible for income tax purposes. The results of operations related to the acquisition of both Spot and Cloud Jumper have been included in our condensed consolidated statements of operations from their respective acquisition dates. Pro forma results of operations have not been presented because the impact from these acquisition s w ould not have been material to our consolidated results of operations for each of the three and six months ended October 30, 2020 and October 25 , 2019 . |
Goodwill and Purchased Intangib
Goodwill and Purchased Intangible Assets, Net | 6 Months Ended |
Oct. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Purchased Intangible Assets, Net | 4. Goodwill and Purchased Intangible Assets, Net Goodwill activity is summarized as follows (in millions): Balance as of April 24, 2020 $ 1,778 Additions 261 Balance as of October 30, 2020 $ 2,039 Purchased intangible assets, net are summarized below (in millions): October 30, 2020 April 24, 2020 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 215 $ (128 ) $ 87 $ 192 $ (152 ) $ 40 Customer contracts/relationships 38 (3 ) 35 4 — 4 Other purchased intangibles 3 — 3 — — — Total purchased intangible assets $ 256 $ (131 ) $ 125 $ 196 $ (152 ) $ 44 Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Six Months Ended Statements of October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Operations Classification Developed technology $ 12 $ 11 $ 22 $ 22 Cost of revenues Customer contracts/relationships 3 — 3 — Operating expenses Total $ 15 $ 11 $ 25 $ 22 As of October 30, 2020, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount Remainder of 2021 $ 23 2022 37 2023 29 2024 17 2025 16 2026 3 Total $ 125 |
Supplemental Financial Informat
Supplemental Financial Information | 6 Months Ended |
Oct. 30, 2020 | |
Supplemental Financial Information [Abstract] | |
Supplemental Financial Information | 5. Supplemental Financial Information Cash, cash equivalents and restricted cash (in millions): The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows: October 30, 2020 April 24, 2020 Cash and cash equivalents $ 3,529 $ 2,658 Restricted cash 7 8 Cash, cash equivalents and restricted cash $ 3,536 $ 2,666 Inventories (in millions): October 30, 2020 April 24, 2020 Purchased components $ 20 $ 28 Finished goods 96 117 Inventories $ 116 $ 145 Property and equipment, net (in millions): October 30, 2020 April 24, 2020 Land $ 103 $ 103 Buildings and improvements 602 597 Leasehold improvements 91 89 Computer, production, engineering and other equipment 850 802 Computer software 359 359 Furniture and fixtures 109 106 Construction-in-progress 37 32 2,151 2,088 Accumulated depreciation and amortization (1,414 ) (1,361 ) Property and equipment, net $ 737 $ 727 Other non-current assets (in millions): October 30, 2020 April 24, 2020 Deferred tax assets $ 225 $ 220 Operating lease ROU assets 129 137 Other assets 344 342 Other non-current assets $ 698 $ 699 Other non-current assets as of October 30, 2020 and April 24, 2020 included $69 million and $67 million, respectively, for our 49% non-controlling equity interest in Lenovo NetApp Technology Limited, a China-based entity that we formed with Lenovo (Beijing) Information Technology Ltd. in fiscal 2019. Accrued expenses (in millions): October 30, 2020 April 24, 2020 Accrued compensation and benefits $ 376 $ 322 Product warranty liabilities 23 26 Operating lease liabilities 52 51 Other current liabilities 287 375 Accrued expenses $ 738 $ 774 Product warranty liabilities: Equipment and software systems sales include a standard product warranty. The following tables summarize the activity related to product warranty liabilities and their balances as reported in our condensed consolidated balance sheets (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Balance at beginning of period $ 37 $ 39 $ 41 $ 40 Expense accrued during the period 4 7 5 12 Warranty costs incurred (6 ) (6 ) (11 ) (12 ) Balance at end of period $ 35 $ 40 $ 35 $ 40 October 30, 2020 April 24, 2020 Accrued expenses $ 23 $ 26 Other long-term liabilities 12 15 Total warranty liabilities $ 35 $ 41 Warranty expense accrued during the period includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods. Other long-term liabilities (in millions): October 30, 2020 April 24, 2020 Liability for uncertain tax positions $ 138 $ 136 Income taxes payable 351 399 Product warranty liabilities 12 15 Operating lease liabilities 84 93 Other liabilities 78 71 Other long-term liabilities $ 663 $ 714 Other income (expense), net (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Interest income $ 2 $ 12 $ 5 $ 31 Interest expense (18 ) (12 ) (36 ) (27 ) Other income (expense), net 9 3 (8 ) 14 Total other income (expense), net $ (7 ) $ 3 $ (39 ) $ 18 Statements of cash flows additional information (in millions): Supplemental cash flow information related to our operating leases is included in Note 9 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below: Six Months Ended October 30, 2020 October 25, 2019 Non-cash Investing Activities: Capital expenditures incurred but not paid $ 9 $ 6 Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 238 $ 260 Interest paid $ 23 $ 25 |
Revenue
Revenue | 6 Months Ended |
Oct. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 6. Revenue Disaggregation of revenue The following table depicts the disaggregation of revenue by our products and services (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Product revenues $ 749 $ 771 $ 1,376 $ 1,415 Software maintenance revenues 303 254 604 504 Hardware maintenance and other services revenues 364 346 739 688 Hardware maintenance support contracts 296 286 603 570 Professional and other services 68 60 136 118 Net revenues $ 1,416 $ 1,371 $ 2,719 $ 2,607 Revenues by geographic region are presented in Note 15 – Segment, Geographic, and Significant Customer Information. Deferred revenue and financed unearned services revenue The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our condensed consolidated balance sheets (in millions): October 30, 2020 April 24, 2020 Deferred product revenue $ 39 $ 75 Deferred services revenue 3,554 3,567 Financed unearned services revenue 58 56 Total $ 3,651 $ 3,698 Reported as: Short-term $ 1,815 $ 1,894 Long-term 1,836 1,804 Total $ 3,651 $ 3,698 Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware maintenance contracts and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 16 – Commitments and Contingencies for additional information related to these arrangements. The following tables summarize the activity related to deferred revenue and financed unearned services revenue (in millions): Six Months Ended October 30, 2020 October 25, 2019 Balance at beginning of period $ 3,698 $ 3,668 Additions 1,364 1,011 Revenue recognized during the period (1,411 ) (1,211 ) Balance at end of period $ 3,651 $ 3,468 During the six months ended October 30, 2020 and October 25, 2019, we recognized $1,207 million and $1,045 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods. As of October 30, 2020, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $3,651 million, which is equivalent to our deferred revenue and unearned services revenue balance. Because customer orders are typically placed on an as-needed basis, and cancellable without penalty prior to shipment, orders in backlog may not be a meaningful indicator of future revenue and have not been included in this amount. We expect to recognize as revenue approximately 50% of our deferred revenue and financed unearned services revenue balance in the next 12 months Deferred commissions The following tables summarize the activity related to deferred commissions and their balances as reported in our condensed consolidated balance sheets (in millions): Six Months Ended October 30, 2020 October 25, 2019 Balance at beginning of period $ 156 $ 172 Additions 57 32 Expense recognized during the period (45 ) (50 ) Balance at end of period $ 168 $ 154 October 30, 2020 April 24, 2020 Other current assets $ 70 $ 67 Other non-current assets 98 89 Total deferred commissions $ 168 $ 156 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 6 Months Ended |
Oct. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Financial Instruments and Fair Value Measurements | 7. Financial Instruments and Fair Value Measurements The accounting guidance for fair value measurements provides a framework for measuring fair value on either a recurring or nonrecurring basis, whereby the inputs used in valuation techniques are assigned a hierarchical level. The following are the three levels of inputs to measure fair value: Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2: Inputs that reflect quoted prices for identical assets or liabilities in less active markets; quoted prices for similar assets or liabilities in active markets; benchmark yields, reported trades, broker/dealer quotes, inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3: Unobservable inputs that reflect our own assumptions incorporated in valuation techniques used to measure fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. Where appropriate, our own or the counterparty’s non-performance risk is considered in measuring the fair values of liabilities and assets, respectively. Investments The following is a summary of our investments (in millions): October 30, 2020 April 24, 2020 Cost or Estimated Cost or Estimated Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate bonds $ 99 $ 2 $ — $ 101 $ 155 $ 1 $ — $ 156 U.S. Treasury and government debt securities 16 — — 16 68 — — 68 Certificates of deposit 106 — — 106 158 — — 158 Mutual funds 37 — — 37 33 — — 33 Total debt and equity securities $ 258 $ 2 $ — $ 260 $ 414 $ 1 $ — $ 415 The following table presents the contractual maturities of our debt investments as of October 30, 2020 (in millions): Amortized Cost Fair Value Due in one year or less $ 172 $ 173 Due after one year through five years 44 45 Due after five years through ten years 5 5 $ 221 $ 223 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. Fair Value of Financial Instruments The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions): October 30, 2020 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 3,423 $ 3,423 $ — Corporate bonds 101 — 101 U.S. Treasury and government debt securities 16 3 13 Certificates of deposit 106 — 106 Total cash, cash equivalents and short-term investments $ 3,646 $ 3,426 $ 220 Other items: Mutual funds (1) $ 7 $ 7 $ — Mutual funds (2) $ 30 $ 30 $ — Foreign currency exchange contracts liabilities (3) $ (1 ) $ — $ (1 ) (1) Reported as other current assets in the condensed consolidated balance sheets (2) Reported as other non-current assets in the condensed consolidated balance sheets (3) Reported as accrued expenses in the condensed consolidated balance sheets Our Level 2 debt instruments are held by a custodian who prices some of the investments using standard inputs in various asset price models or obtains investment prices from third-party pricing providers that incorporate standard inputs in various asset price models. These pricing providers utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. We review Level 2 inputs and fair value for reasonableness and the values may be further validated by comparison to multiple independent pricing sources. In addition, we review third-party pricing provider models, key inputs and assumptions and understand the pricing processes at our third-party providers in determining the overall reasonableness of the fair value of our Level 2 debt instruments. As of October 30, 2020 and April 24, 2020, we have not made any adjustments to the prices obtained from our third-party pricing providers. Fair Value of Debt As of October 30, 2020 and April 24, 2020, the fair value of our long-term debt was approximately $2,775 million and $1,176 million, respectively. The fair value of our long-term debt was based on observable market prices in a less active market. The fair value of our commercial paper notes approximated their carrying value. All of our debt obligations are categorized as Level 2 instruments. |
Financing Arrangements
Financing Arrangements | 6 Months Ended |
Oct. 30, 2020 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | 8. Financing Arrangements Long-Term Debt The following table summarizes information relating to our long-term debt, which we collectively refer to as our Senior Notes (in millions, except interest rates): October 30, 2020 April 24, 2020 Effective Interest Rate Amount Amount 3.375% Senior Notes Due June 2021 3.54% $ — $ 500 3.25% Senior Notes Due December 2022 3.43% 250 250 3.30% Senior Notes Due September 2024 3.42% 400 400 1.875% Senior Notes Due June 2025 2.03% 750 — 2.375% Senior Notes Due June 2027 2.51% 550 — 2.70% Senior Notes Due June 2030 2.81% 700 — Total principal amount 2,650 1,150 Unamortized discount and issuance costs (19 ) (4 ) Total long-term debt $ 2,631 $ 1,146 Senior Notes In June 2020, we issued $750 million aggregate principal amount of 1.875% Senior Notes due 2025, $550 million aggregate principal amount of 2.375% Senior Notes due 2027 and $700 million aggregate principal amount of 2.70% Senior Notes due 2030, for which we received total proceeds of approximately $2.0 billion, net of discount and issuance costs. Interest on these Senior Notes is payable semi-annually in June and December. Our 3.30% Senior Notes, with a principal amount of $400 million, were issued in September 2017 with interest paid semi-annually in March and September. Our 3.25% Senior Notes, with a principal amount of $250 million, were issued in December 2012 with interest paid semi-annually in June and December. Our Senior Notes, which are unsecured, unsubordinated obligations, rank equally in right of payment with any existing and future senior unsecured indebtedness. We may redeem the Senior Notes in whole or in part, at any time at our option at specified redemption prices. In addition, upon the occurrence of certain change of control triggering events, we may be required to repurchase the Senior Notes under specified terms. The Senior Notes also include covenants that limit our ability to incur debt secured by liens on assets or on shares of stock or indebtedness of our subsidiaries; to engage in certain sale and lease-back transactions; and to consolidate, merge or sell all or substantially all of our assets. As of October 30, 2020, we were in compliance with all covenants associated with the Senior Notes. As of October 30, 2020, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2023 $ 250 2025 400 2026 750 Thereafter 1,250 Total $ 2,650 Commercial Paper Program and Credit Facility We have a commercial paper program (the Program), under which we may issue unsecured commercial paper notes. Amounts available under the Program, as amended in July 2017, may be borrowed, repaid and re-borrowed, with the aggregate face or principal amount of the notes outstanding under the Program at any time not to exceed $1.0 billion. The proceeds from the issuance of the notes are used for general corporate purposes. While no commercial paper notes were outstanding as of October 30, 2020, we had commercial paper notes outstanding with an aggregate principal amount of $523 million, a weighted-average interest rate of the first six months of fiscal 2021, we received proceeds of $ 75 million from the issuance, and made repayments of $ million for the settlement, of commercial paper notes with original maturities greater than three months. In connection with the Program, we have a senior unsecured credit agreement with a syndicated group of lenders that expires on December 10, 2021. The credit agreement, as amended in July 2017, provides a $1.0 billion revolving unsecured credit facility, with a $50 million letter of credit sub-facility, that serves as a back-up for the Program. Proceeds from the facility may also be used for general corporate purposes to the extent that the credit facility exceeds the outstanding debt issued under the Program . The credit agreement includes options that allow us to request an increase in the facility of up to an additional $300 million and to extend its maturity date for two additional one-year |
Leases
Leases | 6 Months Ended |
Oct. 30, 2020 | |
Leases [Abstract] | |
Leases | 9. Leases We lease real estate, equipment and automobiles in the U.S. and internationally. Our real estate leases, which are responsible for the majority of our aggregate ROU asset and liability balances, include leases for office space, data centers and other facilities, and as of October 30, 2020, have remaining lease terms of up to 15 years. Some of these leases contain options that allow us to extend or terminate the lease agreement. Our equipment leases are primarily for servers and networking equipment and as of October 30, 2020, have remaining lease terms of up to 4 years. As of October 30, 2020, our automobile leases have remaining lease terms of up to 5 years. All our leases are classified as operating leases except for certain immaterial equipment finance leases. In June 2020, we entered into a build-to-suit lease agreement for an office building with future undiscounted payments of approximately $67 million. Because the Company does not control the underlying asset during the construction period, the Company is not considered the owner of the asset under construction for accounting purposes. The lease will commence upon completion of the construction of the office building which is expected to be in fiscal 2021. The initial term of the lease is twenty years with options to renew the lease during the lease term. An ROU asset and related lease liability will be measured and recognized in our financial statements in the period the lease commences. The components of lease cost related to our operating leases were as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Operating lease cost $ 14 $ 15 $ 28 $ 29 Variable lease cost 2 4 5 8 Total lease cost $ 16 $ 19 $ 33 $ 37 Variable lease cost is primarily attributable to amounts paid to lessors for common area maintenance and utility charges under our real estate leases. The supplemental cash flow information related to our operating leases is as follows (in millions): Six Months Ended October 30, 2020 October 25, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 28 $ 29 Right-of-use assets obtained in exchange for new operating lease obligations $ 16 $ 21 The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): October 30, 2020 April 24, 2020 Other non-current assets $ 129 $ 137 Total operating lease ROU assets $ 129 $ 137 Accrued expenses $ 52 $ 51 Other long-term liabilities 84 93 Total operating lease liabilities $ 136 $ 144 Weighted Average Remaining Lease Term 3.5 years 3.9 years Weighted Average Discount Rate 2.7 % 2.7 % Future minimum operating lease payments as of October 30, 2020, which exclude the undiscounted payments for the build-to-suit lease expected to commence in fiscal 2021, are as follows (in millions): Operating Leases Fiscal 2021 (remainder) $ 30 Fiscal 2022 47 Fiscal 2023 28 Fiscal 2024 17 Fiscal 2025 9 Fiscal 2026 8 Thereafter 3 Total lease payments $ 142 Less: Interest (6 ) Total $ 136 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Oct. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Equity Incentive Awards As of October 30, 2020, we have certain equity incentive awards (awards) outstanding, which include stock options and restricted stock units (RSUs), including time-based RSUs and performance-based RSUs (PBRSUs). Also outstanding are purchase rights under our Employee Stock Purchase Plan (ESPP). Stock Options Less than 1 million options were outstanding as of October 30, 2020 and April 24, 2020. Information related to our stock options is summarized below (in millions): Six Months Ended October 30, 2020 October 25, 2019 Intrinsic value of exercises $ 1 $ 3 Proceeds received from exercises $ 2 $ 2 Fair value of options vested $ 1 $ — Restricted Stock Units In the six months ended October 30, 2020, The following table summarizes information related to our RSUs, including PBRSUs, (in millions, except fair value): Number of Shares Weighted- Average Grant Date Fair Value Outstanding as of April 24, 2020 7 $ 51.40 Granted 5 $ 39.44 Vested (2 ) $ 44.21 Forfeited (1 ) $ 52.26 Outstanding as of October 30, 2020 9 $ 46.65 We primarily use the net share settlement approach upon vesting, where a portion of the shares are withheld as settlement of employee withholding taxes, which decreases the shares issued to the employee by a corresponding value. The number and value of the shares netted for employee taxes are summarized in the table below (in millions): Six Months Ended October 30, 2020 October 25, 2019 Shares withheld for taxes 1 1 Fair value of shares withheld $ 34 $ 74 Employee Stock Purchase Plan The following table summarizes activity related to the purchase rights issued under the ESPP (in millions): Six Months Ended October 30, 2020 October 25, 2019 Shares issued under the ESPP 1 1 Proceeds from issuance of shares $ 47 $ 54 Stock-Based Compensation Expense Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Cost of product revenues $ 1 $ 1 $ 2 $ 2 Cost of hardware maintenance and other services revenues 2 3 5 5 Sales and marketing 24 17 49 35 Research and development 15 13 34 28 General and administrative 7 6 13 12 Total stock-based compensation expense $ 49 $ 40 $ 103 $ 82 Income tax benefit for stock-based compensation expense $ 8 $ 4 $ 12 $ 8 As of October 30, 2020, total unrecognized compensation expense related to our equity awards was $398 million, which is expected to be recognized on a straight-line basis over a weighted-average remaining service period of 2.5 years. Stock Repurchase Program As of October 30, 2020, our Board of Directors has authorized the repurchase of up to $13.6 billion of our common stock. Under this program, we may purchase shares of our outstanding common stock through solicited or unsolicited transactions in the open market, in privately negotiated transactions, through accelerated share repurchase programs, pursuant to a Rule 10b5-1 plan or in such other manner as deemed appropriate by our management. The stock repurchase program may be suspended or discontinued at any time, and it was suspended in March 2020 due to the economic impact of the COVID-19 pandemic. Accordingly, no share repurchases were executed for the six months ended October 30, 2020. Since the May 13, 2003 inception of our stock repurchase program through October 30, 2020, we repurchased a total of 338 million shares of our common stock at an average price of $38.86 per share, for an aggregate purchase price of $13.1 billion. As of October 30, 2020, the remaining authorized amount for stock repurchases under this program was $477 million. Dividends The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts): Six Months Ended October 30, 2020 October 25, 2019 Dividends per share declared $ 0.96 $ 0.96 Dividend payments allocated to additional paid-in capital $ 30 $ 226 Dividend payments allocated to retained earnings $ 184 $ — On November 23, 2020, we declared a cash dividend of $0.48 per share of common stock, payable on January 27, 2021 to holders of record as of the close of business on January 8, 2021. The timing and amount of future dividends will depend on market conditions, corporate business and financial considerations and regulatory requirements. All dividends declared have been determined by us to be legally authorized under the laws of the state in which we are incorporated. Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions): Foreign Currency Translation Adjustments Defined Benefit Obligation Adjustments Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Derivative Instruments Total Balance as of April 24, 2020 $ (42 ) $ (1 ) $ 1 $ — $ (42 ) Other comprehensive income (loss), net of tax 9 — 1 (8 ) 2 Amounts reclassified from AOCI, net of tax — — — 8 8 Total other comprehensive income (loss) 9 — 1 — 10 Balance as of October 30, 2020 $ (33 ) $ (1 ) $ 2 $ — $ (32 ) The amounts reclassified out of AOCI are as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Amounts Reclassified from AOCI Amounts Reclassified from AOCI Statements of Operations Classification Recognized gains on defined benefit obligations $ — $ (1 ) $ — $ (1 ) Operating expenses Realized gains on available-for-sale securities — — — (14 ) Other income (expense), net Realized losses on cash flow hedges 7 — 8 — Net revenues Total reclassifications $ 7 $ (1 ) $ 8 $ (15 ) |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Oct. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | 11. Derivatives and Hedging Activities We use derivative instruments to manage exposures to foreign currency risk. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The maximum length of time over which forecasted foreign currency denominated revenues are hedged is 12 months. The program is not designated for trading or speculative purposes. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of our agreements with them. We seek to mitigate such risk by limiting our counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. We also have in place master netting arrangements to mitigate the credit risk of our counterparties and to potentially reduce our losses due to counterparty nonperformance. We present our derivative instruments as net amounts in our condensed consolidated balance sheets. The gross and net fair value amounts of such instruments were not material as of October 30, 2020 or April 24, 2020. All contracts have a maturity of less than 12 months. The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions): October 30, 2020 April 24, 2020 Cash Flow Hedges Forward contracts purchased $ 145 $ 124 Balance Sheet Contracts Forward contracts sold $ 378 $ 254 Forward contracts purchased $ 111 $ 108 The effect of cash flow hedges recognized in net revenues is presented in the condensed consolidated statements of comprehensive income and Note 10 – Stockholders’ Equity. The effect of derivative instruments not designated as hedging instruments recognized in other income (expense), net on our condensed consolidated statements of operations was as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income Foreign currency exchange contracts $ (6 ) $ — $ 17 $ (3 ) |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Oct. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | 12. Restructuring Charges In the second quarter of fiscal 2021, we committed to a restructuring plan (the August 2020 Plan) to optimize our business and fund our biggest opportunities. In connection with the plan, we reduced our global workforce by approximately 5%. Charges related to the plan consisted primarily of employee severance-related costs. We expect to complete substantially all activities related to this plan by the end of the third quarter of fiscal 2021. In the first quarter of fiscal 2021, we executed a restructuring plan (the May 2020 Plan) to reduce costs and redirect resources to our highest return activities, which included a reduction in our global workforce by less than 1%. Charges related to the plan consisted primarily of employee severance-related costs. Substantially all activities under the plan have been completed. Management has previously approved several restructuring actions, including the May 2019 Plan and April 2019 Plan, under which we reduced our global workforce by approximately 2%, and approximately 1%, respectively. Charges related to these restructuring plans consisted primarily of employee severance-related costs. Substantially all activities under the May 2019 Plan were complete as of the end of the second quarter of fiscal 2020, and substantially all activities under the April 2019 Plan were complete as of the end of fiscal 2020. Activities related to our restructuring plans are summarized as follows (in millions): Six Months Ended Six Months Ended October 30, 2020 October 25, 2019 August 2020 Plan May 2020 Plan May 2019 Plan Total May 2019 Plan April 2019 Plan November 2016 Plan Total Balance at beginning of period $ — $ — $ 1 $ 1 $ — $ 15 $ 4 $ 19 Net charges 37 5 — 42 21 — — 21 Cash payments (18 ) (5 ) (1 ) (24 ) (19 ) (12 ) — (31 ) Other — — — — — — (4 ) (4 ) Balance at end of period $ 19 $ — $ — $ 19 $ 2 $ 3 $ — $ 5 Upon adoption of the new lease accounting standard in the first quarter of fiscal 2020, the remaining lease-related liabilities associated with the November 2016 Plan were recognized as a reduction to the lease right-of-use asset recorded at transition. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes Our effective tax rates for the periods presented were as follows: Six Months Ended October 30, 2020 October 25, 2019 Effective tax rates 23.3 % 17.2 % Our effective tax rate reflects the impact of a significant amount of earnings being taxed in foreign jurisdictions at rates below the United States (U.S.) statutory rate. The effective tax rate for the six months ended October 30, 2020 includes the impact of taxes resulting from the integration of acquired companies. The remaining differences in effective tax rates for the first six months of fiscal 2021 compared to the corresponding period of the prior year are primarily due to certain discrete expenses, including foreign audit results and differences in discrete tax benefits for stock-based compensation in fiscal 2021. As of October 30, 2020, we had $224 million of gross unrecognized tax benefits, of which $138 million has been recorded in other long-term liabilities. Inclusive of penalties, interest and certain income tax benefits, $138 million would affect our provision for income taxes if recognized. We are currently undergoing various income tax audits in the U.S. and audits in several foreign tax jurisdictions. Transfer pricing calculations are key topics under these audits and are often subject to dispute and appeals. We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions. We engage in continuous discussion and negotiation with taxing authorities regarding tax matters in multiple jurisdictions. We believe that within the next 12 months, it is reasonably possible that either certain audits will conclude, certain statutes of limitations will lapse, or both. As a result of uncertainties regarding tax audits and their possible outcomes, an estimate of the range of possible impacts to unrecognized tax benefits in the next twelve months cannot be made at this time. |
Net Income per Share
Net Income per Share | 6 Months Ended |
Oct. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Share | 14. Net Income per Share The following is a calculation of basic and diluted net income per share (in millions, except per share amounts): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Numerator: Net income $ 137 $ 243 $ 214 $ 346 Denominator: Shares used in basic computation 222 235 222 237 Dilutive impact of employee equity award plans 2 1 1 3 Shares used in diluted computation 224 236 223 240 Net Income per Share: Basic $ 0.62 $ 1.03 $ 0.96 $ 1.46 Diluted $ 0.61 $ 1.03 $ 0.96 $ 1.44 Eight million and seven million potential shares from outstanding employee equity awards were excluded from the diluted net income per share calculations for the three and six months ended October 30, 2020, respectively, while six million and three million potential shares were excluded from the calculation for the three and six months ended October 25, 2019, respectively, as their inclusion would have been anti-dilutive. |
Segment, Geographic, and Signif
Segment, Geographic, and Significant Customer Information | 6 Months Ended |
Oct. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment, Geographic, and Significant Customer Information | 15. Segment, Geographic, and Significant Customer Information We operate in one industry segment: the design, manufacturing, marketing, and technical support of high-performance storage and data management solutions. We conduct business globally, and our sales and support activities are managed on a geographic basis. Our management reviews financial information presented on a consolidated basis, accompanied by disaggregated information it receives from our internal management system about revenues by geographic region, based on the location from which the customer relationship is managed, for purposes of allocating resources and evaluating financial performance. We do not allocate costs of revenues, research and development, sales and marketing, or general and administrative expenses to our geographic regions in this internal management reporting because management does not review operations or operating results, or make planning decisions, below the consolidated entity level. Summarized revenues by geographic region based on information from our internal management system and utilized by our Chief Executive Officer, who is considered our Chief Operating Decision Maker, is as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 United States, Canada and Latin America (Americas) $ 781 $ 771 $ 1,490 $ 1,406 Europe, Middle East and Africa (EMEA) 422 402 805 804 Asia Pacific (APAC) 213 198 424 397 Net revenues $ 1,416 $ 1,371 $ 2,719 $ 2,607 Americas revenues consist of sales to Americas commercial and U.S. public sector markets. Sales to customers inside the U.S. were $705 million and $703 million during the three months ended October 30, 2020 and October 25, 2019, respectively, and were $1,342 million and $1,277 million during the six months ended October 30, 2020 and October 25, 2019, respectively. The majority of our assets, excluding cash, cash equivalents, short-term investments and accounts receivable, were attributable to our domestic operations. The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions): October 30, 2020 April 24, 2020 U.S. $ 1,442 $ 385 International 2,204 2,497 Total $ 3,646 $ 2,882 With the exception of property and equipment, we do not identify or allocate our long-lived assets by geographic area. The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions): October 30, 2020 April 24, 2020 U.S. $ 552 $ 540 International 185 187 Total $ 737 $ 727 The following customers, each of which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Arrow Electronics, Inc. 25 % 24 % 24 % 24 % Tech Data Corporation 20 % 21 % 20 % 21 % The following customers accounted for 10% or more of accounts receivable: October 30, 2020 April 24, 2020 Arrow Electronics, Inc. 12 % 13 % Tech Data Corporation 18 % 19 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Oct. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Purchase Orders and Other Commitments In the ordinary course of business, we make commitments to third-party contract manufacturers to manage manufacturer lead times and meet product forecasts, and to other parties to purchase various key components used in the manufacturing of our products. A significant portion of our reported purchase commitments arising from these agreements consists of firm, non-cancelable, and unconditional commitments. As of October 30, 2020, we had $566 million in non-cancelable purchase commitments for inventory. We record a liability for firm, non-cancelable and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of October 30, 2020 and April 24, 2020, such liability amounted to $10 million and $6 million, respectively, and is included in accrued expenses in our condensed consolidated balance sheets. To the extent that such forecasts are not achieved, our commitments and associated accruals may change. In addition to inventory commitments with contract manufacturers and component suppliers, we have open purchase orders and contractual obligations associated with our ordinary course of business for which we have not yet received goods or services. As of October 30, 2020, we had $192 million in other purchase obligations. Financing Guarantees While most of our arrangements for sales include short-term payment terms, from time to time we provide long-term financing to creditworthy customers. We have generally sold receivables financed through these arrangements on a non-recourse basis to third party financing institutions within 10 days of the contracts’ dates of execution, and we classify the proceeds from these sales as cash flows from operating activities in our condensed consolidated statements of cash flows. We account for the sales of these receivables as “true sales” as defined in the accounting standards on transfers of financial assets, as we are considered to have surrendered control of these financing receivables. Provided all other revenue recognition criteria have been met, we recognize product revenues for these arrangements, net of any payment discounts from financing transactions, upon product acceptance. We sold $26 million and $34 million of receivables during the six months ended October 30, 2020 and October 25, 2019, respectively. In addition, we enter into arrangements with leasing companies for the sale of our hardware systems products. These leasing companies, in turn, lease our products to end-users. The leasing companies generally have no recourse to us in the event of default by the end-user and we recognize revenue upon delivery to the end-user customer, if all other revenue recognition criteria have been met. Some of the leasing arrangements described above have been financed on a recourse basis through third-party financing institutions. Under the terms of recourse leases, which are generally three years or less, we remain liable for the aggregate unpaid remaining lease payments to the third-party leasing companies in the event of end-user customer default. These arrangements are generally collateralized by a security interest in the underlying assets. Where we provide a guarantee for recourse leases and collectability is probable, we account for these transactions as sales type leases. If collectability is not probable, the cash received is recorded as a deposit liability and revenue is deferred until the arrangement is deemed collectible. For leases that we are not a party to, other than providing recourse, we recognize revenue when control is transferred. As of October 30, 2020 and April 24, 2020, the aggregate amount by which such contingencies exceeded the associated liabilities was not significant. To date, we have not experienced significant losses under our lease financing programs or other financing arrangements. We have entered into service contracts with certain of our end-user customers that are supported by third-party financing arrangements. If a service contract is terminated as a result of our non-performance under the contract or our failure to comply with the terms of the financing arrangement, we could, under certain circumstances, be required to acquire certain assets related to the service contract or to pay the aggregate unpaid financing payments under such arrangements. As of October 30, 2020, we have not been required to make any payments under these arrangements, and we believe the likelihood of having to acquire a material amount of assets or make payments under these arrangements is remote. The portion of the financial arrangement that represents unearned services revenue is included in deferred revenue and financed unearned services revenue in our condensed consolidated balance sheets . Legal Contingencies When a loss is considered probable and reasonably estimable, we record a liability in the amount of our best estimate for the ultimate loss. However, the likelihood of a loss with respect to a particular contingency is often difficult to predict and determining a meaningful estimate of the loss or a range of loss may not be practicable based on the information available and the potential effect of future events and decisions by third parties that will determine the ultimate resolution of the contingency. On August 14, 2019, a purported securities class action lawsuit was filed in the United States District Court for the Northern District of California, naming as defendants NetApp and certain of our executive officers. The complaint alleges that the defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and SEC Rule 10b-5, by making materially false or misleading statements with respect to our financial guidance for fiscal 2020, as provided on May 22, 2019. Members of the alleged class are purchasers of the Company’s stock between May 22, 2019 and August 1, 2019, the date we provided revised financial guidance for fiscal 2020. The complaint alleges unspecified damages based on the decline in the market price of our shares following the issuance of the revised guidance on August 1, 2019. We believe the complaint is without merit and intend to defend the case vigorously. We are subject to various other legal proceedings and claims that arise in the normal course of business. We may, from time to time, receive claims that we are infringing third parties’ intellectual property rights, including claims for alleged patent infringement brought by non-practicing entities. We are currently involved in patent litigations brought by non-practicing entities and other third parties. We believe we have strong arguments that our products do not infringe and/or the asserted patents are invalid, and we intend to vigorously defend against the plaintiffs’ claims. However, there is no guarantee that we will prevail at trial and if a jury were to find that our products infringe, we could be required to pay significant monetary damages, and may cause product shipment delays, require us to redesign our products, or require us to enter into royalty or licensing agreements. Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, and overall trends. No material accrual has been recorded as of October 30, 2020 related to such matters. |
Description of Business and S_2
Description of Business and Significant Accounting Policies (Policies) | 6 Months Ended |
Oct. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Preparation | Basis of Presentation and Preparation Our fiscal year is reported on a 52- or 53-week year ending on the last Friday in April. An additional week is included in the first fiscal quarter approximately every six years to realign fiscal months with calendar months. Fiscal year 2021, ending on April 30, 2021 is a 53-week year, with 14 weeks included in its first quarter and 13 weeks in each subsequent quarter. Fiscal year 2020, which ended on April 24, 2020, was a 52-week year, with 13 weeks in each of its quarters. The accompanying unaudited condensed consolidated financial statements have been prepared by the Company, and reflect all adjustments, consisting only of normal recurring adjustments, that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations, comprehensive income, cash flows and stockholders’ equity for the interim periods presented. The statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. Accordingly, these statements do not include all information and footnotes required by GAAP for annual consolidated financial statements, and should be read in conjunction with our audited consolidated financial statements as of and for the fiscal year ended April 24, 2020 contained in our Annual Report on Form 10-K. The results of operations for the three and six months ended October 30, 2020 are not necessarily indicative of the operating results to be expected for the full fiscal year or future operating periods. The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates include, but are not limited to, revenue recognition, reserves and allowances; inventory valuation; valuation of goodwill and intangibles; restructuring reserves; product warranties; employee compensation and benefit accruals; stock-based compensation; loss contingencies; investment impairments; income taxes and fair value measurements. Actual results could differ materially from those estimates. Management’s estimates include, as applicable, the anticipated impacts of the COVID-19 pandemic. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards In June 2016, the FASB issued an accounting standards update on the measurement of credit losses on financial instruments. The standard introduces a new model for measuring and recognizing credit losses on financial instruments, requiring financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. It also requires that credit losses be recorded through an allowance for credit losses. On April 25, 2020, we adopted the standard with no material impact to our condensed consolidated financial statements. There have been no other significant changes in our significant accounting policies as of and for the six months ended October 30, 2020, as compared to the significant accounting policies described in our Annual Report on Form 10-K for the fiscal year ended April 24, 2020. Recent accounting pronouncements pending adoption not discussed are either not applicable or will not have or are not expected to have a material impact on our consolidated financial position, results of operations, or cash flows. |
Accounting Standards on Transfers of Financial Assets | We account for the sales of these receivables as “true sales” as defined in the accounting standards on transfers of financial assets, as we are considered to have surrendered control of these financing receivables. Provided all other revenue recognition criteria have been met, we recognize product revenues for these arrangements, net of any payment discounts from financing transactions, upon product acceptance. We sold $26 million and $34 million of receivables during the six months ended October 30, 2020 and October 25, 2019, respectively. |
Debt | The portion of the financial arrangement that represents unearned services revenue is included in deferred revenue and financed unearned services revenue in our condensed consolidated balance sheets . |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Cloud Jumper Corporation | |
Business Acquisition [Line Items] | |
Summary of Preliminary Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The preliminary acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions): Developed technology $ 16 Customer contracts/relationships 6 Goodwill 12 Other assets 1 Total assets acquired 35 Liabilities assumed (1 ) Total purchase price $ 34 |
Spot, Inc. | |
Business Acquisition [Line Items] | |
Summary of Preliminary Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed | The preliminary acquisition date fair values of the assets acquired and liabilities assumed are as follows (in millions): Cash $ 24 Intangible assets 84 Goodwill 249 Other assets 6 Total assets acquired 363 Liabilities assumed (23 ) Total purchase price $ 340 |
Schedule of Components of Intangible Assets Acquired | The components of the Spot intangible assets acquired were as follows (in millions, except useful life): Estimated useful life (years) Developed technology $ 53 5 Customer contracts/relationships 28 5 Trade name 3 3 Total intangible assets $ 84 |
Goodwill and Purchased Intang_2
Goodwill and Purchased Intangible Assets, Net (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill Activity | Goodwill activity is summarized as follows (in millions): Balance as of April 24, 2020 $ 1,778 Additions 261 Balance as of October 30, 2020 $ 2,039 |
Purchased Intangible Assets, Net | Purchased intangible assets, net are summarized below (in millions): October 30, 2020 April 24, 2020 Gross Accumulated Net Gross Accumulated Net Assets Amortization Assets Assets Amortization Assets Developed technology $ 215 $ (128 ) $ 87 $ 192 $ (152 ) $ 40 Customer contracts/relationships 38 (3 ) 35 4 — 4 Other purchased intangibles 3 — 3 — — — Total purchased intangible assets $ 256 $ (131 ) $ 125 $ 196 $ (152 ) $ 44 |
Amortization Expense for Purchased Intangible Assets | Amortization expense for purchased intangible assets is summarized below (in millions): Three Months Ended Six Months Ended Statements of October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Operations Classification Developed technology $ 12 $ 11 $ 22 $ 22 Cost of revenues Customer contracts/relationships 3 — 3 — Operating expenses Total $ 15 $ 11 $ 25 $ 22 |
Future Amortization Expense Related to Purchased Intangible Assets | As of October 30, 2020, future amortization expense related to purchased intangible assets is as follows (in millions): Fiscal Year Amount Remainder of 2021 $ 23 2022 37 2023 29 2024 17 2025 16 2026 3 Total $ 125 |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Supplemental Financial Information [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Cash, cash equivalents and restricted cash (in millions): The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows: October 30, 2020 April 24, 2020 Cash and cash equivalents $ 3,529 $ 2,658 Restricted cash 7 8 Cash, cash equivalents and restricted cash $ 3,536 $ 2,666 |
Inventories | Inventories (in millions): October 30, 2020 April 24, 2020 Purchased components $ 20 $ 28 Finished goods 96 117 Inventories $ 116 $ 145 |
Property and Equipment, Net | Property and equipment, net (in millions): October 30, 2020 April 24, 2020 Land $ 103 $ 103 Buildings and improvements 602 597 Leasehold improvements 91 89 Computer, production, engineering and other equipment 850 802 Computer software 359 359 Furniture and fixtures 109 106 Construction-in-progress 37 32 2,151 2,088 Accumulated depreciation and amortization (1,414 ) (1,361 ) Property and equipment, net $ 737 $ 727 |
Other Non-Current Assets | Other non-current assets (in millions): October 30, 2020 April 24, 2020 Deferred tax assets $ 225 $ 220 Operating lease ROU assets 129 137 Other assets 344 342 Other non-current assets $ 698 $ 699 |
Accrued Expenses | Accrued expenses (in millions): October 30, 2020 April 24, 2020 Accrued compensation and benefits $ 376 $ 322 Product warranty liabilities 23 26 Operating lease liabilities 52 51 Other current liabilities 287 375 Accrued expenses $ 738 $ 774 |
Product Warranty Liabilities | The following tables summarize the activity related to product warranty liabilities and their balances as reported in our condensed consolidated balance sheets (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Balance at beginning of period $ 37 $ 39 $ 41 $ 40 Expense accrued during the period 4 7 5 12 Warranty costs incurred (6 ) (6 ) (11 ) (12 ) Balance at end of period $ 35 $ 40 $ 35 $ 40 October 30, 2020 April 24, 2020 Accrued expenses $ 23 $ 26 Other long-term liabilities 12 15 Total warranty liabilities $ 35 $ 41 |
Other Long-term Liabilities | Other long-term liabilities (in millions): October 30, 2020 April 24, 2020 Liability for uncertain tax positions $ 138 $ 136 Income taxes payable 351 399 Product warranty liabilities 12 15 Operating lease liabilities 84 93 Other liabilities 78 71 Other long-term liabilities $ 663 $ 714 |
Other Income, Net | Other income (expense), net (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Interest income $ 2 $ 12 $ 5 $ 31 Interest expense (18 ) (12 ) (36 ) (27 ) Other income (expense), net 9 3 (8 ) 14 Total other income (expense), net $ (7 ) $ 3 $ (39 ) $ 18 |
Statements of Cash Flows Additional Information | Supplemental cash flow information related to our operating leases is included in Note 9 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below: Six Months Ended October 30, 2020 October 25, 2019 Non-cash Investing Activities: Capital expenditures incurred but not paid $ 9 $ 6 Supplemental Cash Flow Information: Income taxes paid, net of refunds $ 238 $ 260 Interest paid $ 23 $ 25 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Disaggregation of Revenue | The following table depicts the disaggregation of revenue by our products and services (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Product revenues $ 749 $ 771 $ 1,376 $ 1,415 Software maintenance revenues 303 254 604 504 Hardware maintenance and other services revenues 364 346 739 688 Hardware maintenance support contracts 296 286 603 570 Professional and other services 68 60 136 118 Net revenues $ 1,416 $ 1,371 $ 2,719 $ 2,607 |
Deferred Revenue and Financed Unearned Services Revenue | The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our condensed consolidated balance sheets (in millions): October 30, 2020 April 24, 2020 Deferred product revenue $ 39 $ 75 Deferred services revenue 3,554 3,567 Financed unearned services revenue 58 56 Total $ 3,651 $ 3,698 Reported as: Short-term $ 1,815 $ 1,894 Long-term 1,836 1,804 Total $ 3,651 $ 3,698 The following tables summarize the activity related to deferred revenue and financed unearned services revenue (in millions): Six Months Ended October 30, 2020 October 25, 2019 Balance at beginning of period $ 3,698 $ 3,668 Additions 1,364 1,011 Revenue recognized during the period (1,411 ) (1,211 ) Balance at end of period $ 3,651 $ 3,468 |
Summary of Activity Related to Deferred Commissions and their Balances in Condensed Consolidated Balance Sheets | The following tables summarize the activity related to deferred commissions and their balances as reported in our condensed consolidated balance sheets (in millions): Six Months Ended October 30, 2020 October 25, 2019 Balance at beginning of period $ 156 $ 172 Additions 57 32 Expense recognized during the period (45 ) (50 ) Balance at end of period $ 168 $ 154 October 30, 2020 April 24, 2020 Other current assets $ 70 $ 67 Other non-current assets 98 89 Total deferred commissions $ 168 $ 156 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Investments | The following is a summary of our investments (in millions): October 30, 2020 April 24, 2020 Cost or Estimated Cost or Estimated Amortized Gross Unrealized Fair Amortized Gross Unrealized Fair Cost Gains Losses Value Cost Gains Losses Value Corporate bonds $ 99 $ 2 $ — $ 101 $ 155 $ 1 $ — $ 156 U.S. Treasury and government debt securities 16 — — 16 68 — — 68 Certificates of deposit 106 — — 106 158 — — 158 Mutual funds 37 — — 37 33 — — 33 Total debt and equity securities $ 258 $ 2 $ — $ 260 $ 414 $ 1 $ — $ 415 |
Contractual Maturities of Debt Investments | The following table presents the contractual maturities of our debt investments as of October 30, 2020 (in millions): Amortized Cost Fair Value Due in one year or less $ 172 $ 173 Due after one year through five years 44 45 Due after five years through ten years 5 5 $ 221 $ 223 |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table summarizes our financial assets and liabilities measured at fair value on a recurring basis (in millions): October 30, 2020 Fair Value Measurements at Reporting Date Using Total Level 1 Level 2 Cash $ 3,423 $ 3,423 $ — Corporate bonds 101 — 101 U.S. Treasury and government debt securities 16 3 13 Certificates of deposit 106 — 106 Total cash, cash equivalents and short-term investments $ 3,646 $ 3,426 $ 220 Other items: Mutual funds (1) $ 7 $ 7 $ — Mutual funds (2) $ 30 $ 30 $ — Foreign currency exchange contracts liabilities (3) $ (1 ) $ — $ (1 ) (1) Reported as other current assets in the condensed consolidated balance sheets (2) Reported as other non-current assets in the condensed consolidated balance sheets (3) Reported as accrued expenses in the condensed consolidated balance sheets |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Debt Disclosure [Abstract] | |
Carrying Value of Long-Term Debt | The following table summarizes information relating to our long-term debt, which we collectively refer to as our Senior Notes (in millions, except interest rates): October 30, 2020 April 24, 2020 Effective Interest Rate Amount Amount 3.375% Senior Notes Due June 2021 3.54% $ — $ 500 3.25% Senior Notes Due December 2022 3.43% 250 250 3.30% Senior Notes Due September 2024 3.42% 400 400 1.875% Senior Notes Due June 2025 2.03% 750 — 2.375% Senior Notes Due June 2027 2.51% 550 — 2.70% Senior Notes Due June 2030 2.81% 700 — Total principal amount 2,650 1,150 Unamortized discount and issuance costs (19 ) (4 ) Total long-term debt $ 2,631 $ 1,146 |
Future Principal Debt Maturities | As of October 30, 2020, our aggregate future principal debt maturities are as follows (in millions): Fiscal Year Amount 2023 $ 250 2025 400 2026 750 Thereafter 1,250 Total $ 2,650 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Leases [Abstract] | |
Components of Lease Cost Related to Operating Leases | The components of lease cost related to our operating leases were as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Operating lease cost $ 14 $ 15 $ 28 $ 29 Variable lease cost 2 4 5 8 Total lease cost $ 16 $ 19 $ 33 $ 37 |
Supplemental Cash Flow Information Related to Operating Leases | The supplemental cash flow information related to our operating leases is as follows (in millions): Six Months Ended October 30, 2020 October 25, 2019 Cash paid for amounts included in the measurement of operating lease liabilities $ 28 $ 29 Right-of-use assets obtained in exchange for new operating lease obligations $ 16 $ 21 |
Supplemental Balance Sheet Information Related to Operating Leases | The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate): October 30, 2020 April 24, 2020 Other non-current assets $ 129 $ 137 Total operating lease ROU assets $ 129 $ 137 Accrued expenses $ 52 $ 51 Other long-term liabilities 84 93 Total operating lease liabilities $ 136 $ 144 Weighted Average Remaining Lease Term 3.5 years 3.9 years Weighted Average Discount Rate 2.7 % 2.7 % |
Future Minimum Operating Lease Payments | Future minimum operating lease payments as of October 30, 2020, which exclude the undiscounted payments for the build-to-suit lease expected to commence in fiscal 2021, are as follows (in millions): Operating Leases Fiscal 2021 (remainder) $ 30 Fiscal 2022 47 Fiscal 2023 28 Fiscal 2024 17 Fiscal 2025 9 Fiscal 2026 8 Thereafter 3 Total lease payments $ 142 Less: Interest (6 ) Total $ 136 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Information Related to Stock Options | Information related to our stock options is summarized below (in millions): Six Months Ended October 30, 2020 October 25, 2019 Intrinsic value of exercises $ 1 $ 3 Proceeds received from exercises $ 2 $ 2 Fair value of options vested $ 1 $ — |
Activity Related to Restricted Stock Units Including Performance-Based Restricted Stock Units | The following table summarizes information related to our RSUs, including PBRSUs, (in millions, except fair value): Number of Shares Weighted- Average Grant Date Fair Value Outstanding as of April 24, 2020 7 $ 51.40 Granted 5 $ 39.44 Vested (2 ) $ 44.21 Forfeited (1 ) $ 52.26 Outstanding as of October 30, 2020 9 $ 46.65 |
Number and Value of Shares Netted for Employee Taxes | The number and value of the shares netted for employee taxes are summarized in the table below (in millions): Six Months Ended October 30, 2020 October 25, 2019 Shares withheld for taxes 1 1 Fair value of shares withheld $ 34 $ 74 |
Schedule of Employee Stock Purchase Plan (ESPP) | The following table summarizes activity related to the purchase rights issued under the ESPP (in millions): Six Months Ended October 30, 2020 October 25, 2019 Shares issued under the ESPP 1 1 Proceeds from issuance of shares $ 47 $ 54 |
Stock-Based Compensation Expense | Stock-based compensation expense is included in the condensed consolidated statements of operations as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Cost of product revenues $ 1 $ 1 $ 2 $ 2 Cost of hardware maintenance and other services revenues 2 3 5 5 Sales and marketing 24 17 49 35 Research and development 15 13 34 28 General and administrative 7 6 13 12 Total stock-based compensation expense $ 49 $ 40 $ 103 $ 82 Income tax benefit for stock-based compensation expense $ 8 $ 4 $ 12 $ 8 |
Summary of Activities Related to Dividends on Common Stock | The following is a summary of our activities related to dividends on our common stock (in millions, except per share amounts): Six Months Ended October 30, 2020 October 25, 2019 Dividends per share declared $ 0.96 $ 0.96 Dividend payments allocated to additional paid-in capital $ 30 $ 226 Dividend payments allocated to retained earnings $ 184 $ — |
Accumulated Other Comprehensive Income (Loss) by Component Net of Tax | Changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, are summarized below (in millions): Foreign Currency Translation Adjustments Defined Benefit Obligation Adjustments Unrealized Gains (Losses) on Available- for-Sale Securities Unrealized Gains (Losses) on Derivative Instruments Total Balance as of April 24, 2020 $ (42 ) $ (1 ) $ 1 $ — $ (42 ) Other comprehensive income (loss), net of tax 9 — 1 (8 ) 2 Amounts reclassified from AOCI, net of tax — — — 8 8 Total other comprehensive income (loss) 9 — 1 — 10 Balance as of October 30, 2020 $ (33 ) $ (1 ) $ 2 $ — $ (32 ) |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) | The amounts reclassified out of AOCI are as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Amounts Reclassified from AOCI Amounts Reclassified from AOCI Statements of Operations Classification Recognized gains on defined benefit obligations $ — $ (1 ) $ — $ (1 ) Operating expenses Realized gains on available-for-sale securities — — — (14 ) Other income (expense), net Realized losses on cash flow hedges 7 — 8 — Net revenues Total reclassifications $ 7 $ (1 ) $ 8 $ (15 ) |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Value of Outstanding Foreign Currency Exchange Forward Contracts | The notional amount of our outstanding U.S. dollar equivalent foreign currency exchange forward contracts consisted of the following (in millions): October 30, 2020 April 24, 2020 Cash Flow Hedges Forward contracts purchased $ 145 $ 124 Balance Sheet Contracts Forward contracts sold $ 378 $ 254 Forward contracts purchased $ 111 $ 108 |
Schedule of Derivative Instruments Not Designated as Hedging Instruments | The effect of derivative instruments not designated as hedging instruments recognized in other income (expense), net on our condensed consolidated statements of operations was as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Gain (Loss) Recognized in Income Gain (Loss) Recognized in Income Foreign currency exchange contracts $ (6 ) $ — $ 17 $ (3 ) |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Activities Related to Restructuring Reserves | Activities related to our restructuring plans are summarized as follows (in millions): Six Months Ended Six Months Ended October 30, 2020 October 25, 2019 August 2020 Plan May 2020 Plan May 2019 Plan Total May 2019 Plan April 2019 Plan November 2016 Plan Total Balance at beginning of period $ — $ — $ 1 $ 1 $ — $ 15 $ 4 $ 19 Net charges 37 5 — 42 21 — — 21 Cash payments (18 ) (5 ) (1 ) (24 ) (19 ) (12 ) — (31 ) Other — — — — — — (4 ) (4 ) Balance at end of period $ 19 $ — $ — $ 19 $ 2 $ 3 $ — $ 5 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Effective Tax Rates | Our effective tax rates for the periods presented were as follows: Six Months Ended October 30, 2020 October 25, 2019 Effective tax rates 23.3 % 17.2 % |
Net Income per Share (Tables)
Net Income per Share (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The following is a calculation of basic and diluted net income per share (in millions, except per share amounts): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Numerator: Net income $ 137 $ 243 $ 214 $ 346 Denominator: Shares used in basic computation 222 235 222 237 Dilutive impact of employee equity award plans 2 1 1 3 Shares used in diluted computation 224 236 223 240 Net Income per Share: Basic $ 0.62 $ 1.03 $ 0.96 $ 1.46 Diluted $ 0.61 $ 1.03 $ 0.96 $ 1.44 |
Segment, Geographic, and Sign_2
Segment, Geographic, and Significant Customer Information (Tables) | 6 Months Ended |
Oct. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | Summarized revenues by geographic region based on information from our internal management system and utilized by our Chief Executive Officer, who is considered our Chief Operating Decision Maker, is as follows (in millions): Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 United States, Canada and Latin America (Americas) $ 781 $ 771 $ 1,490 $ 1,406 Europe, Middle East and Africa (EMEA) 422 402 805 804 Asia Pacific (APAC) 213 198 424 397 Net revenues $ 1,416 $ 1,371 $ 2,719 $ 2,607 |
Schedule of Cash, Cash Equivalents and Short-Term Investments | The following table presents cash, cash equivalents and short-term investments held in the U.S. and internationally in various foreign subsidiaries (in millions): October 30, 2020 April 24, 2020 U.S. $ 1,442 $ 385 International 2,204 2,497 Total $ 3,646 $ 2,882 |
Schedule of Property and Equipment, Net by Geographic Areas | The following table presents property and equipment information for geographic areas based on the physical location of the assets (in millions): October 30, 2020 April 24, 2020 U.S. $ 552 $ 540 International 185 187 Total $ 737 $ 727 |
Schedule of Revenues from Significant Customers | The following customers, each of which is a distributor, accounted for 10% or more of our net revenues: Three Months Ended Six Months Ended October 30, 2020 October 25, 2019 October 30, 2020 October 25, 2019 Arrow Electronics, Inc. 25 % 24 % 24 % 24 % Tech Data Corporation 20 % 21 % 20 % 21 % |
Schedule of Net Accounts Receivable from Significant Customers | The following customers accounted for 10% or more of accounts receivable: October 30, 2020 April 24, 2020 Arrow Electronics, Inc. 12 % 13 % Tech Data Corporation 18 % 19 % |
Recently Adopted Accounting S_2
Recently Adopted Accounting Standards - Additional Information (Detail) | Apr. 25, 2020 |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Change in accounting principle, accounting standards update, adopted [true false] | true |
Change in accounting principle, accounting standards update, adoption date | Apr. 25, 2020 |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Accounting standards update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member |
Business Combination - Addition
Business Combination - Additional Information (Detail) - USD ($) $ in Millions | Jul. 09, 2020 | Apr. 28, 2020 |
Cloud Jumper Corporation | ||
Business Acquisition [Line Items] | ||
Business acquisition cash paid | $ 34 | |
Spot, Inc. | ||
Business Acquisition [Line Items] | ||
Business acquisition cash paid | $ 340 |
Business Combination - Summary
Business Combination - Summary of Preliminary Acquisition Date Fair Values of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Jul. 09, 2020 | Apr. 28, 2020 | Apr. 24, 2020 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 2,039 | $ 1,778 | ||
Cloud Jumper Corporation | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 12 | |||
Other assets | 1 | |||
Total assets acquired | 35 | |||
Liabilities assumed | (1) | |||
Total purchase price | 34 | |||
Cloud Jumper Corporation | Developed Technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 16 | |||
Cloud Jumper Corporation | Customer Contracts/Relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 6 | |||
Spot, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 24 | |||
Intangible assets | 84 | |||
Goodwill | 249 | |||
Other assets | 6 | |||
Total assets acquired | 363 | |||
Liabilities assumed | (23) | |||
Total purchase price | 340 | |||
Spot, Inc. | Developed Technology | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | 53 | |||
Spot, Inc. | Customer Contracts/Relationships | ||||
Business Acquisition [Line Items] | ||||
Intangible assets | $ 28 |
Business Combination - Schedule
Business Combination - Schedule of Components of Intangible Assets Acquired (Detail) - Spot, Inc. $ in Millions | Jul. 09, 2020USD ($) |
Business Acquisition [Line Items] | |
Total intangible assets | $ 84 |
Developed Technology | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 53 |
Estimated useful life (years) | 5 years |
Customer Contracts/Relationships | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 28 |
Estimated useful life (years) | 5 years |
Trade Name | |
Business Acquisition [Line Items] | |
Total intangible assets | $ 3 |
Estimated useful life (years) | 3 years |
Goodwill and Purchased Intang_3
Goodwill and Purchased Intangible Assets, Net - Schedule of Goodwill Activity (Detail) $ in Millions | 6 Months Ended |
Oct. 30, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 1,778 |
Additions | 261 |
Ending balance | $ 2,039 |
Goodwill and Purchased Intang_4
Goodwill and Purchased Intangible Assets, Net - Purchased Intangible Assets, Net (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | $ 256 | $ 196 |
Accumulated Amortization | (131) | (152) |
Net Assets | 125 | 44 |
Developed Technology | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 215 | 192 |
Accumulated Amortization | (128) | (152) |
Net Assets | 87 | 40 |
Customer Contracts/Relationships | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 38 | 4 |
Accumulated Amortization | (3) | 0 |
Net Assets | 35 | 4 |
Other Purchased Intangibles | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Gross Assets | 3 | 0 |
Accumulated Amortization | 0 | 0 |
Net Assets | $ 3 | $ 0 |
Goodwill and Purchased Intang_5
Goodwill and Purchased Intangible Assets, Net - Amortization Expense for Purchased Intangible Assets (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 15 | $ 11 | $ 25 | $ 22 |
Cost of revenues | Developed Technology | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | 12 | 11 | 22 | 22 |
Operating expenses | Customer Contracts/Relationships | ||||
Acquired Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 3 | $ 0 | $ 3 | $ 0 |
Goodwill and Purchased Intang_6
Goodwill and Purchased Intangible Assets, Net - Future Amortization Expense Related to Purchased Intangible Assets (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Acquired Finite Lived Intangible Assets [Line Items] | ||
Net Assets | $ 125 | $ 44 |
Intangible Assets Subject to Amortization | ||
Acquired Finite Lived Intangible Assets [Line Items] | ||
Remainder of 2021 | 23 | |
2022 | 37 | |
2023 | 29 | |
2024 | 17 | |
2025 | 16 | |
2026 | 3 | |
Net Assets | $ 125 |
Supplemental Financial Inform_3
Supplemental Financial Information - Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 | Oct. 25, 2019 | Apr. 26, 2019 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 3,529 | $ 2,658 | ||
Restricted cash | 7 | 8 | ||
Cash, cash equivalents and restricted cash | $ 3,536 | $ 2,666 | $ 2,551 | $ 2,331 |
Supplemental Financial Inform_4
Supplemental Financial Information - Inventories (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Inventory Disclosure [Abstract] | ||
Purchased components | $ 20 | $ 28 |
Finished goods | 96 | 117 |
Inventories | $ 116 | $ 145 |
Supplemental Financial Inform_5
Supplemental Financial Information - Property and Equipment Net (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 2,151 | $ 2,088 |
Accumulated depreciation and amortization | (1,414) | (1,361) |
Property and equipment, net | 737 | 727 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 103 | 103 |
Buildings and improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 602 | 597 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 91 | 89 |
Computer, production, engineering and other equipment | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 850 | 802 |
Computer software | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 359 | 359 |
Furniture and fixtures | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 109 | 106 |
Construction-in-progress | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 37 | $ 32 |
Supplemental Financial Inform_6
Supplemental Financial Information - Other Non-Current Assets (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Deferred tax assets | $ 225 | $ 220 |
Operating lease ROU assets | 129 | 137 |
Other assets | 344 | 342 |
Other non-current assets | $ 698 | $ 699 |
Supplemental Financial Inform_7
Supplemental Financial Information - Additional Information (Detail) - Lenovo NetApp Technology Limited (“LNTL”) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Property Plant And Equipment [Line Items] | ||
Non-controlling equity interest, ownership percentage | 49.00% | |
Other non current assets | $ 69 | $ 67 |
Supplemental Financial Inform_8
Supplemental Financial Information - Accrued expenses (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Payables And Accruals [Abstract] | ||
Accrued compensation and benefits | $ 376 | $ 322 |
Product warranty liabilities | 23 | 26 |
Operating lease liabilities | 52 | 51 |
Other current liabilities | 287 | 375 |
Accrued expenses | $ 738 | $ 774 |
Supplemental Financial Inform_9
Supplemental Financial Information - Product Warranty Liabilities (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Apr. 24, 2020 | |
Movement In Standard Product Warranty Accrual [Roll Forward] | ||||||
Balance at beginning of period | $ 37 | $ 39 | $ 41 | $ 40 | ||
Expense accrued during the period | 4 | 7 | 5 | 12 | ||
Warranty costs incurred | (6) | (6) | (11) | (12) | ||
Balance at end of period | 35 | 40 | 35 | 40 | ||
Standard Product Warranty Accrual, Balance Sheet Classification [Abstract] | ||||||
Accrued expenses | $ 23 | $ 26 | ||||
Other long-term liabilities | 12 | 15 | ||||
Total warranty liabilities | $ 35 | $ 40 | $ 35 | $ 40 | $ 35 | $ 41 |
Supplemental Financial Infor_10
Supplemental Financial Information - Other Long-term Liabilities (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Liabilities Other Than Long Term Debt Noncurrent [Abstract] | ||
Liability for uncertain tax positions | $ 138 | $ 136 |
Income taxes payable | 351 | 399 |
Product warranty liabilities | 12 | 15 |
Operating lease liabilities | 84 | 93 |
Other liabilities | 78 | 71 |
Other long-term liabilities | $ 663 | $ 714 |
Supplemental Financial Infor_11
Supplemental Financial Information - Other Income (expense), Net (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Nonoperating Income Expense [Abstract] | ||||
Interest income | $ 2 | $ 12 | $ 5 | $ 31 |
Interest expense | (18) | (12) | (36) | (27) |
Other income (expense), net | 9 | 3 | (8) | 14 |
Total other income (expense), net | $ (7) | $ 3 | $ (39) | $ 18 |
Supplemental Financial Infor_12
Supplemental Financial Information - Supplemental Cash Flows, Non-Cash Investing Activities (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Non-cash Investing Activities: | ||
Capital expenditures incurred but not paid | $ 9 | $ 6 |
Supplemental Cash Flow Information: | ||
Income taxes paid, net of refunds | 238 | 260 |
Interest paid | $ 23 | $ 25 |
Revenue - Summary of Disaggrega
Revenue - Summary of Disaggregation of Revenue (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | $ 1,416 | $ 1,371 | $ 2,719 | $ 2,607 |
Product Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 749 | 771 | 1,376 | 1,415 |
Software Maintenance Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 303 | 254 | 604 | 504 |
Hardware Maintenance and Other Services Revenues | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 364 | 346 | 739 | 688 |
Hardware Maintenance Support Contracts | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | 296 | 286 | 603 | 570 |
Professional and Other Services | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net revenues | $ 68 | $ 60 | $ 136 | $ 118 |
Revenue - Summary of Components
Revenue - Summary of Components of Deferred Revenue and Financed Unearned Services Revenue (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 | Oct. 25, 2019 | Apr. 26, 2019 |
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | $ 3,651 | $ 3,698 | $ 3,468 | $ 3,668 |
Short-term | 1,815 | 1,894 | ||
Long-term | 1,836 | 1,804 | ||
Deferred product revenue | ||||
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | 39 | 75 | ||
Deferred services revenue | ||||
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | 3,554 | 3,567 | ||
Financed unearned services revenue | ||||
Contract With Customer Liability [Line Items] | ||||
Deferred revenue and financed unearned services revenue | $ 58 | $ 56 |
Revenue - Summary of Activity R
Revenue - Summary of Activity Related to Deferred Revenue and Financed Unearned Services Revenue (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Contract With Customer Liability [Abstract] | ||
Balance at beginning of period | $ 3,698 | $ 3,668 |
Additions | 1,364 | 1,011 |
Revenue recognized during the period | (1,411) | (1,211) |
Balance at end of period | $ 3,651 | $ 3,468 |
Revenue - Additional Informatio
Revenue - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Disaggregation Of Revenue [Abstract] | ||
Revenue recognized | $ 1,207 | $ 1,045 |
Transaction price allocated to remaining performance obligations | $ 3,651 |
Revenue - Additional Informat_2
Revenue - Additional Information (Detail1) | Oct. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-31 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue expected to be recognized | 50.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-10-30 | |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | |
Revenue expected to be recognized | 26.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue - Summary of Activity_2
Revenue - Summary of Activity Related to Deferred Commissions (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Deferred Revenue Disclosure [Abstract] | ||
Balance at beginning of period | $ 156 | $ 172 |
Additions | 57 | 32 |
Expense recognized during the period | (45) | (50) |
Balance at end of period | $ 168 | $ 154 |
Revenue - Summary of Activity_3
Revenue - Summary of Activity Related to the Balances in Condensed Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 | Oct. 25, 2019 | Apr. 26, 2019 |
Deferred Revenue Disclosure [Abstract] | ||||
Other current assets | $ 70 | $ 67 | ||
Other non-current assets | 98 | 89 | ||
Total deferred commissions | $ 168 | $ 156 | $ 154 | $ 172 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Summary of Investments (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | $ 258 | $ 414 |
Gross unrealized gains | 2 | 1 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 260 | 415 |
Corporate Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 99 | 155 |
Gross unrealized gains | 2 | 1 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 101 | 156 |
U.S. Treasury and Government Debt Securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 16 | 68 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 16 | 68 |
Certificates of Deposit | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 106 | 158 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | 106 | 158 |
Mutual Funds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Cost or amortized cost | 37 | 33 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | 0 |
Estimated fair value | $ 37 | $ 33 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Contractual Maturities of Debt Investments (Detail) $ in Millions | Oct. 30, 2020USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Due in one year or less, Amortized Cost | $ 172 |
Due after one year through five years, Amortized Cost | 44 |
Due after five years through ten years, Amortized Cost | 5 |
Total, Amortized Cost | 221 |
Due in one year or less, Estimated Fair Value | 173 |
Due after one year through five years, Estimated Fair Value | 45 |
Due after five years through ten years, Estimated Fair Value | 5 |
Total, Estimated Fair Value | $ 223 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) $ in Millions | Oct. 30, 2020USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 3,646 | |
Accrued Expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts liabilities | (1) | [1] |
Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 101 | |
U.S. Treasury and Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 16 | |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 106 | |
Mutual Funds | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7 | [2] |
Mutual Funds | Other Noncurrent Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 30 | [3] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3,426 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Accrued Expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts liabilities | 0 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury and Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 7 | [2] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | Other Noncurrent Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 30 | [3] |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 220 | |
Significant Other Observable Inputs (Level 2) | Accrued Expenses | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts liabilities | (1) | [1] |
Significant Other Observable Inputs (Level 2) | Corporate Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 101 | |
Significant Other Observable Inputs (Level 2) | U.S. Treasury and Government Debt Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 13 | |
Significant Other Observable Inputs (Level 2) | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 106 | |
Significant Other Observable Inputs (Level 2) | Mutual Funds | Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | [2] |
Significant Other Observable Inputs (Level 2) | Mutual Funds | Other Noncurrent Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | [3] |
Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3,423 | |
Cash | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 3,423 | |
Cash | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 0 | |
[1] | Reported as accrued expenses in the condensed consolidated balance sheets | |
[2] | Reported as other current assets in the condensed consolidated balance sheets | |
[3] | Reported as other non-current assets in the condensed consolidated balance sheets |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 2,775 | $ 1,176 |
Financing Arrangements - Carryi
Financing Arrangements - Carrying Value of Long-Term Debt (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Jun. 30, 2020 | Apr. 24, 2020 |
Debt Instrument [Line Items] | |||
Total long-term debt | $ 2,631 | $ 1,146 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Total principal amount | 2,650 | 1,150 | |
Unamortized discount and issuance costs | (19) | (4) | |
Senior Notes | Due June 2021 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 0 | $ 500 | |
Debt Instrument, Effective Interest Rate | 3.54% | 3.54% | |
Senior Notes | Due December 2022 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 250 | $ 250 | |
Debt Instrument, Effective Interest Rate | 3.43% | 3.43% | |
Senior Notes | Due September 2024 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 400 | $ 400 | |
Debt Instrument, Effective Interest Rate | 3.42% | 3.42% | |
Senior Notes | Due June 2025 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 750 | $ 750 | $ 0 |
Debt Instrument, Effective Interest Rate | 2.03% | 2.03% | |
Senior Notes | Due June 2027 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 550 | 550 | $ 0 |
Debt Instrument, Effective Interest Rate | 2.51% | 2.51% | |
Senior Notes | Due June 2030 | |||
Debt Instrument [Line Items] | |||
Total principal amount | $ 700 | $ 700 | $ 0 |
Debt Instrument, Effective Interest Rate | 2.81% | 2.81% |
Financing Arrangements - Additi
Financing Arrangements - Additional Information (Detail) | Jul. 27, 2020USD ($) | Jun. 30, 2020USD ($) | Jul. 28, 2017USD ($)Extension | Jul. 31, 2020USD ($) | Oct. 30, 2020USD ($) | Oct. 25, 2019USD ($) | Apr. 24, 2020USD ($) |
Debt Instrument [Line Items] | |||||||
Issuance of debt, net of issuance costs | $ 2,057,000,000 | $ 0 | |||||
Commercial paper notes | 0 | $ 522,000,000 | |||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | $ 1,000,000,000 | ||||||
Credit facility, date expiry | Dec. 10, 2021 | ||||||
Credit facility, increase in facility | $ 300,000,000 | ||||||
Credit facility, number of extensions | Extension | 2 | ||||||
Credit facility, extensions period | 1 year | ||||||
Credit facility, amounts drawn | 0 | ||||||
Revolving Credit Facility | Letter Of Credit Sub Facility | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility, amount | $ 50,000,000 | ||||||
Commercial Paper | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 523,000,000 | ||||||
Issuance of debt, net of issuance costs | 75,000,000 | ||||||
Weighted-average interest rate | 2.01% | ||||||
Proceeds from repayments of debt | 176,000,000 | ||||||
Commercial Paper | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 1,000,000,000 | ||||||
Debt instrument maturity period | 397 days | 3 months | |||||
Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | 2,650,000,000 | $ 1,150,000,000 | |||||
Issuance of debt, net of issuance costs | $ 2,000,000,000 | ||||||
Cash redemption premium | $ 13,000,000 | ||||||
Write-off of unamortized discount and issuance costs | 1,000,000 | ||||||
Senior Notes | Other Income (Expense), Net | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 14,000,000 | ||||||
Senior Notes | Due June 2027 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 550,000,000 | 550,000,000 | 0 | ||||
Notes issued, interest rate | 2.375% | ||||||
Senior Notes | Due June 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 750,000,000 | 750,000,000 | 0 | ||||
Notes issued, interest rate | 1.875% | ||||||
Senior Notes | Due June 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 700,000,000 | 700,000,000 | 0 | ||||
Notes issued, interest rate | 2.70% | ||||||
Senior Notes | Due June 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | 0 | 500,000,000 | |||||
Notes issued, interest rate | 3.375% | ||||||
Extinguishment of debt amount | $ 513,000,000 | ||||||
Senior Notes | Due September 2024 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 400,000,000 | 400,000,000 | |||||
Notes issued, interest rate | 3.30% | ||||||
Senior Notes | Due December 2022 | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued, principal amount | $ 250,000,000 | $ 250,000,000 | |||||
Notes issued, interest rate | 3.25% |
Financing Arrangements - Future
Financing Arrangements - Future Principal Debt Maturities (Detail) - Senior Notes - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Debt Instrument [Line Items] | ||
2023 | $ 250 | |
2025 | 400 | |
2026 | 750 | |
Thereafter | 1,250 | |
Total | $ 2,650 | $ 1,150 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | |
Jun. 30, 2020 | Oct. 30, 2020 | |
Leases [Line Items] | ||
Future undiscounted payments | $ 142 | |
Build-to-suit Office Building | ||
Leases [Line Items] | ||
Operating remaining lease term | 20 years | |
Future undiscounted payments | $ 67 | |
Operating lease, existence of option to extend | true | |
Maximum | Real Estate | ||
Leases [Line Items] | ||
Operating remaining lease term | 15 years | |
Maximum | Equipment | ||
Leases [Line Items] | ||
Operating remaining lease term | 4 years | |
Maximum | Automobiles | ||
Leases [Line Items] | ||
Operating remaining lease term | 5 years |
Leases - Components of Lease Co
Leases - Components of Lease Cost Related to Operating Leases (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 14 | $ 15 | $ 28 | $ 29 |
Variable lease cost | 2 | 4 | 5 | 8 |
Total lease cost | $ 16 | $ 19 | $ 33 | $ 37 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Operating Leases (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of operating lease liabilities | $ 28 | $ 29 |
Right-of-use assets obtained in exchange for new operating lease obligations | $ 16 | $ 21 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Operating Leases (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Leases [Abstract] | ||
Other non-current assets | $ 129 | $ 137 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Accrued expenses | $ 52 | $ 51 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent | us-gaap:AccruedLiabilitiesCurrent |
Other long-term liabilities | $ 84 | $ 93 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Total operating lease liabilities | $ 136 | $ 144 |
Weighted Average Remaining Lease Term | 3 years 6 months | 3 years 10 months 24 days |
Weighted Average Discount Rate | 2.70% | 2.70% |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Leases [Abstract] | ||
Fiscal 2021 (remainder) | $ 30 | |
Fiscal 2022 | 47 | |
Fiscal 2023 | 28 | |
Fiscal 2024 | 17 | |
Fiscal 2025 | 9 | |
Fiscal 2026 | 8 | |
Thereafter | 3 | |
Total lease payments | 142 | |
Less: Interest | (6) | |
Total | $ 136 | $ 144 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Nov. 23, 2020 | Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Apr. 24, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation expense related to equity awards | $ 398,000,000 | $ 398,000,000 | $ 398,000,000 | ||||
Unrecognized compensation expense will be amortized on a straight-line basis over a weighted-average remaining period, in years | 2 years 6 months | ||||||
Stock repurchase program, authorized amount | 13,600,000,000 | $ 13,600,000,000 | $ 13,600,000,000 | ||||
Repurchase of common stock, shares | 0 | 338,000,000 | |||||
Average price of common stock repurchased under repurchase program | $ 38.86 | ||||||
Aggregate purchase price of common stock authorized under repurchase program | $ 0 | $ 750,000,000 | $ 13,100,000,000 | ||||
Remaining authorized amount for stock repurchases under repurchase program | $ 477,000,000 | $ 477,000,000 | 477,000,000 | ||||
Cash dividends declared, per common share | $ 0.48 | $ 0.48 | $ 0.96 | $ 0.96 | |||
Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Cash dividends declared, per common share | $ 0.48 | ||||||
Cash dividend payable date | Jan. 27, 2021 | ||||||
Cash dividend record date | Jan. 8, 2021 | ||||||
Performance Based Restricted Stock Unit | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
RSUs grant date fair value | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | ||||
Performance Based Restricted Stock Unit | PBRSU One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Performance Based Restricted Stock Unit | PBRSU Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 2 years | ||||||
Performance Based Restricted Stock Unit | PBRSU Three | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Percentage of Common stock issued to settle PBRSUs of target shares granted | 0.00% | ||||||
Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of options outstanding | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | |||
Percentage of Common stock issued to settle PBRSUs of target shares granted | 200.00% |
Stockholders' Equity - Informat
Stockholders' Equity - Information Related to Stock Options (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Intrinsic value of exercises | $ 1 | $ 3 |
Proceeds received from exercises | 2 | 2 |
Fair value of options vested | $ 1 | $ 0 |
Stockholders' Equity - Activity
Stockholders' Equity - Activity Related to Restricted Stock Units Including Performance-Based Restricted Stock Units (Detail) - Restricted Stock Units shares in Millions | 6 Months Ended |
Oct. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Beginning balance, Number of Shares | shares | 7 |
RSUs granted, Number of Shares | shares | 5 |
RSUs vested, Number of Shares | shares | (2) |
RSUs forfeited, Number of Shares | shares | (1) |
Ending Balance, Number of Shares | shares | 9 |
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 51.40 |
RSUs granted, Weighted-Average Grant Date Fair Value | $ / shares | 39.44 |
RSUs vested, Weighted-Average Grant Date Fair Value | $ / shares | 44.21 |
RSUs forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 52.26 |
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 46.65 |
Stockholders' Equity - Number a
Stockholders' Equity - Number and Value of Shares Netted for Employee Taxes (Detail) - Restricted Stock Units - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares withheld for taxes | 1 | 1 |
Fair value of shares withheld | $ 34 | $ 74 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Employee Stock Purchase Plan (ESPP) (Detail) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued under the ESPP | 1 | 1 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds from issuance of shares | $ 47 | $ 54 |
Stockholders' Equity - Stock-Ba
Stockholders' Equity - Stock-Based Compensation Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 49 | $ 40 | $ 103 | $ 82 |
Income tax benefit for stock-based compensation expense | 8 | 4 | 12 | 8 |
Cost of Product Revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 1 | 1 | 2 | 2 |
Cost of Hardware Maintenance and Other Services Revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 2 | 3 | 5 | 5 |
Sales and Marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 24 | 17 | 49 | 35 |
Research and Development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | 15 | 13 | 34 | 28 |
General and Administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense | $ 7 | $ 6 | $ 13 | $ 12 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Activities Related to Dividends on Common Stock (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Dividends, Common Stock [Abstract] | ||||
Dividends per share declared | $ 0.48 | $ 0.48 | $ 0.96 | $ 0.96 |
Dividend payments | $ 214 | $ 226 | ||
Additional Paid-in Capital | ||||
Dividends, Common Stock [Abstract] | ||||
Dividend payments | 30 | 226 | ||
Retained Earnings | ||||
Dividends, Common Stock [Abstract] | ||||
Dividend payments | $ 184 | $ 0 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Income (Loss) by Component Net of Tax (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | $ 284 | $ 863 | $ 242 | $ 1,090 |
Other comprehensive income (loss), net of tax | 2 | |||
Amounts reclassified from AOCI, net of tax | 8 | |||
Other comprehensive income | 7 | 3 | 10 | 7 |
Balances | 370 | 536 | 370 | 536 |
Foreign Currency Translation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (42) | |||
Other comprehensive income (loss), net of tax | 9 | |||
Amounts reclassified from AOCI, net of tax | 0 | |||
Other comprehensive income | 9 | |||
Balances | (33) | (33) | ||
Defined Benefit Obligation Adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (1) | |||
Other comprehensive income (loss), net of tax | 0 | |||
Amounts reclassified from AOCI, net of tax | 0 | |||
Other comprehensive income | 0 | |||
Balances | (1) | (1) | ||
Unrealized Gains (Losses) on Available-for-Sale Securities | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | 1 | |||
Other comprehensive income (loss), net of tax | 1 | |||
Amounts reclassified from AOCI, net of tax | 0 | |||
Other comprehensive income | 1 | |||
Balances | 2 | 2 | ||
Unrealized Gains (Losses) on Derivative Instruments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | 0 | |||
Other comprehensive income (loss), net of tax | (8) | |||
Amounts reclassified from AOCI, net of tax | 8 | |||
Other comprehensive income | 0 | |||
Balances | 0 | 0 | ||
AOCI Attributable to Parent | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balances | (39) | (39) | (42) | (43) |
Other comprehensive income | 7 | 3 | 10 | 7 |
Balances | $ (32) | $ (36) | $ (32) | $ (36) |
Stockholders' Equity - Amounts
Stockholders' Equity - Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Operating expenses | $ (751) | $ (629) | $ (1,487) | $ (1,341) |
Other income (expense), net | 7 | (3) | 39 | (18) |
Net revenues | 1,416 | 1,371 | 2,719 | 2,607 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Total reclassifications | 7 | (1) | 8 | (15) |
Reclassification out of Accumulated Other Comprehensive Income | Recognized Gains on Defined Benefit Obligations | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Operating expenses | 0 | (1) | 0 | (1) |
Reclassification out of Accumulated Other Comprehensive Income | Realized Gains on Available-for-Sale Securities | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Other income (expense), net | 0 | 0 | 0 | (14) |
Reclassification out of Accumulated Other Comprehensive Income | Realized Losses on Cash Flow Hedges | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net revenues | $ 7 | $ 0 | $ 8 | $ 0 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Schedule of Notional Value of Outstanding Foreign Currency Forward Contracts (Detail) - Foreign Exchange Forward Contracts - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Long | Cash Flow Hedges | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 145 | $ 124 |
Non Designated | Long | Balance Sheet Contracts | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | 111 | 108 |
Non Designated | Short | Balance Sheet Contracts | ||
Derivative [Line Items] | ||
Forward contracts, Notional Amount | $ 378 | $ 254 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Derivative Instruments Not Designated as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Foreign Exchange Forward Contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign currency exchange contracts | $ (6) | $ 0 | $ 17 | $ (3) |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) | Oct. 30, 2020 | Jul. 31, 2020 |
August 2020 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction of global work force | 5.00% | |
May 2020 Restructuring | Maximum | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction of global work force | 1.00% | |
May 2019 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction of global work force | 2.00% | |
April 2019 Restructuring | ||
Restructuring Cost and Reserve [Line Items] | ||
Reduction of global work force | 1.00% |
Restructuring Charges - Activit
Restructuring Charges - Activities Related to Restructuring Reserves (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | $ 1 | $ 19 | ||
Net charges | $ 37 | $ 0 | 42 | 21 |
Cash payments | (24) | (31) | ||
Other | 0 | (4) | ||
Balance at end of period | 19 | 5 | 19 | 5 |
August 2020 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 0 | |||
Net charges | 37 | |||
Cash payments | (18) | |||
Other | 0 | |||
Balance at end of period | 19 | 19 | ||
May 2020 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 0 | |||
Net charges | 5 | |||
Cash payments | (5) | |||
Other | 0 | |||
Balance at end of period | 0 | 0 | ||
May 2019 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 1 | 0 | ||
Net charges | 0 | 21 | ||
Cash payments | (1) | (19) | ||
Other | 0 | 0 | ||
Balance at end of period | $ 0 | 2 | $ 0 | 2 |
April 2019 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 15 | |||
Net charges | 0 | |||
Cash payments | (12) | |||
Other | 0 | |||
Balance at end of period | 3 | 3 | ||
November 2016 Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Balance at beginning of period | 4 | |||
Net charges | 0 | |||
Cash payments | 0 | |||
Other | (4) | |||
Balance at end of period | $ 0 | $ 0 |
Income Taxes - Effective Tax Ra
Income Taxes - Effective Tax Rates (Detail) | 6 Months Ended | |
Oct. 30, 2020 | Oct. 25, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rates | 23.30% | 17.20% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Income Tax Disclosure [Abstract] | ||
Gross unrecognized tax benefits | $ 224 | |
Gross unrecognized tax benefits included in other long-term liabilities | 138 | $ 136 |
Unrecognized tax benefits that would affect provision for income taxes | $ 138 |
Net Income per Share - Computat
Net Income per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Net income per share: | ||||
Net income | $ 137 | $ 243 | $ 214 | $ 346 |
Shares used in basic computation | 222 | 235 | 222 | 237 |
Dilutive impact of employee equity award plans | 2 | 1 | 1 | 3 |
Shares used in diluted computation | 224 | 236 | 223 | 240 |
Basic | $ 0.62 | $ 1.03 | $ 0.96 | $ 1.46 |
Diluted | $ 0.61 | $ 1.03 | $ 0.96 | $ 1.44 |
Net Income per Share - Addition
Net Income per Share - Additional Information (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Earnings Per Share [Abstract] | ||||
Outstanding employee equity awards excluded from diluted net income per share calculations | 8 | 6 | 7 | 3 |
Segment Geographic and Signific
Segment Geographic and Significant Customer Information - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020USD ($) | Oct. 25, 2019USD ($) | Oct. 30, 2020USD ($)Segment | Oct. 25, 2019USD ($)Segment | |
Segment Reporting Information [Line Items] | ||||
Number of industry segment | Segment | 1 | 1 | ||
Net revenues | $ 1,416 | $ 1,371 | $ 2,719 | $ 2,607 |
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 705 | $ 703 | $ 1,342 | $ 1,277 |
Segment Geographic and Signif_2
Segment Geographic and Significant Customer Information - Schedule of Revenues by Geographic Region (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 1,416 | $ 1,371 | $ 2,719 | $ 2,607 |
United States, Canada And Latin America (Americas) | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 781 | 771 | 1,490 | 1,406 |
Europe, Middle East And Africa (EMEA) | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | 422 | 402 | 805 | 804 |
Asia Pacific (APAC) | ||||
Segment Reporting Information [Line Items] | ||||
Net revenues | $ 213 | $ 198 | $ 424 | $ 397 |
Segment Geographic and Signif_3
Segment Geographic and Significant Customer Information - Schedule of Cash, Cash Equivalents and Short-Term Investments (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 3,646 | $ 2,882 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | 1,442 | 385 |
International | ||
Segment Reporting Information [Line Items] | ||
Cash, cash equivalents and short-term investments | $ 2,204 | $ 2,497 |
Segment Geographic and Signif_4
Segment Geographic and Significant Customer Information - Schedule of Property and Equipment Net by Geographic Areas (Detail) - USD ($) $ in Millions | Oct. 30, 2020 | Apr. 24, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 737 | $ 727 |
U.S. | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | 552 | 540 |
International | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Property and equipment | $ 185 | $ 187 |
Segment Geographic and Signif_5
Segment Geographic and Significant Customer Information - Significant Customers (Detail) - Net Revenue - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Oct. 30, 2020 | Oct. 25, 2019 | |
Arrow Electronics, Inc. | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenues | 25.00% | 24.00% | 24.00% | 24.00% |
Tech Data Corporation | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of net revenues | 20.00% | 21.00% | 20.00% | 21.00% |
Segment Geographic and Signif_6
Segment Geographic and Significant Customer Information - Schedule of Net Accounts Receivable from Significant Customers (Detail) - Accounts Receivable - Credit Concentration Risk | 6 Months Ended | 12 Months Ended |
Oct. 30, 2020 | Apr. 24, 2020 | |
Arrow Electronics, Inc. | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 12.00% | 13.00% |
Tech Data Corporation | ||
Segment Reporting Information [Line Items] | ||
Percentage of net accounts receivable | 18.00% | 19.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Oct. 30, 2020 | Oct. 25, 2019 | Apr. 24, 2020 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Accrued purchase commitments with contract manufacturers | $ 10,000,000 | $ 6,000,000 | |
Sale of finance receivables | $ 26,000,000 | $ 34,000,000 | |
Lawsuit commencement date | August 14, 2019 | ||
Lawsuit action domicile | United States District Court for the Northern District of California | ||
Name of defendant | NetApp and certain of our executive officers | ||
Loss contingency, laws affected | The complaint alleges that the defendants violated Section 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and SEC Rule 10b-5, by making materially false or misleading statements with respect to our financial guidance for fiscal 2020, as provided on May 22, 2019. | ||
Legal proceedings and claims | $ 0 | ||
Management estimation of loss contingency | Although management at present believes that the ultimate outcome of these proceedings, individually and in the aggregate, will not materially harm our financial position, results of operations, cash flows, or overall trends, legal proceedings are subject to inherent uncertainties, and unfavorable rulings or other events could occur. Unfavorable resolutions could include significant monetary damages. In addition, in matters for which injunctive relief or other conduct remedies are sought, unfavorable resolutions could include an injunction or other order prohibiting us from selling one or more products at all or in particular ways or requiring other remedies. An unfavorable outcome may result in a material adverse impact on our business, results of operations, financial position, and overall trends. | ||
Maximum | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Terms of recourse leases | 3 years | ||
Inventory | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase orders and other commitments | $ 566,000,000 | ||
Other | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Purchase orders and other commitments | $ 192,000,000 |