CISCO SYSTEMS, INC., 10-Q filed on 5/21/2013
Quarterly Report
Document And Entity Information
9 Months Ended
Apr. 27, 2013
May 16, 2013
Document Information [Line Items]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Apr. 27, 2013 
 
Document Fiscal Period Focus
Q3 
 
Document Fiscal Year Focus
2013 
 
Trading Symbol
CSCO 
 
Entity Registrant Name
CISCO SYSTEMS, INC. 
 
Entity Central Index Key
0000858877 
 
Entity Current Reporting Status
Yes 
 
Current Fiscal Year End Date
--07-27 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
5,344,336,014 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Current assets:
 
 
Cash and cash equivalents
$ 5,122 
$ 9,799 
Investments
42,266 
38,917 
Accounts receivable, net of allowance for doubtful accounts of $225 at April 27, 2013 and $207 at July 28, 2012
4,942 
4,369 
Inventories
1,469 
1,663 
Financing receivables, net
3,878 
3,661 
Deferred tax assets
2,377 
2,294 
Other current assets
1,363 
1,230 
Total current assets
61,417 
61,933 
Property and equipment, net
3,330 
3,402 
Financing receivables, net
3,838 
3,585 
Goodwill
21,640 
16,998 
Purchased intangible assets, net
3,408 
1,959 
Other assets
3,451 
3,882 
TOTAL ASSETS
97,084 
91,759 
Current liabilities:
 
 
Short-term debt
3,292 
31 
Accounts payable
957 
859 
Income taxes payable
0 
276 
Accrued compensation
3,010 
2,928 
Deferred revenue
9,055 
8,852 
Other current liabilities
4,749 
4,785 
Total current liabilities
21,063 
17,731 
Long-term debt
12,956 
16,297 
Income taxes payable
1,503 
1,844 
Deferred revenue
3,630 
4,028 
Other long-term liabilities
1,134 
558 
Total liabilities
40,286 
40,458 
Commitments and contingencies (Note 12)
   
   
Cisco shareholders' equity:
 
 
Preferred stock, no par value: 5 shares authorized; none issued and outstanding
0 
0 
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,315 and 5,298 shares issued and outstanding at April 27, 2013 and July 28, 2012, respectively
40,431 
39,271 
Retained earnings
15,668 
11,354 
Accumulated other comprehensive income
689 
661 
Total Cisco shareholders' equity
56,788 
51,286 
Noncontrolling interests
10 
15 
Total equity
56,798 
51,301 
TOTAL LIABILITIES AND EQUITY
$ 97,084 
$ 91,759 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Statement of Financial Position [Abstract]
 
 
Accounts receivable, net of allowance for doubtful accounts of $225 at April 27, 2013 and $207 at July 28, 2012
$ 225 
$ 207 
Preferred Stock, No Par Value
$ 0 
$ 0 
Preferred stock, shares authorized
5 
5 
Preferred stock, issued
0 
0 
Preferred stock, outstanding
0 
0 
Common stock, par value
$ 0.001 
$ 0.001 
Common stock, shares authorized
20,000 
20,000 
Common stock, shares issued
5,315 
5,298 
Common stock, shares outstanding
5,315 
5,298 
Consolidated Statements Of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
NET SALES:
 
 
 
 
Product
$ 9,559 
$ 9,106 
$ 28,293 
$ 27,176 
Service
2,657 
2,482 
7,897 
7,195 
Total net sales
12,216 
11,588 
36,190 
34,371 
COST OF SALES:
 
 
 
 
Product
3,782 
3,563 
11,387 
10,776 
Service
923 
856 
2,710 
2,471 
Total cost of sales
4,705 
4,419 
14,097 
13,247 
GROSS MARGIN
7,511 
7,169 
22,093 
21,124 
OPERATING EXPENSES:
 
 
 
 
Research and development
1,542 
1,358 
4,425 
4,072 
Sales and marketing
2,375 
2,383 
7,178 
7,230 
General and administrative
530 
562 
1,674 
1,611 
Amortization of purchased intangible assets
89 
96 
329 
292 
Restructuring and other charges
33 
20 
105 
225 
Total operating expenses
4,569 
4,419 
13,711 
13,430 
OPERATING INCOME
2,942 
2,750 
8,382 
7,694 
Interest income
162 
161 
483 
483 
Interest expense
(145)
(151)
(440)
(449)
Other income (loss), net
(14)
19 
(69)
45 
Interest and other income, net
3 
29 
(26)
79 
INCOME BEFORE PROVISION FOR INCOME TAXES
2,945 
2,779 
8,356 
7,773 
Provision for income taxes
467 
614 
643 
1,649 
NET INCOME
$ 2,478 
$ 2,165 
$ 7,713 
$ 6,124 
Net income per share-basic (in dollars per share)
$ 0.47 
$ 0.40 
$ 1.45 
$ 1.14 
Net income per share-diluted (in dollars per share)
$ 0.46 
$ 0.40 
$ 1.44 
$ 1.13 
Shares used in per-share calculation-basic (in shares)
5,329 
5,388 
5,316 
5,383 
Shares used in per-share calculation-diluted (in shares)
5,387 
5,456 
5,361 
5,418 
Cash dividends declared per common share (in dollars per share)
$ 0.17 
$ 0.08 
$ 0.45 
$ 0.20 
Consolidated Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Statement of Other Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 2,478 
$ 2,165 
$ 7,713 
$ 6,124 
Change in net unrealized gains, net of tax benefit (expense) of $38 and $(7) for the three and nine months ended April 27, 2013, respectively, and $(67) and $(39) for the corresponding periods of fiscal 2012, respectively
(63)
98 
10 
55 
Net gains reclassified into earnings, net of tax effects of $2 and $16 for the three and nine months ended April 27, 2013, respectively, and $11 and $27 for the corresponding periods of fiscal 2012, respectively
(4)
(18)
(30)
(48)
Total available-for-sale investments
(67)
80 
(20)
7 
Change in unrealized gains and losses, net of tax benefit (expense) of $1 and $(1) for the three and nine months ended April 27, 2013, and $0 for both corresponding periods of fiscal 2012
(10)
11 
58 
(83)
Net (gains) losses reclassified into earnings
(4)
18 
(7)
44 
Total cash flow hedging instruments
(14)
29 
51 
(39)
Net change in cumulative translation adjustment and other, net of tax benefit (expense) of $1 and $(14) for the three and nine months ended April 27, 2013, respectively, and $0 and $31 for the corresponding periods of fiscal 2012, respectively
(128)
21 
(8)
(296)
Other comprehensive income (loss)
(209)
130 
23 
(328)
Comprehensive income
2,269 
2,295 
7,736 
5,796 
Comprehensive (income) loss attributable to noncontrolling interests
0 
(2)
5 
12 
Comprehensive income attributable to Cisco Systems, Inc.
$ 2,269 
$ 2,293 
$ 7,741 
$ 5,808 
Consolidated Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Other Comprehensive Income (Loss), Tax [Abstract]
 
 
 
 
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax
$ 38 
$ (67)
$ (7)
$ (39)
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Tax
2 
11 
16 
27 
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax
1 
0 
(1)
0 
Other Comprehensive Income (Loss), Reclassification Adjustment on Derivatives Included in Net Income, Tax
0 
0 
0 
0 
Change in cumulative translation tax effects
$ 1 
$ 0 
$ (14)
$ 31 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Cash flows from operating activities:
 
 
Net income
$ 7,713 
$ 6,124 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation, amortization, and other
1,760 
1,816 
Share-based compensation expense
880 
1,032 
Provision for receivables
46 
45 
Deferred income taxes
48 
75 
Excess tax benefits from share-based compensation
(48)
(57)
Net losses (gains) on investments
23 
(38)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
Accounts receivable
(439)
660 
Inventories
238 
(113)
Financing receivables
(448)
(762)
Other assets
(41)
(495)
Accounts payable
91 
34 
Income taxes, net
(642)
151 
Accrued compensation
(48)
(451)
Deferred revenue
(169)
482 
Other liabilities
(56)
(100)
Net cash provided by operating activities
8,908 
8,403 
Cash flows from investing activities:
 
 
Purchases of investments
23,969 
32,690 
Proceeds from sales of investments
7,279 
19,591 
Proceeds from maturities of investments
13,234 
7,930 
Acquisition of property and equipment
(843)
(830)
Acquisition of businesses, net of cash and cash equivalents acquired
(6,371)
(333)
Purchases of investments in privately held companies
(140)
(299)
Return of Investments In Privately Held Companies
110 
212 
Other
47 
175 
Net cash used in investing activities
(10,653)
(6,244)
Cash flows from financing activities:
 
 
Issuances of common stock
1,193 
1,115 
Repurchases of stock- repurchase program
(1,554)
(2,708)
Stock repurchased for tax withholdings on vesting of restricted stock units, value
(249)
(160)
Short-term borrowings, maturities less than 90 days, net
(20)
(505)
Excess tax benefits from share-based compensation
48 
57 
Dividends paid
(2,392)
(1,076)
Other
42 
(83)
Net cash used in financing activities
(2,932)
(3,360)
Net decrease in cash and cash equivalents
(4,677)
(1,201)
Cash and cash equivalents, beginning of period
9,799 
7,662 
Cash and cash equivalents, end of period
5,122 
6,461 
Cash paid for:
 
 
Interest
562 
561 
Income taxes, net
$ 1,236 
$ 1,424 
Consolidated Statements Of Equity (USD $)
In Millions, unless otherwise specified
Total
USD ($)
Common Stock [Member]
Common Stock Including Additional Paid in Capital [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Accumulated Other Comprehensive Income (Loss) [Member]
USD ($)
Stockholder Equity Excluding Portion Attributable To Noncontrolling Interest [Member]
USD ($)
Noncontrolling Interest [Member]
USD ($)
Stockholders' Equity Attributable to Noncontrolling Interest at Jul. 30, 2011
 
 
 
 
 
 
$ 33 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jul. 30, 2011
47,259 
 
 
 
 
 
 
Shares, Issued at Jul. 30, 2011
 
5,435 
 
 
 
 
 
Stockholders' Equity Excluding Portion Attributable to Noncontrolling Interest at Jul. 30, 2011
 
 
38,648 
7,284 
1,294 
47,226 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
6,124 
 
 
6,124 
 
6,124 
 
Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
(328)
 
 
 
(316)
(316)
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
(12)
Stock Issued During Period, Shares, New Issues
 
110 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
1,115 
 
1,115 
 
 
1,115 
 
Repurchased Shares And Retired During Period Shares
 
(152)
 
 
 
 
 
Stock Repurchased During Period, Value
(2,560)
 
(1,097)
(1,463)
 
(2,560)
 
Shares Repurchased In Settlement Of Employee Tax Withholding Obligations Shares
 
(10)
 
 
 
 
 
Stock Repurchased for tax withholdings on vesting of restricted stock units, value
(160)
 
(160)
 
 
(160)
 
Cash dividends declared
(1,076)
 
 
(1,076)
 
(1,076)
 
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation
(36)
 
(36)
 
 
(36)
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
1,032 
 
1,032 
 
 
1,032 
 
Stock Issued During Period, Value, Acquisitions
8 
 
8 
 
 
8 
 
Stockholders' Equity Attributable to Noncontrolling Interest at Apr. 28, 2012
 
 
 
 
 
 
21 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 28, 2012
51,378 
 
 
 
 
 
 
Shares, Issued at Apr. 28, 2012
 
5,383 
 
 
 
 
 
Stockholders' Equity Excluding Portion Attributable to Noncontrolling Interest at Apr. 28, 2012
 
 
39,510 
10,869 
978 
51,357 
 
Stockholders' Equity Attributable to Noncontrolling Interest at Jul. 28, 2012
15 
 
 
 
 
 
15 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Jul. 28, 2012
51,301 
 
 
 
 
 
 
Shares, Issued at Jul. 28, 2012
 
5,298 
 
 
 
 
 
Stockholders' Equity Excluding Portion Attributable to Noncontrolling Interest at Jul. 28, 2012
 
 
39,271 
11,354 
661 
51,286 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
Net income
7,713 
 
 
7,713 
 
7,713 
 
Other Comprehensive Income (Loss), Net of Tax [Abstract]
 
 
 
 
 
 
 
Other Comprehensive Income (Loss), Net of Tax
23 
 
 
 
28 
28 
 
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Noncontrolling Interest
 
 
 
 
 
 
(5)
Stock Issued During Period, Shares, New Issues
 
111 
 
 
 
 
 
Stock Issued During Period, Value, New Issues
1,193 
 
1,193 
 
 
1,193 
 
Repurchased Shares And Retired During Period Shares
 
(81)
 
 
 
 
 
Stock Repurchased During Period, Value
(1,613)
 
(606)
(1,007)
 
(1,613)
 
Shares Repurchased In Settlement Of Employee Tax Withholding Obligations Shares
 
(13)
 
 
 
 
 
Stock Repurchased for tax withholdings on vesting of restricted stock units, value
(249)
 
(249)
 
 
(249)
 
Cash dividends declared
(2,392)
 
 
(2,392)
 
(2,392)
 
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation
(120)
 
(120)
 
 
(120)
 
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition
880 
 
880 
 
 
880 
 
Stock Issued During Period, Value, Acquisitions
62 
 
62 
 
 
62 
 
Stockholders' Equity Attributable to Noncontrolling Interest at Apr. 27, 2013
10 
 
 
 
 
 
10 
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest at Apr. 27, 2013
56,798 
 
 
 
 
 
 
Shares, Issued at Apr. 27, 2013
 
5,315 
 
 
 
 
 
Stockholders' Equity Excluding Portion Attributable to Noncontrolling Interest at Apr. 27, 2013
 
 
$ 40,431 
$ 15,668 
$ 689 
$ 56,788 
 
Consolidated Statements Of Equity Consolidated Statements of Equity (Parenthetical)
9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Common Stock, Dividends, Per Share, Declared
$ 0.45 
$ 0.20 
Supplemental Information
Treasury Stock [Text Block]
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of April 27, 2013, the Company’s Board of Directors had authorized an aggregate repurchase of up to $82 billion of common stock under this program with no termination date. For additional information regarding stock repurchases, see Note 13 to the Consolidated Financial Statements. The stock repurchases since the inception of this program and the related impacts on Cisco shareholders’ equity are summarized in the following table (in millions):
 
 
Shares of Common Stock
 
Common Stock and Additional Paid-In Capital
 
Retained Earnings
 
Total Cisco Shareholders’ Equity
Repurchases of common stock under the repurchase program
3,821

 
$
17,647

 
$
60,099

 
$
77,746

Basis Of Presentation
Basis Of Presentation
1.
Basis of Presentation
The fiscal year for Cisco Systems, Inc. (the “Company” or “Cisco”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2013 and fiscal 2012 are each 52-week fiscal years. The Consolidated Financial Statements include the accounts of Cisco and its subsidiaries. All significant intercompany accounts and transactions have been eliminated. The Company conducts business globally and is primarily managed on a geographic basis in the following three geographic segments: the Americas; Europe, Middle East, and Africa (“EMEA”); and Asia Pacific, Japan, and China (“APJC”).
The accompanying financial data as of April 27, 2013 and for the three and nine months ended April 27, 2013 and April 28, 2012 has been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The July 28, 2012 Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States. However, the Company believes that the disclosures are adequate to make the information presented not misleading. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended July 28, 2012.
The Company consolidates its investment in a venture fund managed by SOFTBANK Corp. and its affiliates (“SOFTBANK”) and Insieme Networks, Inc. (“Insieme”) as these are variable interest entities and the Company is the primary beneficiary. The noncontrolling interests attributed to SOFTBANK are presented as a separate component from the Company's equity in the equity section of the Consolidated Balance Sheets. SOFTBANK's share of the earnings in the venture fund and the loss attributable to the noncontrolling interests in Insieme are not presented separately in the Consolidated Statements of Operations as these amounts are not material for any of the fiscal periods presented.
In the opinion of management, all adjustments (which include normal recurring adjustments, except as disclosed herein) necessary to present fairly the statement of financial position as of April 27, 2013; the results of operations for the three and nine months ended April 27, 2013 and April 28, 2012; and the statements of cash flows and equity for the nine months ended April 27, 2013 and April 28, 2012, as applicable, have been made. The results of operations for the three and nine months ended April 27, 2013 are not necessarily indicative of the operating results for the full fiscal year or any future periods.
Certain reclassifications have been made to prior period amounts in order to conform to the current period's presentation. The Company has evaluated subsequent events through the date that the financial statements were issued.
Recent Accounting Pronouncements
Recent Accounting Pronouncements
2.
Recent Accounting Pronouncements
(a)
New Accounting Updates Recently Adopted
In June 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to provide guidance on increasing the prominence of items reported in other comprehensive income, which eliminated the option to present components of other comprehensive income as part of the statement of equity. The Company adopted this accounting standard in the first quarter of fiscal 2013.
In August 2011, the FASB approved a revised accounting standard update intended to simplify how an entity tests goodwill for impairment. The amendment will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting standard update became effective for the Company beginning in the first quarter of fiscal 2013, and its adoption did not have any impact on the Company's Consolidated Financial Statements.
(b)
Recent Accounting Standards or Updates Not Yet Effective
In December 2011, the FASB issued an accounting standard update requiring enhanced disclosures about certain financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to enforceable master netting arrangements or similar agreements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2014, at which time the Company will include the required disclosures.
In July 2012, the FASB issued an accounting standard update intended to simplify how an entity tests indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2014, and early adoption is permitted. The adoption of this accounting standard update is not expected to have a material impact on the Company's Consolidated Financial Statements.
In February 2013, the FASB issued an accounting standard update to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2014, at which time the Company will include the required disclosures.
In March 2013, the FASB issued an accounting standard update requiring an entity to release into net income the entire amount of a cumulative translation adjustment related to its investment in a foreign entity when as a parent it either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2015. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Business Combinations
Business Combinations
3.
Business Combinations
(a)
Acquisition Summary
On July 30, 2012, the Company completed its acquisition of NDS Group Limited (“NDS”), a leading provider of video software and content security solutions that enable service providers and media companies to securely deliver and monetize new video entertainment experiences. The acquisition of NDS is expected to complement and accelerate the delivery of Cisco Videoscape, the Company's comprehensive content delivery platform that enables service providers and media companies to deliver next-generation entertainment experiences. With the NDS acquisition, the Company aims to broaden its opportunities in the service provider market and to expand its reach into emerging markets such as China and India, where NDS has an established customer presence.
Under the terms of the acquisition agreement, the Company paid total cash consideration of approximately $5.0 billion, which included the repayment of $993 million of pre-existing NDS debt to third party creditors at the closing of the acquisition. The following table summarizes the purchase consideration for the NDS acquisition (in millions):
 
 
Fair Value
Cash consideration to seller
 
$
4,012

Repayment of NDS debt to third party creditors
 
993

Total purchase consideration
 
$
5,005


The payment of the total purchase consideration of approximately $5.0 billion shown above, net of cash and cash equivalents acquired, is classified as a use of cash under investing activities in the Consolidated Statements of Cash Flows.
The Company's purchase price allocation for NDS is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information, which existed as of the acquisition date but at that time was unknown to the Company, may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred.
A summary of the preliminary allocation of the total purchase consideration for NDS is presented as follows (in millions):
 
 
Fair Value
Cash and cash equivalents
 
$
98

Accounts receivable, net
 
199

Other tangible assets
 
268

Goodwill
 
3,444

Purchased intangible assets
 
1,746

Deferred tax liabilities, net
 
(378
)
Liabilities assumed
 
(372
)
Total purchase consideration
 
$
5,005


The Company completed nine additional business combinations during the nine months ended April 27, 2013. A summary of the allocation of the total purchase consideration is presented as follows (in millions):
 
Purchase Consideration
 
Net Liabilities Assumed
 
Purchased Intangible Assets
 
Goodwill
Meraki Inc.
$
974

 
$
(59
)
 
$
289

 
$
744

Intucell, Ltd
360

 
(23
)
 
106

 
277

All others (seven in total)
246

 
(18
)
 
88

 
176

Total other acquisitions
$
1,580

 
$
(100
)
 
$
483

 
$
1,197


The Company acquired privately held Meraki Inc. (“Meraki”) in the second quarter of fiscal 2013. Meraki offers mid-market customers on-premise networking solutions centrally managed from the cloud. With its acquisition of Meraki, the Company intends to address the shift to cloud networking as a key part of the Company's overall strategy to accelerate the adoption of software-based business models that provide new consumption options for customers and revenue opportunities for partners. The Company has included sales from the Meraki acquisition, subsequent to the acquisition date, in its Wireless product category.
The Company acquired privately held Intucell, Ltd. (“Intucell”) in the third quarter of fiscal 2013. Intucell provides advanced self-optimizing network software for mobile carriers. With its acquisition of Intucell, the Company intends to enhance its commitment to global service providers by adding a critical network intelligence layer to manage and optimize spectrum, coverage and capacity, and ultimately the quality of the mobile experience.
The total purchase consideration related to the Company's business combinations completed during the nine months ended April 27, 2013 consisted of cash consideration, repayment of debt, and vested share-based awards assumed. The total in cash and cash equivalents acquired from these business combinations was approximately $151 million.
(b)
Other Acquisition/Divestiture Information
Total transaction costs related to the Company's business combination activities were $23 million and $9 million for the nine months ended April 27, 2013 and April 28, 2012, respectively. These transaction costs were expensed as incurred as general and administrative (“G&A”) expenses in the Consolidated Statements of Operations.
The goodwill generated from the Company's business combinations completed during the nine months ended April 27, 2013 is primarily related to expected synergies. The goodwill is generally not deductible for U.S. federal income tax purposes.
The Consolidated Financial Statements include the operating results of each business combination from the date of acquisition. Pro forma results of operations for the acquisitions completed during the nine months ended April 27, 2013 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company's financial results.
During the second quarter of fiscal 2013, the Company agreed to sell its Linksys product line to a third party. This transaction closed during the third quarter of fiscal 2013. The financial statement impact of the Company's Linksys product line and the resulting sale were not material for any of the periods presented.

Goodwill And Purchased Intangible Assets
Goodwill And Purchased Intangible Assets
4.
Goodwill and Purchased Intangible Assets
(a)
Goodwill
The following table presents the goodwill allocated to the Company's reportable segments as of and during the nine months ended April 27, 2013 (in millions):
 
 
Balance at
July 28, 2012
 
NDS Acquisition
 
Other Acquisitions
 
Other
 
Balance at
April 27, 2013
Americas
 
$
11,755

 
$
1,230

 
$
641

 
$
(8
)
 
$
13,618

EMEA
 
3,287

 
1,327

 
353

 
5

 
4,972

APJC
 
1,956

 
887

 
203

 
4

 
3,050

Total
 
$
16,998

 
$
3,444

 
$
1,197

 
$
1

 
$
21,640

In the preceding table, the column entitled “Other” includes a goodwill reduction related to divestiture activity and purchase accounting adjustments.
(b)
Purchased Intangible Assets
The following table presents details of the Company's intangible assets acquired through business combinations completed during the nine months ended April 27, 2013 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER RELATIONSHIPS
 
OTHER
 
IPR&D
 
 
Weighted-Average Useful Life (in Years)
 
Amount
 
Weighted-Average Useful Life (in Years)
 
Amount
 
Weighted-Average Useful Life (in Years)
 
Amount
 
Amount
 
Amount
NDS Group Limited
6.4
 
$
807

 
6.7
 
$
818

 
7.4

 
$
27

 
$
94

 
$
1,746

Meraki Inc.
8.0
 
259

 
6.0
 
30

 
—

 
—

 
—

 
289

Intucell, Ltd.
5.0
 
59

 
5.0
 
11

 
—

 
—

 
36

 
106

All others (seven in total)
4.1
 
61

 
6.3
 
12

 
5.0

 
1

 
14

 
88

Total
 
 
$
1,186

 
 
 
$
871

 
 
 
$
28

 
$
144

 
$
2,229


The following tables present details of the Company’s purchased intangible assets (in millions): 
April 27, 2013
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,500

 
$
(1,316
)
 
$
2,184

Customer relationships
 
1,791

 
(640
)
 
1,151

Other
 
46

 
(23
)
 
23

Total purchased intangible assets with finite lives
 
5,337

 
(1,979
)
 
3,358

In-process research and development, with indefinite lives
 
50

 
—

 
50

Total
 
$
5,387

 
$
(1,979
)
 
$
3,408

July 28, 2012
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
2,267

 
$
(908
)
 
$
1,359

Customer relationships
 
2,261

 
(1,669
)
 
592

Other
 
49

 
(41
)
 
8

Total
 
$
4,577

 
$
(2,618
)
 
$
1,959

 
Purchased intangible assets include intangible assets acquired through business combinations as well as through direct purchases or licenses.
The following table presents the amortization of purchased intangible assets (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Amortization of purchased intangible assets:
 
 
 
 
 
 
 
Cost of sales
$
156

 
$
108

 
$
444

 
$
303

Operating expenses
89

 
96

 
329

 
292

Total
$
245

 
$
204

 
$
773

 
$
595


There were no impairment charges related to purchased intangible assets during the periods presented.
The estimated future amortization expense of purchased intangible assets with finite lives as of April 27, 2013 is as follows (in millions):
Fiscal Year
 
Amount
2013 (remaining three months)
 
$
232

2014
 
862

2015
 
780

2016
 
554

2017
 
399

Thereafter
 
531

Total
 
$
3,358

Restructuring And Other Charges
Restructuring and Other Charges
5.
Restructuring and Other Charges
In fiscal 2011, the Company initiated a number of key targeted actions to address several areas in its business model. These actions were intended to simplify and focus the Company's organization and operating model, align the Company's cost structure given transitions in the marketplace, divest or exit underperforming operations, and deliver value to the Company's shareholders. The Company initiated these actions to align its business based on its five foundational priorities: leadership in its core business (routing, switching, and associated services), which includes comprehensive security and mobility solutions; collaboration; data center virtualization and cloud; video; and architectures for business transformation.
Pursuant to the restructuring that the Company announced in July 2011, the Company has incurred cumulative charges of approximately $1.1 billion (included as part of the charges discussed below). The Company has substantially completed the July 2011 restructuring and does not expect significant remaining charges related to these actions. The following table summarizes the activities related to the restructuring and other charges pursuant to the Company's July 2011 announcement related to the realignment and restructuring of the Company's business as well as certain consumer product lines as announced during April 2011 (in millions):
 
 
Voluntary Early Retirement Program
 
Employee Severance
 
Goodwill and Intangible Assets
 
Other
 
Total
Gross charges in fiscal 2011
 
$
453

 
$
247

 
$
71

 
$
28

 
$
799

Cash payments
 
(436
)
 
(13
)
 
—

 
—

 
(449
)
Non-cash items
 
—

 
—

 
(71
)
 
(17
)
 
(88
)
BALANCE AT JULY 30, 2011
 
$
17

 
$
234

 
$
—

 
$
11

 
$
262

Gross charges in fiscal 2012
 
—

 
299

 
—

 
54

 
353

Change in estimate related to fiscal 2011 charges
 
—

 
(49
)
 
—

 
—

 
(49
)
Cash payments
 
(17
)
 
(401
)
 
—

 
(18
)
 
(436
)
Non-cash items
 
—

 
—

 
—

 
(20
)
 
(20
)
BALANCE AT JULY 28, 2012
 
$
—

 
$
83


$
—


$
27


$
110

Charges in fiscal 2013
 
—

 
111

 
—

 
(6
)
 
105

Cash payments
 
—

 
(164
)
 
—

 
(10
)
 
(174
)
Non-cash items
 
—

 
—

 
—

 
(3
)
 
(3
)
BALANCE AT APRIL 27, 2013
 
$
—

 
$
30

 
$
—

 
$
8

 
$
38

Balance Sheet Details
Balance Sheet Details
6.
Balance Sheet Details
The following tables provide details of selected balance sheet items (in millions):
 
 
April 27,
2013
 
July 28,
2012
Inventories:
 
 
 
 
Raw materials
 
$
81

 
$
127

Work in process
 
38

 
35

Finished goods:
 
 
 
 
Distributor inventory and deferred cost of sales
 
679

 
630

Manufactured finished goods
 
378

 
597

Total finished goods
 
1,057

 
1,227

Service-related spares
 
253

 
213

Demonstration systems
 
40

 
61

 
 
 
 
 
Total
 
$
1,469

 
$
1,663

 
 
 
 
 
Property and equipment, net:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,437

 
$
4,363

Computer equipment and related software
 
1,392

 
1,469

Production, engineering, and other equipment
 
5,655

 
5,364

Operating lease assets (1)
 
299

 
300

Furniture and fixtures
 
497

 
487

 
 
12,280

 
11,983

Less accumulated depreciation and amortization (1)
 
(8,950
)
 
(8,581
)
Total
 
$
3,330

 
$
3,402

 
 
 
 
 
(1)      Accumulated depreciation related to operating lease assets was $185 and $181 as of April 27, 2013 and July 28, 2012, respectively.
 
 
 
 
 
 Other assets:
 
 
 
 
Deferred tax assets
 
$
1,787

 
$
2,270

Investments in privately held companies
 
835

 
858

Other
 
829

 
754

Total
 
$
3,451

 
$
3,882

 
 
 
 
 
Deferred revenue:
 
 
 
 
Service
 
$
8,705

 
$
9,173

Product:
 
 
 
 
Unrecognized revenue on product shipments and other deferred revenue
 
3,257

 
2,975

Cash receipts related to unrecognized revenue from two-tier distributors
 
723

 
732

Total product deferred revenue
 
3,980

 
3,707

Total
 
$
12,685

 
$
12,880

Reported as:
 
 
 
 
Current
 
$
9,055

 
$
8,852

Noncurrent
 
3,630

 
4,028

Total
 
$
12,685

 
$
12,880

Financing Receivables And Guarantees
Financing Receivables And Guarantees
7.
Financing Receivables and Guarantees
(a)
Financing Receivables
Financing receivables primarily consist of lease receivables, loan receivables, and financed service contracts and other. Lease receivables represent sales-type and direct-financing leases resulting from the sale of the Company's and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Loan receivables represent financing arrangements related to the sale of the Company's products and services, which may include additional funding for other costs associated with network installation and integration of the Company's products and services. Lease receivables consist of arrangements with terms of four years on average, while loan receivables generally have terms of up to three years. The financed service contracts and other category includes financing receivables related to technical support and advanced services, as well as receivables related to financing of certain indirect costs associated with leases. Revenue related to the technical support services is typically deferred and included in deferred service revenue and is recognized ratably over the period during which the related services are to be performed, which typically ranges from one to three years.
A summary of the Company’s financing receivables is presented as follows (in millions):
April 27, 2013
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total Financing Receivables
Gross
$
3,764

 
$
1,671

 
$
2,924

 
$
8,359

Unearned income
(286
)
 
—

 
—

 
(286
)
Allowance for credit loss
(245
)
 
(93
)
 
(19
)
 
(357
)
Total, net
$
3,233

 
$
1,578

 
$
2,905

 
$
7,716

Reported as:
 
 
 
 
 
 
 
Current
$
1,400

 
$
900

 
$
1,578

 
$
3,878

Noncurrent
1,833

 
678

 
1,327

 
3,838

Total, net
$
3,233

 
$
1,578

 
$
2,905

 
$
7,716

July 28, 2012
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total Financing Receivables
Gross
$
3,429

 
$
1,796

 
$
2,651

 
$
7,876

Unearned income
(250
)
 
—

 
—

 
(250
)
Allowance for credit loss
(247
)
 
(122
)
 
(11
)
 
(380
)
Total, net
$
2,932

 
$
1,674

 
$
2,640

 
$
7,246

Reported as:
 
 
 
 
 
 
 
Current
$
1,200

 
$
968

 
$
1,493

 
$
3,661

Noncurrent
1,732

 
706

 
1,147

 
3,585

Total, net
$
2,932

 
$
1,674

 
$
2,640

 
$
7,246


As of April 27, 2013 and July 28, 2012, the deferred service revenue related to the financed service contracts and other was $1,825 million and $1,838 million, respectively.
Contractual maturities of the gross lease receivables at April 27, 2013 are summarized as follows (in millions):
Fiscal Year
 
Amount
2013 (remaining three months)
 
$
516

2014
 
1,477

2015
 
957

2016
 
535

2017
 
234

Thereafter
 
45

Total
 
$
3,764



Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
(b)
Credit Quality of Financing Receivables
Financing receivables categorized by the Company's internal credit risk rating as of April 27, 2013 and July 28, 2012 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
 
 
 
 
 
 
April 27, 2013
1 to 4
 
5 to 6
 
7 and Higher
 
Total
 
Residual Value
 
Gross Receivables,
Net of Unearned Income
Lease receivables
$
1,654

 
$
1,476

 
$
87

 
$
3,217

 
$
261

 
$
3,478

Loan receivables
859

 
779

 
33

 
1,671

 
—

 
1,671

Financed service contracts and other
1,620

 
1,160

 
144

 
2,924

 
—

 
2,924

Total
$
4,133

 
$
3,415

 
$
264

 
$
7,812

 
$
261

 
$
8,073

 
INTERNAL CREDIT RISK RATING
 
 
 
 
 
 
July 28, 2012
1 to 4
 
5 to 6
 
7 and Higher
 
Total
 
Residual Value
 
Gross Receivables,
Net of Unearned Income
Lease receivables
$
1,532

 
$
1,342

 
$
31

 
$
2,905

 
$
274

 
$
3,179

Loan receivables
831

 
921

 
44

 
1,796

 
—

 
1,796

Financed service contracts and other
1,552

 
1,030

 
69

 
2,651

 
—

 
2,651

Total
$
3,915

 
$
3,293

 
$
144

 
$
7,352

 
$
274

 
$
7,626


The Company determines the adequacy of its allowance for credit loss by assessing the risks and losses inherent in its financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by the Company to its customers: lease receivables, loan receivables, and financed service contracts and other.
The Company's internal credit risk ratings of 1 through 4 correspond to investment-grade ratings, while credit risk ratings of 5 and 6 correspond to non-investment grade ratings. Credit risk ratings of 7 and higher correspond to substandard ratings and constitute a relatively small portion of the Company's financing receivables.
In circumstances when collectibility is not deemed reasonably assured, the associated revenue is deferred in accordance with the Company's revenue recognition policies, and the related allowance for credit loss, if any, is included in deferred revenue. The Company also records deferred revenue associated with financing receivables when there are remaining performance obligations, as it does for financed service contracts. Total allowances for credit loss and deferred revenue as of April 27, 2013 and July 28, 2012 were $2,275 million and $2,387 million, respectively, and they were associated with financing receivables (net of unearned income) of $8,073 million and $7,626 million as of their respective period ends. The Company did not modify any financing receivables during the periods presented.
The following tables present the aging analysis of financing receivables as of April 27, 2013 and July 28, 2012 (in millions):
 
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
April 27, 2013
31-60
 
61-90 
 
91+
 
Total Past Due
 
Current
 
Gross Receivables,
Net of Unearned Income
 
Non-Accrual Financing Receivables
 
Impaired Financing Receivables
Lease receivables
$
119

 
$
45

 
$
216

 
$
380

 
$
3,098

 
$
3,478

 
$
23

 
$
17

Loan receivables
26

 
2

 
12

 
40

 
1,631

 
1,671

 
11

 
11

Financed service contracts and other
79

 
243

 
424

 
746

 
2,178

 
2,924

 
20

 
10

Total
$
224

 
$
290

 
$
652

 
$
1,166

 
$
6,907

 
$
8,073

 
$
54

 
$
38

 
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 28, 2012
31-60
 
61-90 
 
91+
 
Total Past Due
 
Current
 
Gross Receivables,
Net of Unearned Income
 
Non-Accrual Financing Receivables
 
Impaired Financing Receivables
Lease receivables
$
151

 
$
69

 
$
173

 
$
393

 
$
2,786

 
$
3,179

 
$
23

 
$
14

Loan receivables
10

 
8

 
11

 
29

 
1,767

 
1,796

 
4

 
4

Financed service contracts and other
89

 
68

 
392

 
549

 
2,102

 
2,651

 
18

 
10

Total
$
250

 
$
145

 
$
576

 
$
971

 
$
6,655

 
$
7,626

 
$
45

 
$
28


Past due financing receivables are those that are 31 days or more past due according to their contractual payment terms. The data in the preceding tables are presented by contract, and the aging classification of each contract is based on the oldest outstanding receivable, and therefore past due amounts also include unbilled and current receivables within the same contract. The balances of either unbilled or current financing receivables included in the category of 91 days plus past due for lease receivables, loan receivables, and financed service contracts and other were, respectively, $175 million, $6 million, and $334 million as of April 27, 2013. The amounts were, respectively, $139 million, $3 million, and $313 million as of July 28, 2012.
As of April 27, 2013, the Company had financing receivables of $110 million, net of unbilled or current receivables from the same contract, that were in the category for 91 days plus past due but remained on accrual status. Such balance was $109 million as of July 28, 2012. A financing receivable may be placed on nonaccrual status earlier if, in management's opinion, a timely collection of the full principal and interest becomes uncertain.
(c)
Allowance for Credit Loss Rollforward
The allowances for credit loss and the related financing receivables are summarized as follows (in millions):

 
CREDIT LOSS ALLOWANCES
Three Months Ended April 27, 2013
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of January 26, 2013
$
247

 
$
101

 
$
13

 
$
361

Provisions
30

 
8

 
6

 
44

Write-offs net of recoveries
(29
)
 
(15
)
 
—

 
(44
)
Foreign exchange and other
(3
)
 
(1
)
 
—

 
(4
)
Allowance for credit loss as of April 27, 2013
$
245

 
$
93

 
$
19

 
$
357

Gross receivables as of April 27, 2013, net of unearned income
$
3,478

 
$
1,671

 
$
2,924

 
$
8,073


 
CREDIT LOSS ALLOWANCES
Nine Months Ended April 27, 2013
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of July 28, 2012
$
247

 
$
122

 
$
11

 
$
380

Provisions
27

 
(15
)
 
8

 
20

Write-offs net of recoveries
(29
)
 
(15
)
 
—

 
(44
)
Foreign exchange and other
—

 
1

 
—

 
1

Allowance for credit loss as of April 27, 2013
$
245

 
$
93

 
$
19

 
$
357

Gross receivables as of April 27, 2013, net of unearned income
$
3,478

 
$
1,671

 
$
2,924

 
$
8,073


 
CREDIT LOSS ALLOWANCES
Three Months Ended April 28, 2012
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of January 28, 2012
$
250

 
$
110

 
$
9

 
$
369

Provisions
3

 
7

 
2

 
12

Write-offs net of recoveries
(1
)
 
—

 
—

 
(1
)
Foreign exchange and other
—

 
1

 
—

 
1

Allowance for credit loss as of April 28, 2012
$
252

 
$
118

 
$
11

 
$
381

Gross receivables as of April 28, 2012, net of unearned income
$
3,153

 
$
1,827

 
$
2,628

 
$
7,608


 
CREDIT LOSS ALLOWANCES
Nine Months Ended April 28, 2012
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of July 30, 2011
$
237

 
$
103

 
$
27

 
$
367

Provisions
23

 
16

 
(14
)
 
25

Write-offs net of recoveries
(1
)
 
—

 
—

 
(1
)
Foreign exchange and other
(7
)
 
(1
)
 
(2
)
 
(10
)
Allowance for credit loss as of April 28, 2012
$
252

 
$
118

 
$
11

 
$
381

Gross receivables as of April 28, 2012, net of unearned income
$
3,153

 
$
1,827

 
$
2,628

 
$
7,608


The Company assesses the allowance for credit loss related to financing receivables on either an individual or a collective basis. The Company considers various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include the Company's historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer's ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, will be assessed and fully reserved at the customer level.
Typically, the Company also considers receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. These balances, as of April 27, 2013 and July 28, 2012, are presented under “(b) Credit Quality of Financing Receivables” above.
The Company evaluates the remainder of its financing receivables portfolio for impairment on a collective basis and records an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, the Company uses expected default frequency rates published by a major third-party credit-rating agency as well as its own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation.
(d)
Financing Guarantees
In the ordinary course of business, the Company provides financing guarantees for various third-party financing arrangements extended to channel partners and end-user customers. Payments under these financing guarantee arrangements were not material for the periods presented.
Channel Partner Financing Guarantees  The Company facilitates arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60 to 90 days. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, the Company guarantees a portion of these arrangements. The volume of channel partner financing was $5.8 billion and $5.2 billion for the three months ended April 27, 2013 and April 28, 2012, respectively. The volume of channel partner financing was $17.2 billion and $15.9 billion for the nine months ended April 27, 2013 and April 28, 2012, respectively. The balance of the channel partner financing subject to guarantees was $1.4 billion and $1.2 billion as of April 27, 2013 and July 28, 2012, respectively.
End-User Financing Guarantees  The Company also provides financing guarantees for third-party financing arrangements extended to end-user customers related to leases and loans, which typically have terms of up to three years. The volume of financing provided by third parties for leases and loans as to which the Company had provided guarantees was $38 million and $99 million for the three months ended April 27, 2013 and April 28, 2012, respectively, and was $137 million and $194 million for the nine months ended April 27, 2013 and April 28, 2012, respectively.
Financing Guarantee Summary  The aggregate amounts of financing guarantees outstanding at April 27, 2013 and July 28, 2012, representing the total maximum potential future payments under financing arrangements with third parties along with the related deferred revenue, are summarized in the following table (in millions):
 
April 27,
2013
 
July 28,
2012
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
391

 
$
277

End user
255

 
232

Total
$
646

 
$
509

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(227
)
 
$
(193
)
End user
(223
)
 
(200
)
Total
$
(450
)
 
$
(393
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
196

 
$
116

Investments
Investments
8.
Investments
(a)
Summary of Available-for-Sale Investments
The following tables summarize the Company’s available-for-sale investments (in millions):
April 27, 2013
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
28,398

 
$
45

 
$
—

 
$
28,443

U.S. government agency securities
3,297

 
12

 
—

 
3,309

Non-U.S. government and agency securities
1,007

 
5

 
—

 
1,012

Corporate debt securities
7,325

 
104

 
(1
)
 
7,428

Total fixed income securities
40,027

 
166

 
(1
)
 
40,192

Publicly traded equity securities
1,530

 
548

 
(4
)
 
2,074

Total
$
41,557

 
$
714

 
$
(5
)
 
$
42,266

July 28, 2012
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
24,201

 
$
41

 
$
(1
)
 
$
24,241

U.S. government agency securities
5,367

 
21

 
—

 
5,388

Non-U.S. government and agency securities
1,629

 
9

 
—

 
1,638

Corporate debt securities
5,959

 
74

 
(3
)
 
6,030

Total fixed income securities
37,156

 
145

 
(4
)
 
37,297

Publicly traded equity securities
1,107

 
524

 
(11
)
 
1,620

Total
$
38,263

 
$
669

 
$
(15
)
 
$
38,917


U.S. government agency securities include corporate debt securities that are guaranteed by the Federal Deposit Insurance Corporation, while non-U.S. government and agency securities include agency and corporate debt securities that are guaranteed by non-U.S. governments.
(b)
Gains and Losses on Available-for-Sale Investments
The following table presents the gross realized gains and gross realized losses related to the Company’s available-for-sale investments (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Gross realized gains
$
55

 
$
90

 
$
175

 
$
465

Gross realized losses
(49
)
 
(60
)
 
(129
)
 
(389
)
Total
$
6

 
$
30

 
$
46

 
$
76

The following table presents the realized net gains (losses) related to the Company's available-for-sale investments by security type (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Net gains (losses) on investments in publicly traded equity securities
$
(2
)
 
$
15

 
$
12

 
$
30

Net gains on investments in fixed income securities
8

 
15

 
34

 
46

         Total
$
6

 
$
30

 
$
46

 
$
76


There were no impairment charges on available-for-sale investments for the periods presented.
The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at April 27, 2013 and July 28, 2012 (in millions):
 
UNREALIZED LOSSES LESS THAN 12 MONTHS
 
UNREALIZED LOSSES 12 MONTHS OR GREATER
 
TOTAL
April 27, 2013
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Corporate debt securities
602

 
(1
)
 
—

 
—

 
602

 
(1
)
Total fixed income securities
602

 
(1
)
 
—

 
—

 
602

 
(1
)
Publicly traded equity securities
61

 
(4
)
 
—

 
—

 
61

 
(4
)
Total
$
663

 
$
(5
)
 
$
—

 
$
—

 
$
663

 
$
(5
)

 
UNREALIZED LOSSES LESS THAN 12 MONTHS
 
UNREALIZED LOSSES 12 MONTHS OR GREATER
 
TOTAL
July 28, 2012
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
5,357

 
$
(1
)
 
$
—

 
$
—

 
$
5,357

 
$
(1
)
Corporate debt securities
603

 
(3
)
 
14

 
—

 
617

 
(3
)
Total fixed income securities
5,960

 
(4
)
 
14

 
—

 
5,974

 
(4
)
Publicly traded equity securities
167

 
(8
)
 
20

 
(3
)
 
187

 
(11
)
Total
$
6,127

 
$
(12
)
 
$
34

 
$
(3
)
 
$
6,161

 
$
(15
)

As of April 27, 2013, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of April 27, 2013, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities and has determined that no other-than-temporary impairments associated with credit losses were required to be recognized during the three and nine months ended April 27, 2013.
The Company has evaluated its publicly traded equity securities as of April 27, 2013 and has determined that there was no indication of other-than-temporary impairments in the respective categories of unrealized losses. This determination was based on several factors, which include the length of time and extent to which fair value has been less than the cost basis, the financial condition and near-term prospects of the issuer, and the Company's intent and ability to hold the publicly traded equity securities for a period of time sufficient to allow for any anticipated recovery in market value.
(c)
Maturities of Fixed Income Securities
The following table summarizes the maturities of the Company’s fixed income securities at April 27, 2013 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
16,460

 
$
16,479

Due in 1 to 2 years
12,155

 
12,202

Due in 2 to 5 years
11,272

 
11,363

Due after 5 years
140

 
148

Total
$
40,027

 
$
40,192



Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.
(d)
Securities Lending
The Company periodically engages in securities lending activities with certain of its available-for-sale investments. These transactions are accounted for as a secured lending of the securities, and the securities are typically loaned only on an overnight basis. The average daily balance of securities lending for the nine months ended April 27, 2013 and April 28, 2012 was $0.7 billion and $0.4 billion, respectively. The Company requires collateral equal to at least 102% of the fair market value of the loaned security in the form of cash or in the form of liquid, high-quality assets. The Company engages in these secured lending transactions with creditworthy counterparties, and the associated portfolio custodian has agreed to indemnify the Company against collateral losses. The Company did not experience any losses in connection with the secured lending of securities during the periods presented. As of April 27, 2013 and July 28, 2012, the Company had no outstanding securities lending transactions.
Fair Value
Fair Value
9.
Fair Value
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Company considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability.
(a)
Fair Value Hierarchy
The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
(b)
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis as of April 27, 2013 and July 28, 2012 were as follows (in millions):
 
APRIL 27, 2013
FAIR VALUE MEASUREMENTS
 
JULY 28, 2012
FAIR VALUE MEASUREMENTS
 
Level 1
 
Level 2
 
Level 3
 
Total Balance
 
Level 1
 
Level 2
 
Level 3
 
Total Balance
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
3,339

 
$
—

 
$
—

 
$
3,339

 
$
2,506

 
$
—

 
$
—

 
$
2,506

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
—

 
28,443

 
—

 
28,443

 
—

 
24,241

 
—

 
24,241

U.S. government agency securities
—

 
3,309

 
—

 
3,309

 
—

 
5,388

 
—

 
5,388

Non-U.S. government and agency securities
—

 
1,012

 
—

 
1,012

 
—

 
1,638

 
—

 
1,638

Corporate debt securities
—

 
7,428

 
—

 
7,428

 
—

 
6,030

 
—

 
6,030

Publicly traded equity securities
2,074

 
—

 
—

 
2,074

 
1,620

 
—

 
—

 
1,620

Derivative assets
—

 
234

 
—

 
234

 
—

 
263

 
1

 
264

Total
$
5,413

 
$
40,426

 
$
—

 
$
45,839

 
$
4,126

 
$
37,560

 
$
1

 
$
41,687

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
94

 
$
—

 
$
94

 
$
—

 
$
42

 
$
—

 
$
42

Total
$
—

 
$
94

 
$
—

 
$
94

 
$
—

 
$
42

 
$
—

 
$
42


Level 2 fixed income securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is ultimately responsible for the financial statements and underlying estimates. The Company's derivative instruments are primarily classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.
Level 3 assets include certain derivative instruments, the values of which are determined based on discounted cash flow models using inputs that the Company could not corroborate with market data.
There was no material activity related to assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended April 27, 2013.
The following table presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended April 28, 2012 (in millions):
 
Asset-Backed Securities
 
Derivative Assets
 
Total
Balance at July 30, 2011
$
121

 
$
2

 
$
123

Total gains and losses (realized and unrealized):
 
 
 
 
 
Included in other income (loss), net
3

 
—

 
3

Included in other comprehensive income (loss)
(3
)
 
—

 
(3
)
Sales and maturities
(14
)
 
(1
)
 
(15
)
Transfer into Level 2
(107
)
 
—

 
(107
)
Balance at April 28, 2012
$
—

 
$
1

 
$
1


The Company's asset-backed securities were reclassified from Level 3 to Level 2 at January 28, 2012, the end of the Company's second quarter for fiscal 2012, as circumstances indicated an increase in market activity and related observable market data was available for these financial assets.
(c)
Assets Measured at Fair Value on a Nonrecurring Basis
The following tables present the Company’s financial instruments and nonfinancial assets that were measured at fair value on a nonrecurring basis during the indicated periods and the related recognized gains and losses for the periods (in millions):
 
 
April 27, 2013
 
 
Net Carrying Value as of End of Period
 
Gains (Losses) for the Three Months Ended
 
Gains (Losses) for the Nine Months Ended
Assets held for sale
 
$
72

 
$
44

 
$
44

Investments in privately held companies
 
$
66

 
(5
)
 
(23
)
Gains on assets no longer held at period end
 
 
 
34

 
34

Net gains for nonrecurring measurements
 
 
 
$
73

 
$
55


 
 
April 28, 2012
 
 
Net Carrying Value as of End of Period
 
Losses for the Three Months Ended
 
Gains (Losses) for the Nine Months Ended
Assets held for sale
 
$
52

 
$
(76
)
 
$
(192
)
Investments in privately held companies
 
$
17

 
(15
)
 
(17
)
Gains on assets no longer held at period end
 
 
 
—

 
14

Net losses for nonrecurring measurements
 
 
 
$
(91
)
 
$
(195
)

The assets in the preceding tables were measured at fair value due to events or circumstances the Company identified as having significant impact on their fair value during the respective periods. To arrive at the valuation of these assets, the Company considers any significant changes in the financial metrics and economic variables, and also uses third-party valuation reports to assist in the valuation as necessary. These assets were classified as Level 3 assets because the Company used significant unobservable inputs to value them.
The assets held for sale represent primarily land and buildings, as well as other items which met the criteria to be classified as held for sale. The fair value of assets held for sale was measured with the assistance of third-party valuation models which used discounted cash flow techniques as part of their analysis. The fair value measurement was categorized as Level 3 as significant unobservable inputs were used in the valuation report. The impairment charges as a result of the valuations, which represented the difference between the fair value less cost to sell and the carrying amount of the assets held for sale, were included in G&A expenses.
The fair value of the impaired investments was classified as Level 3 because significant unobservable inputs were used in the valuation due to the absence of quoted market prices and inherent lack of liquidity. Significant unobservable inputs, which included financial metrics of comparable private and public companies, financial condition and near-term prospects of the investees, recent financing activities of the investees, and the investees' capital structure as well as other economic variables, reflected the assumptions market participants would use in pricing these assets. The impairment charges, representing the difference between the net book value and the fair value as a result of the evaluation, were recorded to other income (loss), net.
(d)
Other Fair Value Disclosures
The carrying value of the Company's investments in privately held companies that were accounted for under the cost method was $248 million and $249 million as of April 27, 2013 and July 28, 2012, respectively. It was not practicable to estimate the fair value of this portfolio.
The fair value of the Company's short-term loan receivables and financed service contracts approximates their carrying value due to their short duration. The aggregate carrying value of the Company's long-term loan receivables and financed service contracts and other as of April 27, 2013 and July 28, 2012 was $2.0 billion and $1.9 billion, respectively. The estimated fair value of the Company's long-term loan receivables and financed service contracts and other approximates their carrying value. The Company uses significant unobservable inputs in determining discounted cash flows to estimate the fair value of its long-term loan receivables and financed service contracts, and therefore they are categorized as Level 3.
As of April 27, 2013, the fair value of the Company's senior notes was $18.4 billion with a carrying amount of $16.2 billion. This compares to a fair value of $18.8 billion and a carrying amount of $16.3 billion as of July 28, 2012. The fair value of the senior notes was determined based on observable market prices in a less active market and was categorized as Level 2 in the fair value hierarchy.
Borrowings
Borrowings
10.
Borrowings
(a)
Short-Term Debt
The following table summarizes the Company’s short-term debt (in millions, except percentages):
 
April 27, 2013
 
July 28, 2012
 
Amount
 
Weighted-Average Interest Rate
 
Amount
 
Weighted-Average Interest Rate
Current portion of long-term debt
$
3,279

 
0.64
%
 
$
—

 
—
%
Other notes and borrowings
13

 
9.60
%
 
31

 
6.72
%
Total short-term debt
$
3,292

 
 
 
$
31

 
 

In fiscal 2011, the Company established a short-term debt financing program of up to $3.0 billion through the issuance of commercial paper notes. The Company uses the proceeds from the issuance of commercial paper notes for general corporate purposes. The Company had no commercial paper notes outstanding as of each of April 27, 2013 and July 28, 2012.
Other notes and borrowings in the preceding table consist of notes and credit facilities established with a number of financial institutions that are available to certain foreign subsidiaries of the Company. These notes and credit facilities are subject to various terms and foreign currency market interest rates pursuant to individual financial arrangements between the financing institution and the applicable foreign subsidiary.
As of April 27, 2013, the estimated fair value of the short-term debt approximates its carrying value due to the short maturities.
(b)
Long-Term Debt
The following table summarizes the Company's long-term debt (in millions, except percentages):
 
April 27, 2013
 
July 28, 2012
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior Notes:
 
 
 
 
 
 
 
Floating-rate notes, due 2014
$
1,250

 
0.63%
 
$
1,250

 
0.81%
1.625% fixed-rate notes, due 2014
2,000

 
0.65%
 
2,000

 
0.84%
2.90% fixed-rate notes, due 2014
500

 
3.11%
 
500

 
3.11%
5.50% fixed-rate notes, due 2016
3,000

 
3.07%
 
3,000

 
3.16%
3.15% fixed-rate notes, due 2017
750

 
0.85%
 
750

 
1.03%
4.95% fixed-rate notes, due 2019
2,000

 
5.08%
 
2,000

 
5.08%
4.45% fixed-rate notes, due 2020
2,500

 
4.50%
 
2,500

 
4.50%
5.90% fixed-rate notes, due 2039
2,000

 
6.11%
 
2,000

 
6.11%
5.50% fixed-rate notes, due 2040
2,000

 
5.67%
 
2,000

 
5.67%
Total
16,000

 
 
 
16,000

 
 
Other long-term debt
10

 
0.19%
 
10

 
0.19%
Unaccreted discount
(66
)
 
 
 
(70
)
 
 
Hedge accounting fair value adjustments
291

 
 
 
357

 
 
Total
16,235

 
 
 
16,297

 
 
Less: current portion of long-term debt
(3,279
)
 
0.64%
 
—

 
 
Total long-term debt
$
12,956

 
 
 
$
16,297

 
 

To achieve its interest rate risk management objectives, the Company entered into interest rate swaps with an aggregate notional amount of $4.25 billion designated as fair value hedges of certain of its fixed-rate senior notes. In effect, these swaps convert the fixed interest rates of the fixed-rate notes to floating interest rates based on the London InterBank Offered Rate (“LIBOR”). The gains and losses related to changes in the fair value of the interest rate swaps substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. See Note 11 to the Consolidated Financial Statements.
The effective rates for the fixed-rate debt include the interest on the notes, the accretion of the discount, and, if applicable, adjustments related to hedging. Interest is payable semiannually on each class of the senior fixed-rate notes and payable quarterly on the floating-rate notes. Each of the senior fixed-rate notes is redeemable by the Company at any time, subject to a make-whole premium. 
The senior notes rank at par with the commercial paper notes that may be issued in the future pursuant to the Company's short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of April 27, 2013, the Company was in compliance with all debt covenants.
As of April 27, 2013, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2013 (remaining three months)
$
—

2014
3,260

2015
500

2016
3,000

2017
750

Thereafter
8,500

Total
$
16,010


(c)
Credit Facility
On February 17, 2012, the Company entered into a credit agreement with certain institutional lenders that provides for a $3.0 billion unsecured revolving credit facility that is scheduled to expire on February 17, 2017. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the higher of the Federal Funds rate plus 0.50%, Bank of America's “prime rate” as announced from time to time, or one-month LIBOR plus 1.00%, or (ii) LIBOR plus a margin that is based on the Company's senior debt credit ratings as published by Standard & Poor's Financial Services, LLC and Moody's Investors Service, Inc. The credit agreement requires the Company to comply with certain covenants, including that it maintains an interest coverage ratio as defined in the agreement. As of April 27, 2013, the Company was in compliance with all such required covenants, and the Company had not borrowed any funds under the credit facility.
The Company may also, upon the agreement of either the then-existing lenders or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $2.0 billion and/or extend the expiration date of the credit facility by up to two additional years, or up to February 17, 2019.
Derivative Instruments
Derivative Instruments
11.
Derivative Instruments
(a)
Summary of Derivative Instruments
The Company uses derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. The Company's primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. The Company's derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company does, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.
The fair values of the Company's derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions):
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
 
Balance Sheet Line Item
 
April 27,
2013
 
July 28,
2012
 
Balance Sheet Line Item
 
April 27,
2013
 
July 28,
2012
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
17

 
$
24

 
Other current liabilities
 
$
2

 
$
26

Interest rate derivatives
Other assets
 
183

 
223

 
Other long-term liabilities
 
—

 
—

Equity derivatives
Other current assets
 
—

 
—

 
Other current liabilities
 
87

 
4

Total
 
 
200

 
247

 
 
 
89

 
30

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
34

 
16

 
Other current liabilities
 
5

 
12

Equity derivatives
Other assets
 
—

 
1

 
Other long-term liabilities
 
—

 
—

Total
 
 
34

 
17

 
 
 
5

 
12

Total
 
 
$
234

 
$
264

 
 
 
$
94

 
$
42


The effects of the Company's cash flow and net investment hedging instruments on other comprehensive income (“OCI”) and the Consolidated Statements of Operations are summarized as follows (in millions):
GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
Derivatives designated as cash flow hedging instruments:
 
April 27,
2013
 
April 28,
2012
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
Foreign currency derivatives
 
$
(11
)
 
$
11

 
Operating expenses
 
$
3

 
$
(15
)
 
 
 
 
 
 
Cost of sales - service
 
1

 
(4
)
Interest rate derivatives
 
—

 
—

 
Interest expense
 
—

 
1

Total
 
$
(11
)
 
$
11

 
 
 
$
4

 
$
(18
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
20

 
$
—

 
Other income (loss), net
 
$
—

 
$
—


GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
NINE MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
NINE MONTHS ENDED (EFFECTIVE PORTION)
Derivatives designated as cash flow hedging instruments:
 
April 27,
2013
 
April 28,
2012
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
Foreign currency derivatives
 
$
58

 
$
(83
)
 
Operating expenses
 
$
5

 
$
(37
)
 
 
 
 
 
 
Cost of sales - service
 
2

 
(8
)
Interest rate derivatives
 
—

 
—

 
Interest expense
 
—

 
1

Total
 
$
58

 
$
(83
)
 
 
 
$
7

 
$
(44
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(4
)
 
$
(6
)
 
Other income (loss), net
 
$
—

 
$
—


During the three and nine months ended April 27, 2013 and April 28, 2012, the amounts recognized in earnings on derivative instruments designated as cash flow hedges and net investment hedges related to the ineffective portion were not material, and the Company did not exclude any component of the changes in fair value of the derivative instruments from the assessment of hedge effectiveness.
As of April 27, 2013, the Company estimates that approximately $10 million of net derivative gains related to its cash flow hedges included in accumulated other comprehensive income (“AOCI”) will be reclassified into earnings within the next 12 months.
The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the underlying hedged items is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) ON DERIVATIVES
INSTRUMENTS FOR THE THREE MONTHS ENDED
 
GAINS (LOSSES) RELATED TO HEDGED
ITEMS FOR THE THREE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Equity derivatives
 
Other income (loss), net
 
$
(45
)
 
$
—

 
$
45

 
$
—

Interest rate derivatives
 
Interest expense
 
(11
)
 
(16
)
 
11

 
16

Total
 
 
 
$
(56
)
 
$
(16
)
 
$
56

 
$
16



 
 
 
 
GAINS (LOSSES) ON DERIVATIVES
INSTRUMENTS FOR THE NINE MONTHS ENDED
 
GAINS (LOSSES) RELATED TO HEDGED
ITEMS FOR THE NINE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Equity derivatives
 
Other income (loss), net
 
$
(87
)
 
$
—

 
$
87

 
$
—

Interest rate derivatives
 
Interest expense
 
(40
)
 
60

 
40

 
(62
)
Total
 
 
 
$
(127
)
 
$
60

 
$
127

 
$
(62
)

The amounts excluded from the assessment of hedge effectiveness for derivative instruments designated as fair value hedges were not material for the periods presented.
The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) FOR THE THREE MONTHS ENDED
 
GAINS (LOSSES) FOR THE NINE MONTHS ENDED
Derivatives Not Designated as Hedging Instruments
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Foreign currency derivatives
 
Other income (loss), net
 
$
(90
)
 
$
20

 
$
(78
)
 
$
(125
)
Total return swaps - deferred compensation
 
Cost of sales
 
—

 
1

 
—

 
4

 
 
Operating expenses
 
12

 
6

 
45

 
(4
)
Equity derivatives
 
Other income (loss), net
 
(6
)
 
7

 
6

 
(4
)
Total
 
 
 
$
(84
)
 
$
34

 
$
(27
)
 
$
(129
)

The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
April 27,
2013
 
July 28,
2012
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives - cash flow hedges
$
1,067

 
$
2,910

Interest rate derivatives
4,250

 
4,250

Net investment hedging instruments
586

 
468

Equity derivatives
629

 
272

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
4,314

 
6,241

Total return swaps-deferred compensation
322

 
269

Total
$
11,168

 
$
14,410


(b)
Foreign Currency Exchange Risk
The Company conducts business globally in numerous currencies. Therefore, it is exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, the Company enters into foreign currency contracts. The Company does not enter into such contracts for trading purposes.
The Company hedges forecasted foreign currency transactions related to certain operating expenses and service cost of sales with currency options and forward contracts. These currency option and forward contracts, designated as cash flow hedges, generally have maturities of less than 18 months. The Company assesses effectiveness based on changes in total fair value of the derivatives. The effective portion of the derivative instrument's gain or loss is initially reported as a component of AOCI and subsequently reclassified into earnings when the hedged exposure affects earnings. The ineffective portion, if any, of the gain or loss is reported in earnings immediately. During the periods presented, the Company did not discontinue any cash flow hedges for which it was probable that a forecasted transaction would not occur.
The Company enters into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, including long-term customer financings, investments, and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of intercompany balances or other current assets, investments, or liabilities denominated in currencies other than the functional currency of the reporting entity.
The Company hedges certain net investments in its foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on the Company's net investment in those foreign subsidiaries. These derivative instruments generally have maturities of up to six months.
(c)
Interest Rate Risk
Interest Rate Derivatives, Investments   The Company's primary objective for holding fixed income securities is to achieve an appropriate investment return consistent with preserving principal and managing risk. To realize these objectives, the Company may utilize interest rate swaps or other derivatives designated as fair value or cash flow hedges. As of April 27, 2013 and July 28, 2012, the Company did not have any outstanding interest rate derivatives related to its fixed income securities.
Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt   In fiscal 2011, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that were issued in March 2011 and are due in 2014 and 2017. In fiscal 2010, the Company entered into interest rate swaps designated as fair value hedges for a portion of senior fixed-rate notes that were issued in 2006 and are due in 2016. Under these interest rate swaps, the Company receives fixed-rate interest payments and makes interest payments based on LIBOR plus a fixed number of basis points. The effect of such swaps is to convert the fixed interest rates of the senior fixed-rate notes to floating interest rates based on LIBOR. The gains and losses related to changes in the fair value of the interest rate swaps are included in interest expense and substantially offset changes in the fair value of the hedged portion of the underlying debt that are attributable to the changes in market interest rates. The fair value of the interest rate swaps was reflected in other assets.
(d)
Equity Price Risk
The Company may hold equity securities for strategic purposes or to diversify its overall investment portfolio. The publicly traded equity securities in the Company's portfolio are subject to price risk. To manage its exposure to changes in the fair value of certain equity securities, the Company may enter into equity derivatives that are designated as fair value hedges. The changes in the value of the hedging instruments are included in other income (loss), net, and offset the change in the fair value of the underlying hedged investment. In addition, the Company periodically manages the risk of its investment portfolio by entering into equity derivatives that are not designated as accounting hedges. The changes in the fair value of these derivatives are also included in other income (loss), net.
The Company is also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, the Company utilizes derivatives such as total return swaps to economically hedge this exposure.
(e)
Credit-Risk-Related Contingent Features
Certain derivative instruments are executed under agreements that have provisions requiring the Company and the counterparty to maintain a specified credit rating from certain credit-rating agencies. If the Company's or the counterparty's credit-rating falls below a specified credit rating, either party has the right to request collateral on the derivatives' net liability position. Such provisions did not affect the Company's financial position as of April 27, 2013 and July 28, 2012.
Commitments And Contingencies
Commitments and Contingencies
12.
Commitments and Contingencies
(a)
Operating Leases
The Company leases office space in many U.S. locations. Outside the United States, larger leased sites include sites in Australia, Belgium, China, France, Germany, India, Israel, Italy, Japan, and the United Kingdom. The Company also leases equipment and vehicles. Future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of April 27, 2013 are as follows (in millions):
Fiscal Year
Amount
2013 (remaining three months)
$
92

2014
299

2015
240

2016
121

2017
80

Thereafter
224

Total
$
1,056



(b)
Purchase Commitments with Contract Manufacturers and Suppliers
The Company purchases components from a variety of suppliers and uses several contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company enters into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by the Company or establish the parameters defining the Company's requirements. A significant portion of the Company's reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule, and adjust the Company's requirements based on its business needs prior to firm orders being placed. As of April 27, 2013 and July 28, 2012, the Company had total purchase commitments for inventory of $4,215 million and $3,869 million, respectively.
The Company records a liability for firm, noncancelable, and unconditional purchase commitments for quantities in excess of its future demand forecasts consistent with the valuation of the Company's excess and obsolete inventory. As of April 27, 2013 and July 28, 2012, the liability for these purchase commitments was $178 million and $193 million, respectively, and was included in other current liabilities.
(c)
Other Commitments
In connection with the Company's business combinations and asset purchases, the Company has agreed to pay certain additional amounts contingent upon the achievement of certain agreed-upon technology, development, product, or other milestones or the continued employment with the Company of certain employees of the acquired entities. The Company recognized such compensation expense of $44 million and $12 million during the three months ended April 27, 2013 and April 28, 2012, respectively, and $79 million and $40 million during the nine months ended April 27, 2013 and April 28, 2012, respectively. As of April 27, 2013, the Company estimated that future compensation expense and contingent consideration of up to $1.2 billion may be required to be recognized pursuant to the applicable business combination and asset purchase agreements, which included a maximum potential $863 million in milestone payments related to Insieme as more fully discussed in the subsection entitled “Insieme” within section (d) immediately below.
The Company also has certain funding commitments, primarily related to its investments in privately held companies and venture funds, some of which are based on the achievement of certain agreed-upon milestones, and some of which are required to be funded on demand. The funding commitments were $113 million and $120 million as of April 27, 2013 and July 28, 2012, respectively.
(d)
Variable Interest Entities
VCE Joint Venture VCE is a joint venture that the Company formed in fiscal 2010 with EMC Corporation (“EMC”), with investments from VMware, Inc. (“VMware”) and Intel Corporation. VCE helps organizations leverage best-in-class technologies and disciplines from Cisco, EMC, and VMware to enable the transformation to cloud computing.
As of April 27, 2013, the Company's cumulative gross investment in VCE was approximately $464 million, inclusive of accrued interest, and its ownership percentage was approximately 35%. 
The Company accounts for its investment in VCE under the equity method, and its portion of VCE's net loss is recognized in other income (loss), net. The Company's consolidated share of VCE's losses, based upon its portion of the overall funding, was approximately 36.8% for each of the three and nine months ended April 27, 2013 and April 28, 2012. As of April 27, 2013, the Company had recorded cumulative losses from VCE of $374 million since inception, of which losses of $49 million and $34 million were recorded for the three months ended April 27, 2013 and April 28, 2012, respectively, and losses of $135 million and $120 million were recorded for the nine months ended April 27, 2013 and April 28, 2012. The Company's carrying value in VCE as of April 27, 2013 of $90 million is recorded in other assets.
Over the next 12 months, as VCE scales its operations, the Company expects that it will make additional investments in VCE and may incur additional losses proportionate with the Company's share ownership.
From time to time, EMC and Cisco may enter into guarantee agreements on behalf of VCE to indemnify third parties, such as customers, for monetary damages. Such guarantees were not material as of April 27, 2013.
Insieme In the third quarter of fiscal 2012, the Company made an investment in Insieme, an early stage company focused on research and development in the data center market. As set forth in the agreement between the Company and Insieme, this investment includes $100 million of funding and a license to certain of the Company's technology. In addition, pursuant to a November 2012 amendment to the agreement between the Company and Insieme, the Company agreed to invest an additional $35 million in Insieme upon the satisfaction of certain conditions. As of April 27, 2013, the Company owned approximately 85% of Insieme as a result of these investments and has consolidated the results of Insieme in its Consolidated Financial Statements.
The net loss attributable to the noncontrolling interests was not presented separately in the Consolidated Statements of Operations due to the amount being immaterial. In connection with this investment, the Company and Insieme have entered into a put/call option agreement that provides the Company with the right to purchase the remaining interests in Insieme. In addition, the noncontrolling interest holders can require the Company to purchase their shares upon the occurrence of certain events. If the Company acquires the remaining interests of Insieme, the noncontrolling interest holders are eligible to receive two milestone payments, which will be determined using agreed-upon formulas based on revenue for certain of Insieme's products. The Company will begin recognizing the amounts due under the milestone payments when it is determined that such payments are probable of being earned, which the Company expects may be in fiscal 2014. When such a determination is made, the milestone payments will then be recorded as compensation expense by the Company based on an estimate of the fair value of the amounts probable of being earned, pursuant to a vesting schedule. Subsequent changes to the fair value of the amounts probable of being earned and the continued vesting will result in adjustments to the recorded compensation expense. The maximum amount that could be recorded as compensation expense by the Company is approximately $863 million. This maximum amount was increased from the previous maximum of $750 million due to a November 2012 amendment to the agreement, as the parties recognized that higher staffing levels may be necessary to perform additional product development. The milestone payments, if earned, are expected to be paid primarily during fiscal 2016 and fiscal 2017.
Other Variable Interest Entities In the ordinary course of business, the Company has investments in other privately held companies and provides financing to certain customers. These other privately held companies and customers may be considered to be variable interest entities. The Company evaluates on an ongoing basis its investments in these other privately held companies and its customer financings and has determined that as of April 27, 2013 there were no other variable interest entities required to be consolidated in the Company's Consolidated Financial Statements.
(e)
Product Warranties and Guarantees
The following table summarizes the activity related to product warranty liability during the nine months ended April 27, 2013 and April 28, 2012 (in millions):
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
Balance at beginning of period
$
415

 
$
342

Provision for warranties issued
494

 
474

Payments
(478
)
 
(426
)
Balance at end of period
$
431

 
$
390


The Company accrues for warranty costs as part of its cost of sales based on associated material product costs, labor costs for technical support staff, and associated overhead. The Company's products are generally covered by a warranty for periods ranging from 90 days to five years, and for some products the Company provides a limited lifetime warranty.
In the normal course of business, the Company indemnifies other parties, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold the other parties harmless against losses arising from a breach of representations or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors, and the Company's Amended and Restated Bylaws contain similar indemnification obligations to the Company's agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the Company's limited history with prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on the Company's operating results, financial position, or cash flows.
The Company also provides financing guarantees, which are generally for various third-party financing arrangements to channel partners and other end-user customers. See Note 7 to the Consolidated Financial Statements. The Company's other guarantee arrangements as of April 27, 2013 and July 28, 2012 that were subject to recognition and disclosure requirements were not material.
(f)
Legal Proceedings
Brazilian authorities have investigated the Company's Brazilian subsidiary and certain of its current and former employees, as well as a Brazilian importer of the Company's products, and its affiliates and employees, relating to alleged evasion of import taxes and alleged improper transactions involving the subsidiary and the importer. Brazilian tax authorities have assessed claims against the Company's Brazilian subsidiary based on a theory of joint liability with the Brazilian importer for import taxes, interest, and penalties. In addition to claims asserted by the Brazilian federal tax authorities in prior fiscal years, tax authorities from the Brazilian state of Sao Paulo have asserted similar claims on the same legal basis in prior fiscal years. In the first quarter of fiscal 2013, the Brazilian federal tax authorities asserted an additional claim against the Company's Brazilian subsidiary based on a theory of joint liability with respect to an alleged underpayment of income taxes, social taxes, interest, and penalties by a Brazilian distributor.
The asserted claims by Brazilian federal tax authorities are for calendar years 2003 through 2008, and the asserted claims by the tax authorities from the state of Sao Paulo, are for calendar years 2005 through 2007. The total asserted claims by Brazilian state and federal tax authorities aggregate to approximately $432 million for the alleged evasion of import and other taxes, approximately $1.2 billion for interest, and approximately $1.9 billion for various penalties, all determined using an exchange rate as of April 27, 2013. The Company has completed a thorough review of the matters and believes the asserted claims against the Company's Brazilian subsidiary are without merit, and the Company is defending the claims vigorously. While the Company believes there is no legal basis for the alleged liability, due to the complexities and uncertainty surrounding the judicial process in Brazil and the nature of the claims asserting joint liability with the importer, the Company is unable to determine the likelihood of an unfavorable outcome against its Brazilian subsidiary and is unable to reasonably estimate a range of loss, if any. The Company does not expect a final judicial determination for several years.

On March 31, 2011 and April 12, 2011, purported shareholder class action lawsuits were filed in the United States District Court for the Northern District of California against the Company and certain of its officers and directors. The lawsuits were consolidated, and an amended consolidated complaint was filed on December 2, 2011. The consolidated action was purportedly brought on behalf of purchasers of the Company's publicly traded securities between February 3, 2010 and May 11, 2011. Plaintiffs alleged that defendants made false and misleading statements, purported to assert claims for violations of the federal securities laws, and sought unspecified compensatory damages and other relief. On February 12, 2012, the Company filed a motion seeking to dismiss all claims in the amended complaint. On March 29, 2013, the Court granted the Company's motion and dismissed the amended complaint, finding no facts or inferences to support the plaintiffs' allegations. Plaintiffs chose not to file an amended complaint and not to pursue an appeal. The Court dismissed the entire lawsuit with prejudice on April 29, 2013.
Beginning on April 8, 2011, a number of purported shareholder derivative lawsuits were filed in both the United States District Court for the Northern District of California and the California Superior Court for the County of Santa Clara against the Company's Board of Directors and several of its officers. The federal lawsuits have been consolidated in the Northern District of California. Plaintiffs in both the federal and state derivative actions allege that the Board allowed certain officers to make allegedly false and misleading statements. The complaint includes claims for violation of the federal securities laws, breach of fiduciary duties, waste of corporate assets, unjust enrichment, and violations of the California Corporations Code. The complaint seeks compensatory damages, disgorgement, and other relief. In light of the United States District Court's dismissal of the purported shareholder class action noted above, all of the federal and state derivative lawsuits have been voluntarily dismissed.
The Company was subject to patent claims asserted by VirnetX, Inc. on August 11, 2010 in the United States District Court for the Eastern District of Texas.  VirnetX alleged that various Cisco products that implement a method for secure communication using virtual private networks infringe certain patents.  VirnetX sought monetary damages.  The trial on these claims began on March 4, 2013. On March 14, 2013, the jury entered a verdict finding that the Company's accused products do not infringe any of VirnetX's patents asserted in the lawsuit. On April 3, 2013,VirnetX filed a motion seeking a new trial on the issue of infringement, which the Company has opposed. The Court has set a hearing date for VirnetX's motion in June 2013.
The Company was subject to numerous patent, tort, and contract claims asserted by XpertUniverse on March 10, 2009 in the United States District Court for the District of Delaware. Shortly before trial, the Court dismissed on summary judgment all claims initially asserted by XpertUniverse except a claim for infringement of two XpertUniverse patents and a claim for fraud by concealment. XpertUniverse's remaining patent claims alleged that three Cisco products in the field of expertise location software infringed two XpertUniverse patents. XpertUniverse's fraud by concealment claim alleged that the Company did not disclose its decision not to admit XpertUniverse into a partner program. The trial on these remaining claims began on March 11, 2013. On March 22, 2013, the jury entered a verdict finding that two of the Company's products infringed two of XpertUniverse's patents and awarded XpertUniverse damages of less than $35 thousand. The jury also found for XpertUniverse on its fraud by concealment claim and awarded damages of $70 million. The Company believes it has strong arguments to overturn the fraud damage award or to obtain a new trial. On May 6, 2013, the Company filed post-trial motions that are expected to be decided in July or August 2013. If the Court does not grant the Company's post-trial motions, the Company will pursue an appeal. While the ultimate outcome of the case may still result in a loss, the Company does not expect it to be material.
The Company and a service provider customer are subject to patent claims asserted by TiVo, Inc. on June 4, 2012 in the United States District Court for the Eastern District of Texas.  TiVo alleges that the Company's digital video recorders deployed by the service provider customer infringe certain of its patents.  TiVo seeks monetary damages and injunctive relief.  The trial on these claims is scheduled to begin in March 2014.  The Company intends to show at trial that its products do not use the technology described in the patents. The Company is seeking permission from the Court to add counterclaims alleging that TiVo's new products infringe several digital video recorder patents owned by the Company. 
TiVo previously filed a similar patent lawsuit against the same service provider customer, accusing digital video recorders manufactured by one of the Company's competitors.  The outcome of that case, which is now scheduled for trial in June 2013, could have an impact on the timing and outcome of the Company's case.  The parties to that case may conduct a mediation prior to the June trial and, if so, the Company expects to participate. The mediation could result in a resolution of the case for the Company and some or all of its service provider customers, which could result in a material charge to the Company. Due to the uncertainty surrounding the litigation process, which involves numerous defendants, the Company is unable to reasonably estimate the ultimate outcome of this litigation at this time.
In addition, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.
Shareholders' Equity
Shareholders' Equity
13.
Shareholders’ Equity
(a)
Stock Repurchase Program
In September 2001, the Company's Board of Directors authorized a stock repurchase program. As of April 27, 2013, the Company's Board of Directors had authorized an aggregate repurchase of up to $82 billion of common stock under this program, and the remaining authorized repurchase amount was $4.3 billion with no termination date. A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts):
 
Shares Repurchased
 
Weighted- Average Price per Share
 
Amount Repurchased
Cumulative balance at July 28, 2012
3,740

 
$
20.36

 
$
76,133

Repurchase of common stock under the stock repurchase program
81

 
19.81

 
1,613

Cumulative balance at April 27, 2013
3,821

 
$
20.35

 
$
77,746


The purchase price for the shares of the Company's stock repurchased is reflected as a reduction to shareholders' equity. The Company is required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings and (ii) a reduction of common stock and additional paid-in capital. Issuance of common stock and the tax benefit related to employee stock incentive plans are recorded as an increase to common stock and additional paid-in capital.
(b)
Cash Dividends on Shares of Common Stock
During the nine months ended April 27, 2013, the Company declared and paid cash dividends of $0.45 per common share, or $2.4 billion, on the Company's outstanding common stock. During the nine months ended April 28, 2012, the Company declared and paid cash dividends of $0.20 per common share, or $1.1 billion, on the Company's outstanding common stock.
Any future dividends will be subject to the approval of the Company's Board of Directors.
(c)
Other Repurchases of Common Stock
For the nine months ended April 27, 2013 and April 28, 2012, the Company repurchased approximately 13 million and 10 million shares, or $249 million and $160 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units.
(d)
Accumulated Other Comprehensive Income
The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the nine months ended April 27, 2013 and April 28, 2012 are summarized as follows (in millions):
 
Net Unrealized Gains on Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Other
 
Accumulated Other Comprehensive Income
BALANCE AT JULY 28, 2012
$
409

 
$
(53
)
 
$
305

 
$
661

Other comprehensive income (loss) attributable to Cisco Systems, Inc.
(15
)
 
51

 
(8
)
 
28

BALANCE AT APRIL 27, 2013
$
394

 
$
(2
)
 
$
297

 
$
689

 
 
 
 
 
 
 
 
 
Net Unrealized Gains on Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Other
 
Accumulated Other Comprehensive Income
BALANCE AT JULY 30, 2011
$
487

 
$
6

 
$
801

 
$
1,294

Other comprehensive income (loss) attributable to Cisco Systems, Inc.
19

 
(39
)
 
(296
)
 
(316
)
BALANCE AT APRIL 28, 2012
$
506

 
$
(33
)
 
$
505

 
$
978

 
 
 
 
 
 
 
 
Employee Benefit Plans
Employee Benefit Plans
14.
Employee Benefit Plans
(a)
Employee Stock Incentive Plans
Stock Incentive Plan Program Description   As of April 27, 2013, the Company had five stock incentive plans: the 2005 Stock Incentive Plan (the “2005 Plan”); the 1996 Stock Incentive Plan (the “1996 Plan”); the 1997 Supplemental Stock Incentive Plan (the “Supplemental Plan”); the Cisco Systems, Inc. SA Acquisition Long-Term Incentive Plan (the “SA Acquisition Plan”); and the Cisco Systems, Inc. WebEx Acquisition Long-Term Incentive Plan (the “WebEx Acquisition Plan”). In addition, the Company has, in connection with the acquisitions of various companies, assumed the share-based awards granted under stock incentive plans of the acquired companies or issued share-based awards in replacement thereof. Share-based awards are designed to reward employees for their long-term contributions to the Company and provide incentives for them to remain with the Company. The number and frequency of share-based awards are based on competitive practices, operating results of the Company, government regulations, and other factors. Since the inception of the stock incentive plans, the Company has granted share-based awards to a significant percentage of its employees, and the majority has been granted to employees below the vice president level. The Company's primary stock incentive plans are summarized as follows:
2005 Plan As amended on November 15, 2007, the maximum number of shares issuable under the 2005 Plan over its term is 559 million shares plus the amount of any shares underlying awards outstanding on November 15, 2007 under the 1996 Plan, the SA Acquisition Plan, and the WebEx Acquisition Plan that are forfeited or are terminated for any other reason before being exercised or settled. If any awards granted under the 2005 Plan are forfeited or are terminated for any other reason before being exercised or settled, then the shares underlying the awards will again be available under the 2005 Plan.
Pursuant to an amendment approved by the Company's shareholders on November 12, 2009, the number of shares available for issuance under the 2005 Plan was reduced by 1.5 shares for each share awarded as a stock grant or a stock unit, and any shares underlying awards outstanding under the 1996 Plan, the SA Acquisition Plan, and the WebEx Acquisition Plan that expire unexercised at the end of their maximum terms become available for reissuance under the 2005 Plan. The 2005 Plan permits the granting of stock options, restricted stock, restricted stock units (“RSUs”), the vesting of which may be performance-based or market-based along with the requisite service requirement, and stock appreciation rights to employees (including employee directors and officers), consultants of the Company and its subsidiaries and affiliates, and non-employee directors of the Company. Stock options and stock appreciation rights granted under the 2005 Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date and prior to November 12, 2009 have an expiration date no later than nine years from the grant date. The expiration date for stock options and stock appreciation rights granted subsequent to the amendment approved on November 12, 2009 shall be no later than ten years from the grant date.
The stock options will generally become exercisable for 20% or 25% of the option shares one year from the date of grant and then ratably over the following 48 or 36 months, respectively. Time-based stock grants and time-based RSUs will generally vest with respect to 20% or 25% of the shares or share units covered by the grant on each of the first through fifth or fourth anniversaries of the date of the grant, respectively. Performance-based and market-based RSUs typically vest at the end of the three year requisite service period or earlier if the award recipient meets certain retirement eligibility conditions. The Compensation and Management Development Committee of the Board of Directors has the discretion to use different vesting schedules. Stock appreciation rights may be awarded in combination with stock options or stock grants, and such awards shall provide that the stock appreciation rights will not be exercisable unless the related stock options or stock grants are forfeited. Stock grants may be awarded in combination with non-statutory stock options, and such awards may provide that the stock grants will be forfeited in the event that the related non-statutory stock options are exercised.
1996 Plan The 1996 Plan expired on December 31, 2006, and the Company can no longer make equity awards under the 1996 Plan. The maximum number of shares issuable over the term of the 1996 Plan was 2.5 billion shares. Stock options granted under the 1996 Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date and expire no later than nine years from the grant date. The stock options generally became exercisable for 20% or 25% of the option shares one year from the date of grant and then ratably over the following 48 or 36 months, respectively. Certain other grants utilized a 60-month ratable vesting schedule. In addition, the Board of Directors, or other committees administering the 1996 Plan, had the discretion to use a different vesting schedule and did so from time to time.
Supplemental Plan The Supplemental Plan expired on December 31, 2007, and the Company can no longer make equity awards under the Supplemental Plan. Officers and members of the Company's Board of Directors were not eligible to participate in the Supplemental Plan. Nine million shares were reserved for issuance under the Supplemental Plan.
Acquisition Plans In connection with the Company's acquisitions of Scientific-Atlanta, Inc. (“Scientific-Atlanta”) and WebEx Communications, Inc. (“WebEx”), the Company adopted the SA Acquisition Plan and the WebEx Acquisition Plan, respectively, each effective upon completion of the applicable acquisition. These plans constitute assumptions, amendments, restatements, and renamings of the 2003 Long-Term Incentive Plan of Scientific-Atlanta and the WebEx Communications, Inc. Amended and Restated 2000 Stock Incentive Plan, respectively. The plans permit the grant of stock options, stock, stock units, and stock appreciation rights to certain employees of the Company and its subsidiaries and affiliates who had been employed by Scientific-Atlanta or its subsidiaries or WebEx or its subsidiaries, as applicable. As a result of the shareholder approval of the amendment and extension of the 2005 Plan, as of November 15, 2007, the Company will no longer make stock option grants or direct share issuances under either the SA Acquisition Plan or the WebEx Acquisition Plan.
(b)
Employee Stock Purchase Plan
The Company has an Employee Stock Purchase Plan, which includes its subplan, the International Employee Stock Purchase Plan (together, the “Purchase Plan”), under which 471.4 million shares of the Company's common stock have been reserved for issuance as of April 27, 2013. Eligible employees are offered shares through a 24-month offering period, which consists of four consecutive 6-month purchase periods. Employees may purchase a limited number of shares of the Company's stock at a discount of up to 15% of the lesser of the market value at the beginning of the offering period or the end of each 6-month purchase period. The Purchase Plan is scheduled to terminate on January 3, 2020. The Company issued 18 million shares under the Purchase Plan during each of the nine months ended April 27, 2013 and April 28, 2012. As of April 27, 2013, 69 million shares were available for issuance under the Purchase Plan.
(c)
Summary of Share-Based Compensation Expense
Share-based compensation expense consists primarily of expenses for stock options, stock purchase rights, restricted stock, and restricted stock units granted to employees. The following table summarizes share-based compensation expense (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Cost of sales - product
$
10

 
$
12

 
$
31

 
$
39

Cost of sales - service
34

 
39

 
105

 
116

Share-based compensation expense in cost of sales
44

 
51

 
136

 
155

Research and development
72

 
97

 
228

 
297

Sales and marketing
118

 
138

 
383

 
429

General and administrative
38

 
51

 
136

 
153

Restructuring and other charges
—

 
—

 
(3
)
 
(2
)
Share-based compensation expense in operating expenses
228

 
286

 
744

 
877

Total share-based compensation expense
$
272

 
$
337

 
$
880

 
$
1,032


As of April 27, 2013, the total compensation cost related to unvested share-based awards not yet recognized was $2.0 billion, which is expected to be recognized over approximately 2.6 years on a weighted-average basis. The income tax benefit for share-based compensation expense was $73 million and $232 million for the three and nine months ended April 27, 2013, respectively, and $88 million and $271 million for the three and nine months ended April 28, 2012, respectively.
The Company uses third-party analyses to assist in developing the assumptions used in, as well as calibrating, its lattice-binomial and Black-Scholes models. The Company is responsible for determining the assumptions used in estimating the fair value of its share-based payment awards.
The Company uses the implied volatility for traded options (with contract terms corresponding to the expected life of the employee stock purchase rights) on the Company's stock as the expected volatility assumption required in the Black-Scholes model. The implied volatility is more representative of future stock price trends than historical volatility. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of the Company's employee stock purchase rights. The dividend yield assumption is based on the history and expectation of dividend payouts at the grant date.
The use of the lattice-binomial model requires extensive actual employee exercise behavior data for the relative probability estimation purpose, and a number of complex assumptions as presented in the preceding table. The estimated kurtosis and skewness are technical measures of the distribution of stock price returns, which affect expected employee stock option exercise behaviors, and are based on the Company's stock price return history as well as consideration of various academic analyses. The expected life of employee stock options is a derived output of the lattice-binomial model, which represents the weighted-average period the stock options are expected to remain outstanding.
(d)
Share-Based Awards Available for Grant
A summary of share-based awards available for grant is as follows (in millions):
 
Share-Based Awards Available for Grant
BALANCE AT JULY 30, 2011
255

Restricted stock, stock units, and other share-based awards granted
(95
)
Share-based awards canceled/forfeited/expired
64

Other
(6
)
BALANCE AT JULY 28, 2012
218

Restricted stock, stock units, and other share-based awards granted
(84
)
Share-based awards canceled/forfeited/expired
103

Other
(3
)
BALANCE AT APRIL 27, 2013
234


As reflected in the preceding table, for each share awarded as restricted stock or subject to a restricted stock unit award under the 2005 Plan, an equivalent of 1.5 shares was deducted from the available share-based award balance. For restricted stock units that were awarded with vesting contingent upon the achievement of future financial performance or market-based metrics, the maximum awards that can be achieved upon full vesting of such awards were reflected in the preceding table.
(e)
Restricted Stock and Stock Unit Awards
A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based restricted stock units, is as follows (in millions, except per-share amounts):
 
Restricted Stock/Stock Units
 
Weighted-Average Grant Date Fair Value per Share
 
Aggregated Fair Market Value
UNVESTED BALANCE AT JULY 30, 2011
116

 
$
21.50

 
 
Granted and assumed
65

 
17.45

 
 
Vested
(35
)
 
21.94

 
$
580

Canceled/forfeited
(18
)
 
20.38

 
 
UNVESTED BALANCE AT JULY 28, 2012
128

 
19.46

 
 
Granted and assumed
58

 
17.57

 
 
Vested
(37
)
 
20.68

 
$
716

Canceled/forfeited
(8
)
 
18.94

 
 
UNVESTED BALANCE AT APRIL 27, 2013
141

 
$
18.39

 
 

The assumptions for the valuation of RSUs are summarized as follows:
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Expected dividend yield
2.7%
 
1.6%
 
3.0%
 
1.4%
Range of risk-free interest rates
0.1% - 0.9%
 
0.0% - 1.1%
 
0.0% - 0.9%
 
0.0% - 1.1%
(f) Performance-Based Restricted Stock Units
The Company granted approximately 4 million and 2 million performance-based awards (“PRSUs”) for the nine months ended April 27, 2013 and April 28, 2012, respectively. These PRSUs are contingent on the achievement of the Company's financial performance metrics or its comparative market-based returns. On the date of grant, the Company estimated the fair value of restricted stock units with market-based conditions using a Monte Carlo simulation model. The assumptions used to determine the grant date fair value of restricted stock units with performance metrics conditions are included in the table immediately above.
(g) Stock Option Awards
A summary of the stock option activity is as follows (in millions, except per-share amounts):
 
STOCK OPTIONS OUTSTANDING
 
Number Outstanding
 
Weighted-Average Exercise Price per Share
BALANCE AT JULY 30, 2011
621

 
$
21.79

Assumed from acquisitions
1

 
2.08

Exercised
(66
)
 
13.51

Canceled/forfeited/expired
(36
)
 
23.40

BALANCE AT JULY 28, 2012
520

 
22.68

Assumed from acquisitions
7

 
0.92

Exercised
(57
)
 
16.71

Canceled/forfeited/expired
(90
)
 
21.70

BALANCE AT APRIL 27, 2013
380

 
$
23.42


The following table summarizes significant ranges of outstanding and exercisable stock options as of April 27, 2013 (in millions, except years and share prices):
 
STOCK OPTIONS OUTSTANDING
 
STOCK OPTIONS EXERCISABLE
Range of Exercise Prices
Number Outstanding
 
Weighted-Average Remaining Contractual Life
(in Years)
 
Weighted-Average Exercise Price per Share
 
Aggregate Intrinsic Value
 
Number Exercisable
 
Weighted-Average Exercise Price per Share
 
Aggregate Intrinsic Value
$  0.01 – 15.00
9

 
5.88
 
$
4.77

 
$
149

 
6

 
$
7.38

 
$
70

15.01 – 18.00
60

 
1.42
 
17.79

 
173

 
60

 
17.79

 
173

18.01 – 20.00
68

 
0.66
 
19.17

 
100

 
67

 
19.17

 
101

20.01 – 25.00
121

 
2.33
 
22.74

 
2

 
121

 
22.74

 
2

25.01 – 35.00
122

 
3.37
 
30.69

 
—

 
121

 
30.70

 
—

Total
380

 
2.31
 
$
23.42

 
$
424

 
375

 
$
23.66

 
$
346


The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company's closing stock price of $20.67 as of April 26, 2013, which would have been received by the option holders had those option holders exercised their stock options as of that date. The total number of in-the-money stock options exercisable as of April 27, 2013 was 136 million. As of July 28, 2012, 512 million outstanding stock options were exercisable and the weighted-average exercise price was $22.65.
Income Taxes
Income Taxes
15.
Income Taxes
The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Income before provision for income taxes
$
2,945

 
$
2,779

 
$
8,356

 
$
7,773

Provision for income taxes
$
467

 
$
614

 
$
643

 
$
1,649

Effective tax rate
15.9
%
 
22.1
%
 
7.7
%
 
21.2
%

The effective tax rate for the three and nine months ended April 27, 2013 reflected the Company's recognition of a net tax benefit of approximately $117 million which is due in large part to lapses of the time period for assessment of tax in certain foreign jurisdictions. As discussed below, the effective tax rate for the nine months ended April 27, 2013 also reflected the Company's recognition of tax benefits of approximately $946 million, of which, $794 million related to a tax settlement with the Internal Revenue Service (“IRS”) and $152 million related to the reinstatement of the U.S. federal research and development (“R&D”) tax credit.
In the second quarter of fiscal 2013, the IRS and the Company settled all outstanding items related to the audit of the Company's federal income tax returns for the fiscal years ended July 27, 2002 through July 28, 2007. As a result of the settlement, the Company increased its income tax receivable by $733 million and recognized a net benefit to the provision for income taxes of $794 million, which included a reduction in interest expense of $157 million. During the third quarter of fiscal 2013, the Company received its income tax refund from the IRS. The Company is no longer subject to U.S. federal income tax audit through fiscal 2007.
Also during the second quarter of fiscal 2013, the American Taxpayer Relief Act of 2012 reinstated the U.S. federal R&D tax credit, retroactive to January 1, 2012. As a result, during the nine months ended April 27, 2013, the Company recognized total tax benefits of $152 million, of which $72 million related to fiscal 2012 R&D expenses.
As a result of the IRS tax settlement, the amount of gross unrecognized tax benefits was reduced by approximately $1.0 billion, of which $154 million, which was previously paid by the Company, became certain as a result of completing the audit. As of April 27, 2013, the total amount of gross unrecognized tax benefits was $1.8 billion, of which, $1.5 billion would affect the effective tax rate if realized. The Company believes it is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. Specific positions that may be resolved include issues involving transfer pricing and various other matters. The Company estimates that it is reasonably possible that the unrecognized tax benefits at April 27, 2013 could be reduced in the next 12 months by approximately $150 million.
Segment Information And Major Customers
Segment Information and Major Customers
16.
Segment Information and Major Customers
(a)
 Net Sales and Gross Margin by Segment
The Company conducts business globally and is primarily managed on a geographic basis consisting of three segments: the Americas; EMEA; and APJC. The Company's management makes financial decisions and allocates resources based on the information it receives from its internal management system. Sales are attributed to a segment based on the ordering location of the customer. The Company does not allocate research and development, sales and marketing, or general and administrative expenses to its segments in this internal management system because management does not include the information in its measurement of the performance of the operating segments. In addition, the Company does not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, impacts to cost of sales from purchase accounting adjustments to inventory, charges related to asset impairments and restructurings, and certain other charges to the gross margin for each segment because management does not include this information in its measurement of the performance of the operating segments.
Summarized financial information by segment for the three and nine months ended April 27, 2013 and April 28, 2012, based on the Company's internal management system and as utilized by the Company's Chief Operating Decision Maker (“CODM”), is as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013

April 28,
2012
Net sales:
 
 
 
 
 
 
 
Americas
$
7,127

 
$
6,466

 
$
21,286

 
$
19,606

EMEA
3,131

 
3,160

 
9,065

 
9,255

APJC
1,958

 
1,962

 
5,839

 
5,510

Total
$
12,216

 
$
11,588

 
$
36,190

 
$
34,371

Gross margin:
 
 
 
 
 
 
 
Americas
4,460

 
4,053

 
13,341

 
12,319

EMEA
2,044

 
2,019

 
5,850

 
5,868

APJC
1,197

 
1,242

 
3,494

 
3,342

Segment total
7,701

 
7,314

 
22,685

 
21,529

Unallocated corporate items
(190
)
 
(145
)
 
(592
)
 
(405
)
Total
$
7,511

 
$
7,169

 
$
22,093

 
$
21,124


Net sales in the United States, which is included in the Americas, were $6.1 billion and $5.5 billion for the three months ended April 27, 2013 and April 28, 2012, respectively, and were $18.3 billion and $16.6 billion for the nine months ended April 27, 2013 and April 28, 2012, respectively.
(b)
Net Sales for Groups of Similar Products and Services
The Company designs, manufactures, and sells Internet Protocol (“IP”)-based networking and other products related to the communications and IT industry, and provides services associated with these products and their use. The Company groups its products and technologies into the following categories: Switching, NGN Routing, Service Provider Video, Collaboration, Data Center, Wireless, Security, and Other Products. These products, primarily integrated by Cisco IOS Software, link geographically dispersed local-area networks (“LANs”), metropolitan-area networks (“MANs”), and wide-area networks (“WANs”). The Company has made certain reclassifications to the prior period amounts to conform to the current period's presentation.
The following table presents net sales for groups of similar products and services (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Net sales:
 
 
 
 
 
 
 
Switching
$
3,598

 
$
3,661

 
$
10,938

 
$
10,969

NGN Routing
2,140

 
2,134

 
6,138

 
6,296

Service Provider Video
1,299

 
999

 
3,667

 
2,896

Collaboration
1,013

 
1,022

 
2,978

 
3,190

Data Center
515

 
291

 
1,480

 
883

Wireless
523

 
413

 
1,529

 
1,175

Security
327

 
342

 
1,001

 
994

Other
144

 
244

 
562

 
773

Product
9,559

 
9,106

 
28,293

 
27,176

Service
2,657

 
2,482


7,897


7,195

Total
$
12,216

 
$
11,588

 
$
36,190

 
$
34,371


(c)
Additional Segment Information
The majority of the Company's assets, excluding cash and cash equivalents and investments, as of April 27, 2013 and July 28, 2012 were attributable to its U.S. operations. The Company's total cash and cash equivalents and investments held by various foreign subsidiaries were $39.5 billion and $42.5 billion as of April 27, 2013 and July 28, 2012, respectively, and the remaining $7.9 billion and $6.2 billion at the respective period ends was available in the United States.
Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in millions):
 
April 27,
2013
 
July 28,
2012
Property and equipment, net:
 
 
 
United States
$
2,760

 
$
2,842

International
570

 
560

Total
$
3,330

 
$
3,402

Net Income Per Share
Net Income Per Share
17.
Net Income per Share
The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Net income
$
2,478

 
$
2,165

 
$
7,713

 
$
6,124

Weighted-average shares - basic
5,329

 
5,388

 
5,316

 
5,383

Effect of dilutive potential common shares
58

 
68

 
45

 
35

Weighted-average shares - diluted
5,387

 
5,456

 
5,361

 
5,418

Net income per share - basic
$
0.47

 
$
0.40

 
$
1.45

 
$
1.14

Net income per share - diluted
$
0.46

 
$
0.40

 
$
1.44

 
$
1.13

Antidilutive employee share-based awards, excluded
245

 
295

 
417

 
538


Employee equity share options, unvested shares, and similar equity instruments granted by the Company are treated as potential common shares outstanding in computing diluted earnings per share. Diluted shares outstanding include the dilutive effect of in-the-money options, unvested restricted stock, and restricted stock units. The dilutive effect of such equity awards is calculated based on the average share price for each fiscal period using the treasury stock method. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are collectively assumed to be used to repurchase shares.
Recent Accounting Pronouncements (Policies)
New Accounting Updates Recently Adopted [Text Block] 
(a)
New Accounting Updates Recently Adopted
In June 2011, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to provide guidance on increasing the prominence of items reported in other comprehensive income, which eliminated the option to present components of other comprehensive income as part of the statement of equity. The Company adopted this accounting standard in the first quarter of fiscal 2013.
In August 2011, the FASB approved a revised accounting standard update intended to simplify how an entity tests goodwill for impairment. The amendment will allow an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. An entity no longer will be required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. This accounting standard update became effective for the Company beginning in the first quarter of fiscal 2013, and its adoption did not have any impact on the Company's Consolidated Financial Statements.
Description of New Accounting Pronouncements Not yet Adopted [Text Block] 
(b)
Recent Accounting Standards or Updates Not Yet Effective
In December 2011, the FASB issued an accounting standard update requiring enhanced disclosures about certain financial instruments and derivative instruments that are offset in the statement of financial position or that are subject to enforceable master netting arrangements or similar agreements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2014, at which time the Company will include the required disclosures.
In July 2012, the FASB issued an accounting standard update intended to simplify how an entity tests indefinite-lived intangible assets other than goodwill for impairment by providing entities with an option to perform a qualitative assessment to determine whether further impairment testing is necessary. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2014, and early adoption is permitted. The adoption of this accounting standard update is not expected to have a material impact on the Company's Consolidated Financial Statements.
In February 2013, the FASB issued an accounting standard update to require reclassification adjustments from other comprehensive income to be presented either in the financial statements or in the notes to the financial statements. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2014, at which time the Company will include the required disclosures.
In March 2013, the FASB issued an accounting standard update requiring an entity to release into net income the entire amount of a cumulative translation adjustment related to its investment in a foreign entity when as a parent it either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2015. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.

Supplemental Information (Tables)
Stock Repurchases Since Inception Of Program [Table Text Block]
The stock repurchases since the inception of this program and the related impacts on Cisco shareholders’ equity are summarized in the following table (in millions):
 
 
Shares of Common Stock
 
Common Stock and Additional Paid-In Capital
 
Retained Earnings
 
Total Cisco Shareholders’ Equity
Repurchases of common stock under the repurchase program
3,821

 
$
17,647

 
$
60,099

 
$
77,746

Business Combinations (Tables)
Schedule of Purchase Price Allocation 
The following table summarizes the purchase consideration for the NDS acquisition (in millions):
 
 
Fair Value
Cash consideration to seller
 
$
4,012

Repayment of NDS debt to third party creditors
 
993

Total purchase consideration
 
$
5,005

Purchase Consideration Summary (NDS) 
A summary of the preliminary allocation of the total purchase consideration for NDS is presented as follows (in millions):
 
 
Fair Value
Cash and cash equivalents
 
$
98

Accounts receivable, net
 
199

Other tangible assets
 
268

Goodwill
 
3,444

Purchased intangible assets
 
1,746

Deferred tax liabilities, net
 
(378
)
Liabilities assumed
 
(372
)
Total purchase consideration
 
$
5,005

Schedule of Business Acquisitions, by Acquisition 
A summary of the allocation of the total purchase consideration is presented as follows (in millions):
 
Purchase Consideration
 
Net Liabilities Assumed
 
Purchased Intangible Assets
 
Goodwill
Meraki Inc.
$
974

 
$
(59
)
 
$
289

 
$
744

Intucell, Ltd
360

 
(23
)
 
106

 
277

All others (seven in total)
246

 
(18
)
 
88

 
176

Total other acquisitions
$
1,580

 
$
(100
)
 
$
483

 
$
1,197

Goodwill And Purchased Intangible Assets (Tables)
Goodwill By Reportable Segment 
The following table presents the goodwill allocated to the Company's reportable segments as of and during the nine months ended April 27, 2013 (in millions):
 
 
Balance at
July 28, 2012
 
NDS Acquisition
 
Other Acquisitions
 
Other
 
Balance at
April 27, 2013
Americas
 
$
11,755

 
$
1,230

 
$
641

 
$
(8
)
 
$
13,618

EMEA
 
3,287

 
1,327

 
353

 
5

 
4,972

APJC
 
1,956

 
887

 
203

 
4

 
3,050

Total
 
$
16,998

 
$
3,444

 
$
1,197

 
$
1

 
$
21,640

In the preceding table, the column entitled “Other” includes a goodwill reduction related to divestiture activity and purchase accounting adjustments.
Schedule Of Intangible Assets Acquired As Part Of Business Combination 
The following table presents details of the Company's intangible assets acquired through business combinations completed during the nine months ended April 27, 2013 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER RELATIONSHIPS
 
OTHER
 
IPR&D
 
 
Weighted-Average Useful Life (in Years)
 
Amount
 
Weighted-Average Useful Life (in Years)
 
Amount
 
Weighted-Average Useful Life (in Years)
 
Amount
 
Amount
 
Amount
NDS Group Limited
6.4
 
$
807

 
6.7
 
$
818

 
7.4

 
$
27

 
$
94

 
$
1,746

Meraki Inc.
8.0
 
259

 
6.0
 
30

 
—

 
—

 
—

 
289

Intucell, Ltd.
5.0
 
59

 
5.0
 
11

 
—

 
—

 
36

 
106

All others (seven in total)
4.1
 
61

 
6.3
 
12

 
5.0

 
1

 
14

 
88

Total
 
 
$
1,186

 
 
 
$
871

 
 
 
$
28

 
$
144

 
$
2,229

Schedule Of Purchased Intangible Assets 
The following tables present details of the Company’s purchased intangible assets (in millions): 
April 27, 2013
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,500

 
$
(1,316
)
 
$
2,184

Customer relationships
 
1,791

 
(640
)
 
1,151

Other
 
46

 
(23
)
 
23

Total purchased intangible assets with finite lives
 
5,337

 
(1,979
)
 
3,358

In-process research and development, with indefinite lives
 
50

 
—

 
50

Total
 
$
5,387

 
$
(1,979
)
 
$
3,408

July 28, 2012
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
2,267

 
$
(908
)
 
$
1,359

Customer relationships
 
2,261

 
(1,669
)
 
592

Other
 
49

 
(41
)
 
8

Total
 
$
4,577

 
$
(2,618
)
 
$
1,959

 
Schedule Of Amortization Of Purchased Intangible Assets 
The following table presents the amortization of purchased intangible assets (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Amortization of purchased intangible assets:
 
 
 
 
 
 
 
Cost of sales
$
156

 
$
108

 
$
444

 
$
303

Operating expenses
89

 
96

 
329

 
292

Total
$
245

 
$
204

 
$
773

 
$
595

Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets 
The estimated future amortization expense of purchased intangible assets with finite lives as of April 27, 2013 is as follows (in millions):
Fiscal Year
 
Amount
2013 (remaining three months)
 
$
232

2014
 
862

2015
 
780

2016
 
554

2017
 
399

Thereafter
 
531

Total
 
$
3,358

Restructuring And Other Charges (Tables)
Schedule of Restructuring and Related Costs
The following table summarizes the activities related to the restructuring and other charges pursuant to the Company's July 2011 announcement related to the realignment and restructuring of the Company's business as well as certain consumer product lines as announced during April 2011 (in millions):
 
 
Voluntary Early Retirement Program
 
Employee Severance
 
Goodwill and Intangible Assets
 
Other
 
Total
Gross charges in fiscal 2011
 
$
453

 
$
247

 
$
71

 
$
28

 
$
799

Cash payments
 
(436
)
 
(13
)
 
—

 
—

 
(449
)
Non-cash items
 
—

 
—

 
(71
)
 
(17
)
 
(88
)
BALANCE AT JULY 30, 2011
 
$
17

 
$
234

 
$
—

 
$
11

 
$
262

Gross charges in fiscal 2012
 
—

 
299

 
—

 
54

 
353

Change in estimate related to fiscal 2011 charges
 
—

 
(49
)
 
—

 
—

 
(49
)
Cash payments
 
(17
)
 
(401
)
 
—

 
(18
)
 
(436
)
Non-cash items
 
—

 
—

 
—

 
(20
)
 
(20
)
BALANCE AT JULY 28, 2012
 
$
—

 
$
83


$
—


$
27


$
110

Charges in fiscal 2013
 
—

 
111

 
—

 
(6
)
 
105

Cash payments
 
—

 
(164
)
 
—

 
(10
)
 
(174
)
Non-cash items
 
—

 
—

 
—

 
(3
)
 
(3
)
BALANCE AT APRIL 27, 2013
 
$
—

 
$
30

 
$
—

 
$
8

 
$
38

Balance Sheet Details (Tables)
Balance Sheet Details
The following tables provide details of selected balance sheet items (in millions):
 
 
April 27,
2013
 
July 28,
2012
Inventories:
 
 
 
 
Raw materials
 
$
81

 
$
127

Work in process
 
38

 
35

Finished goods:
 
 
 
 
Distributor inventory and deferred cost of sales
 
679

 
630

Manufactured finished goods
 
378

 
597

Total finished goods
 
1,057

 
1,227

Service-related spares
 
253

 
213

Demonstration systems
 
40

 
61

 
 
 
 
 
Total
 
$
1,469

 
$
1,663

 
 
 
 
 
Property and equipment, net:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,437

 
$
4,363

Computer equipment and related software
 
1,392

 
1,469

Production, engineering, and other equipment
 
5,655

 
5,364

Operating lease assets (1)
 
299

 
300

Furniture and fixtures
 
497

 
487

 
 
12,280

 
11,983

Less accumulated depreciation and amortization (1)
 
(8,950
)
 
(8,581
)
Total
 
$
3,330

 
$
3,402

 
 
 
 
 
(1)      Accumulated depreciation related to operating lease assets was $185 and $181 as of April 27, 2013 and July 28, 2012, respectively.
 
 
 
 
 
 Other assets:
 
 
 
 
Deferred tax assets
 
$
1,787

 
$
2,270

Investments in privately held companies
 
835

 
858

Other
 
829

 
754

Total
 
$
3,451

 
$
3,882

 
 
 
 
 
Deferred revenue:
 
 
 
 
Service
 
$
8,705

 
$
9,173

Product:
 
 
 
 
Unrecognized revenue on product shipments and other deferred revenue
 
3,257

 
2,975

Cash receipts related to unrecognized revenue from two-tier distributors
 
723

 
732

Total product deferred revenue
 
3,980

 
3,707

Total
 
$
12,685

 
$
12,880

Reported as:
 
 
 
 
Current
 
$
9,055

 
$
8,852

Noncurrent
 
3,630

 
4,028

Total
 
$
12,685

 
$
12,880

Financing Receivables And Guarantees (Tables)
Financing Receivables 
A summary of the Company’s financing receivables is presented as follows (in millions):
April 27, 2013
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total Financing Receivables
Gross
$
3,764

 
$
1,671

 
$
2,924

 
$
8,359

Unearned income
(286
)
 
—

 
—

 
(286
)
Allowance for credit loss
(245
)
 
(93
)
 
(19
)
 
(357
)
Total, net
$
3,233

 
$
1,578

 
$
2,905

 
$
7,716

Reported as:
 
 
 
 
 
 
 
Current
$
1,400

 
$
900

 
$
1,578

 
$
3,878

Noncurrent
1,833

 
678

 
1,327

 
3,838

Total, net
$
3,233

 
$
1,578

 
$
2,905

 
$
7,716

July 28, 2012
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total Financing Receivables
Gross
$
3,429

 
$
1,796

 
$
2,651

 
$
7,876

Unearned income
(250
)
 
—

 
—

 
(250
)
Allowance for credit loss
(247
)
 
(122
)
 
(11
)
 
(380
)
Total, net
$
2,932

 
$
1,674

 
$
2,640

 
$
7,246

Reported as:
 
 
 
 
 
 
 
Current
$
1,200

 
$
968

 
$
1,493

 
$
3,661

Noncurrent
1,732

 
706

 
1,147

 
3,585

Total, net
$
2,932

 
$
1,674

 
$
2,640

 
$
7,246

Contractual Maturities Of The Gross Lease Receivables 
Contractual maturities of the gross lease receivables at April 27, 2013 are summarized as follows (in millions):
Fiscal Year
 
Amount
2013 (remaining three months)
 
$
516

2014
 
1,477

2015
 
957

2016
 
535

2017
 
234

Thereafter
 
45

Total
 
$
3,764

Schedule Of Internal Credit Risk Rating For Each Portfolio Segment 
Financing receivables categorized by the Company's internal credit risk rating as of April 27, 2013 and July 28, 2012 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
 
 
 
 
 
 
April 27, 2013
1 to 4
 
5 to 6
 
7 and Higher
 
Total
 
Residual Value
 
Gross Receivables,
Net of Unearned Income
Lease receivables
$
1,654

 
$
1,476

 
$
87

 
$
3,217

 
$
261

 
$
3,478

Loan receivables
859

 
779

 
33

 
1,671

 
—

 
1,671

Financed service contracts and other
1,620

 
1,160

 
144

 
2,924

 
—

 
2,924

Total
$
4,133

 
$
3,415

 
$
264

 
$
7,812

 
$
261

 
$
8,073

 
INTERNAL CREDIT RISK RATING
 
 
 
 
 
 
July 28, 2012
1 to 4
 
5 to 6
 
7 and Higher
 
Total
 
Residual Value
 
Gross Receivables,
Net of Unearned Income
Lease receivables
$
1,532

 
$
1,342

 
$
31

 
$
2,905

 
$
274

 
$
3,179

Loan receivables
831

 
921

 
44

 
1,796

 
—

 
1,796

Financed service contracts and other
1,552

 
1,030

 
69

 
2,651

 
—

 
2,651

Total
$
3,915

 
$
3,293

 
$
144

 
$
7,352

 
$
274

 
$
7,626

Schedule Of Financing Receivables By Portfolio Segment And Class Aging Analysis 
The following tables present the aging analysis of financing receivables as of April 27, 2013 and July 28, 2012 (in millions):
 
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
April 27, 2013
31-60
 
61-90 
 
91+
 
Total Past Due
 
Current
 
Gross Receivables,
Net of Unearned Income
 
Non-Accrual Financing Receivables
 
Impaired Financing Receivables
Lease receivables
$
119

 
$
45

 
$
216

 
$
380

 
$
3,098

 
$
3,478

 
$
23

 
$
17

Loan receivables
26

 
2

 
12

 
40

 
1,631

 
1,671

 
11

 
11

Financed service contracts and other
79

 
243

 
424

 
746

 
2,178

 
2,924

 
20

 
10

Total
$
224

 
$
290

 
$
652

 
$
1,166

 
$
6,907

 
$
8,073

 
$
54

 
$
38

 
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 28, 2012
31-60
 
61-90 
 
91+
 
Total Past Due
 
Current
 
Gross Receivables,
Net of Unearned Income
 
Non-Accrual Financing Receivables
 
Impaired Financing Receivables
Lease receivables
$
151

 
$
69

 
$
173

 
$
393

 
$
2,786

 
$
3,179

 
$
23

 
$
14

Loan receivables
10

 
8

 
11

 
29

 
1,767

 
1,796

 
4

 
4

Financed service contracts and other
89

 
68

 
392

 
549

 
2,102

 
2,651

 
18

 
10

Total
$
250

 
$
145

 
$
576

 
$
971

 
$
6,655

 
$
7,626

 
$
45

 
$
28

Allowance For Credit Loss And Related Financing Receivables 
The allowances for credit loss and the related financing receivables are summarized as follows (in millions):

 
CREDIT LOSS ALLOWANCES
Three Months Ended April 27, 2013
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of January 26, 2013
$
247

 
$
101

 
$
13

 
$
361

Provisions
30

 
8

 
6

 
44

Write-offs net of recoveries
(29
)
 
(15
)
 
—

 
(44
)
Foreign exchange and other
(3
)
 
(1
)
 
—

 
(4
)
Allowance for credit loss as of April 27, 2013
$
245

 
$
93

 
$
19

 
$
357

Gross receivables as of April 27, 2013, net of unearned income
$
3,478

 
$
1,671

 
$
2,924

 
$
8,073


 
CREDIT LOSS ALLOWANCES
Nine Months Ended April 27, 2013
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of July 28, 2012
$
247

 
$
122

 
$
11

 
$
380

Provisions
27

 
(15
)
 
8

 
20

Write-offs net of recoveries
(29
)
 
(15
)
 
—

 
(44
)
Foreign exchange and other
—

 
1

 
—

 
1

Allowance for credit loss as of April 27, 2013
$
245

 
$
93

 
$
19

 
$
357

Gross receivables as of April 27, 2013, net of unearned income
$
3,478

 
$
1,671

 
$
2,924

 
$
8,073


 
CREDIT LOSS ALLOWANCES
Three Months Ended April 28, 2012
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of January 28, 2012
$
250

 
$
110

 
$
9

 
$
369

Provisions
3

 
7

 
2

 
12

Write-offs net of recoveries
(1
)
 
—

 
—

 
(1
)
Foreign exchange and other
—

 
1

 
—

 
1

Allowance for credit loss as of April 28, 2012
$
252

 
$
118

 
$
11

 
$
381

Gross receivables as of April 28, 2012, net of unearned income
$
3,153

 
$
1,827

 
$
2,628

 
$
7,608


 
CREDIT LOSS ALLOWANCES
Nine Months Ended April 28, 2012
Lease Receivables
 
Loan Receivables
 
Financed Service Contracts and Other
 
Total
Allowance for credit loss as of July 30, 2011
$
237

 
$
103

 
$
27

 
$
367

Provisions
23

 
16

 
(14
)
 
25

Write-offs net of recoveries
(1
)
 
—

 
—

 
(1
)
Foreign exchange and other
(7
)
 
(1
)
 
(2
)
 
(10
)
Allowance for credit loss as of April 28, 2012
$
252

 
$
118

 
$
11

 
$
381

Gross receivables as of April 28, 2012, net of unearned income
$
3,153

 
$
1,827

 
$
2,628

 
$
7,608


Financing Guarantees 
Financing Guarantee Summary  The aggregate amounts of financing guarantees outstanding at April 27, 2013 and July 28, 2012, representing the total maximum potential future payments under financing arrangements with third parties along with the related deferred revenue, are summarized in the following table (in millions):
 
April 27,
2013
 
July 28,
2012
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
391

 
$
277

End user
255

 
232

Total
$
646

 
$
509

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(227
)
 
$
(193
)
End user
(223
)
 
(200
)
Total
$
(450
)
 
$
(393
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
196

 
$
116

Investments (Tables)
Schedule of Available-for-sale Securities Reconciliation 
The following tables summarize the Company’s available-for-sale investments (in millions):
April 27, 2013
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
28,398

 
$
45

 
$
—

 
$
28,443

U.S. government agency securities
3,297

 
12

 
—

 
3,309

Non-U.S. government and agency securities
1,007

 
5

 
—

 
1,012

Corporate debt securities
7,325

 
104

 
(1
)
 
7,428

Total fixed income securities
40,027

 
166

 
(1
)
 
40,192

Publicly traded equity securities
1,530

 
548

 
(4
)
 
2,074

Total
$
41,557

 
$
714

 
$
(5
)
 
$
42,266

July 28, 2012
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Fair Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
24,201

 
$
41

 
$
(1
)
 
$
24,241

U.S. government agency securities
5,367

 
21

 
—

 
5,388

Non-U.S. government and agency securities
1,629

 
9

 
—

 
1,638

Corporate debt securities
5,959

 
74

 
(3
)
 
6,030

Total fixed income securities
37,156

 
145

 
(4
)
 
37,297

Publicly traded equity securities
1,107

 
524

 
(11
)
 
1,620

Total
$
38,263

 
$
669

 
$
(15
)
 
$
38,917

Schedule of Realized Gain (Loss) 
The following table presents the gross realized gains and gross realized losses related to the Company’s available-for-sale investments (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Gross realized gains
$
55

 
$
90

 
$
175

 
$
465

Gross realized losses
(49
)
 
(60
)
 
(129
)
 
(389
)
Total
$
6

 
$
30

 
$
46

 
$
76

The following table presents the realized net gains (losses) related to the Company's available-for-sale investments by security type (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Net gains (losses) on investments in publicly traded equity securities
$
(2
)
 
$
15

 
$
12

 
$
30

Net gains on investments in fixed income securities
8

 
15

 
34

 
46

         Total
$
6

 
$
30

 
$
46

 
$
76

Schedule of Unrealized Loss on Investments 
The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at April 27, 2013 and July 28, 2012 (in millions):
 
UNREALIZED LOSSES LESS THAN 12 MONTHS
 
UNREALIZED LOSSES 12 MONTHS OR GREATER
 
TOTAL
April 27, 2013
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Corporate debt securities
602

 
(1
)
 
—

 
—

 
602

 
(1
)
Total fixed income securities
602

 
(1
)
 
—

 
—

 
602

 
(1
)
Publicly traded equity securities
61

 
(4
)
 
—

 
—

 
61

 
(4
)
Total
$
663

 
$
(5
)
 
$
—

 
$
—

 
$
663

 
$
(5
)

 
UNREALIZED LOSSES LESS THAN 12 MONTHS
 
UNREALIZED LOSSES 12 MONTHS OR GREATER
 
TOTAL
July 28, 2012
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
 
Fair Value
 
Gross Unrealized Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
5,357

 
$
(1
)
 
$
—

 
$
—

 
$
5,357

 
$
(1
)
Corporate debt securities
603

 
(3
)
 
14

 
—

 
617

 
(3
)
Total fixed income securities
5,960

 
(4
)
 
14

 
—

 
5,974

 
(4
)
Publicly traded equity securities
167

 
(8
)
 
20

 
(3
)
 
187

 
(11
)
Total
$
6,127

 
$
(12
)
 
$
34

 
$
(3
)
 
$
6,161

 
$
(15
)
Investments Classified by Contractual Maturity Date 
The following table summarizes the maturities of the Company’s fixed income securities at April 27, 2013 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
16,460

 
$
16,479

Due in 1 to 2 years
12,155

 
12,202

Due in 2 to 5 years
11,272

 
11,363

Due after 5 years
140

 
148

Total
$
40,027

 
$
40,192

Fair Value (Tables)
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis 
Assets and liabilities measured at fair value on a recurring basis as of April 27, 2013 and July 28, 2012 were as follows (in millions):
 
APRIL 27, 2013
FAIR VALUE MEASUREMENTS
 
JULY 28, 2012
FAIR VALUE MEASUREMENTS
 
Level 1
 
Level 2
 
Level 3
 
Total Balance
 
Level 1
 
Level 2
 
Level 3
 
Total Balance
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Money market funds
$
3,339

 
$
—

 
$
—

 
$
3,339

 
$
2,506

 
$
—

 
$
—

 
$
2,506

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities
—

 
28,443

 
—

 
28,443

 
—

 
24,241

 
—

 
24,241

U.S. government agency securities
—

 
3,309

 
—

 
3,309

 
—

 
5,388

 
—

 
5,388

Non-U.S. government and agency securities
—

 
1,012

 
—

 
1,012

 
—

 
1,638

 
—

 
1,638

Corporate debt securities
—

 
7,428

 
—

 
7,428

 
—

 
6,030

 
—

 
6,030

Publicly traded equity securities
2,074

 
—

 
—

 
2,074

 
1,620

 
—

 
—

 
1,620

Derivative assets
—

 
234

 
—

 
234

 
—

 
263

 
1

 
264

Total
$
5,413

 
$
40,426

 
$
—

 
$
45,839

 
$
4,126

 
$
37,560

 
$
1

 
$
41,687

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$
—

 
$
94

 
$
—

 
$
94

 
$
—

 
$
42

 
$
—

 
$
42

Total
$
—

 
$
94

 
$
—

 
$
94

 
$
—

 
$
42

 
$
—

 
$
42

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation 
The following table presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine months ended April 28, 2012 (in millions):
 
Asset-Backed Securities
 
Derivative Assets
 
Total
Balance at July 30, 2011
$
121

 
$
2

 
$
123

Total gains and losses (realized and unrealized):
 
 
 
 
 
Included in other income (loss), net
3

 
—

 
3

Included in other comprehensive income (loss)
(3
)
 
—

 
(3
)
Sales and maturities
(14
)
 
(1
)
 
(15
)
Transfer into Level 2
(107
)
 
—

 
(107
)
Balance at April 28, 2012
$
—

 
$
1

 
$
1

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis 
The following tables present the Company’s financial instruments and nonfinancial assets that were measured at fair value on a nonrecurring basis during the indicated periods and the related recognized gains and losses for the periods (in millions):
 
 
April 27, 2013
 
 
Net Carrying Value as of End of Period
 
Gains (Losses) for the Three Months Ended
 
Gains (Losses) for the Nine Months Ended
Assets held for sale
 
$
72

 
$
44

 
$
44

Investments in privately held companies
 
$
66

 
(5
)
 
(23
)
Gains on assets no longer held at period end
 
 
 
34

 
34

Net gains for nonrecurring measurements
 
 
 
$
73

 
$
55


 
 
April 28, 2012
 
 
Net Carrying Value as of End of Period
 
Losses for the Three Months Ended
 
Gains (Losses) for the Nine Months Ended
Assets held for sale
 
$
52

 
$
(76
)
 
$
(192
)
Investments in privately held companies
 
$
17

 
(15
)
 
(17
)
Gains on assets no longer held at period end
 
 
 
—

 
14

Net losses for nonrecurring measurements
 
 
 
$
(91
)
 
$
(195
)
Borrowings (Tables)
Schedule Of Short-Term Debt 
The following table summarizes the Company’s short-term debt (in millions, except percentages):
 
April 27, 2013
 
July 28, 2012
 
Amount
 
Weighted-Average Interest Rate
 
Amount
 
Weighted-Average Interest Rate
Current portion of long-term debt
$
3,279

 
0.64
%
 
$
—

 
—
%
Other notes and borrowings
13

 
9.60
%
 
31

 
6.72
%
Total short-term debt
$
3,292

 
 
 
$
31

 
 
Schedule Of Long-Term Debt 
The following table summarizes the Company's long-term debt (in millions, except percentages):
 
April 27, 2013
 
July 28, 2012
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior Notes:
 
 
 
 
 
 
 
Floating-rate notes, due 2014
$
1,250

 
0.63%
 
$
1,250

 
0.81%
1.625% fixed-rate notes, due 2014
2,000

 
0.65%
 
2,000

 
0.84%
2.90% fixed-rate notes, due 2014
500

 
3.11%
 
500

 
3.11%
5.50% fixed-rate notes, due 2016
3,000

 
3.07%
 
3,000

 
3.16%
3.15% fixed-rate notes, due 2017
750

 
0.85%
 
750

 
1.03%
4.95% fixed-rate notes, due 2019
2,000

 
5.08%
 
2,000

 
5.08%
4.45% fixed-rate notes, due 2020
2,500

 
4.50%
 
2,500

 
4.50%
5.90% fixed-rate notes, due 2039
2,000

 
6.11%
 
2,000

 
6.11%
5.50% fixed-rate notes, due 2040
2,000

 
5.67%
 
2,000

 
5.67%
Total
16,000

 
 
 
16,000

 
 
Other long-term debt
10

 
0.19%
 
10

 
0.19%
Unaccreted discount
(66
)
 
 
 
(70
)
 
 
Hedge accounting fair value adjustments
291

 
 
 
357

 
 
Total
16,235

 
 
 
16,297

 
 
Less: current portion of long-term debt
(3,279
)
 
0.64%
 
—

 
 
Total long-term debt
$
12,956

 
 
 
$
16,297

 
 
Schedule Of Principal Payments For Long-Term Debt 
As of April 27, 2013, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2013 (remaining three months)
$
—

2014
3,260

2015
500

2016
3,000

2017
750

Thereafter
8,500

Total
$
16,010

Derivative Instruments (Tables)
Derivatives Recorded At Fair Value 
The fair values of the Company's derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions):
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
 
Balance Sheet Line Item
 
April 27,
2013
 
July 28,
2012
 
Balance Sheet Line Item
 
April 27,
2013
 
July 28,
2012
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
17

 
$
24

 
Other current liabilities
 
$
2

 
$
26

Interest rate derivatives
Other assets
 
183

 
223

 
Other long-term liabilities
 
—

 
—

Equity derivatives
Other current assets
 
—

 
—

 
Other current liabilities
 
87

 
4

Total
 
 
200

 
247

 
 
 
89

 
30

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
34

 
16

 
Other current liabilities
 
5

 
12

Equity derivatives
Other assets
 
—

 
1

 
Other long-term liabilities
 
—

 
—

Total
 
 
34

 
17

 
 
 
5

 
12

Total
 
 
$
234

 
$
264

 
 
 
$
94

 
$
42

Gains And Losses On Derivatives Designated As Cash Flow Hedges 
The effects of the Company's cash flow and net investment hedging instruments on other comprehensive income (“OCI”) and the Consolidated Statements of Operations are summarized as follows (in millions):
GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
Derivatives designated as cash flow hedging instruments:
 
April 27,
2013
 
April 28,
2012
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
Foreign currency derivatives
 
$
(11
)
 
$
11

 
Operating expenses
 
$
3

 
$
(15
)
 
 
 
 
 
 
Cost of sales - service
 
1

 
(4
)
Interest rate derivatives
 
—

 
—

 
Interest expense
 
—

 
1

Total
 
$
(11
)
 
$
11

 
 
 
$
4

 
$
(18
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
20

 
$
—

 
Other income (loss), net
 
$
—

 
$
—


GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
NINE MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
NINE MONTHS ENDED (EFFECTIVE PORTION)
Derivatives designated as cash flow hedging instruments:
 
April 27,
2013
 
April 28,
2012
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
Foreign currency derivatives
 
$
58

 
$
(83
)
 
Operating expenses
 
$
5

 
$
(37
)
 
 
 
 
 
 
Cost of sales - service
 
2

 
(8
)
Interest rate derivatives
 
—

 
—

 
Interest expense
 
—

 
1

Total
 
$
58

 
$
(83
)
 
 
 
$
7

 
$
(44
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(4
)
 
$
(6
)
 
Other income (loss), net
 
$
—

 
$
—

Schedule Of Derivative Fair Value Hedge Instruments Gain Loss In Statement Of Financial Performance [Text Block] 
The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the underlying hedged items is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) ON DERIVATIVES
INSTRUMENTS FOR THE THREE MONTHS ENDED
 
GAINS (LOSSES) RELATED TO HEDGED
ITEMS FOR THE THREE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Equity derivatives
 
Other income (loss), net
 
$
(45
)
 
$
—

 
$
45

 
$
—

Interest rate derivatives
 
Interest expense
 
(11
)
 
(16
)
 
11

 
16

Total
 
 
 
$
(56
)
 
$
(16
)
 
$
56

 
$
16



 
 
 
 
GAINS (LOSSES) ON DERIVATIVES
INSTRUMENTS FOR THE NINE MONTHS ENDED
 
GAINS (LOSSES) RELATED TO HEDGED
ITEMS FOR THE NINE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Equity derivatives
 
Other income (loss), net
 
$
(87
)
 
$
—

 
$
87

 
$
—

Interest rate derivatives
 
Interest expense
 
(40
)
 
60

 
40

 
(62
)
Total
 
 
 
$
(127
)
 
$
60

 
$
127

 
$
(62
)
Effect Of Derivative Instruments Not Designated As Fair Value Hedges On Consolidated Statement Of Operations Summary 
The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) FOR THE THREE MONTHS ENDED
 
GAINS (LOSSES) FOR THE NINE MONTHS ENDED
Derivatives Not Designated as Hedging Instruments
 
Line Item in Statements of Operations
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Foreign currency derivatives
 
Other income (loss), net
 
$
(90
)
 
$
20

 
$
(78
)
 
$
(125
)
Total return swaps - deferred compensation
 
Cost of sales
 
—

 
1

 
—

 
4

 
 
Operating expenses
 
12

 
6

 
45

 
(4
)
Equity derivatives
 
Other income (loss), net
 
(6
)
 
7

 
6

 
(4
)
Total
 
 
 
$
(84
)
 
$
34

 
$
(27
)
 
$
(129
)
Schedule Of Notional Amounts Of Derivatives Outstanding 
The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
April 27,
2013
 
July 28,
2012
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives - cash flow hedges
$
1,067

 
$
2,910

Interest rate derivatives
4,250

 
4,250

Net investment hedging instruments
586

 
468

Equity derivatives
629

 
272

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
4,314

 
6,241

Total return swaps-deferred compensation
322

 
269

Total
$
11,168

 
$
14,410

Commitments And Contingencies (Tables)
Schedule Of Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases 
Future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of April 27, 2013 are as follows (in millions):
Fiscal Year
Amount
2013 (remaining three months)
$
92

2014
299

2015
240

2016
121

2017
80

Thereafter
224

Total
$
1,056

Schedule Of Product Warranty Liability 
The following table summarizes the activity related to product warranty liability during the nine months ended April 27, 2013 and April 28, 2012 (in millions):
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
Balance at beginning of period
$
415

 
$
342

Provision for warranties issued
494

 
474

Payments
(478
)
 
(426
)
Balance at end of period
$
431

 
$
390

Shareholders' Equity (Tables)
Stock Repurchase Program 
A summary of the stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts):
 
Shares Repurchased
 
Weighted- Average Price per Share
 
Amount Repurchased
Cumulative balance at July 28, 2012
3,740

 
$
20.36

 
$
76,133

Repurchase of common stock under the stock repurchase program
81

 
19.81

 
1,613

Cumulative balance at April 27, 2013
3,821

 
$
20.35

 
$
77,746

Components Of AOCI, Net Of Tax 
The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the nine months ended April 27, 2013 and April 28, 2012 are summarized as follows (in millions):
 
Net Unrealized Gains on Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Other
 
Accumulated Other Comprehensive Income
BALANCE AT JULY 28, 2012
$
409

 
$
(53
)
 
$
305

 
$
661

Other comprehensive income (loss) attributable to Cisco Systems, Inc.
(15
)
 
51

 
(8
)
 
28

BALANCE AT APRIL 27, 2013
$
394

 
$
(2
)
 
$
297

 
$
689

 
 
 
 
 
 
 
 
 
Net Unrealized Gains on Investments
 
Net Unrealized Gains (Losses) Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Other
 
Accumulated Other Comprehensive Income
BALANCE AT JULY 30, 2011
$
487

 
$
6

 
$
801

 
$
1,294

Other comprehensive income (loss) attributable to Cisco Systems, Inc.
19

 
(39
)
 
(296
)
 
(316
)
BALANCE AT APRIL 28, 2012
$
506

 
$
(33
)
 
$
505

 
$
978

 
 
 
 
 
 
 
 
Employee Benefit Plans (Tables)
Summary Of Share-Based Compensation Expense 
Share-based compensation expense consists primarily of expenses for stock options, stock purchase rights, restricted stock, and restricted stock units granted to employees. The following table summarizes share-based compensation expense (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Cost of sales - product
$
10

 
$
12

 
$
31

 
$
39

Cost of sales - service
34

 
39

 
105

 
116

Share-based compensation expense in cost of sales
44

 
51

 
136

 
155

Research and development
72

 
97

 
228

 
297

Sales and marketing
118

 
138

 
383

 
429

General and administrative
38

 
51

 
136

 
153

Restructuring and other charges
—

 
—

 
(3
)
 
(2
)
Share-based compensation expense in operating expenses
228

 
286

 
744

 
877

Total share-based compensation expense
$
272

 
$
337

 
$
880

 
$
1,032

Share-Based Awards Available for Grant [Table Text Block] 
A summary of share-based awards available for grant is as follows (in millions):
 
Share-Based Awards Available for Grant
BALANCE AT JULY 30, 2011
255

Restricted stock, stock units, and other share-based awards granted
(95
)
Share-based awards canceled/forfeited/expired
64

Other
(6
)
BALANCE AT JULY 28, 2012
218

Restricted stock, stock units, and other share-based awards granted
(84
)
Share-based awards canceled/forfeited/expired
103

Other
(3
)
BALANCE AT APRIL 27, 2013
234

Summary Of Restricted Stock And Stock Unit Activity 
A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based restricted stock units, is as follows (in millions, except per-share amounts):
 
Restricted Stock/Stock Units
 
Weighted-Average Grant Date Fair Value per Share
 
Aggregated Fair Market Value
UNVESTED BALANCE AT JULY 30, 2011
116

 
$
21.50

 
 
Granted and assumed
65

 
17.45

 
 
Vested
(35
)
 
21.94

 
$
580

Canceled/forfeited
(18
)
 
20.38

 
 
UNVESTED BALANCE AT JULY 28, 2012
128

 
19.46

 
 
Granted and assumed
58

 
17.57

 
 
Vested
(37
)
 
20.68

 
$
716

Canceled/forfeited
(8
)
 
18.94

 
 
UNVESTED BALANCE AT APRIL 27, 2013
141

 
$
18.39

 
 
Valuation of RSU (Excluding Market-Based RSU) ( [Table Text Block] 
The assumptions for the valuation of RSUs are summarized as follows:
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Expected dividend yield
2.7%
 
1.6%
 
3.0%
 
1.4%
Range of risk-free interest rates
0.1% - 0.9%
 
0.0% - 1.1%
 
0.0% - 0.9%
 
0.0% - 1.1%
Summary Of Stock Option Activity 
A summary of the stock option activity is as follows (in millions, except per-share amounts):
 
STOCK OPTIONS OUTSTANDING
 
Number Outstanding
 
Weighted-Average Exercise Price per Share
BALANCE AT JULY 30, 2011
621

 
$
21.79

Assumed from acquisitions
1

 
2.08

Exercised
(66
)
 
13.51

Canceled/forfeited/expired
(36
)
 
23.40

BALANCE AT JULY 28, 2012
520

 
22.68

Assumed from acquisitions
7

 
0.92

Exercised
(57
)
 
16.71

Canceled/forfeited/expired
(90
)
 
21.70

BALANCE AT APRIL 27, 2013
380

 
$
23.42

Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options 
The following table summarizes significant ranges of outstanding and exercisable stock options as of April 27, 2013 (in millions, except years and share prices):
 
STOCK OPTIONS OUTSTANDING
 
STOCK OPTIONS EXERCISABLE
Range of Exercise Prices
Number Outstanding
 
Weighted-Average Remaining Contractual Life
(in Years)
 
Weighted-Average Exercise Price per Share
 
Aggregate Intrinsic Value
 
Number Exercisable
 
Weighted-Average Exercise Price per Share
 
Aggregate Intrinsic Value
$  0.01 – 15.00
9

 
5.88
 
$
4.77

 
$
149

 
6

 
$
7.38

 
$
70

15.01 – 18.00
60

 
1.42
 
17.79

 
173

 
60

 
17.79

 
173

18.01 – 20.00
68

 
0.66
 
19.17

 
100

 
67

 
19.17

 
101

20.01 – 25.00
121

 
2.33
 
22.74

 
2

 
121

 
22.74

 
2

25.01 – 35.00
122

 
3.37
 
30.69

 
—

 
121

 
30.70

 
—

Total
380

 
2.31
 
$
23.42

 
$
424

 
375

 
$
23.66

 
$
346

Income Taxes (Tables)
Income tax provision [Table Text Block]
The following table provides details of income taxes (in millions, except percentages):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Income before provision for income taxes
$
2,945

 
$
2,779

 
$
8,356

 
$
7,773

Provision for income taxes
$
467

 
$
614

 
$
643

 
$
1,649

Effective tax rate
15.9
%
 
22.1
%
 
7.7
%
 
21.2
%
Segment Information And Major Customers (Tables)
Reportable Segments 
Summarized financial information by segment for the three and nine months ended April 27, 2013 and April 28, 2012, based on the Company's internal management system and as utilized by the Company's Chief Operating Decision Maker (“CODM”), is as follows (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013

April 28,
2012
Net sales:
 
 
 
 
 
 
 
Americas
$
7,127

 
$
6,466

 
$
21,286

 
$
19,606

EMEA
3,131

 
3,160

 
9,065

 
9,255

APJC
1,958

 
1,962

 
5,839

 
5,510

Total
$
12,216

 
$
11,588

 
$
36,190

 
$
34,371

Gross margin:
 
 
 
 
 
 
 
Americas
4,460

 
4,053

 
13,341

 
12,319

EMEA
2,044

 
2,019

 
5,850

 
5,868

APJC
1,197

 
1,242

 
3,494

 
3,342

Segment total
7,701

 
7,314

 
22,685

 
21,529

Unallocated corporate items
(190
)
 
(145
)
 
(592
)
 
(405
)
Total
$
7,511

 
$
7,169

 
$
22,093

 
$
21,124

Segment Reporting Product And Services Net Sales [Text Block] 
The following table presents net sales for groups of similar products and services (in millions):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Net sales:
 
 
 
 
 
 
 
Switching
$
3,598

 
$
3,661

 
$
10,938

 
$
10,969

NGN Routing
2,140

 
2,134

 
6,138

 
6,296

Service Provider Video
1,299

 
999

 
3,667

 
2,896

Collaboration
1,013

 
1,022

 
2,978

 
3,190

Data Center
515

 
291

 
1,480

 
883

Wireless
523

 
413

 
1,529

 
1,175

Security
327

 
342

 
1,001

 
994

Other
144

 
244

 
562

 
773

Product
9,559

 
9,106

 
28,293

 
27,176

Service
2,657

 
2,482


7,897


7,195

Total
$
12,216

 
$
11,588

 
$
36,190

 
$
34,371

Summary of Property And Equipment Information For Geographic Areas [Text Block] 
Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in millions):
 
April 27,
2013
 
July 28,
2012
Property and equipment, net:
 
 
 
United States
$
2,760

 
$
2,842

International
570

 
560

Total
$
3,330

 
$
3,402

Net Income Per Share (Tables)
Calculation Of Basic And Diluted Net Income Per Share
The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts):
 
Three Months Ended
 
Nine Months Ended
 
April 27,
2013
 
April 28,
2012
 
April 27,
2013
 
April 28,
2012
Net income
$
2,478

 
$
2,165

 
$
7,713

 
$
6,124

Weighted-average shares - basic
5,329

 
5,388

 
5,316

 
5,383

Effect of dilutive potential common shares
58

 
68

 
45

 
35

Weighted-average shares - diluted
5,387

 
5,456

 
5,361

 
5,418

Net income per share - basic
$
0.47

 
$
0.40

 
$
1.45

 
$
1.14

Net income per share - diluted
$
0.46

 
$
0.40

 
$
1.44

 
$
1.13

Antidilutive employee share-based awards, excluded
245

 
295

 
417

 
538

Supplemental Information Additional Information (Detail) (USD $)
Share data in Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Supplementary Information[Line Items]
 
 
Aggregate Authorized Common Stock Repurchase
$ 82,000,000,000 
 
Repurchases of common stock under the repurchase program, shares
3,821 
3,740 
Repurchases of common stock under the repurchase program, value
77,746,000,000 
76,133,000,000 
Common Stock [Member]
 
 
Supplementary Information[Line Items]
 
 
Repurchases of common stock under the repurchase program, shares
3,821 
 
Common Stock Including Additional Paid in Capital [Member]
 
 
Supplementary Information[Line Items]
 
 
Repurchases of common stock under the repurchase program, value
17,647,000,000 
 
Retained Earnings [Member]
 
 
Supplementary Information[Line Items]
 
 
Repurchases of common stock under the repurchase program, value
60,099,000,000 
 
Parent [Member]
 
 
Supplementary Information[Line Items]
 
 
Repurchases of common stock under the repurchase program, value
$ 77,746,000,000 
 
Business Combinations (Summary Of Allocation Of Total Purchase Consideration) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Business Acquisition [Line Items]
 
Total purchase consideration
$ 1,580 
Goodwill
1,197 
Net Liabilities Assumed
(100)
Purchased Intangible Assets
483 
Meraki, Inc. [Member]
 
Business Acquisition [Line Items]
 
Total purchase consideration
974 
Goodwill
744 
Net Liabilities Assumed
(59)
Purchased Intangible Assets
289 
Intucell Ltd. [Member]
 
Business Acquisition [Line Items]
 
Total purchase consideration
360 
Goodwill
277 
Net Liabilities Assumed
(23)
Purchased Intangible Assets
106 
NDS Group Limited [Member]
 
Business Acquisition [Line Items]
 
Cash consideration to seller
4,012 
Repayments of assumed debt to third party creditors
993 
Total purchase consideration
5,005 
Cash and Cash Equivalents
98 
Accounts Receivable, net
199 
Other tangible assets
268 
Goodwill
3,444 
Deferred tax liabilities, net
(378)
Liabilities assumed
(372)
Purchased Intangible Assets
1,746 
All others (seven in total)
 
Business Acquisition [Line Items]
 
Total purchase consideration
246 
Goodwill
176 
Net Liabilities Assumed
(18)
Purchased Intangible Assets
$ 88 
Business Combinations - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Business Acquisition [Line Items]
 
 
Cash Acquired from Acquisition
$ 151 
 
Business Combination, Acquisition Related Costs
$ 23 
$ 9 
All others (seven in total)
 
 
Business Acquisition [Line Items]
 
 
Number of Businesses Acquired
9 
 
Goodwill And Purchased Intangible Assets - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Goodwill and Purchased Intangible Assets - Additional Information [Abstract]
 
 
 
 
Impairment of Intangible Assets (Excluding Goodwill)
$ 0 
$ 0 
$ 0 
$ 0 
Goodwill And Purchased Intangible Assets (Scedule Of Goodwill By Reportable Segments) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Goodwill [Roll Forward]
 
Balance, beginning
$ 16,998 
Other
1 
Balance, ending
21,640 
NDS Group Limited [Member]
 
Goodwill [Roll Forward]
 
Acquisitions
3,444 
All others (seven in total)
 
Goodwill [Roll Forward]
 
Acquisitions
1,197 
Americas [Member]
 
Goodwill [Roll Forward]
 
Balance, beginning
11,755 
Other
(8)
Balance, ending
13,618 
Americas [Member] |
NDS Group Limited [Member]
 
Goodwill [Roll Forward]
 
Acquisitions
1,230 
Americas [Member] |
All others (seven in total)
 
Goodwill [Roll Forward]
 
Acquisitions
641 
Europe Middle East And Africa [Member]
 
Goodwill [Roll Forward]
 
Balance, beginning
3,287 
Other
5 
Balance, ending
4,972 
Europe Middle East And Africa [Member] |
NDS Group Limited [Member]
 
Goodwill [Roll Forward]
 
Acquisitions
1,327 
Europe Middle East And Africa [Member] |
All others (seven in total)
 
Goodwill [Roll Forward]
 
Acquisitions
353 
Asia Pacific Japan And China [Member]
 
Goodwill [Roll Forward]
 
Balance, beginning
1,956 
Other
4 
Balance, ending
3,050 
Asia Pacific Japan And China [Member] |
NDS Group Limited [Member]
 
Goodwill [Roll Forward]
 
Acquisitions
887 
Asia Pacific Japan And China [Member] |
All others (seven in total)
 
Goodwill [Roll Forward]
 
Acquisitions
$ 203 
Goodwill And Purchased Intangible Assets (Schedule Of Intangible Assets Acquired Through Business Combinations) (Detail) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite and finite-lived intangible assets
$ 2,229 
IPR&D With Indefinite Lives [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite lives
144 
Technology [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired finite-lived
1,186 
Customer Relationships [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired finite-lived
871 
Finite Lived Intangible Other [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired finite-lived
28 
NDS Group Limited [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite and finite-lived intangible assets
1,746 
NDS Group Limited [Member] |
IPR&D With Indefinite Lives [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite lives
94 
NDS Group Limited [Member] |
Technology [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
6 years 4 months 24 days 
Amount, acquired finite-lived
807 
NDS Group Limited [Member] |
Customer Relationships [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
6 years 8 months 4 days 
Amount, acquired finite-lived
818 
NDS Group Limited [Member] |
Finite Lived Intangible Other [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
7 years 4 months 24 days 
Amount, acquired finite-lived
27 
Meraki, Inc. [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite and finite-lived intangible assets
289 
Meraki, Inc. [Member] |
IPR&D With Indefinite Lives [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite lives
0 
Meraki, Inc. [Member] |
Technology [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
8 years 
Amount, acquired finite-lived
259 
Meraki, Inc. [Member] |
Customer Relationships [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
6 years 
Amount, acquired finite-lived
30 
Meraki, Inc. [Member] |
Finite Lived Intangible Other [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired finite-lived
0 
Intucell Ltd. [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite and finite-lived intangible assets
106 
Intucell Ltd. [Member] |
IPR&D With Indefinite Lives [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite lives
36 
Intucell Ltd. [Member] |
Technology [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
5 years 
Amount, acquired finite-lived
59 
Intucell Ltd. [Member] |
Customer Relationships [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
5 years 
Amount, acquired finite-lived
11 
Intucell Ltd. [Member] |
Finite Lived Intangible Other [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired finite-lived
0 
All others (seven in total)
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite and finite-lived intangible assets
88 
All others (seven in total) |
IPR&D With Indefinite Lives [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Amount, acquired indefinite lives
14 
All others (seven in total) |
Technology [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
4 years 1 month 10 days 
Amount, acquired finite-lived
61 
All others (seven in total) |
Customer Relationships [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
6 years 3 months 25 days 
Amount, acquired finite-lived
12 
All others (seven in total) |
Finite Lived Intangible Other [Member]
 
Schedule Of Finite Lived And Indefinite Lived Intangible Assets Acquired Through Business Combinations [Line Items]
 
Weighted-Average Useful Life (in Years)
5 years 
Amount, acquired finite-lived
$ 1 
Goodwill And Purchased Intangible Assets (Schedule Of Purchased Intangible Assets With Finite And Indefinite Lives) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Business Acquisition [Line Items]
 
 
Gross
$ 5,387 
 
Accumulated Amortization
(1,979)
 
Net
3,408 
1,959 
Technology [Member]
 
 
Business Acquisition [Line Items]
 
 
Gross
3,500 
2,267 
Accumulated Amortization
(1,316)
(908)
Net
2,184 
1,359 
Customer Relationships [Member]
 
 
Business Acquisition [Line Items]
 
 
Gross
1,791 
2,261 
Accumulated Amortization
(640)
(1,669)
Net
1,151 
592 
Finite Lived Intangible Other [Member]
 
 
Business Acquisition [Line Items]
 
 
Gross
46 
49 
Accumulated Amortization
(23)
(41)
Net
23 
8 
Total Purchased Intangible Assets With Finite Lives [Member]
 
 
Business Acquisition [Line Items]
 
 
Gross
5,337 
4,577 
Accumulated Amortization
(1,979)
(2,618)
Net
3,358 
1,959 
In Process Research And Development With Indefinite Lives [Member]
 
 
Business Acquisition [Line Items]
 
 
Accumulated Amortization
0 
 
Gross In Process Research Development With Indefinite Lives
50 
 
Net In Process Research Development With Indefinite Lives
$ 50 
 
Goodwill And Purchased Intangible Assets (Schedule Of Amortization Of Purchased Intangible Assets) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of Purchased Intangible Assets
$ 245 
$ 204 
$ 773 
$ 595 
Cost of Sales [Member]
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of Purchased Intangible Assets
156 
108 
444 
303 
Operating Expenses [Member]
 
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
 
Amortization of Purchased Intangible Assets
$ 89 
$ 96 
$ 329 
$ 292 
Goodwill And Purchased Intangible Assets (Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
 
2013 (remaining three months)
$ 232 
2014
862 
2015
780 
2016
554 
2017
399 
Thereafter
531 
Total
$ 3,358 
Restructuring And Other Charges (Additional Information) (Detail) (USD $)
In Billions, unless otherwise specified
Apr. 27, 2013
Restructuring Charges [Abstract]
 
Pre Tax Restructuring Charge
$ 1.1 
Balance Sheet Details (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Inventories:
 
 
Raw materials
$ 81 
$ 127 
Work in process
38 
35 
Distributor inventory and deferred cost of sales
679 
630 
Manufactured finished goods
378 
597 
Total finished goods
1,057 
1,227 
Service-related spares
253 
213 
Demonstration systems
40 
61 
Total
1,469 
1,663 
Property and Equipment, net:
 
 
Land, buildings, and building & leasehold improvements
4,437 
4,363 
Computer equipment and related software
1,392 
1,469 
Production, engineering, and other equipment
5,655 
5,364 
Operating lease assets
299 1
300 1
Furniture and fixtures
497 
487 
Property, plant and equipment, gross
12,280 
11,983 
Less accumulated depreciation and amortization
(8,950)1
(8,581)1
Total
3,330 
3,402 
Other Assets:
 
 
Deferred tax assets
1,787 
2,270 
Investments in privately held companies
835 
858 
Other
829 
754 
Total
3,451 
3,882 
Deferred Revenue:
 
 
Deferred Revenue Services
8,705 
9,173 
Unrecognized revenue on product shipments and other deferred revenue
3,257 
2,975 
Cash receipts related to unrecognized revenue from two-tier distributors
723 
732 
Total product deferred revenue
3,980 
3,707 
Deferred Revenue
12,685 
12,880 
Current
9,055 
8,852 
Noncurrent
$ 3,630 
$ 4,028 
Balance Sheet Details (Parenthetical) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Disclosure Balance Sheet Details [Abstract]
 
 
Property Subject to or Available for Operating Lease, Accumulated Depreciation
$ 185 
$ 181 
Financing Receivables And Guarantees (Additional Information) (Detail) (USD $)
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
D
Apr. 28, 2012
Jul. 28, 2012
Financing Receivables And Guarantees [Line Items]
 
 
 
 
 
Deferred Service Revenue related to financed service contracts and other
$ 12,685,000,000 
 
$ 12,685,000,000 
 
$ 12,880,000,000 
Financing receivable, allowance for credit loss and deferred revenue
2,275,000,000 
 
2,275,000,000 
 
2,387,000,000 
Loans and Leases Receivable, Net of Deferred Income
8,073,000,000 
 
8,073,000,000 
 
7,626,000,000 
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
110,000,000 
 
110,000,000 
 
109,000,000 
Risk rating for receivables deemed to be impaired, minimum
 
 
8 
 
 
Channel partners revolving short-term financing payment term, minimum (days)
 
 
60 
 
 
Channel partners revolving short-term financing payment term, maximum (days)
 
 
90 
 
 
Volume of channel partner financing
5,800,000,000 
5,200,000,000 
17,200,000,000 
15,900,000,000 
 
Balance of the channel partner financing subject to guarantees
1,400,000,000 
 
1,400,000,000 
 
1,200,000,000 
End User Lease And Loan Term Maximum
 
 
3 years 
 
 
Financing provided by third parties for leases and loans on which the Company has provided guarantees
38,000,000 
99,000,000 
137,000,000 
194,000,000 
 
Internal Credit Rating [Member]
 
 
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
 
 
Investment-Grade Ratings Range Lowest
 
 
1 
 
 
Investment-Grade Ratings Range Highest
 
 
4 
 
 
Noninvestment-Grade Ratings Range Lowest
 
 
5 
 
 
Noninvestment-Grade Ratings Range Highest
 
 
6 
 
 
Substandard Ratings Range
 
 
7 
 
 
Lease Receivables [Member]
 
 
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
 
 
Average term of lease and loan arrangements, years
 
 
4 years 
 
 
Unbilled Or Current In Greater Than Ninety Days Past Due
175,000,000 
 
175,000,000 
 
139,000,000 
Loans Receivable [Member]
 
 
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
 
 
Term Of Loan Receivable Arrangement
 
 
3 years 
 
 
Unbilled Or Current In Greater Than Ninety Days Past Due
6,000,000 
 
6,000,000 
 
3,000,000 
Financed Service Contracts And Other [Member]
 
 
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
 
 
Revenue recognition range, low end, in years
 
 
1 year 
 
 
Revenue recognition range, high end, in years
 
 
3 years 
 
 
Deferred Service Revenue related to financed service contracts and other
1,825,000,000 
 
1,825,000,000 
 
1,838,000,000 
Unbilled Or Current In Greater Than Ninety Days Past Due
$ 334,000,000 
 
$ 334,000,000 
 
$ 313,000,000 
Financing Receivables And Guarantees (Schedule Of Financing Receivables) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Noncurrent
$ 3,838 
$ 3,585 
Financing Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Financing Receivable, Gross
8,359 
7,876 
Unearned income
(286)
(250)
Allowance for Credit Losses
(357)
(380)
Current
3,878 
3,661 
Noncurrent
3,838 
3,585 
Total, net
7,716 
7,246 
Lease Receivables [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Financing Receivable, Gross
3,764 
3,429 
Unearned income
(286)
(250)
Allowance for Credit Losses
(245)
(247)
Current
1,400 
1,200 
Noncurrent
1,833 
1,732 
Total, net
3,233 
2,932 
Loan Receivables [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Financing Receivable, Gross
1,671 
1,796 
Unearned income
0 
0 
Allowance for Credit Losses
(93)
(122)
Current
900 
968 
Noncurrent
678 
706 
Total, net
1,578 
1,674 
Financed Service Contracts And Other [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Financing Receivable, Gross
2,924 
2,651 
Unearned income
0 
0 
Allowance for Credit Losses
(19)
(11)
Current
1,578 
1,493 
Noncurrent
1,327 
1,147 
Total, net
$ 2,905 
$ 2,640 
Financing Receivables And Guarantees (Contractual Maturities Of The Gross Lease Receivables) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Financing Receivable, Recorded Investment [Line Items]
 
2013 (remaining three months)
$ 516 
2014
1,477 
2015
957 
2016
535 
2017
234 
Thereafter
45 
Total
$ 3,764 
Financing Receivables And Guarantees (Schedule Of Financing Receivables Categorized By Internal Credit Risk Rating) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Apr. 28, 2012
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
$ 8,073 
$ 7,626 
 
Lease Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
3,478 
3,179 
3,153 
Loan Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
1,671 
1,796 
1,827 
Financed Service Contracts And Other [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
2,924 
2,651 
2,628 
Rating One To Four [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
4,133 
3,915 
 
Rating One To Four [Member] |
Lease Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
1,654 
1,532 
 
Rating One To Four [Member] |
Loan Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
859 
831 
 
Rating One To Four [Member] |
Financed Service Contracts And Other [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
1,620 
1,552 
 
Rating Five To Six [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
3,415 
3,293 
 
Rating Five To Six [Member] |
Lease Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
1,476 
1,342 
 
Rating Five To Six [Member] |
Loan Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
779 
921 
 
Rating Five To Six [Member] |
Financed Service Contracts And Other [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
1,160 
1,030 
 
Rating Seven And Higher [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
264 
144 
 
Rating Seven And Higher [Member] |
Lease Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
87 
31 
 
Rating Seven And Higher [Member] |
Loan Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
33 
44 
 
Rating Seven And Higher [Member] |
Financed Service Contracts And Other [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
144 
69 
 
Total Internal Credit Risk Rating [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
7,812 
7,352 
 
Total Internal Credit Risk Rating [Member] |
Lease Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
3,217 
2,905 
 
Total Internal Credit Risk Rating [Member] |
Loan Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
1,671 
1,796 
 
Total Internal Credit Risk Rating [Member] |
Financed Service Contracts And Other [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Gross receivables, net of unearned income
2,924 
2,651 
 
Residual Value [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Capital Leases, Net Investment in Direct Financing Leases, Unguaranteed Residual Values of Leased Property
261 
274 
 
Residual Value [Member] |
Lease Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Capital Leases, Net Investment in Direct Financing Leases, Unguaranteed Residual Values of Leased Property
261 
274 
 
Residual Value [Member] |
Loan Receivables [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Capital Leases, Net Investment in Direct Financing Leases, Unguaranteed Residual Values of Leased Property
0 
0 
 
Residual Value [Member] |
Financed Service Contracts And Other [Member]
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Capital Leases, Net Investment in Direct Financing Leases, Unguaranteed Residual Values of Leased Property
$ 0 
$ 0 
 
Financing Receivables And Guarantees (Schedule Of Financing Receivables By Portfolio Segment And Class Aging Analysis) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
31-60 days past due
$ 224 
$ 250 
61-90 days past due
290 
145 
91 days past due
652 
576 
Total Past Due
1,166 
971 
Current
6,907 
6,655 
Gross receivables, net of unearned income
8,073 
7,626 
Non-accrual financing receivables
54 
45 
Impaired Financing Receivables
38 
28 
Lease Receivables [Member]
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
31-60 days past due
119 
151 
61-90 days past due
45 
69 
91 days past due
216 
173 
Total Past Due
380 
393 
Current
3,098 
2,786 
Gross receivables, net of unearned income
3,478 
3,179 
Non-accrual financing receivables
23 
23 
Impaired Financing Receivables
17 
14 
Loan Receivables [Member]
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
31-60 days past due
26 
10 
61-90 days past due
2 
8 
91 days past due
12 
11 
Total Past Due
40 
29 
Current
1,631 
1,767 
Gross receivables, net of unearned income
1,671 
1,796 
Non-accrual financing receivables
11 
4 
Impaired Financing Receivables
11 
4 
Financed Service Contracts And Other [Member]
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
31-60 days past due
79 
89 
61-90 days past due
243 
68 
91 days past due
424 
392 
Total Past Due
746 
549 
Current
2,178 
2,102 
Gross receivables, net of unearned income
2,924 
2,651 
Non-accrual financing receivables
20 
18 
Impaired Financing Receivables
$ 10 
$ 10 
Financing Receivables And Guarantees (Schedule Of Financing Guarantees Outstanding) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Financing Guarantee Summary [Line Items]
 
 
Maximum potential future payments relating to financing guarantees
$ 646 
$ 509 
Deferred revenue associated with financing guarantees
(450)
(393)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
196 
116 
Channel Partner [Member]
 
 
Financing Guarantee Summary [Line Items]
 
 
Maximum potential future payments relating to financing guarantees
391 
277 
Deferred revenue associated with financing guarantees
(227)
(193)
End User [Member]
 
 
Financing Guarantee Summary [Line Items]
 
 
Maximum potential future payments relating to financing guarantees
255 
232 
Deferred revenue associated with financing guarantees
$ (223)
$ (200)
Investments - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Jul. 28, 2012
Disclosure Investments Additional Information [Abstract]
 
 
 
 
 
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities
$ 0 
$ 0 
$ 0 
$ 0 
 
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Available-for-sale Securities
0 
 
0 
 
 
Average Balance Of Securities Lending
 
 
700,000,000 
400,000,000 
 
Minimum market value percentage of loaned securities
 
 
102.00% 
 
 
Secured lending transactions outstanding
$ 0 
 
$ 0 
 
$ 0 
Investments (Summary Of Available-For-Sale Investments) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Schedule of Investments [Line Items]
 
 
Amortized Cost
$ 41,557 
$ 38,263 
Gross Unrealized Gains
714 
669 
Gross Unrealized Losses
(5)
(15)
Fair Value
42,266 
38,917 
Publicly Traded Equity Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
1,530 
1,107 
Gross Unrealized Gains
548 
524 
Gross Unrealized Losses
(4)
(11)
Fair Value
2,074 
1,620 
Fixed Income Investments [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
40,027 
37,156 
Gross Unrealized Gains
166 
145 
Gross Unrealized Losses
(1)
(4)
Fair Value
40,192 
37,297 
Fixed Income Investments [Member] |
US Government Securities[Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
28,398 
24,201 
Gross Unrealized Gains
45 
41 
Gross Unrealized Losses
0 
(1)
Fair Value
28,443 
24,241 
Fixed Income Investments [Member] |
US Government Agencies Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
3,297 
5,367 
Gross Unrealized Gains
12 
21 
Gross Unrealized Losses
0 
 
Fair Value
3,309 
5,388 
Fixed Income Investments [Member] |
Non-US Government and Agency Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
1,007 
1,629 
Gross Unrealized Gains
5 
9 
Gross Unrealized Losses
0 
 
Fair Value
1,012 
1,638 
Fixed Income Investments [Member] |
Corporate Debt Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
7,325 
5,959 
Gross Unrealized Gains
104 
74 
Gross Unrealized Losses
(1)
(3)
Fair Value
$ 7,428 
$ 6,030 
Investments (Available-For-Sale Investments With Gross Unrealized Losses) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Schedule of Investments [Line Items]
 
 
Available-for-sale Securities with Unrealized Losses Less than 12 Months, Fair Value
$ 663 
$ 6,127 
Gross Unrealized Losses, Less than 12 Months
(5)
(12)
Available-for-sale Securities with Unrealized Losses 12 Months or Longer, Fair Value
0 
34 
Gross Unrealized Losses, 12 Months or Longer
0 
(3)
Available-for-sale Investments with Unrealized Losses, Fair Value
663 
6,161 
Total Gross Unrealized Losses
(5)
(15)
Publicly Traded Equity Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Available-for-sale Securities with Unrealized Losses Less than 12 Months, Fair Value
61 
167 
Gross Unrealized Losses, Less than 12 Months
(4)
(8)
Available-for-sale Securities with Unrealized Losses 12 Months or Longer, Fair Value
0 
20 
Gross Unrealized Losses, 12 Months or Longer
0 
(3)
Available-for-sale Investments with Unrealized Losses, Fair Value
61 
187 
Total Gross Unrealized Losses
(4)
(11)
Total Fixed Income Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Available-for-sale Securities with Unrealized Losses Less than 12 Months, Fair Value
602 
5,960 
Gross Unrealized Losses, Less than 12 Months
(1)
(4)
Available-for-sale Securities with Unrealized Losses 12 Months or Longer, Fair Value
0 
14 
Gross Unrealized Losses, 12 Months or Longer
0 
0 
Available-for-sale Investments with Unrealized Losses, Fair Value
602 
5,974 
Total Gross Unrealized Losses
(1)
(4)
Total Fixed Income Securities [Member] |
US Government Securities[Member]
 
 
Schedule of Investments [Line Items]
 
 
Available-for-sale Securities with Unrealized Losses Less than 12 Months, Fair Value
0 
5,357 
Gross Unrealized Losses, Less than 12 Months
0 
(1)
Available-for-sale Securities with Unrealized Losses 12 Months or Longer, Fair Value
0 
0 
Gross Unrealized Losses, 12 Months or Longer
0 
0 
Available-for-sale Investments with Unrealized Losses, Fair Value
0 
5,357 
Total Gross Unrealized Losses
0 
(1)
Total Fixed Income Securities [Member] |
Corporate Debt Securities [Member]
 
 
Schedule of Investments [Line Items]
 
 
Available-for-sale Securities with Unrealized Losses Less than 12 Months, Fair Value
602 
603 
Gross Unrealized Losses, Less than 12 Months
(1)
(3)
Available-for-sale Securities with Unrealized Losses 12 Months or Longer, Fair Value
0 
14 
Gross Unrealized Losses, 12 Months or Longer
0 
0 
Available-for-sale Investments with Unrealized Losses, Fair Value
602 
617 
Total Gross Unrealized Losses
$ (1)
$ (3)
Investments (Maturities Of Fixed Income Securities) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Schedule of Investments [Line Items]
 
 
Amortized Cost
$ 41,557 
$ 38,263 
Fair Value
42,266 
38,917 
Less than 1 year [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
16,460 
 
Fair Value
16,479 
 
Due in 1 to 2 years [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
12,155 
 
Fair Value
12,202 
 
Due in 2 to 5 years [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
11,272 
 
Fair Value
11,363 
 
Due after 5 years [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
140 
 
Fair Value
148 
 
Fixed Income Investments [Member]
 
 
Schedule of Investments [Line Items]
 
 
Amortized Cost
40,027 
37,156 
Fair Value
$ 40,192 
$ 37,297 
Fair Value - Additional Information (Detail) (USD $)
Apr. 27, 2013
Jul. 28, 2012
Disclosure Fair Value Additional Information [Abstract]
 
 
Cost Method Investments
$ 248,000,000 
$ 249,000,000 
Long Term Loan Receivables And Financed Service Contracts And Others Carrying Value
2,000,000,000 
1,900,000,000 
Senior Notes, Fair Value
18,400,000,000 
18,800,000,000 
Senior Notes, Carrying Value
$ 16,200,000,000 
$ 16,300,000,000 
Fair Value (Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Apr. 28, 2012
Fair Value, Inputs, Level 1 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
$ 5,413 
$ 4,126 
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
40,426 
37,560 
Liabilities, Fair Value Disclosure
94 
42 
Fair Value, Inputs, Level 2 [Member] |
Derivative Assets [Member]
 
 
Assets, Fair Value Disclosure, Recurring
234 
263 
Fair Value, Inputs, Level 2 [Member] |
Derivative Liabilities [Member]
 
 
Liabilities, Fair Value Disclosure
94 
42 
Fair Value, Inputs, Level 3 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
0 
1 
Fair Value, Inputs, Level 3 [Member] |
Derivative Assets [Member]
 
 
Assets, Fair Value Disclosure, Recurring
0 
1 
Total Balance Fair Value Measurements [Member]
 
 
Assets, Fair Value Disclosure, Recurring
45,839 
41,687 
Liabilities, Fair Value Disclosure
94 
42 
Total Balance Fair Value Measurements [Member] |
Derivative Assets [Member]
 
 
Assets, Fair Value Disclosure, Recurring
234 
264 
Total Balance Fair Value Measurements [Member] |
Derivative Liabilities [Member]
 
 
Liabilities, Fair Value Disclosure
94 
42 
Cash and Cash Equivalents [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
3,339 
2,506 
Cash and Cash Equivalents [Member] |
Total Balance Fair Value Measurements [Member]
 
 
Assets, Fair Value Disclosure, Recurring
3,339 
2,506 
Available-for-sale Securities [Member] |
US Government Securities[Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
28,443 
24,241 
Available-for-sale Securities [Member] |
US Government Securities[Member] |
Total Balance Fair Value Measurements [Member]
 
 
Assets, Fair Value Disclosure, Recurring
28,443 
24,241 
Available-for-sale Securities [Member] |
US Government Agencies Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
3,309 
5,388 
Available-for-sale Securities [Member] |
US Government Agencies Securities [Member] |
Total Balance Fair Value Measurements [Member]
 
 
Assets, Fair Value Disclosure, Recurring
3,309 
5,388 
Available-for-sale Securities [Member] |
Non-US Government and Agency Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
1,012 
1,638 
Available-for-sale Securities [Member] |
Non-US Government and Agency Securities [Member] |
Total Balance Fair Value Measurements [Member]
 
 
Assets, Fair Value Disclosure, Recurring
1,012 
1,638 
Available-for-sale Securities [Member] |
Corporate Debt Securities [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
7,428 
6,030 
Available-for-sale Securities [Member] |
Corporate Debt Securities [Member] |
Total Balance Fair Value Measurements [Member]
 
 
Assets, Fair Value Disclosure, Recurring
7,428 
6,030 
Available-for-sale Securities [Member] |
Equity Securities [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets, Fair Value Disclosure, Recurring
2,074 
1,620 
Equity Securities [Member] |
Total Balance Fair Value Measurements [Member] |
Available-for-sale Securities [Member]
 
 
Assets, Fair Value Disclosure, Recurring
$ 2,074 
$ 1,620 
Fair Value (Reconciliation For All Assets Measured At Fair Value On A Recurring Basis Using Significant Unobservable Inputs (Level 3)) (Detail) (Fair Value, Inputs, Level 3 [Member], USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 28, 2012
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
Beginning balance
$ 123 
Included in other income (loss), net
3 
Included in other comprehensive Income (Loss)
(3)
Sales and maturities
(15)
Transfer into Level 2
(107)
Ending balalnce
1 
Asset-backed Securities [Member]
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
Beginning balance
121 
Included in other income (loss), net
3 
Included in other comprehensive Income (Loss)
(3)
Sales and maturities
(14)
Transfer into Level 2
(107)
Ending balalnce
0 
Derivative Assets [Member]
 
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
 
Beginning balance
2 
Included in other income (loss), net
0 
Included in other comprehensive Income (Loss)
0 
Sales and maturities
(1)
Transfer into Level 2
0 
Ending balalnce
$ 1 
Fair Value (Fair Value On A Nonrecurring Basis) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
 
 
 
 
Gains and (lossess) for nonrecurring measurements
$ 73 
$ (91)
$ 55 
$ (195)
Fair Value, Measurements, Nonrecurring [Member] |
Net Carrying Value [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
 
 
 
 
Assets Held For Sale
72 
52 
72 
52 
Investment in privately held companies
66 
17 
66 
17 
Fair Value, Inputs, Level 3 [Member] |
Gains on assets no longer held at period end
 
 
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
 
 
 
 
Gains and (lossess) for nonrecurring measurements
34 
0 
34 
14 
Fair Value, Inputs, Level 3 [Member] |
Total Gains ( Losses) Included In G&A [Member] |
Assets Held-for-sale [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
 
 
 
 
Gains and (lossess) for nonrecurring measurements
(44)
76 
(44)
192 
Fair Value, Inputs, Level 3 [Member] |
Other income (loss), net [Member] |
Investments In Privately Held Companies [Member]
 
 
 
 
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
 
 
 
 
Gains and (lossess) for nonrecurring measurements
$ (5)
$ (15)
$ (23)
$ (17)
Borrowings - Additional Information (Detail) (USD $)
9 Months Ended
Apr. 27, 2013
Jul. 28, 2012
Debt Instrument [Line Items]
 
 
ST debt financing program- Commercial paper notes
$ 3,000,000,000 
 
Commercial Paper Outstanding
0 
0 
Notional amount of interest rate derivatives
4,250,000,000 
4,250,000,000 
Unsecured Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Unsecured Revolving Credit Facility
3,000,000,000 
 
Unsecured revolving credit facility maturity date
Feb. 17, 2017 
 
Credit Facility Interest Rate
either (i) the higher of the Federal Funds rate plus 0.50%, Bank of America's “prime rate” as announced from time to time, or one-month LIBOR plus 1.00%, or (ii) LIBOR plus a margin that is based on the Company's senior debt credit ratings 
 
Interest Rate- Federal Funds rate plus 0.5%
0.50% 
 
Interest Rate- One-month LIBOR plus 1.00%
1.00% 
 
Available increases under the credit facility
$ 2,000,000,000 
 
Increase to maximum borrowing capacity- maturity date
Feb. 17, 2019 
 
Borrowings (Short-Term Debt) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Short-term Debt [Line Items]
 
 
Current portion of long-term debt
$ 3,279 
$ 0 
Short-term debt
13 
31 
Debt, Current
3,292 
31 
Current portion of long term debt [Member]
 
 
Short-term Debt [Line Items]
 
 
Current portion of long-term debt
$ 3,279 
$ 0 
Short-term debt, weighted-average interest rate
0.64% 
0.00% 
Notes Payable, Other Payables [Member]
 
 
Short-term Debt [Line Items]
 
 
Short-term debt, weighted-average interest rate
9.60% 
6.72% 
Borrowings (Schedule Of Long-Term Debt) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Debt Instrument [Line Items]
 
 
Long-term debt before Unaccreted discount and Hedge accounting adjustment
$ 16,000 
$ 16,000 
Other Long-term Debt
10 
10 
Unaccreted discount
(66)
(70)
Hedge accounting fair value adjustments
291 
357 
Long-term Debt
16,235 
16,297 
Less: Current portion of long-term debt
(3,279)
0 
Total long-term debt
12,956 
16,297 
Floating-Rate Notes, Due 2014 [Member]
 
 
Debt Instrument [Line Items]
 
 
Senior notes
1,250 
1,250 
Effective rate
0.63% 
0.81% 
1.625% Fixed-Rate Notes, Due 2014 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
1.625% 
 
Senior notes
2,000 
2,000 
Effective rate
0.65% 
0.84% 
2.90% Fixed-Rate Notes, Due 2014 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
2.90% 
 
Senior notes
500 
500 
Effective rate
3.11% 
3.11% 
5.50% Fixed-Rate Notes, Due 2016 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
5.50% 
 
Senior notes
3,000 
3,000 
Effective rate
3.07% 
3.16% 
3.15% Fixed-Rate Notes, Due 2017 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
3.15% 
 
Senior notes
750 
750 
Effective rate
0.85% 
1.03% 
4.95% Fixed-Rate Notes, Due 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.95% 
 
Senior notes
2,000 
2,000 
Effective rate
5.08% 
5.08% 
4.45% Fixed-Rate Notes, Due 2020 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
4.45% 
 
Senior notes
2,500 
2,500 
Effective rate
4.50% 
4.50% 
5.90% Fixed-Rate Notes, Due 2039 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
5.90% 
 
Senior notes
2,000 
2,000 
Effective rate
6.11% 
6.11% 
5.50% Fixed-Rate Notes, Due 2040 [Member]
 
 
Debt Instrument [Line Items]
 
 
Debt Instrument, Interest Rate, Stated Percentage
5.50% 
 
Senior notes
$ 2,000 
$ 2,000 
Effective rate
5.67% 
5.67% 
Other Long Term Debt [Member]
 
 
Debt Instrument [Line Items]
 
 
Effective rate
0.19% 
0.19% 
Borrowings (Schedule Of Principal Payments For Long-Term Debt ) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Debt Disclosure [Abstract]
 
2013 (remaining three months)
$ 0 
2014
3,260 
2015
500 
2016
3,000 
2017
750 
Thereafter
8,500 
Total
$ 16,010 
Derivative Instruments (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Net Investment Hedging [Member]
 
Derivative [Line Items]
 
Foreign currency cash flow hedges maturity period, maximum (in months)
0 years 6 months 0 days 
Cash Flow Hedging [Member] |
Foreign Exchange Contract [Member]
 
Derivative [Line Items]
 
Foreign currency cash flow hedges maturity period, maximum (in months)
0 years 18 months 0 days 
Cash Flow Hedging [Member]
 
Derivative [Line Items]
 
Net derivative gains to be reclassified from AOCI into earnings in next twelve months
$ 10 
Derivative Instruments (Derivatives Recorded At Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Derivative [Line Items]
 
 
Derivative assets
$ 234 
$ 264 
Derivative liabilities
94 
42 
Designated As Hedging Instrument [Member]
 
 
Derivative [Line Items]
 
 
Derivative assets
200 
247 
Derivative liabilities
89 
30 
Derivatives Not Designated As Hedging Instruments [Member]
 
 
Derivative [Line Items]
 
 
Derivative assets
34 
17 
Derivative liabilities
5 
12 
Foreign Exchange Contract [Member] |
Designated As Hedging Instrument [Member] |
Other Current Assets [Member]
 
 
Derivative [Line Items]
 
 
Derivative assets
17 
24 
Foreign Exchange Contract [Member] |
Designated As Hedging Instrument [Member] |
Other Current Liabilities [Member]
 
 
Derivative [Line Items]
 
 
Derivative liabilities
2 
26 
Foreign Exchange Contract [Member] |
Derivatives Not Designated As Hedging Instruments [Member] |
Other Current Assets [Member]
 
 
Derivative [Line Items]
 
 
Derivative assets
34 
16 
Foreign Exchange Contract [Member] |
Derivatives Not Designated As Hedging Instruments [Member] |
Other Current Liabilities [Member]
 
 
Derivative [Line Items]
 
 
Derivative liabilities
5 
12 
Interest Rate Derivatives [Member] |
Designated As Hedging Instrument [Member] |
Other Assets [Member]
 
 
Derivative [Line Items]
 
 
Derivative assets
183 
223 
Equity Derivatives [Member] |
Designated As Hedging Instrument [Member] |
Other Current Assets [Member]
 
 
Derivative [Line Items]
 
 
Derivative assets
0 
0 
Equity Derivatives [Member] |
Designated As Hedging Instrument [Member] |
Other Current Liabilities [Member]
 
 
Derivative [Line Items]
 
 
Derivative liabilities
87 
4 
Equity Derivatives [Member] |
Derivatives Not Designated As Hedging Instruments [Member] |
Other Assets [Member]
 
 
Derivative [Line Items]
 
 
Derivative assets
0 
1 
Derivative liabilities
$ 0 
$ 0 
Derivative Instruments (Effect Of Derivative Instruments Designated As Cash Flow Hedges And Net Investment Hedging Instruments On Other Comprehensive And Consolidated Statements Of Operations Summary) (Details) (USD $)
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Interest Expense [Member] |
Interest Rate Contract [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in OCI on derivatives (effective portion)
$ 0 
$ 0 
$ 0 
$ 0 
Gains (losses) reclassified from AOCI into income (effective portion)
0 
1,000,000 
0 
1,000,000 
Cash Flow Hedging [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in OCI on derivatives (effective portion)
(11,000,000)
11,000,000 
58,000,000 
(83,000,000)
Gains (losses) reclassified from AOCI into income (effective portion)
4,000,000 
(18,000,000)
7,000,000 
(44,000,000)
Cash Flow Hedging [Member] |
Foreign Currency Derivatives-Cash Flow Hedges [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in OCI on derivatives (effective portion)
(11,000,000)
11,000,000 
58,000,000 
(83,000,000)
Cash Flow Hedging [Member] |
Operating Expenses [Member] |
Foreign Currency Derivatives-Cash Flow Hedges [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) reclassified from AOCI into income (effective portion)
3,000,000 
(15,000,000)
5,000,000 
(37,000,000)
Cash Flow Hedging [Member] |
Cost Of Sales-Service [Member] |
Foreign Currency Derivatives-Cash Flow Hedges [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) reclassified from AOCI into income (effective portion)
1,000,000 
(4,000,000)
2,000,000 
(8,000,000)
Net Investment Hedging [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in OCI on derivatives (effective portion)
20,000,000 
0 
(4,000,000)
(6,000,000)
Net Investment Hedging [Member] |
Other income (loss), net [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) reclassified from AOCI into income (effective portion)
$ 0 
$ 0 
$ 0 
$ 0 
Derivative Instruments (Effect Of Derivative Instruments Designated As Fair Value Hedges And Underlying Hedged Items On Consolidated Statements Of Operations Summary) (Details) (Derivatives Designated As Fair Value Hedging Instruments [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Hedge Underlying Gain Loss [Line Items]
 
 
 
 
Gains (losses) on derivative instruments
$ (56)
$ (16)
$ (127)
$ 60 
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge
56 
16 
127 
(62)
Equity Contract [Member] |
Other Income (loss), net [Member]
 
 
 
 
Hedge Underlying Gain Loss [Line Items]
 
 
 
 
Gains (losses) on derivative instruments
(45)
0 
(87)
0 
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge
45 
0 
87 
0 
Interest Rate Contract [Member] |
Interest Expense [Member]
 
 
 
 
Hedge Underlying Gain Loss [Line Items]
 
 
 
 
Gains (losses) on derivative instruments
(11)
(16)
(40)
60 
Change in Unrealized Gain (Loss) on Hedged Item in Fair Value Hedge
$ 11 
$ 16 
$ 40 
$ (62)
Derivative Instruments (Effect Of Derivative Instruments Not Designated As Fair Value Hedges On Consolidated Statement Of Operations Summary) (Details) (Derivatives Not Designated As Hedging Instruments [Member], USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in income
$ (84)
$ 34 
$ (27)
$ (129)
Foreign Exchange Contract [Member] |
Other Income (loss), net [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in income
(90)
20 
(78)
(125)
Total Return Swaps-Deferred Compensation [Member] |
Cost of Sales [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in income
0 
1 
0 
4 
Total Return Swaps-Deferred Compensation [Member] |
Operating Expenses [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in income
12 
6 
45 
(4)
Equity Derivatives [Member] |
Other Income (loss), net [Member]
 
 
 
 
Derivative [Line Items]
 
 
 
 
Gains (losses) recognized in income
$ (6)
$ 7 
$ 6 
$ (4)
Derivative Instruments (Schedule Of Notional Amounts Of Derivatives Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Notional Amount of Derivatives [Abstract]
 
 
Notional Amount of Foreign Currency Cash Flow Hedge Derivatives
$ 1,067 
$ 2,910 
Notional amount of interest rate derivatives
4,250 
4,250 
Notional Amount of Derivative Instruments Designated as Net Investment Hedges
586 
468 
Notional Amount of Equity Derivatives
629 
272 
Notional Amount of Foreign Currency Derivative Instruments Not Designated as Hedging Instruments
4,314 
6,241 
Notional Amount Of Total Return Swaps Deferred Compensation Derivative Instruments Not Designated As Hedging Instruments
322 
269 
Notional amounts of derivatives outstanding
$ 11,168 
$ 14,410 
Commitments And Contingencies (Additional Information) (Details) (USD $)
9 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended 45 Months Ended 3 Months Ended 9 Months Ended 3 Months Ended
Apr. 27, 2013
Jul. 28, 2012
Apr. 27, 2013
Minimum [Member]
D
Y
Apr. 27, 2013
Maximum [Member]
Y
Apr. 27, 2013
Investor [Member]
Jul. 28, 2012
Investor [Member]
Apr. 27, 2013
Acquisition [Member]
Apr. 28, 2012
Acquisition [Member]
Apr. 27, 2013
Acquisition [Member]
Apr. 28, 2012
Acquisition [Member]
Apr. 27, 2013
Acquisition [Member]
Maximum [Member]
Apr. 27, 2013
Insieme Networks Inc [Member]
Apr. 27, 2013
VCE [Member]
Apr. 28, 2012
VCE [Member]
Apr. 27, 2013
VCE [Member]
Apr. 28, 2012
VCE [Member]
Apr. 27, 2013
VCE [Member]
Apr. 27, 2013
XpertUniverse [Member]
Fraud by concealment claims [Member]
Apr. 27, 2013
November 2012 Amendment [Member]
Insieme Networks Inc [Member]
Apr. 27, 2013
November 2012 Amendment [Member]
Insieme Networks Inc [Member]
Maximum [Member]
Apr. 27, 2013
Prior to November 2012 Amendment [Member]
Insieme Networks Inc [Member]
Maximum [Member]
Apr. 27, 2013
Maximum [Member]
XpertUniverse [Member]
Patents infringement [Member]
Site Contingency [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of operating leases, in years
 
 
1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventory purchase commitments
$ 4,215,000,000 
$ 3,869,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded liabilities related to inventory purchase commitments
178,000,000 
193,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense connection with the business combinations and asset purchases
 
 
 
 
 
 
44,000,000 
12,000,000 
79,000,000 
40,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Future compensation expense & contingent consideration
 
 
 
 
 
 
 
 
 
 
1,200,000,000 
 
 
 
 
 
 
 
 
863,000,000 
750,000,000 
 
Funding commitments
 
 
 
 
113,000,000 
120,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cumulative investment in entity
 
 
 
 
 
 
 
 
 
 
 
 
464,000,000 
 
464,000,000 
 
464,000,000 
 
 
 
 
 
Ownership percentage in entity (in percentage)
 
 
 
 
 
 
 
 
 
 
 
 
35.00% 
 
35.00% 
 
35.00% 
 
 
 
 
 
Percentage of VCE's losses (in percentage)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
36.80% 
36.80% 
 
 
 
 
 
 
Cumulative lossess - VCE
 
 
 
 
 
 
 
 
 
 
 
 
49,000,000 
34,000,000 
135,000,000 
120,000,000 
374,000,000 
 
 
 
 
 
VCE-Carrying Value
 
 
 
 
 
 
 
 
 
 
 
 
90,000,000 
 
90,000,000 
 
90,000,000 
 
 
 
 
 
Initial investment in Insieme
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
Conditional additional investment in Insieme
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35,000,000 
 
 
 
Ownership percentage of Insieme
 
 
 
 
 
 
 
 
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
Warranty Period for Products, low range (in days)
 
 
90 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warranty Period For Products, high range (in years)
 
 
 
5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer, tax portion
432,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer, interest portion
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian authority claim of import tax evasion by importer, penalties portion
1,900,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss Contingency, Damages Awarded, Value
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 70,000,000 
 
 
 
$ 35,000 
Commitments And Contingencies (Schedule Of Future Annual Minimum Lease Payments Under All Noncancelable Operating Leases) (Details) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
 
2013 (remaining three months)
$ 92 
2014
299 
2015
240 
2016
121 
2017
80 
Thereafter
224 
Total
$ 1,056 
Commitments And Contingencies (Schedule Of Product Warranty Liability) (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
 
 
Balance at beginning of fiscal year
$ 415 
$ 342 
Provision for warranties issued
494 
474 
Payments
(478)
(426)
Balance at end of fiscal year
$ 431 
$ 390 
Shareholders' Equity - Additional Information (Detail) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Shareholders Equity [Line Items]
 
 
 
 
Aggregate Authorized Common Stock Repurchase
 
 
$ 82,000,000,000 
 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
 
 
4,300,000,000 
 
Payments of Dividends
 
 
2,392,000,000 
1,076,000,000 
Cash dividends declared per common share (in dollars per share)
$ 0.17 
$ 0.08 
$ 0.45 
$ 0.20 
Shares Withheld for Employee Tax Withholding Upon Vesting of RSU (in shares)
 
 
13 
10 
Dollar Value of Shares Withheld For Employee Tax Withholding Upon Vesting of RSU
 
 
$ 249,000,000 
$ 160,000,000 
Shareholders' Equity (Stock Repurchase Program) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Stock Repurchase Program [Roll Forward]
 
Cumulative shares repurchased, beginning balance
3,740 
Repurchase of common stock under the stock repurchase program
81 
Cumulative shares repurchased, ending balance
3,821 
Cumulative weighted-average price per share, beginning balance
$ 20.36 
Repurchase of common stock under the stock repurchase program, weighted -average price per share
$ 19.81 
Cumulative weighted-average price per share, ending balance
$ 20.35 
Cumulative amount repurchased, beginning balance
$ 76,133 
Repurchase of common stock under the stock repurchase program, amount
1,613 
Cumulative amount repurchased, ending balance
$ 77,746 
Shareholders' Equity Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
 
 
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Beginning Balance
$ 409 
$ 487 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax, Beginning Balance
(53)
6 
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Beginning Balance
305 
801 
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance
661 
1,294 
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Portion Attributable to Parent
(15)
19 
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent
51 
(39)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax, Portion Attributable to Parent
(8)
(296)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent
28 
(316)
Accumulated Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax, Ending Balance
394 
506 
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax, Ending Balance
(2)
(33)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax, Ending Balance
297 
505 
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance
$ 689 
$ 978 
Employee Benefit Plans - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Apr. 26, 2013
Jul. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Unrecognized compensation cost related to unvested share-based awards
$ 2,000,000,000 
 
$ 2,000,000,000 
 
 
 
Expected period of recognition of compensation cost, years
 
 
2 years 7 months 6 days 
 
 
 
Income tax benefit for employee share-based compensation expense
$ 73,000,000 
$ 88,000,000 
$ 232,000,000 
$ 271,000,000 
 
 
Closing stock price
 
 
 
 
$ 20.67 
 
Stock options exercisable (in shares)
375,000,000 
 
375,000,000 
 
 
512,000,000 
In-the-money exercisable stock option (in shares)
136,000,000 
 
136,000,000 
 
 
 
Stock options exercisable, weighted-average exercise price per share
$ 23.66 
 
$ 23.66 
 
 
$ 22.65 
Employee Stock Purchase Plan [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Shares reserved for issuance (in shares)
471,400,000 
 
471,400,000 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date (in percentage)
 
 
15.00% 
 
 
 
Shares issued under employee purchase plan (in shares)
 
 
18,000,000 
18,000,000 
 
 
Shares available for issuance under Employee Stock Purchase Plan (in shares)
69,000,000 
 
69,000,000 
 
 
 
ESPP- offering period description
 
 
24-month offering period, which consists of four consecutive 6-month purchase periods 
 
 
 
Performance Shares [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Performance-Based and Market-based RSU Requisite Service Period (in years)
 
 
3 years 
 
 
 
Number of RSUs granted (in shares)
 
 
4,000,000 
2,000,000 
 
 
Supplemental Plan [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Shares reserved for issuance (in shares)
9,000,000 
 
9,000,000 
 
 
 
2005 Plan [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Reduction in number of shares available for issuance after amendment approved by shareholders (ratio)
1.5 
 
1.5 
 
 
 
2005 Plan [Member] |
Employee Stock Incentive Plans [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Shares reserved for issuance (in shares)
559,000,000 
 
559,000,000 
 
 
 
Stock options and stock appreciation rights exercise price percentage of the fair market value of the underlying stock on the grant date (percentage)
 
 
100.00% 
 
 
 
2005 Plan [Member] |
Employee Stock Incentive Plans [Member] |
Stock Option [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Percentage Minimum (in percentage)
 
 
20.00% 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Percentage Maximum (in percentage)
 
 
25.00% 
 
 
 
Number of months in which stock options ratably exercise, maximum ( in months)
 
 
48 months 
 
 
 
Number of months in which stock options ratably exercise, minimum (in months)
 
 
36 months 
 
 
 
2005 Plan [Member] |
Time Based Restricted Stock Units R S U [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Percentage Minimum (in percentage)
 
 
20.00% 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Percentage Maximum (in percentage)
 
 
25.00% 
 
 
 
Granted prior to November 12, 2009 [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Expiration date for stock options and stock appreciation rights, max time from grant date after date, in years
9 
 
9 
 
 
 
Granted subsequent to November 12, 2009 under 2005 Plan [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Expiration date for stock options and stock appreciation rights, max time from grant date after date, in years
10 
 
10 
 
 
 
1996 Plan [Member] |
Employee Stock Incentive Plans [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Shares reserved for issuance (in shares)
2,500,000,000 
 
2,500,000,000 
 
 
 
Expiration date for stock options and stock appreciation rights, max time from grant date after date, in years
9 
 
9 
 
 
 
Stock options and stock appreciation rights exercise price percentage of the fair market value of the underlying stock on the grant date (percentage)
 
 
100.00% 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Percentage Minimum (in percentage)
 
 
20.00% 
 
 
 
Share Based Compensation Arrangement By Share Based Payment Award Exercisable Percentage Maximum (in percentage)
 
 
25.00% 
 
 
 
Number of months in which stock options ratably exercise, maximum ( in months)
 
 
48 months 
 
 
 
Number of months in which stock options ratably exercise, minimum (in months)
 
 
36 months 
 
 
 
1996 Plan [Member] |
Employee Stock Incentive Plans [Member] |
Stock Option [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Number of months in which stock options ratably exercise, maximum ( in months)
 
 
60 months 
 
 
 
Employee Benefit Plans (Summary Of Share-Based Compensation Expense) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
$ 272 
$ 337 
$ 880 
$ 1,032 
Cost Of Sales Product [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
10 
12 
31 
39 
Cost Of Sales-Service [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
34 
39 
105 
116 
Share-Based Compensation Expense In Cost Of Sales [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
44 
51 
136 
155 
Research And Development [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
72 
97 
228 
297 
Sales And Marketing [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
118 
138 
383 
429 
General And Administrative [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
38 
51 
136 
153 
Restructuring And Other Charges [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
0 
0 
(3)
(2)
Share-Based Compensation Expense In Operating Expenses [Member]
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
Total Share-based Compensation Expense
$ 228 
$ 286 
$ 744 
$ 877 
Employee Benefit Plans (Summary Of Share-Based Awards Available For Grant) (Detail)
In Millions, unless otherwise specified
9 Months Ended 12 Months Ended
Apr. 27, 2013
Jul. 28, 2012
Share-based Compensation Arrangement by Share-based Payment Award, Options Available for Grant [Roll Forward]
 
 
Beginning balance
218 
255 
Restricted stock, stock units, and other share-based awards granted
(84)
(95)
Share Based Awards Canceled Forfeited In Period
103 
64 
Other
(3)
(6)
Ending balance
234 
218 
Employee Benefit Plans (Summary Of Restricted Stock And Stock Unit Activity) (Detail) (Restricted Stock And Stock Unit Awards [Member], USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Apr. 27, 2013
Jul. 28, 2012
Restricted Stock And Stock Unit Awards [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward]
 
 
Unvested balance at beginning period
128 
116 
Granted and assumed
58 
65 
Vested
(37)
(35)
Canceled/forfeited
(8)
(18)
Unvested balance at ending period
141 
128 
Beginning balance, weighted-average grant date fair value per share
$ 19.46 
$ 21.50 
Granted and assumed, weighed-average grant date fair value per share
$ 17.57 
$ 17.45 
Vested, weighted-average grant date fair value per share
$ 20.68 
$ 21.94 
Canceled/forfeited, weighted-average grant date fair value per share
$ 18.94 
$ 20.38 
Ending balance, weighted-average grant date fair value per share
$ 18.39 
$ 19.46 
Vested, aggregated fair market value
$ 716 
$ 580 
Employee Benefit Plans (Summary Of Stock Option Activity) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended 12 Months Ended
Apr. 27, 2013
Jul. 28, 2012
Apr. 27, 2013
Jul. 30, 2011
Employee Service Share-based Compensation, Aggregate Disclosures [Abstract]
 
 
 
 
Beginning balance, Number Outstanding (in shares)
520 
621 
380 
 
Granted and assumed, Number Outstanding (in shares)
7 
1 
 
 
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price
$ 0.92 
$ 2.08 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period (in shares)
57 
66 
 
 
Exercised, weighted-average exercise price per share
$ 16.71 
$ 13.51 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period (in shares)
90 
36 
 
 
Canceled/forfeited/expired, weighted-average exercise price per share
$ 21.70 
$ 23.40 
 
 
Weighted-average exercise price per share, ending balance
$ 23.42 
$ 22.68 
 
$ 21.79 
Employee Stock Plans (Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
9 Months Ended
Apr. 27, 2013
Jul. 28, 2012
Jul. 30, 2011
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock options outstanding
380 
520 
621 
Stock options outstanding, weighted-average remaining contractual life
2 years 3 months 22 days 
 
 
Stock options outstanding, weighted-average exercise price per share
$ 23.42 
$ 22.68 
$ 21.79 
Stock options outstanding, aggregate intrinsic value
$ 424 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number
375 
512 
 
Stock options exercisable, weighted-average exercise price per share
$ 23.66 
$ 22.65 
 
Stock options exercisable, aggregate intrinsic value
346 
 
 
$0.01 - 15.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock options outstanding
9 
 
 
Stock options outstanding, weighted-average remaining contractual life
5 years 10 months 17 days 
 
 
Stock options outstanding, weighted-average exercise price per share
$ 4.77 
 
 
Stock options outstanding, aggregate intrinsic value
149 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number
6 
 
 
Stock options exercisable, weighted-average exercise price per share
$ 7.38 
 
 
Stock options exercisable, aggregate intrinsic value
70 
 
 
Range of exercise price of stock options outstanding and exercisable, minimum
$ 0.01 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
$ 15.00 
 
 
$15.01 - 18.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock options outstanding
60 
 
 
Stock options outstanding, weighted-average remaining contractual life
1 year 5 months 1 day 
 
 
Stock options outstanding, weighted-average exercise price per share
$ 17.79 
 
 
Stock options outstanding, aggregate intrinsic value
173 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number
60 
 
 
Stock options exercisable, weighted-average exercise price per share
$ 17.79 
 
 
Stock options exercisable, aggregate intrinsic value
173 
 
 
Range of exercise price of stock options outstanding and exercisable, minimum
$ 15.01 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
$ 18.00 
 
 
$18.01 - 20.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock options outstanding
68 
 
 
Stock options outstanding, weighted-average remaining contractual life
7 months 28 days 
 
 
Stock options outstanding, weighted-average exercise price per share
$ 19.17 
 
 
Stock options outstanding, aggregate intrinsic value
100 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number
67 
 
 
Stock options exercisable, weighted-average exercise price per share
$ 19.17 
 
 
Stock options exercisable, aggregate intrinsic value
101 
 
 
Range of exercise price of stock options outstanding and exercisable, minimum
$ 18.01 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
$ 20.00 
 
 
$20.01 - 25.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock options outstanding
121 
 
 
Stock options outstanding, weighted-average remaining contractual life
2 years 3 months 29 days 
 
 
Stock options outstanding, weighted-average exercise price per share
$ 22.74 
 
 
Stock options outstanding, aggregate intrinsic value
2 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number
121 
 
 
Stock options exercisable, weighted-average exercise price per share
$ 22.74 
 
 
Stock options exercisable, aggregate intrinsic value
2 
 
 
Range of exercise price of stock options outstanding and exercisable, minimum
$ 20.01 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
$ 25.00 
 
 
$25.01 - 35.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Stock options outstanding
122 
 
 
Stock options outstanding, weighted-average remaining contractual life
3 years 4 months 13 days 
 
 
Stock options outstanding, weighted-average exercise price per share
$ 30.69 
 
 
Stock options outstanding, aggregate intrinsic value
0 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number
121 
 
 
Stock options exercisable, weighted-average exercise price per share
$ 30.70 
 
 
Stock options exercisable, aggregate intrinsic value
$ 0 
 
 
Range of exercise price of stock options outstanding and exercisable, minimum
$ 25.01 
 
 
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit
$ 35.00 
 
 
Income Taxes (Income Before Provision For Income Taxes) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Income Tax Disclosure [Abstract]
 
 
 
 
Income before provision for income taxes
$ 2,945 
$ 2,779 
$ 8,356 
$ 7,773 
Provision for income taxes
$ 467 
$ 614 
$ 643 
$ 1,649 
Effective tax rate
15.90% 
22.10% 
7.70% 
21.20% 
Income Taxes - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 12 Months Ended
Apr. 27, 2013
Jan. 26, 2013
Apr. 27, 2013
Jul. 28, 2012
Income Tax Disclosure [Abstract]
 
 
 
 
Tax Adjustments, Settlements, and Unusual Provisions
$ 117,000,000 
$ 794,000,000 
$ 794,000,000 
 
IRS Audit Settlement and RD tax credit
 
 
946,000,000 
 
Income Tax Reconciliation, Tax Credits, Research
 
 
152,000,000 
72,000,000 
Increase (Decrease) in Income Taxes Receivable
 
(733,000,000)
 
 
Income Tax Examination, Penalties and Interest Expense
 
157,000,000 
 
 
Unrecognized Tax Benefits, Decreases Resulting from Settlements with Taxing Authorities
 
1,000,000,000 
 
 
Tax amounts previously paid to tax authorities became refundable
 
154,000,000 
 
 
Unrecognized Tax Benefits
 
1,800,000,000 
 
 
Unrecognized tax benefits that would impact tax rate
 
1,500,000,000 
 
 
Unrecognized Tax Benefits Reasonably Possible Reduced in the next 12 Months
$ 150,000,000 
 
$ 150,000,000 
 
Segment Information And Major Customers - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Jul. 28, 2012
Segment Reporting Information [Line Items]
 
 
 
 
 
Number of geographic segments
 
 
three 
 
 
Net sales in the United States
$ 12,216,000,000 
$ 11,588,000,000 
$ 36,190,000,000 
$ 34,371,000,000 
 
United States [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Net sales in the United States
6,100,000,000 
5,500,000,000 
18,300,000,000 
16,600,000,000 
 
Cash, Cash Equivalents, and Investments
7,900,000,000 
 
7,900,000,000 
 
6,200,000,000 
International [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Cash, Cash Equivalents, and Investments
$ 39,500,000,000 
 
$ 39,500,000,000 
 
$ 42,500,000,000 
Segment Information And Major Customers (Reportable Segments) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Segment Reporting Information [Line Items]
 
 
 
 
Total Gross Margin
$ 7,511 
$ 7,169 
$ 22,093 
$ 21,124 
Segment Gross Margin
7,701 
7,314 
22,685 
21,529 
Total Net Sales
12,216 
11,588 
36,190 
34,371 
Unallocated Amount to Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Gross Margin
(190)
(145)
(592)
(405)
Americas [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Segment Gross Margin
4,460 
4,053 
13,341 
12,319 
Total Net Sales
7,127 
6,466 
21,286 
19,606 
Europe Middle East And Africa [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Segment Gross Margin
2,044 
2,019 
5,850 
5,868 
Total Net Sales
3,131 
3,160 
9,065 
9,255 
Asia Pacific Japan And China [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Segment Gross Margin
1,197 
1,242 
3,494 
3,342 
Total Net Sales
$ 1,958 
$ 1,962 
$ 5,839 
$ 5,510 
Segment Information And Major Customers (Net Sales For Groups Of Similar Products And Services) (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
$ 12,216 
$ 11,588 
$ 36,190 
$ 34,371 
Switching [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
3,598 
3,661 
10,938 
10,969 
Next Generation Networks [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
2,140 
2,134 
6,138 
6,296 
Service Provider Video [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
1,299 
999 
3,667 
2,896 
Collaboration [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
1,013 
1,022 
2,978 
3,190 
Data Center [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
515 
291 
1,480 
883 
Wireless [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
523 
413 
1,529 
1,175 
Security [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
327 
342 
1,001 
994 
Other Products [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
144 
244 
562 
773 
Product [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
9,559 
9,106 
28,293 
27,176 
Service [Member]
 
 
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
 
 
Revenues
$ 2,657 
$ 2,482 
$ 7,897 
$ 7,195 
Segment Information And Major Customers (Property And Equipment, Net) (Detail) (USD $)
In Millions, unless otherwise specified
Apr. 27, 2013
Jul. 28, 2012
Segment Reporting Information [Line Items]
 
 
Property and equipment, net
$ 3,330 
$ 3,402 
International [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Property and equipment, net
570 
560 
United States [Member]
 
 
Segment Reporting Information [Line Items]
 
 
Property and equipment, net
$ 2,760 
$ 2,842 
Net Income Per Share (Calculation Of Basic And Diluted Net Income Per Share) (Detail) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Apr. 27, 2013
Apr. 28, 2012
Apr. 27, 2013
Apr. 28, 2012
Earnings Per Share [Abstract]
 
 
 
 
Net income
$ 2,478 
$ 2,165 
$ 7,713 
$ 6,124 
Weighted Average Shares, Basic (in shares)
5,329 
5,388 
5,316 
5,383 
Effective of Dilutive Potential Common Shares (in shares)
58 
68 
45 
35 
Weighted-average shares-diluted (in shares)
5,387 
5,456 
5,361 
5,418 
Net income per share-basic
$ 0.47 
$ 0.40 
$ 1.45 
$ 1.14 
Earnings Per Share, Diluted
$ 0.46 
$ 0.40 
$ 1.44 
$ 1.13 
Antidilutive employee share-based awards, excluded
245 
295 
417 
538