Document and Entity Information

6 Months Ended

Jan. 24, 2015

Feb. 13, 2015

Document Documentand Entity Information [Abstract]

Document Type

10-Q

Amendment Flag

false

Document Period End Date

Jan. 24, 2015

Document Fiscal Period Focus

Q2

Document Fiscal Year Focus

2015

Trading Symbol

CSCO

Entity Registrant Name

CISCO SYSTEMS, INC.

Entity Central Index Key

0000858877

Entity Current Reporting Status

Yes

Current Fiscal Year End Date

--07-25

Entity Filer Category

Large Accelerated Filer

Entity Common Stock, Shares Outstanding

5,104,738,671

Consolidated Balance Sheets (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Current assets:

Cash and cash equivalents

$ 4,797

$ 6,726

Investments

48,225

45,348

Accounts receivable, net of allowance for doubtful accounts of $270 at January 24, 2015 and $265 at July 26, 2014

4,541

5,157

Inventories

1,890

1,591

Financing receivables, net

4,210

4,153

Deferred tax assets

2,654

2,808

Other current assets

1,565

1,331

Total current assets

67,882

67,114

Property and equipment, net

3,212

3,252

Financing receivables, net

3,549

3,918

Goodwill

24,382

24,239

Purchased intangible assets, net

2,755

3,280

Other assets

3,142

3,331

TOTAL ASSETS

104,922

105,134

Current liabilities:

Short-term debt

855

508

Accounts payable

988

1,032

Income taxes payable

0

159

Accrued compensation

2,694

3,181

Deferred revenue

9,369

9,478

Other current liabilities

6,128

5,451

Total current liabilities

20,034

19,809

Long-term debt

19,667

20,401

Income taxes payable

1,433

1,851

Deferred revenue

4,652

4,664

Other long-term liabilities

1,403

1,748

Total liabilities

47,189

48,473

Commitments and contingencies (Note 12)

Cisco shareholders’ equity:

Preferred stock, no par value: 5 shares authorized; none issued and outstanding

0

Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,107 shares issued and outstanding at each of January 24, 2015 and July 26, 2014

42,685

41,884

Retained earnings

14,847

14,093

Accumulated other comprehensive income

186

677

Total Cisco shareholders’ equity

57,718

56,654

Noncontrolling interests

15

7

Total equity

57,733

56,661

TOTAL LIABILITIES AND EQUITY

$ 104,922

$ 105,134

Consolidated Balance Sheets (Parenthetical) (USD $)

In Millions, except Per Share data, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Statement of Financial Position [Abstract]

Accounts receivable, allowance for doubtful accounts

$ 270

$ 265

Preferred stock, par value (in dollars per share)

$ 0

Preferred stock, shares authorized (in shares)

5

Preferred stock, issued (in shares)

0

Preferred stock, outstanding (in shares)

0

Common stock, par value (in dollars per share)

$ 0.001

Common stock, shares authorized (in shares)

20,000

Common stock, shares issued (in shares)

5,107

Common stock, shares outstanding (in shares)

5,107

Consolidated Statements Of Operations (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

REVENUE:

Product

$ 9,078

$ 8,423

$ 18,513

$ 17,820

Service

2,858

2,732

5,668

5,420

Total revenue

11,936

11,155

24,181

23,240

COST OF SALES:

Product

3,806

4,323

7,725

8,070

Service

1,040

881

2,033

1,812

Total cost of sales

4,846

5,204

9,758

9,882

GROSS MARGIN

7,090

5,951

14,423

13,358

OPERATING EXPENSES:

Research and development

1,529

1,412

3,112

3,136

Sales and marketing

2,308

2,277

4,823

4,688

General and administrative

490

451

994

966

Amortization of purchased intangible assets

72

71

143

136

Restructuring and other charges

69

73

387

310

Total operating expenses

4,468

4,284

9,459

9,236

OPERATING INCOME

2,622

1,667

4,964

4,122

Interest income

189

169

368

338

Interest expense

(139)

(136)

(278)

(276)

Other income (loss), net

201

55

179

111

Interest and other income (loss), net

251

88

269

173

INCOME BEFORE PROVISION FOR INCOME TAXES

2,873

1,755

5,233

4,295

Provision for income taxes

476

326

1,008

870

NET INCOME

$ 2,397

$ 1,429

$ 4,225

$ 3,425

Net income per share:

Basic (in dollars per share)

$ 0.47

$ 0.27

$ 0.83

$ 0.64

Diluted (in dollars per share)

$ 0.46

$ 0.27

$ 0.82

$ 0.64

Shares used in per-share calculation:

Basic (in shares)

5,117

5,294

5,115

5,336

Diluted (in shares)

5,160

5,327

5,159

5,383

Cash dividends declared per common share (in dollars per share)

$ 0.19

$ 0.17

$ 0.38

$ 0.34

Consolidated Statements of Comprehensive Income (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Statement of Comprehensive Income [Abstract]

Net income

$ 2,397

$ 1,429

$ 4,225

$ 3,425

Change in net unrealized gains, net of tax benefit (expense) of $9 and $23 for the three and six months ended January 24, 2015, respectively, and $(69) and $(122) for the corresponding periods of fiscal 2014, respectively

30

96

8

217

Net gains reclassified into earnings, net of tax expense of $24 and $26 for the three and six months ended January 24, 2015, respectively, and $31 and $62 for the corresponding periods of fiscal 2014, respectively

(45)

(51)

(50)

(103)

Total- Available-for-sale investments

(15)

45

(42)

114

Change in unrealized gains and losses, net of tax benefit (expense) of $0 and $3 for the three and six months ended January 24, 2015, respectively, and $1 and $(2) for the corresponding periods of fiscal 2014, respectively

(75)

(4)

(128)

31

Net (gains) losses reclassified into earnings

26

(19)

30

(28)

Total- Cash flow hedging instruments

(49)

(23)

(98)

3

Net change in cumulative translation adjustment and actuarial gains and losses net of tax benefit (expense) of $26 and $36 for the three and six months ended January 24, 2015, respectively, and $2 and $(1) for the corresponding periods of fiscal 2014, respectively

(193)

(88)

(343)

(15)

Other comprehensive income (loss)

(257)

(66)

(483)

102

Comprehensive income

2,140

1,363

3,742

3,527

Comprehensive (income) loss attributable to noncontrolling interests

(8)

(3)

(8)

(7)

Comprehensive income attributable to Cisco Systems, Inc.

$ 2,132

$ 1,360

$ 3,734

$ 3,520

Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Statement of Comprehensive Income [Abstract]

Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax

$ 9

$ (69)

$ 23

$ (122)

Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax

24

31

26

62

Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax

0

1

3

(2)

Other Comprehensive Income Loss Foreign Currency Translation Adjustment and actuarial gains and losses,Tax

$ 26

$ 2

$ 36

$ (1)

Consolidated Statements Of Cash Flows (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Cash flows from operating activities:

Net income

$ 4,225

$ 3,425

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation, amortization, and other

1,224

1,203

Share-based compensation expense

677

656

Provision for receivables

62

56

Deferred income taxes

385

(26)

Excess tax benefits from share-based compensation

(83)

(73)

(Gains) losses on investments and other, net

(182)

(163)

Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

Accounts receivable

501

1,134

Inventories

(340)

(77)

Financing receivables

74

245

Other assets

(218)

179

Accounts payable

(32)

(161)

Income taxes, net

(528)

(444)

Accrued compensation

(390)

(804)

Deferred revenue

26

(205)

Other liabilities

(27)

577

Net cash provided by operating activities

5,374

5,522

Cash flows from investing activities:

Purchases of investments

(20,061)

(15,874)

Proceeds from sales of investments

9,948

9,081

Proceeds from maturities of investments

7,212

7,988

Acquisition of businesses, net of cash and cash equivalents acquired

(217)

(2,784)

Purchases of investments in privately held companies

(91)

(263)

Return of investments in privately held companies

227

81

Acquisition of property and equipment

(550)

(577)

Proceeds from sales of property and equipment

5

164

Other

(109)

(6)

Net cash used in investing activities

(3,636)

(2,190)

Cash flows from financing activities:

Issuances of common stock

1,162

837

Repurchases of common stock—repurchase program

(2,196)

(5,680)

Shares repurchased for tax withholdings on vesting of restricted stock units

(369)

(309)

Short-term borrowings, original maturities less than 90 days, net

(4)

998

Issuances of debt

0

4

Repayments of debt

(506)

(22)

Excess tax benefits from share-based compensation

83

73

Dividends paid

(1,947)

(1,810)

Other

110

(9)

Net cash used in financing activities

(3,667)

(5,918)

Net decrease in cash and cash equivalents

(1,929)

(2,586)

Cash and cash equivalents, beginning of period

6,726

7,925

Cash and cash equivalents, end of period

4,797

5,339

Supplemental cash flow information:

Cash paid for interest

383

340

Cash paid for income taxes, net

$ 1,152

$ 1,340

Consolidated Statements Of Equity (USD $)

In Millions

Total

USD ($)

Shares of Common Stock

Common Stock and Additional Paid-In Capital

USD ($)

Retained Earnings

USD ($)

Accumulated Other Comprehensive Income

USD ($)

Total Cisco Shareholders’ Equity

USD ($)

Non-controlling Interests

USD ($)

Beginning balance at Jul. 27, 2013

$ 59,128

$ 42,297

$ 16,215

$ 608

$ 59,120

$ 8

Beginning balance (in shares) at Jul. 27, 2013

5,389

Net income

3,425

Other comprehensive (loss) income

102

95

7

Issuance of common stock (in shares)

84

Issuance of common stock

837

Repurchase of common stock (in shares)

(269)

Repurchase of common stock

(6,020)

(2,118)

(3,902)

(6,020)

Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)

(13)

Shares repurchased for tax withholdings on vesting of restricted stock units

(309)

Cash dividends declared (per common share)

(1,810)

Tax effects from employee stock incentive plans

29

Share-based compensation expense

656

Purchase acquisitions and other

46

Ending Balance at Jan. 25, 2014

56,084

41,438

13,928

703

56,069

15

Ending Balance (in shares) at Jan. 25, 2014

5,191

Beginning balance at Jul. 26, 2014

56,661

41,884

14,093

677

56,654

7

Beginning balance (in shares) at Jul. 26, 2014

5,107

Net income

4,225

Other comprehensive (loss) income

(483)

(491)

8

Issuance of common stock (in shares)

100

Issuance of common stock

1,162

Repurchase of common stock (in shares)

(85)¹

(85)

Repurchase of common stock

(2,221)

(697)

(1,524)

(2,221)

Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)

(15)

Shares repurchased for tax withholdings on vesting of restricted stock units

(369)

Cash dividends declared (per common share)

(1,947)

Tax effects from employee stock incentive plans

25

Share-based compensation expense

677

Purchase acquisitions and other

3

Ending Balance at Jan. 24, 2015

$ 57,733

$ 42,685

$ 14,847

$ 186

$ 57,718

$ 15

Ending Balance (in shares) at Jan. 24, 2015

5,107

[1] Includes stock repurchases of $150 million, which were pending settlement as of January 24, 2015. There were $126 million of stock repurchases that were pending settlement as of July 26, 2014.

Consolidated Statements Of Equity (Parenthetical)

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Statement of Stockholders' Equity [Abstract]

Cash dividends declared, per common share

$ 0.38

$ 0.34

Supplemental Information

In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of January 24, 2015, the Company’s Board of Directors had authorized an aggregate repurchase of up to $97 billion of common stock under this program with no termination date. The stock repurchases since the inception of this program and the related impacts on Cisco shareholders’ equity are summarized in the following table (in millions):



	Shares of Common Stock	Common Stock and Additional Paid-In Capital		Retained Earnings		Total Cisco Shareholders’ Equity
Repurchases of common stock under the repurchase program	4,373	$	22,021	$	68,645	$	90,666

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 2015 and fiscal 2014 are each 52-week fiscal years. The Consolidated Financial Statements include the accounts of Cisco and its subsidiaries. All intercompany accounts and transactions have been eliminated. The Company conducts business globally and is primarily managed on a geographic basis in the following three geographic segments: the Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC).

The accompanying financial data as of January 24, 2015 and for the three and six months ended January 24, 2015 and January 25, 2014 has been prepared by the Company, without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles in the United States (GAAP) have been condensed or omitted pursuant to such rules and regulations. The July 26, 2014 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 26, 2014.

The Company consolidates its investments in a venture fund managed by SOFTBANK Corp. and its affiliates (“SOFTBANK”) as this is a variable interest entity and the Company is the primary beneficiary. The noncontrolling interests attributed to SOFTBANK are presented as a separate component from the Company’s equity in the equity section of the Consolidated Balance Sheets. SOFTBANK’s share of the earnings in the venture fund are not presented separately in the Consolidated Statements of Operations as these amounts are not material for any of the fiscal periods presented.

In the opinion of management, all adjustments (which include normal recurring adjustments, except as disclosed herein) necessary to present fairly the consolidated balance sheet as of January 24, 2015; the results of operations and statements of comprehensive income for the three and six months ended January 24, 2015 and January 25, 2014; and the statements of cash flows and equity for the six months ended January 24, 2015 and January 25, 2014, as applicable, have been made. The results of operations for the three and six months ended January 24, 2015 are not necessarily indicative of the operating results for the full fiscal year or any future periods.

Certain reclassifications have been made to the amounts in prior periods in order to conform to the current period’s presentation. The Company has evaluated subsequent events through the date that the financial statements were issued.

Summary of Significant Accounting Policies


2.	Recent Accounting Pronouncements


(a)	New Accounting Updates Recently Adopted

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 sells either a part or all of its investment in the foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within the foreign entity. This accounting standard update became effective for the Company beginning in the first quarter of fiscal 2015. The application of this accounting standard update did not have any impact to the Company's Consolidated Financial Statements.

In July 2013, the FASB issued an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard update, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, is to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. This accounting standard update became effective for the Company beginning in the first quarter of fiscal 2015 and applied prospectively. The application of this accounting standard update did not have a material impact to the Company's Consolidated Financial Statements.

In April 2014, the FASB issued an accounting standard update that changes the criteria for reporting discontinued operations. This accounting standard update raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. The Company adopted this accounting standard update in the second quarter of fiscal 2015, and it did not have any impact upon adoption.


(b)	Recent Accounting Standards or Updates Not Yet Effective

In May 2014, the FASB issued an accounting standard update related to revenue from contracts with customers, which will supersede nearly all current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The underlying principle is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. Early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.

Business Combinations


3.	Business Combinations

The Company completed three business combinations during the six months ended January 24, 2015. 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
Metacloud, Inc.	$	149	$	(7	)	$	29	$	127
All others (two in total)	71		(10		)	40		41
Total acquisitions	$	220	$	(17	)	$	69	$	168

On September 29, 2014, the Company completed its acquisition of Metacloud, Inc. ("Metacloud"), a provider of private clouds for global organizations. With its acquisition of Metacloud, the Company aims to advance its Intercloud strategy to deliver a globally distributed, highly secure cloud platform capable of meeting customer demands. Revenue from the Metacloud acquisition has been included in the Company's Service category.

The total purchase consideration related to the Company’s business combinations completed during the six months ended January 24, 2015 consisted of cash consideration and vested share-based awards assumed. The total cash and cash equivalents acquired from these business combinations was approximately $4 million. Total transaction costs related to the Company’s business combination activities were $5 million and $6 million for the six months ended January 24, 2015 and January 25, 2014, respectively. These transaction costs were expensed as incurred in general and administrative (G&A) expenses in the Consolidated Statements of Operations.

The Company’s purchase price allocation for business combinations completed during recent periods is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information, that existed as of the acquisition date but at that time was unknown to the Company may become known to the Company during the remainder of the measurement period, a period not to exceed 12 months from the acquisition date. Adjustments in the purchase price allocation may require a recasting of the amounts allocated to goodwill retroactive to the period in which the acquisition occurred.

The goodwill generated from the Company’s business combinations completed during the six months ended January 24, 2015 is primarily related to expected synergies. The goodwill is generally not deductible for income tax purposes.

The Consolidated Financial Statements include the operating results of each business combination from the date of acquisition. Pro forma results of operations for the acquisitions completed during the six months ended January 24, 2015 have not been presented because the effects of the acquisitions, individually and in the aggregate, were not material to the Company’s financial results.

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 six months ended January 24, 2015 (in millions):



	Balance at July 26, 2014		Acquisitions		Other			Balance at January 24, 2015
Americas	$	15,080	$	89	$	(13	)	$	15,156
EMEA	5,715		63		(7		)	5,771
APJC	3,444		16		(5		)	3,455
Total	$	24,239	$	168	$	(25	)	$	24,382

The column entitled “Other” primarily includes 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 six months ended January 24, 2015 (in millions, except years):



	FINITE LIVES						INDEFINITE LIVES		TOTAL
	TECHNOLOGY			CUSTOMER RELATIONSHIPS			IPR&D		TOTAL
	Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Amount		Amount
Metacloud, Inc.	3.0	$	24	5.0	$	3	$	2	$	29
All others (two in total)	5.0	25		8.1	11		4		40
Total		$	49		$	14	$	6	$	69

The following tables present details of the Company’s purchased intangible assets (in millions):



January 24, 2015	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	4,020	$	(2,270	)	$	1,750
Customer relationships	1,709		(847		)	862
Other	51		(19		)	32
Total purchased intangible assets with finite lives	5,780		(3,136		)	2,644
In-process research and development, with indefinite lives	111		—			111
Total	$	5,891	$	(3,136	)	$	2,755



July 26, 2014	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	4,100	$	(1,976	)	$	2,124
Customer relationships	1,706		(720		)	986
Other	51		(13		)	38
Total purchased intangible assets with finite lives	5,857		(2,709		)	3,148
In-process research and development, with indefinite lives	132		—			132
Total	$	5,989	$	(2,709	)	$	3,280

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				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Amortization of purchased intangible assets:
Cost of sales	$	242	$	189	$	431	$	363
Operating expenses	72		71		143		136
Total	$	314	$	260	$	574	$	499

Amortization of purchased intangible assets for the three and six months ended January 24, 2015 included impairment charges of approximately $56 million. The impairment was primarily due to reductions in expected future cash flows related to certain of the Company's technology intangible assets and was recorded as amortization of purchased intangible assets. There were no impairment charges related to purchased intangible assets during the three and six months ended January 25, 2014.

The estimated future amortization expense of purchased intangible assets with finite lives as of January 24, 2015 is as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	462
2016	734
2017	561
2018	420
2019	317
Thereafter	150
Total	$	2,644

Restructuring and Other Charges


5.	Restructuring and Other Charges

Fiscal 2015 Plan

In connection with a restructuring action announced in August 2014 ("Fiscal 2015 Plan"), the Company incurred cumulative charges of $69 million and $387 million for the three and six months ended January 24, 2015, respectively. The Company estimates that it will recognize aggregate pre-tax charges pursuant to the restructuring action in an amount not expected to exceed $600 million, consisting of severance and other one-time termination benefits and other associated costs. These charges are primarily cash-based and the Company expects the remaining amount to be recognized during the remainder of fiscal 2015.

Fiscal 2014 Plan

In connection with a restructuring action announced in August 2013 ("Fiscal 2014 Plan"), the Company incurred cumulative charges of approximately $418 million, of which $73 million and $310 million were incurred during the three and six months ended January 25, 2014, respectively. The Company completed the Fiscal 2014 Plan at the end of fiscal 2014.

The following table summarizes the activities related to the restructuring and other charges as discussed above (in millions):



	Fiscal 2014 and Prior Plans						Fiscal 2015 Plan
	Employee Severance			Other			Employee Severance			Other			Total
Liability as of July 26, 2014	$	40		$	29		$	—		$	—		$	69
Gross charges in fiscal 2015	—			—			386			1			387
Cash payments	(18		)	—			(347		)	(3		)	(368		)
Non-cash items	—			(8		)	—			2			(6		)
Liability as of January 24, 2015	$	22		$	21		$	39		$	—		$	82

Balance Sheet Details


6.	Balance Sheet Details

The following tables provide details of selected balance sheet items (in millions):



	January 24, 2015		July 26, 2014
Inventories:
Raw materials	$	265	$	77
Work in process	2		5
Finished goods:
Distributor inventory and deferred cost of sales	733		595
Manufactured finished goods	577		606
Total finished goods	1,310		1,201
Service-related spares	274		273
Demonstration systems	39		35
Total	$	1,890	$	1,591



Property and equipment, net:
Land, buildings, and building and leasehold improvements	$	4,457		$	4,468
Computer equipment and related software	1,417			1,425
Production, engineering, and other equipment	5,745			5,756
Operating lease assets	343			362
Furniture and fixtures	498			509
	12,460			12,520
Less accumulated depreciation and amortization	(9,248		)	(9,268		)
Total	$	3,212		$	3,252



Other assets:
Deferred tax assets	$	1,448	$	1,700
Investments in privately held companies	857		899
Other	837		732
Total	$	3,142	$	3,331



Deferred revenue:
Service	$	9,020	$	9,640
Product:
Unrecognized revenue on product shipments and other deferred revenue	4,276		3,924
Cash receipts related to unrecognized revenue from two-tier distributors	725		578
Total product deferred revenue	5,001		4,502
Total	$	14,021	$	14,142
Reported as:
Current	$	9,369	$	9,478
Noncurrent	4,652		4,664
Total	$	14,021	$	14,142

Financing Receivables and Operating Leases


7.	Financing Receivables and Operating Leases


(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):



January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,369		$	1,674		$	3,069		$	8,112
Residual value	228			—			—			228
Unearned income	(206		)	—			—			(206		)
Allowance for credit loss	(250		)	(85		)	(40		)	(375		)
Total, net	$	3,141		$	1,589		$	3,029		$	7,759
Reported as:
Current	$	1,462		$	782		$	1,966		$	4,210
Noncurrent	1,679			807			1,063			3,549
Total, net	$	3,141		$	1,589		$	3,029		$	7,759



July 26, 2014	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,532		$	1,683		$	3,210		$	8,425
Residual value	233			—			—			233
Unearned income	(238		)	—			—			(238		)
Allowance for credit loss	(233		)	(98		)	(18		)	(349		)
Total, net	$	3,294		$	1,585		$	3,192		$	8,071
Reported as:
Current	$	1,476		$	728		$	1,949		$	4,153
Noncurrent	1,818			857			1,243			3,918
Total, net	$	3,294		$	1,585		$	3,192		$	8,071

As of January 24, 2015 and July 26, 2014, the deferred service revenue related to "Financed Service Contracts and Other" was $1,530 million and $1,843 million, respectively.

Future minimum lease payments at January 24, 2015 are summarized as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	883
2016	1,281
2017	753
2018	327
2019	115
Thereafter	10
Total	$	3,369

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.


(b)	Credit Quality of Financing Receivables

Gross receivables less unearned income categorized by the Company’s internal credit risk rating as of January 24, 2015 and July 26, 2014 are summarized as follows (in millions):



	INTERNAL CREDIT RISK RATING
January 24, 2015	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,632	$	1,386	$	145	$	3,163
Loan receivables	717		803		154		1,674
Financed service contracts and other	1,647		1,342		80		3,069
Total	$	3,996	$	3,531	$	379	$	7,906



	INTERNAL CREDIT RISK RATING
July 26, 2014	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,615	$	1,538	$	141	$	3,294
Loan receivables	953		593		137		1,683
Financed service contracts and other	1,744		1,367		99		3,210
Total	$	4,312	$	3,498	$	377	$	8,187

The Company determines the adequacy of its allowance for credit loss by assessing the risks and losses inherent in its financing receivables by portfolio segment. The portfolio segment is based on the types of financing offered by the Company to its customers, which consist of the following: lease receivables, loan receivables, and financed service contracts 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.

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 January 24, 2015 and July 26, 2014 were $1,928 million and $2,220 million, respectively, and they were associated with total financing receivables before allowance for credit loss of $8,134 million and $8,420 million as of their respective period ends.

The following tables present the aging analysis of gross receivables less unearned income as of January 24, 2015 and July 26, 2014 (in millions):



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
January 24, 2015	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	171	$	63	$	224	$	458	$	2,705	$	3,163	$	53	$	48
Loan receivables	30		42		177		249		1,425		1,674		33		33
Financed service contracts and other	144		135		385		664		2,405		3,069		30		8
Total	$	345	$	240	$	786	$	1,371	$	6,535	$	7,906	$	116	$	89



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 26, 2014	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	63	$	48	$	203	$	314	$	2,980	$	3,294	$	48	$	41
Loan receivables	7		21		28		56		1,627		1,683		19		19
Financed service contracts and other	268		238		221		727		2,483		3,210		12		9
Total	$	338	$	307	$	452	$	1,097	$	7,090	$	8,187	$	79	$	69

Past due financing receivables are those that are 31 days or more past due according to their contractual payment terms. The data in the preceding tables is presented by contract, and the aging classification of each contract is based on the oldest outstanding receivable, and therefore past due amounts also include unbilled and current receivables within the same contract. The balances of either unbilled or current financing receivables included in the category of 91 days plus past due for financing receivables were $542 million and $334 million as of January 24, 2015 and July 26, 2014, respectively.

As of January 24, 2015, the Company had financing receivables of $217 million, net of unbilled or current receivables from the same contract, that were in the category of 91 days plus past due but remained on accrual status. Such balance was $78 million as of July 26, 2014. 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 January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of October 25, 2014	$	248		$	84		$	36	$	368
Provisions	7			3			4		14
Recoveries (write-offs), net	(1		)	—			—		(1		)
Foreign exchange and other	(4		)	(2		)	—		(6		)
Allowance for credit loss as of January 24, 2015	$	250		$	85		$	40	$	375
Financing receivables as of January 24, 2015 ⁽¹⁾	$	3,391		$	1,674		$	3,069	$	8,134



	CREDIT LOSS ALLOWANCES
Six Months Ended January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Allowance for credit loss as of July 26, 2014	$	233		$	98		$	18		$	349
Provisions	29			(10		)	23			42
Recoveries (write-offs), net	(5		)	1			—			(4		)
Foreign exchange and other	(7		)	(4		)	(1		)	(12		)
Allowance for credit loss as of January 24, 2015	$	250		$	85		$	40		$	375



	CREDIT LOSS ALLOWANCES
Three Months Ended January 25, 2014	Lease Receivables			Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of October 26, 2013	$	237		$	93		$	20	$	350
Provisions	18			9			2		29
Recoveries (write-offs), net	1			—			—		1
Foreign exchange and other	(2		)	(4		)	—		(6		)
Allowance for credit loss as of January 25, 2014	$	254		$	98		$	22	$	374
Financing receivables as of January 25, 2014 ⁽¹⁾	$	3,551		$	1,660		$	2,807	$	8,018



	CREDIT LOSS ALLOWANCES
Six Months Ended January 25, 2014	Lease Receivables		Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of July 27, 2013	$	238	$	86		$	20	$	344
Provisions	15		15			2		32
Recoveries (write-offs), net	1		—			—		1
Foreign exchange and other	—		(3		)	—		(3		)
Allowance for credit loss as of January 25, 2014	$	254	$	98		$	22	$	374

⁽¹⁾Total financing receivables before allowance for credit loss.

The Company assesses the allowance for credit loss related to financing receivables on either an individual or a collective basis. The Company considers various factors in evaluating lease and loan receivables and the earned portion of financed service contracts for possible impairment on an individual basis. These factors include the Company’s historical experience, credit quality and age of the receivable balances, and economic conditions that may affect a customer’s ability to pay. When the evaluation indicates that it is probable that all amounts due pursuant to the contractual terms of the financing agreement, including scheduled interest payments, are unable to be collected, the financing receivable is considered impaired. All such outstanding amounts, including any accrued interest, will be assessed and fully reserved at the customer level. The Company’s internal credit risk ratings are categorized as 1 through 10, with the lowest credit risk rating representing the highest quality financing receivables.

Typically, the Company also considers receivables with a risk rating of 8 or higher to be impaired and will include them in the individual assessment for allowance. These balances, as of January 24, 2015 and July 26, 2014, are presented under “(b) Credit Quality of Financing Receivables” above.

The Company evaluates the remainder of its financing receivables portfolio for impairment on a collective basis and records an allowance for credit loss at the portfolio segment level. When evaluating the financing receivables on a collective basis, the Company uses expected default frequency rates published by a major third-party credit-rating agency as well as its own historical loss rate in the event of default, while also systematically giving effect to economic conditions, concentration of risk, and correlation.


(d)	Operating Leases

The Company provides financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):



	January 24, 2015			July 26, 2014
Operating lease assets	$	343		$	362
Accumulated depreciation	(195		)	(202		)
Operating lease assets, net	$	148		$	160

Minimum future rentals on noncancelable operating leases at January 24, 2015 were approximately $0.1 billion for the remaining six months of fiscal 2015, $0.2 billion for fiscal 2016, and less than $0.1 billion per year for each of fiscal 2017 through fiscal 2019.

Investments


8.	Investments


(a)	Summary of Available-for-Sale Investments

The following tables summarize the Company’s available-for-sale investments (in millions):



January 24, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	30,302	$	53	$	(1	)	$	30,354
U.S. government agency securities	2,324		3		(1		)	2,326
Non-U.S. government and agency securities	1,108		1		—			1,109
Corporate debt securities	11,180		61		(28		)	11,213
U.S. agency mortgage-backed securities	1,360		15		—			1,375
Total fixed income securities	46,274		133		(30		)	46,377
Publicly traded equity securities	1,296		562		(10		)	1,848
Total	$	47,570	$	695	$	(40	)	$	48,225



July 26, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	31,717	$	29	$	(12	)	$	31,734
U.S. government agency securities	1,062		1		—			1,063
Non-U.S. government and agency securities	860		2		(1		)	861
Corporate debt securities	9,092		74		(7		)	9,159
U.S. agency mortgage-backed securities	574		5		—			579
Total fixed income securities	43,305		111		(20		)	43,396
Publicly traded equity securities	1,314		648		(10		)	1,952
Total	$	44,619	$	759	$	(30	)	$	45,348

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						Six Months Ended
	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Gross realized gains	$	92		$	97		$	113		$	192
Gross realized losses	(23		)	(15		)	(37		)	(27		)
Total	$	69		$	82		$	76		$	165

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				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Net gains (losses) on investments in publicly traded equity securities	$	60	$	69	$	56	$	144
Net gains on investments in fixed income securities	9		13		20		21
Total	$	69	$	82	$	76	$	165

There were no impairment charges on available-for-sale investments for the three and six months ended January 24, 2015. For the three and six months ended January 25, 2014, the realized gains related to the Company's available-for-sale investments included impairment charges of $11 million for publicly traded equity securities, which were due to a decline in the fair value of those securities below their cost basis that were determined to be other than temporary.

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 January 24, 2015 and July 26, 2014 (in millions):



	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER					TOTAL
January 24, 2015	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government securities	$	4,558	$	(1	)	$	—	$	—		$	4,558	$	(1	)
U.S. government agency securities	854		(1		)	—		—			854		(1		)
Corporate debt securities	3,952		(25		)	363		(3		)	4,315		(28		)
Total fixed income securities	9,364		(27		)	363		(3		)	9,727		(30		)
Publicly traded equity securities	119		(10		)	1		—			120		(10		)
Total	$	9,483	$	(37	)	$	364	$	(3	)	$	9,847	$	(40	)



	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER					TOTAL
July 26, 2014	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government securities	$	7,676	$	(12	)	$	45	$	—		$	7,721	$	(12	)
Non-U.S. government and agency securities	361		(1		)	22		—			383		(1		)
Corporate debt securities	1,875		(3		)	491		(4		)	2,366		(7		)
Total fixed income securities	9,912		(16		)	558		(4		)	10,470		(20		)
Publicly traded equity securities	132		(10		)	—		—			132		(10		)
Total	$	10,044	$	(26	)	$	558	$	(4	)	$	10,602	$	(30	)

As of January 24, 2015, 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 January 24, 2015, 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 six months ended January 24, 2015.

The Company has evaluated its publicly traded equity securities as of January 24, 2015 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 January 24, 2015 (in millions):



	Amortized Cost		Fair Value
Less than 1 year	$	15,355	$	15,362
Due in 1 to 2 years	14,963		14,995
Due in 2 to 5 years	14,383		14,431
Due after 5 years	1,573		1,589
Total	$	46,274	$	46,377

Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. The remaining contractual principal maturities for mortgage-backed securities were allocated assuming no prepayments.


(d)	Securities Lending

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 six months ended January 24, 2015 and January 25, 2014 was $0.6 billion and $0.9 billion, respectively. The Company requires collateral equal to at least 102% of the fair market value of the loaned security and that the collateral be in the form of cash or liquid, high-quality assets. The Company engages in these secured lending transactions only with highly creditworthy counterparties, and the associated portfolio custodian has agreed to indemnify the Company against collateral losses. The Company did not experience any losses in connection with the secured lending of securities during the periods presented. As of January 24, 2015 and July 26, 2014, the Company had no outstanding securities lending transactions.


(e)	Investments in Privately Held Companies

The carrying value of the Company’s investments in privately held companies was included in other assets. For such investments that were accounted for under the equity and cost method as of January 24, 2015 and July 26, 2014, the amounts are summarized in the following table (in millions):



	January 24, 2015		July 26, 2014
Equity method investments	$	541	$	630
Cost method investments	316		269
Total	$	857	$	899

Variable Interest Entities

VCE Joint Venture VCE is a joint venture formed in fiscal 2010 between the Company and EMC Corporation (“EMC”), with investments from VMware, Inc. (“VMware”) and Intel Capital Corporation ("Intel"). In October 2014, the Company, EMC, VMware, and Intel agreed to restructure VCE, and this transaction was completed in the second quarter of fiscal 2015. Prior to the restructuring, the Company’s cumulative gross investment in VCE was approximately $716 million inclusive of convertible notes and accrued interest on convertible notes. The Company recorded cumulative losses from VCE under the equity method of $691 million since inception. The Company ceased accounting for the VCE investment under the equity method in October 2014 and recorded no losses during the three months ended January 24, 2015, compared with losses of $58 million recorded for the three months ended January 25, 2014, and losses of $47 million and $111 million were recorded for the six months ended January 24, 2015 and January 25, 2014, respectively. Under the terms of the restructuring, VCE paid $152 million to the Company for a portion of the outstanding principal balance of the convertible notes held by it and accrued interest on such notes, and the remaining principal balance of other such notes, and the accrued interest thereon, was cancelled. Pursuant to the restructuring, VCE also redeemed a portion of the Company’s equity interest in VCE, reducing the Company’s ownership interest in VCE from 35% prior to the restructuring to 10%. In connection with this transaction, the Company has written this investment down to a book value of zero and has recognized a gain of $126 million for the three and six months ended January 24, 2015.

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 January 24, 2015 there were no other variable interest entities required to be consolidated in the Company’s Consolidated Financial Statements.

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 January 24, 2015 and July 26, 2014 were as follows (in millions):



	JANUARY 24, 2015 FAIR VALUE MEASUREMENTS								JULY 26, 2014 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	$	2,977	$	—	$	—	$	2,977	$	4,935	$	—	$	—	$	4,935
Corporate debt securities	—		67		—		67		—		—		—		—
Available-for-sale investments:
U.S. government securities	—		30,354		—		30,354		—		31,734		—		31,734
U.S. government agency securities	—		2,326		—		2,326		—		1,063		—		1,063
Non-U.S. government and agency securities	—		1,109		—		1,109		—		861		—		861
Corporate debt securities	—		11,213		—		11,213		—		9,159		—		9,159
U.S. agency mortgage-backed securities	—		1,375		—		1,375		—		579		—		579
Publicly traded equity securities	1,848		—		—		1,848		1,952		—		—		1,952
Derivative assets	—		288		—		288		—		158		2		160
Total	$	4,825	$	46,732	$	—	$	51,557	$	6,887	$	43,554	$	2	$	50,443
Liabilities:
Derivative liabilities	$	—	$	162	$	—	$	162	$	—	$	67	$	—	$	67
Total	$	—	$	162	$	—	$	162	$	—	$	67	$	—	$	67

Level 1 publicly traded equity securities are determined by using quoted prices in active markets for identical assets. Level 2 fixed income securities are priced using quoted market prices for similar instruments or nonbinding market prices that are corroborated by observable market data. The Company uses inputs such as actual trade data, benchmark yields, broker/dealer quotes, and other similar data, which are obtained from quoted market prices, independent pricing vendors, or other sources, to determine the ultimate fair value of these assets and liabilities. The Company uses such pricing data as the primary input to make its assessments and determinations as to the ultimate valuation of its investment portfolio and has not made, during the periods presented, any material adjustments to such inputs. The Company is ultimately responsible for the financial statements and underlying estimates. The Company’s derivative instruments are primarily classified as Level 2, as they are not actively traded and are valued using pricing models that use observable market inputs. The Company did not have any transfers between Level 1 and Level 2 fair value measurements during the periods presented.

Level 3 assets include certain derivative instruments, the values of which are determined based on discounted cash flow models using inputs that the Company could not corroborate with market data.


(c)	Assets Measured at Fair Value on a Nonrecurring Basis

The Company recognized $2 million and $3 million of losses related to the impairment of privately held investments for the three and six months ended January 24, 2015, respectively, and $9 million and $10 million for the three and six months ended January 25, 2014, respectively. The Company recognized $56 million of losses related to the impairment of purchased intangible assets for the three and six months ended January 24, 2015. There were no impairment charges of purchased intangible assets for the corresponding periods in fiscal 2014. These assets were measured at fair value due to events or circumstances the Company identified as having significant impact on their fair value during the respective periods. To arrive at the valuation of these assets, the Company considers any significant changes in the financial metrics and economic variables and also uses third-party valuation reports to assist in the valuation as necessary.

The fair value measurement of the impaired investments was classified as Level 3 because significant unobservable inputs were used in the valuation due to the absence of quoted market prices and inherent lack of liquidity. Significant unobservable inputs, which included financial metrics of comparable private and public companies, financial condition and near-term prospects of the investees, recent financing activities of the investees, and the investees’ capital structure as well as other economic variables, reflected the assumptions market participants would use in pricing these assets. The impairment charges, representing the difference between the net book value and the fair value as a result of the evaluation, were recorded to other income (loss), net.

The fair value for purchased intangibles for which the carrying amount was not deemed to be recoverable was determined using the future discounted cash flows that the assets are expected to generate. The difference between the estimated fair value and the carrying value of the assets was recorded as an impairment charge, which was included in product cost of sales and operating expenses as applicable. See Note 4.


(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 $316 million and $269 million as of January 24, 2015 and July 26, 2014, 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 January 24, 2015 and July 26, 2014 was $1.9 billion and $2.1 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 January 24, 2015, the estimated fair value of the short-term debt approximates its carrying value due to the short maturities. As of January 24, 2015, the fair value of the Company’s senior notes and other long-term debt was $22.3 billion with a carrying amount of $20.5 billion. This compares to a fair value of $22.4 billion and a carrying amount of $20.9 billion as of July 26, 2014. The fair value of the senior notes and other long-term debt was determined based on observable market prices in a less active market and was categorized as Level 2 in the fair value hierarchy.

Borrowings


10.	Borrowings


(a)	Short-Term Debt

The following table summarizes the Company’s short-term debt (in millions, except percentages):



	January 24, 2015				July 26, 2014
	Amount		Effective Rate		Amount		Effective Rate
Current portion of long-term debt	$	850	0.36	%	$	500	3.11	%
Other short-term debt	5		2.73	%	8		2.67	%
Total short-term debt	$	855			$	508

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 January 24, 2015 and July 26, 2014.

The effective interest rate on the current portion of long-term debt includes the impact of interest rate swaps, as discussed further in "(b) Long-Term Debt." Other notes and borrowings consist of the short-term portion of secured borrowings associated with customer financing arrangements. These notes and credit facilities were subject to various terms and foreign currency market interest rates pursuant to individual financial arrangements between the financing institution and the applicable foreign subsidiary.

On November 17, 2014, upon the maturity of the Company’s 2014 Fixed-Rate Notes (2.90%), the Company repaid an aggregate principal amount of $500 million.


(b)	Long-Term Debt

The following table summarizes the Company’s long-term debt (in millions, except percentages):



		January 24, 2015				July 26, 2014
	Maturity Date	Amount			Effective Rate	Amount			Effective Rate
Senior notes:
Floating-rate notes:
Three-month LIBOR plus 0.05%	September 3, 2015	$	850		0.36%	$	850		0.35%
Three-month LIBOR plus 0.28%	March 3, 2017	1,000			0.57%	1,000			0.56%
Three-month LIBOR plus 0.50%	March 1, 2019	500			0.79%	500			0.78%
Fixed-rate notes:
2.90%	November 17, 2014	—			—	500			3.11%
5.50%	February 22, 2016	3,000			3.05%	3,000			3.04%
1.10%	March 3, 2017	2,400			0.57%	2,400			0.56%
3.15%	March 14, 2017	750			0.80%	750			0.79%
4.95%	February 15, 2019	2,000			4.69%	2,000			4.69%
2.125%	March 1, 2019	1,750			0.78%	1,750			0.77%
4.45%	January 15, 2020	2,500			2.99%	2,500			2.98%
2.90%	March 4, 2021	500			0.94%	500			0.93%
3.625%	March 4, 2024	1,000			1.06%	1,000			1.05%
5.90%	February 15, 2039	2,000			6.11%	2,000			6.11%
5.50%	January 15, 2040	2,000			5.67%	2,000			5.67%
Other long-term debt		2			2.08%	4			2.39%
Total		20,252				20,754
Unaccreted discount		(61		)		(63		)
Hedge accounting fair value adjustments		326				210
Total		$	20,517			$	20,901

Reported as:
Current portion of long-term debt		$	850			$	500
Long-term debt		19,667				20,401
Total		$	20,517			$	20,901

To achieve its interest rate risk management objectives, the Company entered into interest rate swaps in prior periods with an aggregate notional amount of $10.4 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. For additional information, see Note 11.

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 January 24, 2015, the Company was in compliance with all debt covenants.

As of January 24, 2015, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	—
2016	3,851
2017	4,151
2018	—
2019	4,250
Thereafter	8,000
Total	$	20,252


(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 maintain an interest coverage ratio as defined in the agreement. As of January 24, 2015, the Company was in compliance with the required interest coverage ratio and the other covenants, and the Company had not borrowed any funds under the credit facility.

The Company may also, upon the agreement of either the 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


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	January 24, 2015		July 26, 2014		Balance Sheet Line Item	January 24, 2015		July 26, 2014
Derivatives designated as hedging instruments:
Foreign currency derivatives	Other current assets	$	4	$	7	Other current liabilities	$	88	$	6
Interest rate derivatives	Other assets	279		148		Other long-term liabilities	—		3
Equity derivatives	Other current assets	—		—		Other current liabilities	68		56
Total		283		155			156		65
Derivatives not designated as hedging instruments:
Foreign currency derivatives	Other current assets	5		3		Other current liabilities	6		2
Equity derivatives	Other assets	—		2		Other long-term liabilities	—		—
Total		5		5			6		2
Total		$	288	$	160		$	162	$	67

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)
	January 24, 2015			January 25, 2014			Line Item in Statements of Operations	January 24, 2015			January 25, 2014
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	(75	)	$	(4	)	Operating expenses	$	(21	)	$	16
							Cost of sales—service	(5		)	3
Total	$	(75	)	$	(4	)		$	(26	)	$	19

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	24		$	16		Other income (loss), net	$	—		$	—



GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE SIX MONTHS ENDED (EFFECTIVE PORTION)							GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE SIX MONTHS ENDED (EFFECTIVE PORTION)
	January 24, 2015			January 25, 2014			Line Item in Statements of Operations	January 24, 2015			January 25, 2014
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	(131	)	$	34		Operating expenses	$	(24	)	$	23
							Cost of sales—service	(6		)	5
Total	$	(131	)	$	34			$	(30	)	$	28

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	44		$	(3	)	Other income (loss), net	$	—		$	—

As of January 24, 2015, the Company estimates that approximately $102 million of net derivative losses related to its cash flow hedges included in accumulated other comprehensive income (AOCI) will be reclassified into earnings within the next 12 months when the underlying hedged item impacts earnings.

The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the underlying hedged items is summarized as follows (in millions):



		GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED						GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments	Line Item in Statements of Operations	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Equity derivatives	Other income (loss), net	$	(18	)	$	(12	)	$	18		$	12
Interest rate derivatives	Interest expense	61			(53		)	(61		)	54
Total		$	43		$	(65	)	$	(43	)	$	66



		GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE SIX MONTHS ENDED						GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE SIX MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments	Line Item in Statements of Operations	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Equity derivatives	Other income (loss), net	$	(12	)	$	(47	)	$	12		$	47
Interest rate derivatives	Interest expense	131			(35		)	(134		)	34
Total		$	119		$	(82	)	$	(122	)	$	81

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 SIX MONTHS ENDED
Derivatives Not Designated as Hedging Instruments	Line Item in Statements of Operations	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Foreign currency derivatives	Other income (loss), net	$	(51	)	$	(63	)	$	(109	)	$	(20	)
Total return swaps—deferred compensation	Operating expenses	13			12			—			29
Equity derivatives	Other income (loss), net	8			13			4			24
Total		$	(30	)	$	(38	)	$	(105	)	$	33

The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):



	January 24, 2015		July 26, 2014
Derivatives designated as hedging instruments:
Foreign currency derivatives—cash flow hedges	$	1,641	$	1,618
Interest rate derivatives	10,400		10,400
Net investment hedging instruments	216		345
Equity derivatives	238		238
Derivatives not designated as hedging instruments:
Foreign currency derivatives	1,969		2,528
Total return swaps—deferred compensation	449		428
Total	$	14,913	$	15,557


(b)	Offsetting of Derivative Instruments

The Company presents its derivative instruments at gross fair values in the Consolidated Balance Sheets. However, the Company’s master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty. To further limit credit risk, the Company also enters into collateral security arrangements related to certain derivative instruments whereby cash is posted as collateral between the counterparties based on the fair market value of the derivative instrument. Information related to these offsetting arrangements is summarized as follows (in millions):



	OFFSETTING OF DERIVATIVE ASSETS
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
January 24, 2015	Gross Amount of Recognized Assets		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Received			Net Amount
Derivatives	$	288	$	—	$	288	$	(58	)	$	(186	)	$	44



	OFFSETTING OF DERIVATIVE LIABILITIES
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
January 24, 2015	Gross Amount of Recognized Liabilities		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Pledged		Net Amount
Derivatives	$	162	$	—	$	162	$	(58	)	$	—	$	104



	OFFSETTING OF DERIVATIVE ASSETS
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
July 26, 2014	Gross Amount of Recognized Assets		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Received			Net Amount
Derivatives	$	160	$	—	$	160	$	(39	)	$	(60	)	$	61



	OFFSETTING OF DERIVATIVE LIABILITIES
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
July 26, 2014	Gross Amount of Recognized Liabilities		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Pledged			Net Amount
Derivatives	$	67	$	—	$	67	$	(39	)	$	(1	)	$	27


(c)	Foreign Currency Exchange Risk

The Company conducts business globally in numerous currencies. Therefore, it is exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, the Company enters into foreign currency contracts. The Company does not enter into such contracts for 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 options 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.


(d)	Interest Rate Risk

Interest Rate Derivatives, Investments The Company’s primary objective for holding fixed income securities is to achieve an appropriate investment return consistent with preserving principal and managing risk. To realize these objectives, the Company may utilize interest rate swaps or other derivatives designated as fair value or cash flow hedges. As of January 24, 2015 and July 26, 2014, the Company did not have any outstanding interest rate derivatives related to its fixed income securities.

Interest Rate Derivatives Designated as Fair Value Hedge, Long-Term Debt In fiscal 2014 and 2013, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due on various dates from 2017 through 2024. In the periods prior to fiscal 2013, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in 2016 and 2017. 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 and other long-term liabilities.


(e)	Equity Price Risk

The Company may hold equity securities for strategic purposes or to diversify its overall investment portfolio. The publicly traded equity securities in the Company’s portfolio are subject to price risk. To manage its exposure to changes in the fair value of certain equity securities, the Company has entered into equity derivatives that are designated as fair value hedges. The changes in the value of the hedging instruments are included in other income (loss), net, and offset the change in the fair value of the underlying hedged investment. In addition, the Company periodically enters into equity derivatives that are not designated as accounting hedges. The changes in the fair value of these derivatives are also included in other income (loss), net.

The Company is also exposed to variability in compensation charges related to certain deferred compensation obligations to employees. Although not designated as accounting hedges, the Company utilizes derivatives such as total return swaps to economically hedge this exposure.


(f)	Hedge Effectiveness

For the periods presented, amounts excluded from the assessment of hedge effectiveness were not material for fair value, cash flow, and net investment hedges. In addition, hedge ineffectiveness for fair value, cash flow, and net investment hedges was not material for any of the periods presented.


(g)	Collateral and Credit-Risk-Related Contingent Features

For certain derivative instruments, the Company and its counterparties have entered into arrangements requiring the party that is in a liability position from a mark-to-market standpoint to post cash collateral to the other party. See further discussion under “(b) Offsetting of Derivative Instruments” above.

In addition, 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. Under such agreements, 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. No such derivatives were in a net liability position as of January 24, 2015. The fair market value of such derivatives was $3 million as of July 26, 2014.

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 Belgium, Canada, China, France, Germany, India, Israel, Japan, Norway, 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 January 24, 2015 are as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	195
2016	287
2017	196
2018	139
2019	72
Thereafter	209
Total	$	1,098


(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 allow them to either 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 January 24, 2015 and July 26, 2014, the Company had total purchase commitments for inventory of $4,257 million and $4,169 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 January 24, 2015 and July 26, 2014, the liability for these purchase commitments was $165 million and $162 million, respectively, and was included in other current liabilities.


(c)	Other Commitments

In connection with the Company’s business combinations, the Company has agreed to pay certain additional amounts contingent upon the achievement of certain agreed-upon technology, development, product, or other milestones or upon the continued employment with the Company of certain employees of the acquired entities.

The following table summarizes the compensation expense related to acquisitions (in millions):



	Three Months Ended				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Compensation expense related to acquisitions	$	94	$	106	$	192	$	410

As of January 24, 2015, the Company estimated that future cash compensation expense of up to $428 million may be required to be recognized pursuant to the applicable business combination agreements, which included the remaining potential compensation expense related to Insieme Networks, Inc., as more fully discussed immediately below.

Insieme Networks, Inc. In the third quarter of fiscal 2012, the Company made an investment in Insieme Networks, Inc. ("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 included $100 million of funding and a license to certain of the Company’s technology. Immediately prior to the call option exercise and acquisition described below, the Company owned approximately 83% of Insieme as a result of these investments and consolidated the results of Insieme in its Consolidated Financial Statements. In connection with this investment, the Company and Insieme entered into a put/call option agreement that provided the Company with the right to purchase the remaining interests in Insieme. In addition, the noncontrolling interest holders could require the Company to purchase their shares upon the occurrence of certain events.

During the first quarter of fiscal 2014, the Company exercised its call option and entered into an agreement to purchase the remaining interests in Insieme. The acquisition closed in the second quarter of fiscal 2014, at which time the former noncontrolling interest holders became eligible to receive up to two milestone payments, which will be determined using agreed-upon formulas based primarily on revenue for certain of Insieme’s products. The Company recorded compensation expense of $51 million and $54 million during the three months ended January 24, 2015 and January 25, 2014, respectively, and $104 million and $311 million during the six months ended January 24, 2015 and January 25, 2014, respectively, related to the fair value of the vested portion of amounts that are expected to be earned by the former noncontrolling interest holders. Continued vesting and changes to the fair value of the amounts probable of being earned will result in adjustments to the recorded compensation expense in future periods. Based on the terms of the agreement, the Company has determined that the maximum amount that could be recorded as compensation expense by the Company is approximately $845 million (which includes the $520 million that has been expensed to date), net of forfeitures. The milestone payments, if earned, are expected to be paid primarily during fiscal 2016 and fiscal 2017.

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 $230 million and $255 million as of January 24, 2015 and July 26, 2014, respectively.


(d)	Product Warranties

The following table summarizes the activity related to the product warranty liability (in millions):



	Six Months Ended
	January 24, 2015			January 25, 2014
Balance at beginning of period	$	446		$	402
Provision for warranties issued	355			356
Payments	(327		)	(333		)
Balance at end of period	$	474		$	425

The Company accrues for warranty costs as part of its cost of sales based on associated material product costs, labor costs for technical support staff, and associated overhead. The Company’s products are generally covered by a warranty for periods ranging from 90 days to five years, and for some products the Company provides a limited lifetime warranty.


(e)	Financing and Other Guarantees

In the ordinary course of business, the Company provides financing guarantees for various third-party financing arrangements extended to channel partners and end-user customers. Payments under these financing guarantee arrangements were not material for the periods presented.

Channel Partner Financing Guarantees The Company facilitates arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, generally with payment terms ranging from 60 to 90 days. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, the Company guarantees a portion of these arrangements. The volume of channel partner financing was $6.2 billion and $5.9 billion for the three months ended January 24, 2015 and January 25, 2014, respectively. The volume of channel partner financing was $12.5 billion and $12.2 billion for the six months ended January 24, 2015 and January 25, 2014, respectively. The balance of the channel partner financing subject to guarantees was $1.3 billion and $1.2 billion as of January 24, 2015 and July 26, 2014, 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 $39 million and $20 million for the three months ended January 24, 2015 and January 25, 2014, respectively, and was $65 million and $45 million for the six months ended January 24, 2015 and January 25, 2014, respectively.

Financing Guarantee Summary The aggregate amounts of financing guarantees outstanding at January 24, 2015 and July 26, 2014, 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):



	January 24, 2015			July 26, 2014
Maximum potential future payments relating to financing guarantees:
Channel partner	$	316		$	263
End user	155			202
Total	$	471		$	465
Deferred revenue associated with financing guarantees:
Channel partner	$	(148	)	$	(127	)
End user	(121		)	(166		)
Total	$	(269	)	$	(293	)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue	$	202		$	172

Other Guarantees The Company’s other guarantee arrangements as of January 24, 2015 and July 26, 2014 that were subject to recognition and disclosure requirements were not material.


(f)	Supplier Component Remediation Liability

The Company has recorded in other current liabilities a liability for the expected remediation cost for certain products sold in prior fiscal years containing memory components manufactured by a single supplier between 2005 and 2010. These components are widely used across the industry and are included in a number of the Company's products. Defects in some of these components have caused products to fail after a power cycle event. Defect rates due to this issue have been and are expected to be low. However, the Company has seen a small number of its customers experience a growing number of failures in their networks as a result of this component problem. Although the majority of these products are beyond the Company's warranty terms, the Company is proactively working with customers on mitigation. Prior to the second quarter of fiscal 2014, the Company had a liability of $63 million related to this issue for expected remediation costs based on the intended approach at that time. In February 2014, on the basis of the growing number of failures described above, the Company decided to expand its approach, which resulted in an additional charge to product cost of sales of $655 million being recorded for the second quarter of fiscal 2014. The remaining supplier component remediation liability as of January 24, 2015 and July 26, 2014 was $613 million and $670 million, respectively.


(g)	Indemnifications

In the normal course of business, the Company indemnifies other parties, including customers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold such parties harmless against losses arising from a breach of representations or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim.

The Company has an obligation to indemnify certain expenses pursuant to such an agreement in, among other cases, a case involving certain of the Company’s service provider customers that are subject to patent infringement claims asserted by Sprint Communications Company, L.P. (“Sprint”) in the U.S. District Court for the District of Kansas filed on December 19, 2011 (including one case that was later transferred to the District of Delaware). Sprint alleges that the service providers infringe Sprint’s patents by offering Voice over Internet Protocol-based telephone services utilizing products provided by the Company and other manufacturers. Sprint is seeking monetary damages. Trial dates have been set for the first half of calendar year 2016 in the case proceeding in the District of Kansas. Trial in Delaware is scheduled for February 2017. The parties conducted mediations, and the Company participated through a mediation involving a service provider customer. Those particular mediations did not resolve the parties’ disputes, but the parties plan to engage in additional dispute resolution efforts, including participation by the Company. The Company believes that the service providers have strong defenses and that its products do not infringe the patents subject to the claims and/or that the patents are invalid. 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. Should the plaintiff prevail in litigation, mediation, or settlement, the Company, in accordance with its agreement, may have an obligation to indemnify its service provider customers for damages, mediation awards, or settlement amounts arising from their use of Cisco products.

In addition, the Company has entered into indemnification agreements with its officers and directors, and the Company’s Amended and Restated Bylaws contain similar indemnification obligations to the Company’s agents.

It is not possible to determine the maximum potential amount under these indemnification agreements due to the Company’s limited history with prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material effect on the Company’s operating results, financial position, or cash flows.


(h)	Legal Proceedings

Brazil Brazilian authorities have investigated the Company’s Brazilian subsidiary and certain of its 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 $335 million for the alleged evasion of import and other taxes, approximately $1.3 billion for interest, and approximately $1.5 billion for various penalties, all determined using an exchange rate as of January 24, 2015. 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.

Russia and the Commonwealth of Independent States At the request of the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice, the Company is conducting an investigation into allegations which the Company and those agencies received regarding possible violations of the U.S. Foreign Corrupt Practices Act involving business activities of the Company's operations in Russia and certain of the Commonwealth of Independent States, and by certain resellers of the Company’s products in those countries. The Company takes any such allegations very seriously and is fully cooperating with and sharing the results of its investigation with the SEC and the Department of Justice. While the outcome of the Company's investigation is currently not determinable, the Company does not expect that it will have a material adverse effect on its consolidated financial position, results of operations, or cash flows. The countries that are the subject of the investigation collectively comprise less than 2% of the Company’s revenues.

Rockstar The Company and some of its service provider customers were subject to patent claims asserted in December 2013 in the Eastern District of Texas and the District of Delaware by subsidiaries of the Rockstar Consortium (“Rockstar”). Rockstar, whose members include Apple, Microsoft, LM Ericsson, Sony, and Blackberry, had purchased a portfolio of patents out of the Nortel Networks’ bankruptcy proceedings (the “Nortel Portfolio”). In connection with this matter, during the first quarter of fiscal 2015 the Company recorded a charge to product cost of sales of $188 million.

In December 2014, RPX Corporation (“RPX”) and Rockstar entered into an agreement, which closed on January 28, 2015, resulting in over 30 technology companies, including the Company and the various service provider customers described above, obtaining a license to the patents owned by Rockstar. The Company paid approximately $300 million in connection with this transaction, with the payment recorded against the amount previously reserved and as an intangible asset to be amortized over its estimated useful life. In connection with the closing of the transaction, Rockstar dismissed all litigation it had brought against the participating companies.

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


13.	Shareholders’ Equity


(a)	Cash Dividends on Shares of Common Stock

During the six months ended January 24, 2015, the Company declared and paid cash dividends of $0.38 per common share, or $1.9 billion, on the Company’s outstanding common stock. During the six months ended January 25, 2014, the Company declared and paid cash dividends of $0.34 per common share, or $1.8 billion, on the Company’s outstanding common stock.

On February 11, 2015, the Company’s Board of Directors declared a quarterly dividend of $0.21 per common share to be paid on April 22, 2015 to all shareholders of record as of the close of business on April 2, 2015. Any future dividends will be subject to the approval of the Company’s Board of Directors.


(b)	Stock Repurchase Program

In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of January 24, 2015, the Company’s Board of Directors had authorized an aggregate repurchase of up to $97 billion of common stock under this program, and the remaining authorized repurchase amount was $6.3 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 26, 2014	4,288	$	20.63	$	88,445
Repurchase of common stock under the stock repurchase program ⁽¹⁾	85	26.15		2,221
Cumulative balance at January 24, 2015	4,373	$	20.73	$	90,666

⁽¹⁾ Includes stock repurchases of $150 million, which were pending settlement as of January 24, 2015. There were $126 million of stock repurchases that were pending settlement as of July 26, 2014.

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.


(c)	Restricted Stock Unit Withholdings

For the six months ended January 24, 2015 and January 25, 2014, the Company repurchased approximately 15 million and 13 million shares, or $369 million and $309 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock or stock units.

Employee Benefit Plans


14.	Employee Benefit Plans


(a)	Employee Stock Incentive Plans

Stock Incentive Plan Program Description As of January 24, 2015, the Company had four stock incentive plans: the 2005 Stock Incentive Plan (the “2005 Plan”); the 1996 Stock Incentive Plan (the “1996 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 of January 24, 2015, the maximum number of shares issuable under the 2005 Plan over its term was 694 million shares, plus the number 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, the unexercised or unsettled shares underlying the awards will again be available under the 2005 Plan. Starting November 19, 2013, shares withheld by the Company from an award other than a stock option or stock appreciation right to satisfy withholding tax liabilities resulting from such award will again be available for issuance, based on the fungible share ratio in effect on the date of grant.

Pursuant to an amendment approved by the Company’s shareholders on November 12, 2009, the number of shares available for issuance under the 2005 Plan is reduced by 1.5 shares for each share awarded as a stock grant or a stock unit, and any shares underlying awards outstanding 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, and restricted stock units (RSUs), the vesting of which may be performance-based or market-based along with the requisite service requirement, and stock appreciation rights to employees (including employee directors and officers), consultants of the Company and its subsidiaries and affiliates, and non-employee directors of the Company. Stock options and stock appreciation rights granted under the 2005 Plan have an exercise price of at least 100% of the fair market value of the underlying stock on the grant date 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 10 years from the grant date.

The stock options will generally become exercisable for 20% or 25% of the option shares one year from the date of grant and then ratably over the following 48 months or 36 months, respectively. Time-based stock grants and time-based RSUs will generally vest 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. The majority of the performance-based and market-based RSUs vest at the end of the three-year requisite service period or earlier if the award recipient meets certain retirement eligibility conditions. Other performance-based RSUs, that are based on the achievement of financial and/or non-financial operating goals, typically vest upon the achievement of milestones (and may require subsequent service periods), with overall vesting ranging from six months to three years. The Compensation and Management Development Committee of the Board of Directors has the discretion to use different vesting schedules. Stock appreciation rights may be awarded in combination with stock options or stock grants, and such awards shall provide that the stock appreciation rights will not be exercisable unless the related stock options or stock grants are forfeited. Stock grants may be awarded in combination with non-statutory stock options, and such awards may provide that the stock grants will be forfeited in the event that the related non-statutory stock options are exercised.

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 months 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.

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 named the International Employee Stock Purchase Plan (together, the “Purchase Plan”), under which 621.4 million shares of the Company’s common stock have been reserved for issuance as of January 24, 2015. 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 14 million shares under the Purchase Plan during each of the six months ended January 24, 2015 and January 25, 2014. As of January 24, 2015, 161 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					Six Months Ended
	January 24, 2015		January 25, 2014			January 24, 2015			January 25, 2014
Cost of sales—product	$	11	$	12		$	22		$	22
Cost of sales—service	34		40			71			73
Share-based compensation expense in cost of sales	45		52			93			95
Research and development	105		108			224			200
Sales and marketing	114		141			261			264
General and administrative	42		47			101			101
Restructuring and other charges	2		(1		)	(2		)	(4		)
Share-based compensation expense in operating expenses	263		295			584			561
Total share-based compensation expense	$	308	$	347		$	677		$	656
Income tax benefit for share-based compensation	$	85	$	82		$	179		$	160

As of January 24, 2015, 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 2.3 years on a weighted-average basis.


(d)	Share-Based Awards Available for Grant

A summary of share-based awards available for grant is as follows (in millions):



	Share-Based Awards Available for Grant
BALANCE AT JULY 27, 2013	228
Restricted stock, stock units, and other share-based awards granted	(98	)
Share-based awards canceled/forfeited/expired	36
Additional shares reserved	135
Shares withheld for taxes and not issued	6
Other	3
BALANCE AT JULY 26, 2014	310
Restricted stock, stock units, and other share-based awards granted	(28	)
Share-based awards canceled/forfeited/expired	27
Shares withheld for taxes and not issued	21
Other	(2	)
BALANCE AT JANUARY 24, 2015	328

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 27, 2013	143		$	18.80
Granted and assumed	72		20.85
Vested	(53	)	19.55		$	1,229
Canceled/forfeited	(13	)	18.61
UNVESTED BALANCE AT JULY 26, 2014	149		19.54
Granted and assumed	18		23.47
Vested	(41	)	19.47		$	1,053
Canceled/forfeited	(11	)	19.70
UNVESTED BALANCE AT JANUARY 24, 2015	115		$	20.18


(f)	Stock Option Awards

A summary of the stock option activity is as follows (in millions, except per-share amounts):



	STOCK OPTIONS OUTSTANDING
	Number Outstanding		Weighted-Average Exercise Price per Share
BALANCE AT JULY 27, 2013	276		$	24.44
Assumed from acquisitions	6		3.60
Exercised	(78	)	18.30
Canceled/forfeited/expired	(17	)	27.53
BALANCE AT JULY 26, 2014	187		26.03
Assumed from acquisitions	1		2.72
Exercised	(45	)	20.49
Canceled/forfeited/expired	(10	)	29.48
BALANCE AT JANUARY 24, 2015	133		$	27.45

The following table summarizes significant ranges of outstanding and exercisable stock options as of January 24, 2015 (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	5	5.4	$	4.17	$	135	3	$	5.66	$	69
15.01 – 18.00	1	2.0	16.91		3		1	16.91		3
18.01 – 20.00	1	0.3	19.69		9		1	19.69		9
20.01 – 25.00	37	0.8	22.90		198		37	22.90		198
25.01 – 30.00	20	1.5	26.72		32		20	26.72		32
30.01 – 35.00	69	1.5	32.16		—		69	32.16		—
Total	133	1.5	$	27.45	$	377	131	$	27.94	$	311

The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $28.21 as of January 23, 2015, that would have been received by the option holders had those option holders exercised their stock options as of that date. The total number of in-the-money stock options exercisable as of January 24, 2015 was 59 million. As of July 26, 2014, 183 million outstanding stock options were exercisable, and the weighted-average exercise price was $26.50.


(g)	Valuation of Employee Share-Based Awards

Time-based restricted stock units and performance-based restricted stock units (PRSUs) that are based on the Company’s financial performance metrics or non-financial operating goals are valued using the market value of the Company’s common stock on the date of grant, discounted for the present value of expected dividends. On the date of grant, the Company estimated the fair value of the total shareholder return (TSR) component of the PRSUs using a Monte Carlo simulation model. The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows:



	RESTRICTED STOCK UNITS						PERFORMANCE RESTRICTED STOCK UNITS
Three Months Ended	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Number of shares granted (in millions)	1			37			1			—
Grant date fair value per share	$	25.07		$	19.90		$	25.39		N/A
Weighted-average assumptions/inputs:
Expected dividend yield	2.8		%	3.2		%	2.8		%	N/A
Range of risk-free interest rates	0.0% – 1.6%			0.1% – 1.4%			0.0% – 1.6%			N/A
Range of expected volatilities for index	N/A			N/A			14.4% – 63.7%			N/A



	RESTRICTED STOCK UNITS						PERFORMANCE RESTRICTED STOCK UNITS
Six Months Ended	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Number of shares granted (in millions)	11			47			7			4
Grant date fair value per share	$	23.34		$	20.57		$	23.70		$	22.70
Weighted-average assumptions/inputs:
Expected dividend yield	3.0		%	3.1		%	3.0		%	2.3		%
Range of risk-free interest rates	0.0% – 1.8%			0.0% – 1.4%			0.0% – 1.8%			0.0% – 1.4%
Range of expected volatilities for index	N/A			N/A			14.4% – 70.0%			17.4% – 70.5%

The PRSUs granted during the first two quarters of fiscal 2015 and the first quarter of fiscal 2014 are contingent on the achievement of the Company’s financial performance metrics, its comparative market-based returns, or the achievement of financial and non-financial operating goals. For the awards based on financial performance metrics or comparative market-based returns, generally 50% of the PRSUs are earned based on the average of annual operating cash flow and earnings per share goals established at the beginning of each fiscal year over a three-year performance period. Generally, the remaining 50% of the PRSUs are earned based on the Company’s TSR measured against the benchmark TSR of a peer group over the same period. Each PRSU recipient could vest in 0% to 150% of the target shares granted contingent on the achievement of the Company's financial performance metrics or its comparative market-based returns and 0% to 100% of the target shares granted contingent on the achievement of non-financial operating goals.

Comprehensive Income


15.	Comprehensive Income

The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the six months ended January 24, 2015 and January 25, 2014 are summarized as follows (in millions):



January 24, 2015	Net Unrealized Gains on Investments			Net Unrealized Gains (Losses) Cash Flow Hedging Instruments			Cumulative Translation Adjustment and Actuarial Gains (Losses)			Accumulated Other Comprehensive Income
BALANCE AT JULY 26, 2014	$	424		$	(12	)	$	265		$	677
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.	(23		)	(131		)	(379		)	(533		)
(Gains) losses reclassified out of other comprehensive income	(76		)	30			—			(46		)
Tax benefit (expense)	49			3			36			88
BALANCE AT JANUARY 24, 2015	$	374		$	(110	)	$	(78	)	$	186



January 25, 2014	Net Unrealized Gains on Investments			Net Unrealized Gains (Losses) Cash Flow Hedging Instruments			Cumulative Translation Adjustment and Actuarial Gains (Losses)			Accumulated Other Comprehensive Income
BALANCE AT JULY 27, 2013	$	379		$	8		$	221		$	608
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.	332			33			(14		)	351
(Gains) losses reclassified out of other comprehensive income	(165		)	(28		)	—			(193		)
Tax benefit (expense)	(60		)	(2		)	(1		)	(63		)
BALANCE AT JANUARY 25, 2014	$	486		$	11		$	206		$	703

The net gains (losses) reclassified out of other comprehensive income into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions):



	Three Months Ended					Six Months Ended
	January 24, 2015			January 25, 2014		January 24, 2015			January 25, 2014
Comprehensive Income Components	Income Before Taxes					Income Before Taxes					Line Item in Statements of Operations
Net unrealized gains on available-for-sale investments
	$	69		$	82	$	76		$	165	Other income (loss), net

Net unrealized gains and (losses) on cash flow hedging instruments:
Foreign currency derivatives	(21		)	16		(24		)	23		Operating expenses
Foreign currency derivatives	(5		)	3		(6		)	5		Cost of sales—service
	(26		)	19		(30		)	28

Total amounts reclassified out of other comprehensive income	$	43		$	101	$	46		$	193

Income Taxes


16.	Income Taxes

The following table provides details of income taxes (in millions, except percentages):



	Three Months Ended						Six Months Ended
	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Income before provision for income taxes	$	2,873		$	1,755		$	5,233		$	4,295
Provision for income taxes	$	476		$	326		$	1,008		$	870
Effective tax rate	16.6		%	18.6		%	19.3		%	20.3		%

During the three months ended January 24, 2015, the Tax Increase Prevention Act of 2014 reinstated the U.S. federal R&D tax credit for calendar year 2014 R&D expenses. As a result, the effective tax rate for the three and six months ended January 24, 2015 reflected tax benefits related to fiscal 2015 R&D expenses and a tax benefit of $91 million related to fiscal 2014 R&D expenses.

As of January 24, 2015, the Company had $2.0 billion of unrecognized tax benefits, of which $1.8 billion, if recognized, would favorably impact the effective tax rate. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company believes it is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. Specific positions that may be resolved include issues involving transfer pricing and various other matters. Accordingly, the Company estimates that it is reasonably possible that the unrecognized tax benefits at January 24, 2015 could be reduced by $300 million in the next 12 months.

Segment Information and Major Customers


17.	Segment Information and Major Customers


(a)	Revenue and Gross Margin by Segment

The Company conducts business globally and is primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. The Company’s management makes financial decisions and allocates resources based on the information it receives from its internal management system. Sales are attributed to a segment based on the ordering location of the customer. The Company does not allocate research and development, sales and marketing, or general and administrative expenses to its segments in this internal management system because management does not include the information in its measurement of the performance of the operating segments. In addition, the Company does not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation and other contingencies, 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 six months ended January 24, 2015 and January 25, 2014, 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						Six Months Ended
	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Revenue:
Americas	$	7,101		$	6,460		$	14,602		$	13,776
EMEA	3,091			2,896			6,093			5,829
APJC	1,744			1,799			3,486			3,635
Total	$	11,936		$	11,155		$	24,181		$	23,240
Gross margin:
Americas	$	4,406		$	3,977		$	9,216		$	8,627
EMEA	1,910			1,870			3,825			3,758
APJC	1,052			993			2,077			2,072
Segment total	7,368			6,840			15,118			14,457
Unallocated corporate items	(278		)	(889		)	(695		)	(1,099		)
Total	$	7,090		$	5,951		$	14,423		$	13,358

Revenue in the United States was $6.1 billion and $5.6 billion for the three months ended January 24, 2015 and January 25, 2014, respectively, and was $12.7 billion and $12.0 billion for the six months ended January 24, 2015 and January 25, 2014, respectively.


(b)	Revenue for Groups of Similar Products and Services

The Company designs, manufactures, and sells Internet Protocol (IP)-based networking and other products related to the communications and IT industry and provides services associated with these products and their use. The Company groups its products and technologies into the following categories: Switching, NGN Routing, Collaboration, Service Provider Video, 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 following table presents revenue for groups of similar products and services (in millions):



	Three Months Ended				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Revenue:
Switching	$	3,616	$	3,258	$	7,462	$	6,998
NGN Routing	1,764		1,730		3,713		3,756
Collaboration	990		899		1,939		1,950
Service Provider Video	776		957		1,647		1,944
Data Center	846		605		1,539		1,206
Wireless	611		517		1,216		1,064
Security	416		393		871		758
Other	59		64		126		144
Product	9,078		8,423		18,513		17,820
Service	2,858		2,732		5,668		5,420
Total	$	11,936	$	11,155	$	24,181	$	23,240

The Company has made certain reclassifications to the product revenue amounts for prior periods to conform to the current period’s presentation.


(c)	Additional Segment Information

The majority of the Company’s assets, excluding cash and cash equivalents and investments, as of January 24, 2015 and July 26, 2014 were attributable to its U.S. operations. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $49.8 billion and $47.4 billion as of January 24, 2015 and July 26, 2014, respectively, and the remaining $3.2 billion and $4.7 billion at the respective period ends were available in the United States.

Property and equipment information is based on the physical location of the assets. The following table presents property and equipment information for geographic areas (in millions):



	January 24, 2015		July 26, 2014
Property and equipment, net:
United States	$	2,668	$	2,697
International	544		555
Total	$	3,212	$	3,252

Net Income per Share


18.	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				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Net income	$	2,397	$	1,429	$	4,225	$	3,425
Weighted-average shares—basic	5,117		5,294		5,115		5,336
Effect of dilutive potential common shares	43		33		44		47
Weighted-average shares—diluted	5,160		5,327		5,159		5,383
Net income per share—basic	$	0.47	$	0.27	$	0.83	$	0.64
Net income per share—diluted	$	0.46	$	0.27	$	0.82	$	0.64
Antidilutive employee share-based awards, excluded	83		278		156		252

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.

Summary of Significant Accounting Policies (Policies)

New Accounting Pronouncements Recently Adopted

New Accounting Updates Recently Adopted

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 sells either a part or all of its investment in the foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within the foreign entity. This accounting standard update became effective for the Company beginning in the first quarter of fiscal 2015. The application of this accounting standard update did not have any impact to the Company's Consolidated Financial Statements.

In July 2013, the FASB issued an accounting standard update that provides explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward or a tax credit carryforward exists. Under the new standard update, an unrecognized tax benefit, or a portion of an unrecognized tax benefit, is to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward. This accounting standard update became effective for the Company beginning in the first quarter of fiscal 2015 and applied prospectively. The application of this accounting standard update did not have a material impact to the Company's Consolidated Financial Statements.

In April 2014, the FASB issued an accounting standard update that changes the criteria for reporting discontinued operations. This accounting standard update raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. The Company adopted this accounting standard update in the second quarter of fiscal 2015, and it did not have any impact upon adoption.

Recent Accounting Standards or Updates Not Yet Effective

In May 2014, the FASB issued an accounting standard update related to revenue from contracts with customers, which will supersede nearly all current U.S. GAAP guidance on this topic and eliminate industry-specific guidance. The underlying principle is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. This accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2018. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. Early adoption is not permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.

Fair Value Measurement, Policy [Policy Text Block]

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.

Supplemental Information (Tables)

Stock Repurchases Since Inception Of Program

The stock repurchases since the inception of this program and the related impacts on Cisco shareholders’ equity are summarized in the following table (in millions):



	Shares of Common Stock	Common Stock and Additional Paid-In Capital		Retained Earnings		Total Cisco Shareholders’ Equity
Repurchases of common stock under the repurchase program	4,373	$	22,021	$	68,645	$	90,666

Business Combinations (Tables)

Schedule of Business Acquisitions, by Acquisition

A summary of the allocation of the total purchase consideration is presented as follows (in millions):



	Purchase Consideration		Net Liabilities Assumed			Purchased Intangible Assets		Goodwill
Metacloud, Inc.	$	149	$	(7	)	$	29	$	127
All others (two in total)	71		(10		)	40		41
Total acquisitions	$	220	$	(17	)	$	69	$	168

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 six months ended January 24, 2015 (in millions):



	Balance at July 26, 2014		Acquisitions		Other			Balance at January 24, 2015
Americas	$	15,080	$	89	$	(13	)	$	15,156
EMEA	5,715		63		(7		)	5,771
APJC	3,444		16		(5		)	3,455
Total	$	24,239	$	168	$	(25	)	$	24,382

Schedule Of Intangible Assets Acquired Through Business Combinations

The following table presents details of the Company’s intangible assets acquired through business combinations completed during the six months ended January 24, 2015 (in millions, except years):



	FINITE LIVES						INDEFINITE LIVES		TOTAL
	TECHNOLOGY			CUSTOMER RELATIONSHIPS			IPR&D		TOTAL
	Weighted- Average Useful Life (in Years)	Amount		Weighted- Average Useful Life (in Years)	Amount		Amount		Amount
Metacloud, Inc.	3.0	$	24	5.0	$	3	$	2	$	29
All others (two in total)	5.0	25		8.1	11		4		40
Total		$	49		$	14	$	6	$	69

Schedule Of Purchased Intangible Assets

The following tables present details of the Company’s purchased intangible assets (in millions):



January 24, 2015	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	4,020	$	(2,270	)	$	1,750
Customer relationships	1,709		(847		)	862
Other	51		(19		)	32
Total purchased intangible assets with finite lives	5,780		(3,136		)	2,644
In-process research and development, with indefinite lives	111		—			111
Total	$	5,891	$	(3,136	)	$	2,755



July 26, 2014	Gross		Accumulated Amortization			Net
Purchased intangible assets with finite lives:
Technology	$	4,100	$	(1,976	)	$	2,124
Customer relationships	1,706		(720		)	986
Other	51		(13		)	38
Total purchased intangible assets with finite lives	5,857		(2,709		)	3,148
In-process research and development, with indefinite lives	132		—			132
Total	$	5,989	$	(2,709	)	$	3,280

Schedule Of Amortization Of Purchased Intangible Assets

The following table presents the amortization of purchased intangible assets (in millions):



	Three Months Ended				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Amortization of purchased intangible assets:
Cost of sales	$	242	$	189	$	431	$	363
Operating expenses	72		71		143		136
Total	$	314	$	260	$	574	$	499

Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets

The estimated future amortization expense of purchased intangible assets with finite lives as of January 24, 2015 is as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	462
2016	734
2017	561
2018	420
2019	317
Thereafter	150
Total	$	2,644

Restructuring and Other Charges (Tables)

Liabilities Related To Restructuring And Other Charges

The following table summarizes the activities related to the restructuring and other charges as discussed above (in millions):



	Fiscal 2014 and Prior Plans						Fiscal 2015 Plan
	Employee Severance			Other			Employee Severance			Other			Total
Liability as of July 26, 2014	$	40		$	29		$	—		$	—		$	69
Gross charges in fiscal 2015	—			—			386			1			387
Cash payments	(18		)	—			(347		)	(3		)	(368		)
Non-cash items	—			(8		)	—			2			(6		)
Liability as of January 24, 2015	$	22		$	21		$	39		$	—		$	82

Balance Sheet Details (Tables)

Inventories

The following tables provide details of selected balance sheet items (in millions):



	January 24, 2015		July 26, 2014
Inventories:
Raw materials	$	265	$	77
Work in process	2		5
Finished goods:
Distributor inventory and deferred cost of sales	733		595
Manufactured finished goods	577		606
Total finished goods	1,310		1,201
Service-related spares	274		273
Demonstration systems	39		35
Total	$	1,890	$	1,591

Property And Equipment, Net



Property and equipment, net:
Land, buildings, and building and leasehold improvements	$	4,457		$	4,468
Computer equipment and related software	1,417			1,425
Production, engineering, and other equipment	5,745			5,756
Operating lease assets	343			362
Furniture and fixtures	498			509
	12,460			12,520
Less accumulated depreciation and amortization	(9,248		)	(9,268		)
Total	$	3,212		$	3,252

Other Assets



Other assets:
Deferred tax assets	$	1,448	$	1,700
Investments in privately held companies	857		899
Other	837		732
Total	$	3,142	$	3,331

Deferred Revenue



Deferred revenue:
Service	$	9,020	$	9,640
Product:
Unrecognized revenue on product shipments and other deferred revenue	4,276		3,924
Cash receipts related to unrecognized revenue from two-tier distributors	725		578
Total product deferred revenue	5,001		4,502
Total	$	14,021	$	14,142
Reported as:
Current	$	9,369	$	9,478
Noncurrent	4,652		4,664
Total	$	14,021	$	14,142

Financing Receivables and Operating Leases (Tables)

Financing Receivables

A summary of the Company's financing receivables is presented as follows (in millions):



January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,369		$	1,674		$	3,069		$	8,112
Residual value	228			—			—			228
Unearned income	(206		)	—			—			(206		)
Allowance for credit loss	(250		)	(85		)	(40		)	(375		)
Total, net	$	3,141		$	1,589		$	3,029		$	7,759
Reported as:
Current	$	1,462		$	782		$	1,966		$	4,210
Noncurrent	1,679			807			1,063			3,549
Total, net	$	3,141		$	1,589		$	3,029		$	7,759



July 26, 2014	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Gross	$	3,532		$	1,683		$	3,210		$	8,425
Residual value	233			—			—			233
Unearned income	(238		)	—			—			(238		)
Allowance for credit loss	(233		)	(98		)	(18		)	(349		)
Total, net	$	3,294		$	1,585		$	3,192		$	8,071
Reported as:
Current	$	1,476		$	728		$	1,949		$	4,153
Noncurrent	1,818			857			1,243			3,918
Total, net	$	3,294		$	1,585		$	3,192		$	8,071

Contractual Maturities Of The Gross Lease Receivables

Future minimum lease payments at January 24, 2015 are summarized as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	883
2016	1,281
2017	753
2018	327
2019	115
Thereafter	10
Total	$	3,369

Schedule Of Internal Credit Risk Rating For Each Portfolio Segment And Class

Gross receivables less unearned income categorized by the Company’s internal credit risk rating as of January 24, 2015 and July 26, 2014 are summarized as follows (in millions):



	INTERNAL CREDIT RISK RATING
January 24, 2015	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,632	$	1,386	$	145	$	3,163
Loan receivables	717		803		154		1,674
Financed service contracts and other	1,647		1,342		80		3,069
Total	$	3,996	$	3,531	$	379	$	7,906



	INTERNAL CREDIT RISK RATING
July 26, 2014	1 to 4		5 to 6		7 and Higher		Total
Lease receivables	$	1,615	$	1,538	$	141	$	3,294
Loan receivables	953		593		137		1,683
Financed service contracts and other	1,744		1,367		99		3,210
Total	$	4,312	$	3,498	$	377	$	8,187

Schedule Of Financing Receivables By Portfolio Segment And Class Aging Analysis

The following tables present the aging analysis of gross receivables less unearned income as of January 24, 2015 and July 26, 2014 (in millions):



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
January 24, 2015	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	171	$	63	$	224	$	458	$	2,705	$	3,163	$	53	$	48
Loan receivables	30		42		177		249		1,425		1,674		33		33
Financed service contracts and other	144		135		385		664		2,405		3,069		30		8
Total	$	345	$	240	$	786	$	1,371	$	6,535	$	7,906	$	116	$	89



	DAYS PAST DUE (INCLUDES BILLED AND UNBILLED)
July 26, 2014	31-60		61-90		91+		Total Past Due		Current		Total		Nonaccrual Financing Receivables		Impaired Financing Receivables
Lease receivables	$	63	$	48	$	203	$	314	$	2,980	$	3,294	$	48	$	41
Loan receivables	7		21		28		56		1,627		1,683		19		19
Financed service contracts and other	268		238		221		727		2,483		3,210		12		9
Total	$	338	$	307	$	452	$	1,097	$	7,090	$	8,187	$	79	$	69

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 January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of October 25, 2014	$	248		$	84		$	36	$	368
Provisions	7			3			4		14
Recoveries (write-offs), net	(1		)	—			—		(1		)
Foreign exchange and other	(4		)	(2		)	—		(6		)
Allowance for credit loss as of January 24, 2015	$	250		$	85		$	40	$	375
Financing receivables as of January 24, 2015 ⁽¹⁾	$	3,391		$	1,674		$	3,069	$	8,134



	CREDIT LOSS ALLOWANCES
Six Months Ended January 24, 2015	Lease Receivables			Loan Receivables			Financed Service Contracts and Other			Total
Allowance for credit loss as of July 26, 2014	$	233		$	98		$	18		$	349
Provisions	29			(10		)	23			42
Recoveries (write-offs), net	(5		)	1			—			(4		)
Foreign exchange and other	(7		)	(4		)	(1		)	(12		)
Allowance for credit loss as of January 24, 2015	$	250		$	85		$	40		$	375



	CREDIT LOSS ALLOWANCES
Three Months Ended January 25, 2014	Lease Receivables			Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of October 26, 2013	$	237		$	93		$	20	$	350
Provisions	18			9			2		29
Recoveries (write-offs), net	1			—			—		1
Foreign exchange and other	(2		)	(4		)	—		(6		)
Allowance for credit loss as of January 25, 2014	$	254		$	98		$	22	$	374
Financing receivables as of January 25, 2014 ⁽¹⁾	$	3,551		$	1,660		$	2,807	$	8,018



	CREDIT LOSS ALLOWANCES
Six Months Ended January 25, 2014	Lease Receivables		Loan Receivables			Financed Service Contracts and Other		Total
Allowance for credit loss as of July 27, 2013	$	238	$	86		$	20	$	344
Provisions	15		15			2		32
Recoveries (write-offs), net	1		—			—		1
Foreign exchange and other	—		(3		)	—		(3		)
Allowance for credit loss as of January 25, 2014	$	254	$	98		$	22	$	374

⁽¹⁾Total financing receivables before allowance for credit loss.

Schedule of Property Subject to or Available for Operating Lease

Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):



	January 24, 2015			July 26, 2014
Operating lease assets	$	343		$	362
Accumulated depreciation	(195		)	(202		)
Operating lease assets, net	$	148		$	160

Investments (Tables)

Summary Of Available-For-Sale Investments

The following tables summarize the Company’s available-for-sale investments (in millions):



January 24, 2015	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	30,302	$	53	$	(1	)	$	30,354
U.S. government agency securities	2,324		3		(1		)	2,326
Non-U.S. government and agency securities	1,108		1		—			1,109
Corporate debt securities	11,180		61		(28		)	11,213
U.S. agency mortgage-backed securities	1,360		15		—			1,375
Total fixed income securities	46,274		133		(30		)	46,377
Publicly traded equity securities	1,296		562		(10		)	1,848
Total	$	47,570	$	695	$	(40	)	$	48,225



July 26, 2014	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Fixed income securities:
U.S. government securities	$	31,717	$	29	$	(12	)	$	31,734
U.S. government agency securities	1,062		1		—			1,063
Non-U.S. government and agency securities	860		2		(1		)	861
Corporate debt securities	9,092		74		(7		)	9,159
U.S. agency mortgage-backed securities	574		5		—			579
Total fixed income securities	43,305		111		(20		)	43,396
Publicly traded equity securities	1,314		648		(10		)	1,952
Total	$	44,619	$	759	$	(30	)	$	45,348

Non-U.S. government and agency securities include agency and corporate debt securities that are guaranteed by non-U.S. governments.

Gross Realized Gains And Gross Realized Losses Related To Available-For-Sale Investment

The following table presents the gross realized gains and gross realized losses related to the Company’s available-for-sale investments (in millions):



	Three Months Ended						Six Months Ended
	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Gross realized gains	$	92		$	97		$	113		$	192
Gross realized losses	(23		)	(15		)	(37		)	(27		)
Total	$	69		$	82		$	76		$	165

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				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Net gains (losses) on investments in publicly traded equity securities	$	60	$	69	$	56	$	144
Net gains on investments in fixed income securities	9		13		20		21
Total	$	69	$	82	$	76	$	165

Available-For-Sale Investments With Gross Unrealized Losses

The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at January 24, 2015 and July 26, 2014 (in millions):



	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER					TOTAL
January 24, 2015	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government securities	$	4,558	$	(1	)	$	—	$	—		$	4,558	$	(1	)
U.S. government agency securities	854		(1		)	—		—			854		(1		)
Corporate debt securities	3,952		(25		)	363		(3		)	4,315		(28		)
Total fixed income securities	9,364		(27		)	363		(3		)	9,727		(30		)
Publicly traded equity securities	119		(10		)	1		—			120		(10		)
Total	$	9,483	$	(37	)	$	364	$	(3	)	$	9,847	$	(40	)



	UNREALIZED LOSSES LESS THAN 12 MONTHS					UNREALIZED LOSSES 12 MONTHS OR GREATER					TOTAL
July 26, 2014	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fixed income securities:
U.S. government securities	$	7,676	$	(12	)	$	45	$	—		$	7,721	$	(12	)
Non-U.S. government and agency securities	361		(1		)	22		—			383		(1		)
Corporate debt securities	1,875		(3		)	491		(4		)	2,366		(7		)
Total fixed income securities	9,912		(16		)	558		(4		)	10,470		(20		)
Publicly traded equity securities	132		(10		)	—		—			132		(10		)
Total	$	10,044	$	(26	)	$	558	$	(4	)	$	10,602	$	(30	)

Maturities of Fixed Income Securities

The following table summarizes the maturities of the Company’s fixed income securities at January 24, 2015 (in millions):



	Amortized Cost		Fair Value
Less than 1 year	$	15,355	$	15,362
Due in 1 to 2 years	14,963		14,995
Due in 2 to 5 years	14,383		14,431
Due after 5 years	1,573		1,589
Total	$	46,274	$	46,377

Equity Method and Cost Method Investments

For such investments that were accounted for under the equity and cost method as of January 24, 2015 and July 26, 2014, the amounts are summarized in the following table (in millions):



	January 24, 2015		July 26, 2014
Equity method investments	$	541	$	630
Cost method investments	316		269
Total	$	857	$	899

Fair Value (Tables)

Assets And Liabilities Measured At Fair Value On A Recurring Basis

Assets and liabilities measured at fair value on a recurring basis as of January 24, 2015 and July 26, 2014 were as follows (in millions):



	JANUARY 24, 2015 FAIR VALUE MEASUREMENTS								JULY 26, 2014 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	$	2,977	$	—	$	—	$	2,977	$	4,935	$	—	$	—	$	4,935
Corporate debt securities	—		67		—		67		—		—		—		—
Available-for-sale investments:
U.S. government securities	—		30,354		—		30,354		—		31,734		—		31,734
U.S. government agency securities	—		2,326		—		2,326		—		1,063		—		1,063
Non-U.S. government and agency securities	—		1,109		—		1,109		—		861		—		861
Corporate debt securities	—		11,213		—		11,213		—		9,159		—		9,159
U.S. agency mortgage-backed securities	—		1,375		—		1,375		—		579		—		579
Publicly traded equity securities	1,848		—		—		1,848		1,952		—		—		1,952
Derivative assets	—		288		—		288		—		158		2		160
Total	$	4,825	$	46,732	$	—	$	51,557	$	6,887	$	43,554	$	2	$	50,443
Liabilities:
Derivative liabilities	$	—	$	162	$	—	$	162	$	—	$	67	$	—	$	67
Total	$	—	$	162	$	—	$	162	$	—	$	67	$	—	$	67

Borrowings (Tables)

Schedule Of Short-Term Debt

The following table summarizes the Company’s short-term debt (in millions, except percentages):



	January 24, 2015				July 26, 2014
	Amount		Effective Rate		Amount		Effective Rate
Current portion of long-term debt	$	850	0.36	%	$	500	3.11	%
Other short-term debt	5		2.73	%	8		2.67	%
Total short-term debt	$	855			$	508

Schedule Of Long-Term Debt

The following table summarizes the Company’s long-term debt (in millions, except percentages):



		January 24, 2015				July 26, 2014
	Maturity Date	Amount			Effective Rate	Amount			Effective Rate
Senior notes:
Floating-rate notes:
Three-month LIBOR plus 0.05%	September 3, 2015	$	850		0.36%	$	850		0.35%
Three-month LIBOR plus 0.28%	March 3, 2017	1,000			0.57%	1,000			0.56%
Three-month LIBOR plus 0.50%	March 1, 2019	500			0.79%	500			0.78%
Fixed-rate notes:
2.90%	November 17, 2014	—			—	500			3.11%
5.50%	February 22, 2016	3,000			3.05%	3,000			3.04%
1.10%	March 3, 2017	2,400			0.57%	2,400			0.56%
3.15%	March 14, 2017	750			0.80%	750			0.79%
4.95%	February 15, 2019	2,000			4.69%	2,000			4.69%
2.125%	March 1, 2019	1,750			0.78%	1,750			0.77%
4.45%	January 15, 2020	2,500			2.99%	2,500			2.98%
2.90%	March 4, 2021	500			0.94%	500			0.93%
3.625%	March 4, 2024	1,000			1.06%	1,000			1.05%
5.90%	February 15, 2039	2,000			6.11%	2,000			6.11%
5.50%	January 15, 2040	2,000			5.67%	2,000			5.67%
Other long-term debt		2			2.08%	4			2.39%
Total		20,252				20,754
Unaccreted discount		(61		)		(63		)
Hedge accounting fair value adjustments		326				210
Total		$	20,517			$	20,901

Reported as:
Current portion of long-term debt		$	850			$	500
Long-term debt		19,667				20,401
Total		$	20,517			$	20,901

Schedule Of Principal Payments For Long-Term Debt

As of January 24, 2015, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	—
2016	3,851
2017	4,151
2018	—
2019	4,250
Thereafter	8,000
Total	$	20,252

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	January 24, 2015		July 26, 2014		Balance Sheet Line Item	January 24, 2015		July 26, 2014
Derivatives designated as hedging instruments:
Foreign currency derivatives	Other current assets	$	4	$	7	Other current liabilities	$	88	$	6
Interest rate derivatives	Other assets	279		148		Other long-term liabilities	—		3
Equity derivatives	Other current assets	—		—		Other current liabilities	68		56
Total		283		155			156		65
Derivatives not designated as hedging instruments:
Foreign currency derivatives	Other current assets	5		3		Other current liabilities	6		2
Equity derivatives	Other assets	—		2		Other long-term liabilities	—		—
Total		5		5			6		2
Total		$	288	$	160		$	162	$	67

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)
	January 24, 2015			January 25, 2014			Line Item in Statements of Operations	January 24, 2015			January 25, 2014
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	(75	)	$	(4	)	Operating expenses	$	(21	)	$	16
							Cost of sales—service	(5		)	3
Total	$	(75	)	$	(4	)		$	(26	)	$	19

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	24		$	16		Other income (loss), net	$	—		$	—



GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE SIX MONTHS ENDED (EFFECTIVE PORTION)							GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE SIX MONTHS ENDED (EFFECTIVE PORTION)
	January 24, 2015			January 25, 2014			Line Item in Statements of Operations	January 24, 2015			January 25, 2014
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	(131	)	$	34		Operating expenses	$	(24	)	$	23
							Cost of sales—service	(6		)	5
Total	$	(131	)	$	34			$	(30	)	$	28

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	44		$	(3	)	Other income (loss), net	$	—		$	—

Schedule Of Derivative Fair Value Hedge Instruments Gain Loss In Statement Of Financial Performance

The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the underlying hedged items is summarized as follows (in millions):



		GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED						GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments	Line Item in Statements of Operations	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Equity derivatives	Other income (loss), net	$	(18	)	$	(12	)	$	18		$	12
Interest rate derivatives	Interest expense	61			(53		)	(61		)	54
Total		$	43		$	(65	)	$	(43	)	$	66



		GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE SIX MONTHS ENDED						GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE SIX MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments	Line Item in Statements of Operations	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Equity derivatives	Other income (loss), net	$	(12	)	$	(47	)	$	12		$	47
Interest rate derivatives	Interest expense	131			(35		)	(134		)	34
Total		$	119		$	(82	)	$	(122	)	$	81

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 SIX MONTHS ENDED
Derivatives Not Designated as Hedging Instruments	Line Item in Statements of Operations	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Foreign currency derivatives	Other income (loss), net	$	(51	)	$	(63	)	$	(109	)	$	(20	)
Total return swaps—deferred compensation	Operating expenses	13			12			—			29
Equity derivatives	Other income (loss), net	8			13			4			24
Total		$	(30	)	$	(38	)	$	(105	)	$	33

Schedule Of Notional Amounts Of Derivatives Outstanding

The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):



	January 24, 2015		July 26, 2014
Derivatives designated as hedging instruments:
Foreign currency derivatives—cash flow hedges	$	1,641	$	1,618
Interest rate derivatives	10,400		10,400
Net investment hedging instruments	216		345
Equity derivatives	238		238
Derivatives not designated as hedging instruments:
Foreign currency derivatives	1,969		2,528
Total return swaps—deferred compensation	449		428
Total	$	14,913	$	15,557

Offsetting Assets and Liabilities

Information related to these offsetting arrangements is summarized as follows (in millions):



	OFFSETTING OF DERIVATIVE ASSETS
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
January 24, 2015	Gross Amount of Recognized Assets		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Received			Net Amount
Derivatives	$	288	$	—	$	288	$	(58	)	$	(186	)	$	44



	OFFSETTING OF DERIVATIVE LIABILITIES
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
January 24, 2015	Gross Amount of Recognized Liabilities		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Pledged		Net Amount
Derivatives	$	162	$	—	$	162	$	(58	)	$	—	$	104



	OFFSETTING OF DERIVATIVE ASSETS
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
July 26, 2014	Gross Amount of Recognized Assets		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Received			Net Amount
Derivatives	$	160	$	—	$	160	$	(39	)	$	(60	)	$	61



	OFFSETTING OF DERIVATIVE LIABILITIES
	Gross Amounts Offset in Consolidated Balance Sheets						Gross Amounts Not Offset in the Consolidated Balance Sheets, but with Legal Rights to Offset
July 26, 2014	Gross Amount of Recognized Liabilities		Gross Amounts Offset in Consolidated Balance Sheets		Net Amount Presented on Consolidated Balance Sheets		Gross Derivative Amounts with Legal Rights to Offset			Cash Collateral Pledged			Net Amount
Derivatives	$	67	$	—	$	67	$	(39	)	$	(1	)	$	27

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 January 24, 2015 are as follows (in millions):



Fiscal Year	Amount
2015 (remaining six months)	$	195
2016	287
2017	196
2018	139
2019	72
Thereafter	209
Total	$	1,098

Compensation expenses related to business combinations

The following table summarizes the compensation expense related to acquisitions (in millions):



	Three Months Ended				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Compensation expense related to acquisitions	$	94	$	106	$	192	$	410

Schedule Of Product Warranty Liability

The following table summarizes the activity related to the product warranty liability (in millions):



	Six Months Ended
	January 24, 2015			January 25, 2014
Balance at beginning of period	$	446		$	402
Provision for warranties issued	355			356
Payments	(327		)	(333		)
Balance at end of period	$	474		$	425

Schedule of Guarantor Obligations

The aggregate amounts of financing guarantees outstanding at January 24, 2015 and July 26, 2014, 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):



	January 24, 2015			July 26, 2014
Maximum potential future payments relating to financing guarantees:
Channel partner	$	316		$	263
End user	155			202
Total	$	471		$	465
Deferred revenue associated with financing guarantees:
Channel partner	$	(148	)	$	(127	)
End user	(121		)	(166		)
Total	$	(269	)	$	(293	)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue	$	202		$	172

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 26, 2014	4,288	$	20.63	$	88,445
Repurchase of common stock under the stock repurchase program ⁽¹⁾	85	26.15		2,221
Cumulative balance at January 24, 2015	4,373	$	20.73	$	90,666

⁽¹⁾ Includes stock repurchases of $150 million, which were pending settlement as of January 24, 2015. There were $126 million of stock repurchases that were pending settlement as of July 26, 2014.

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					Six Months Ended
	January 24, 2015		January 25, 2014			January 24, 2015			January 25, 2014
Cost of sales—product	$	11	$	12		$	22		$	22
Cost of sales—service	34		40			71			73
Share-based compensation expense in cost of sales	45		52			93			95
Research and development	105		108			224			200
Sales and marketing	114		141			261			264
General and administrative	42		47			101			101
Restructuring and other charges	2		(1		)	(2		)	(4		)
Share-based compensation expense in operating expenses	263		295			584			561
Total share-based compensation expense	$	308	$	347		$	677		$	656
Income tax benefit for share-based compensation	$	85	$	82		$	179		$	160

Summary Of Share-Based Awards Available For Grant

A summary of share-based awards available for grant is as follows (in millions):



	Share-Based Awards Available for Grant
BALANCE AT JULY 27, 2013	228
Restricted stock, stock units, and other share-based awards granted	(98	)
Share-based awards canceled/forfeited/expired	36
Additional shares reserved	135
Shares withheld for taxes and not issued	6
Other	3
BALANCE AT JULY 26, 2014	310
Restricted stock, stock units, and other share-based awards granted	(28	)
Share-based awards canceled/forfeited/expired	27
Shares withheld for taxes and not issued	21
Other	(2	)
BALANCE AT JANUARY 24, 2015	328

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 27, 2013	143		$	18.80
Granted and assumed	72		20.85
Vested	(53	)	19.55		$	1,229
Canceled/forfeited	(13	)	18.61
UNVESTED BALANCE AT JULY 26, 2014	149		19.54
Granted and assumed	18		23.47
Vested	(41	)	19.47		$	1,053
Canceled/forfeited	(11	)	19.70
UNVESTED BALANCE AT JANUARY 24, 2015	115		$	20.18

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 27, 2013	276		$	24.44
Assumed from acquisitions	6		3.60
Exercised	(78	)	18.30
Canceled/forfeited/expired	(17	)	27.53
BALANCE AT JULY 26, 2014	187		26.03
Assumed from acquisitions	1		2.72
Exercised	(45	)	20.49
Canceled/forfeited/expired	(10	)	29.48
BALANCE AT JANUARY 24, 2015	133		$	27.45

Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options

The following table summarizes significant ranges of outstanding and exercisable stock options as of January 24, 2015 (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	5	5.4	$	4.17	$	135	3	$	5.66	$	69
15.01 – 18.00	1	2.0	16.91		3		1	16.91		3
18.01 – 20.00	1	0.3	19.69		9		1	19.69		9
20.01 – 25.00	37	0.8	22.90		198		37	22.90		198
25.01 – 30.00	20	1.5	26.72		32		20	26.72		32
30.01 – 35.00	69	1.5	32.16		—		69	32.16		—
Total	133	1.5	$	27.45	$	377	131	$	27.94	$	311

Schedule of Assumptions Used

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



	RESTRICTED STOCK UNITS						PERFORMANCE RESTRICTED STOCK UNITS
Three Months Ended	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Number of shares granted (in millions)	1			37			1			—
Grant date fair value per share	$	25.07		$	19.90		$	25.39		N/A
Weighted-average assumptions/inputs:
Expected dividend yield	2.8		%	3.2		%	2.8		%	N/A
Range of risk-free interest rates	0.0% – 1.6%			0.1% – 1.4%			0.0% – 1.6%			N/A
Range of expected volatilities for index	N/A			N/A			14.4% – 63.7%			N/A



	RESTRICTED STOCK UNITS						PERFORMANCE RESTRICTED STOCK UNITS
Six Months Ended	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Number of shares granted (in millions)	11			47			7			4
Grant date fair value per share	$	23.34		$	20.57		$	23.70		$	22.70
Weighted-average assumptions/inputs:
Expected dividend yield	3.0		%	3.1		%	3.0		%	2.3		%
Range of risk-free interest rates	0.0% – 1.8%			0.0% – 1.4%			0.0% – 1.8%			0.0% – 1.4%
Range of expected volatilities for index	N/A			N/A			14.4% – 70.0%			17.4% – 70.5%

Comprehensive Income (Tables)

Components Of AOCI, Net Of Tax

The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the six months ended January 24, 2015 and January 25, 2014 are summarized as follows (in millions):



January 24, 2015	Net Unrealized Gains on Investments			Net Unrealized Gains (Losses) Cash Flow Hedging Instruments			Cumulative Translation Adjustment and Actuarial Gains (Losses)			Accumulated Other Comprehensive Income
BALANCE AT JULY 26, 2014	$	424		$	(12	)	$	265		$	677
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.	(23		)	(131		)	(379		)	(533		)
(Gains) losses reclassified out of other comprehensive income	(76		)	30			—			(46		)
Tax benefit (expense)	49			3			36			88
BALANCE AT JANUARY 24, 2015	$	374		$	(110	)	$	(78	)	$	186



January 25, 2014	Net Unrealized Gains on Investments			Net Unrealized Gains (Losses) Cash Flow Hedging Instruments			Cumulative Translation Adjustment and Actuarial Gains (Losses)			Accumulated Other Comprehensive Income
BALANCE AT JULY 27, 2013	$	379		$	8		$	221		$	608
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.	332			33			(14		)	351
(Gains) losses reclassified out of other comprehensive income	(165		)	(28		)	—			(193		)
Tax benefit (expense)	(60		)	(2		)	(1		)	(63		)
BALANCE AT JANUARY 25, 2014	$	486		$	11		$	206		$	703

Reclassification out of Accumulated Other Comprehensive Income

The net gains (losses) reclassified out of other comprehensive income into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions):



	Three Months Ended					Six Months Ended
	January 24, 2015			January 25, 2014		January 24, 2015			January 25, 2014
Comprehensive Income Components	Income Before Taxes					Income Before Taxes					Line Item in Statements of Operations
Net unrealized gains on available-for-sale investments
	$	69		$	82	$	76		$	165	Other income (loss), net

Net unrealized gains and (losses) on cash flow hedging instruments:
Foreign currency derivatives	(21		)	16		(24		)	23		Operating expenses
Foreign currency derivatives	(5		)	3		(6		)	5		Cost of sales—service
	(26		)	19		(30		)	28

Total amounts reclassified out of other comprehensive income	$	43		$	101	$	46		$	193

Income Taxes (Tables)

Income tax provision [Table Text Block]

The following table provides details of income taxes (in millions, except percentages):



	Three Months Ended						Six Months Ended
	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Income before provision for income taxes	$	2,873		$	1,755		$	5,233		$	4,295
Provision for income taxes	$	476		$	326		$	1,008		$	870
Effective tax rate	16.6		%	18.6		%	19.3		%	20.3		%

Segment Information and Major Customers (Tables)

Reportable Segments

Summarized financial information by segment for the three and six months ended January 24, 2015 and January 25, 2014, 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						Six Months Ended
	January 24, 2015			January 25, 2014			January 24, 2015			January 25, 2014
Revenue:
Americas	$	7,101		$	6,460		$	14,602		$	13,776
EMEA	3,091			2,896			6,093			5,829
APJC	1,744			1,799			3,486			3,635
Total	$	11,936		$	11,155		$	24,181		$	23,240
Gross margin:
Americas	$	4,406		$	3,977		$	9,216		$	8,627
EMEA	1,910			1,870			3,825			3,758
APJC	1,052			993			2,077			2,072
Segment total	7,368			6,840			15,118			14,457
Unallocated corporate items	(278		)	(889		)	(695		)	(1,099		)
Total	$	7,090		$	5,951		$	14,423		$	13,358

Net Sales For Groups Of Similar Products And Services

The following table presents revenue for groups of similar products and services (in millions):



	Three Months Ended				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Revenue:
Switching	$	3,616	$	3,258	$	7,462	$	6,998
NGN Routing	1,764		1,730		3,713		3,756
Collaboration	990		899		1,939		1,950
Service Provider Video	776		957		1,647		1,944
Data Center	846		605		1,539		1,206
Wireless	611		517		1,216		1,064
Security	416		393		871		758
Other	59		64		126		144
Product	9,078		8,423		18,513		17,820
Service	2,858		2,732		5,668		5,420
Total	$	11,936	$	11,155	$	24,181	$	23,240

Property And Equipment, Net

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):



	January 24, 2015		July 26, 2014
Property and equipment, net:
United States	$	2,668	$	2,697
International	544		555
Total	$	3,212	$	3,252

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				Six Months Ended
	January 24, 2015		January 25, 2014		January 24, 2015		January 25, 2014
Net income	$	2,397	$	1,429	$	4,225	$	3,425
Weighted-average shares—basic	5,117		5,294		5,115		5,336
Effect of dilutive potential common shares	43		33		44		47
Weighted-average shares—diluted	5,160		5,327		5,159		5,383
Net income per share—basic	$	0.47	$	0.27	$	0.83	$	0.64
Net income per share—diluted	$	0.46	$	0.27	$	0.82	$	0.64
Antidilutive employee share-based awards, excluded	83		278		156		252

Supplemental Information (Stock Repurchases Since Inception of Program) (Details) (USD $)

Share data in Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Supplementary Information [Line Items]

Authorized common stock repurchase amount

$ 97,000,000,000

Cumulative stock repurchased and retired (in shares)

4,373

4,288

Repurchases of common stock under the repurchase program

90,666,000,000

88,445,000,000

Shares of Common Stock (in shares)

Supplementary Information [Line Items]

Cumulative stock repurchased and retired (in shares)

4,373

Common Stock and Additional Paid-In Capital

Supplementary Information [Line Items]

Repurchases of common stock under the repurchase program

22,021,000,000

Retained Earnings

Supplementary Information [Line Items]

Repurchases of common stock under the repurchase program

68,645,000,000

Total Cisco Shareholders’ Equity

Supplementary Information [Line Items]

Repurchases of common stock under the repurchase program

$ 90,666,000,000

Business Combinations (Summary Of Allocation Of Total Purchase Consideration) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Business Acquisition [Line Items]

Purchase Consideration

$ 220

Net Liabilities Assumed

(17)

Purchased Intangible Assets

69

Goodwill

168

Metacloud, Inc.

Business Acquisition [Line Items]

Purchase Consideration

149

Net Liabilities Assumed

(7)

Purchased Intangible Assets

29

Goodwill

127

All others (two in total)

Business Acquisition [Line Items]

Purchase Consideration

71

Net Liabilities Assumed

(10)

Purchased Intangible Assets

40

Goodwill

$ 41

Business Combinations (Additional Information) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jan. 24, 2015

General and administrative

Jan. 25, 2014

General and administrative

Supplementary Information [Line Items]

Number of business combinations (in numbers)

3

Acquired Cash and Cash Equivalents

$ 4

Business Acquisition, Transaction Costs

$ 5

$ 6

Goodwill and Purchased Intangible Assets (Schedule Of Goodwill By Reportable Segments) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Goodwill [Roll Forward]

Balance

$ 24,239

Acquisitions

168

Other

(25)

Balance

24,382

Americas

Goodwill [Roll Forward]

Balance

15,080

Acquisitions

89

Other

(13)

Balance

15,156

EMEA

Goodwill [Roll Forward]

Balance

5,715

Acquisitions

63

Other

(7)

Balance

5,771

APJC

Goodwill [Roll Forward]

Balance

3,444

Acquisitions

16

Other

(5)

Balance

$ 3,455

Goodwill and Purchased Intangible Assets (Schedule Of Intangible Assets Acquired Through Business Combinations) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Intangible Assets Acquired Through Business Combinations

Amount

$ 69

IPR&D

Intangible Assets Acquired Through Business Combinations

Amount

6

TECHNOLOGY

Intangible Assets Acquired Through Business Combinations

Amount

49

CUSTOMER RELATIONSHIPS

Intangible Assets Acquired Through Business Combinations

Amount

14

Metacloud, Inc.

Intangible Assets Acquired Through Business Combinations

Amount

29

Metacloud, Inc. |
IPR&D

Intangible Assets Acquired Through Business Combinations

Amount

2

Metacloud, Inc. |
TECHNOLOGY

Intangible Assets Acquired Through Business Combinations

Weighted- Average Useful Life (in Years)

3 years

Amount

24

Metacloud, Inc. |
CUSTOMER RELATIONSHIPS

Intangible Assets Acquired Through Business Combinations

Weighted- Average Useful Life (in Years)

5 years

Amount

3

All others (two in total)

Intangible Assets Acquired Through Business Combinations

Amount

40

All others (two in total) |
IPR&D

Intangible Assets Acquired Through Business Combinations

Amount

4

All others (two in total) |
TECHNOLOGY

Intangible Assets Acquired Through Business Combinations

Weighted- Average Useful Life (in Years)

5 years

Amount

25

All others (two in total) |
CUSTOMER RELATIONSHIPS

Intangible Assets Acquired Through Business Combinations

Weighted- Average Useful Life (in Years)

8 years 1 month 6 days

Amount

11

Total

Intangible Assets Acquired Through Business Combinations

Amount

$ 69

Goodwill and Purchased Intangible Assets (Schedule Of Purchased Intangible Assets With Finite And Indefinite Lives) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Business Acquisition [Line Items]

Gross

$ 5,780

$ 5,857

Accumulated Amortization

(3,136)

(2,709)

Total purchased intangible assets with finite lives, net

2,644

3,148

In-process research and development, with indefinite lives

111

132

Total- Gross

5,891

5,989

Total, net

2,755

3,280

TECHNOLOGY

Business Acquisition [Line Items]

Gross

4,020

4,100

Accumulated Amortization

(2,270)

(1,976)

Total purchased intangible assets with finite lives, net

1,750

2,124

CUSTOMER RELATIONSHIPS

Business Acquisition [Line Items]

Gross

1,709

1,706

Accumulated Amortization

(847)

(720)

Total purchased intangible assets with finite lives, net

862

986

OTHER

Business Acquisition [Line Items]

Gross

51

Accumulated Amortization

(19)

(13)

Total purchased intangible assets with finite lives, net

$ 32

$ 38

Goodwill and Purchased Intangible Assets (Schedule Of Amortization Of Purchased Intangible Assets) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]

Amortization of purchased intangible assets

$ 72

$ 71

$ 143

$ 136

Cost of sales

Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]

Amortization of purchased intangible assets

242

189

431

363

Operating expenses

Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]

Amortization of purchased intangible assets

72

71

143

136

Total

Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]

Amortization of purchased intangible assets

$ 314

$ 260

$ 574

$ 499

Goodwill and Purchased Intangible Assets (Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]

2015 (remaining six months)

$ 462

2016

734

2017

561

2018

420

2019

317

Thereafter

150

Total purchased intangible assets with finite lives, net

$ 2,644

$ 3,148

Goodwill and Purchased Intangible Assets (Additional Information) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Impairment of Intangible assets

$ 56

$ 0

$ 56

$ 0

Restructuring and Other Charges (Schedule Of Activities Related To Restructuring And Other Charges) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Restructuring Reserve [Roll Forward]

Liability as of beginning period

$ 69

Gross charges

387

Cash payments

(368)

Non-cash items

(6)

Liability as of ending period

82

Fiscal 2014 plan and prior plans |
Employee Severance

Restructuring Reserve [Roll Forward]

Liability as of beginning period

40

Gross charges

0

Cash payments

(18)

Non-cash items

0

Liability as of ending period

22

Fiscal 2014 plan and prior plans |
Other

Restructuring Reserve [Roll Forward]

Liability as of beginning period

29

Gross charges

0

Cash payments

0

Non-cash items

(8)

Liability as of ending period

21

Fiscal 2015 plan

Restructuring Reserve [Roll Forward]

Gross charges

69

387

Fiscal 2015 plan |
Employee Severance

Restructuring Reserve [Roll Forward]

Liability as of beginning period

0

Gross charges

386

Cash payments

(347)

Non-cash items

0

Liability as of ending period

39

Fiscal 2015 plan |
Other

Restructuring Reserve [Roll Forward]

Liability as of beginning period

0

Gross charges

1

Cash payments

(3)

Non-cash items

2

Liability as of ending period

$ 0

Restructuring and Other Charges (Additional Information) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

Jan. 24, 2015

Fiscal 2015 plan

Jan. 24, 2015

Fiscal 2015 plan

Jan. 24, 2015

Fiscal 2015 plan

Expected Maximum

Jan. 25, 2014

Fiscal 2014 Plan

Jan. 25, 2014

Fiscal 2014 Plan

Jul. 26, 2014

Fiscal 2014 Plan

Restructuring Cost and Reserve [Line Items]

Restructuring Charges

$ 387

$ 69

$ 387

$ 73

$ 310

Cumulative restructuring charges

418

Restructuring and Related Cost, Expected Cost

$ 600

Balance Sheet Details (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Inventories:

Raw materials

$ 265

$ 77

Work in process

2

5

Distributor inventory and deferred cost of sales

733

595

Manufactured finished goods

577

606

Total finished goods

1,310

1,201

Service-related spares

274

273

Demonstration systems

39

35

Total

1,890

1,591

Property and equipment, net:

Land, buildings, and building and leasehold improvements

4,457

4,468

Computer equipment and related software

1,417

1,425

Production, engineering, and other equipment

5,745

5,756

Operating lease assets

343

362

Furniture and fixtures

498

509

Property, plant and equipment, gross

12,460

12,520

Less accumulated depreciation and amortization

(9,248)

(9,268)

Total

3,212

3,252

Other assets:

Deferred tax assets

1,448

1,700

Investments in privately held companies

857

899

Other

837

732

Total

3,142

3,331

Deferred Revenue Arrangement [Line Items]

Deferred revenue:

14,021

14,142

Current

9,369

9,478

Noncurrent

4,652

4,664

Service

Deferred Revenue Arrangement [Line Items]

Deferred revenue:

9,020

9,640

Product:

Deferred Revenue Arrangement [Line Items]

Deferred revenue:

5,001

4,502

Product: |
Unrecognized revenue on product shipments and other deferred revenue

Deferred Revenue Arrangement [Line Items]

Deferred revenue:

4,276

3,924

Product: |
Cash receipts related to unrecognized revenue from two-tier distributors

Deferred Revenue Arrangement [Line Items]

Deferred revenue:

$ 725

$ 578

Financing Receivables and Operating Leases (Schedule Of Financing Receivables) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Oct. 25, 2014

Jul. 26, 2014

Jan. 25, 2014

Oct. 26, 2013

Jul. 27, 2013

Financing Receivables [Line Items]

Allowance for credit loss

$ (375)

$ (368)

$ (349)

$ (374)

$ (350)

$ (344)

Current

4,210

4,153

Deferred revenue:

14,021

14,142

Lease Receivables

Financing Receivables [Line Items]

Gross

3,369

3,532

Residual value

228

233

Unearned income

(206)

(238)

Allowance for credit loss

(250)

(233)

Current

1,462

1,476

Noncurrent

1,679

1,818

Total, net

3,141

3,294

Loan Receivables

Financing Receivables [Line Items]

Gross

1,674

1,683

Residual value

0

Unearned income

0

Allowance for credit loss

(85)

(98)

Current

782

728

Noncurrent

807

857

Total, net

1,589

1,585

Financed Service Contracts and Other

Financing Receivables [Line Items]

Gross

3,069

3,210

Residual value

0

Unearned income

0

Allowance for credit loss

(40)

(18)

Current

1,966

1,949

Noncurrent

1,063

1,243

Total, net

3,029

3,192

Total

Financing Receivables [Line Items]

Gross

8,112

8,425

Residual value

228

233

Unearned income

(206)

(238)

Allowance for credit loss

(375)

(349)

Current

4,210

4,153

Noncurrent

3,549

3,918

Total, net

$ 7,759

$ 8,071

Financing Receivables and Operating Leases (Schedule Of Contractual Maturities Of Gross Lease Receivables) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Financing Receivables And Guarantees [Abstract]

2015 (remaining six months)

$ 883

2016

1,281

2017

753

2018

327

2019

115

Thereafter

10

Total

$ 3,369

Financing Receivables and Operating Leases (Schedule Of Financing Receivables Categorized By Internal Credit Risk Rating) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Jan. 25, 2014

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

$ 7,906

$ 8,187

Total financing receivables before allowance for credit loss

8,134 ¹

8,420

8,018 ¹

1 to 4

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

3,996

4,312

5 to 6

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

3,531

3,498

7 and Higher

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

379

377

Total

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

7,906

8,187

Lease Receivables

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

3,163

3,294

Total financing receivables before allowance for credit loss

3,391 ¹

3,551 ¹

Lease Receivables |
1 to 4

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

1,632

1,615

Lease Receivables |
5 to 6

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

1,386

1,538

Lease Receivables |
7 and Higher

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

145

141

Lease Receivables |
Total

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

3,163

3,294

Loan Receivables

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

1,674

1,683

Total financing receivables before allowance for credit loss

1,674 ¹

1,660 ¹

Loan Receivables |
1 to 4

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

717

953

Loan Receivables |
5 to 6

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

803

593

Loan Receivables |
7 and Higher

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

154

137

Loan Receivables |
Total

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

1,674

1,683

Financed Service Contracts and Other

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

3,069

3,210

Total financing receivables before allowance for credit loss

3,069 ¹

2,807 ¹

Financed Service Contracts and Other |
1 to 4

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

1,647

1,744

Financed Service Contracts and Other |
5 to 6

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

1,342

1,367

Financed Service Contracts and Other |
7 and Higher

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

80

99

Financed Service Contracts and Other |
Total

Financing Receivable, Recorded Investment [Line Items]

Gross receivables less unearned income

$ 3,069

$ 3,210

[1] Total financing receivables before allowance for credit loss.

Financing Receivables and Operating Leases (Schedule Of Aging Analysis Of Financing Receivables) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Financing Receivable, Recorded Investment, Past Due [Line Items]

31-60 days past due (Includes billed and unbilled)

$ 345

$ 338

61-90 days past due (includes billed and unbilled)

240

307

90 days or over past due ( includes billed and unbilled)

786

452

Total Past Due

1,371

1,097

Current

6,535

7,090

Total

7,906

8,187

Nonaccrual Financing Receivables

116

79

Impaired Financing Receivables

89

69

Lease Receivables

Financing Receivable, Recorded Investment, Past Due [Line Items]

31-60 days past due (Includes billed and unbilled)

171

63

61-90 days past due (includes billed and unbilled)

63

48

90 days or over past due ( includes billed and unbilled)

224

203

Total Past Due

458

314

Current

2,705

2,980

Total

3,163

3,294

Nonaccrual Financing Receivables

53

48

Impaired Financing Receivables

48

41

Loan Receivables

Financing Receivable, Recorded Investment, Past Due [Line Items]

31-60 days past due (Includes billed and unbilled)

30

7

61-90 days past due (includes billed and unbilled)

42

21

90 days or over past due ( includes billed and unbilled)

177

28

Total Past Due

249

56

Current

1,425

1,627

Total

1,674

1,683

Nonaccrual Financing Receivables

33

19

Impaired Financing Receivables

33

19

Financed Service Contracts and Other

Financing Receivable, Recorded Investment, Past Due [Line Items]

31-60 days past due (Includes billed and unbilled)

144

268

61-90 days past due (includes billed and unbilled)

135

238

90 days or over past due ( includes billed and unbilled)

385

221

Total Past Due

664

727

Current

2,405

2,483

Total

3,069

3,210

Nonaccrual Financing Receivables

30

12

Impaired Financing Receivables

$ 8

$ 9

Financing Receivables and Operating Leases (Summary Of Allowances For Credit Loss And Related Financing Receivables) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Jul. 26, 2014

Financing Receivable, Allowance for Credit Losses [Roll Forward]

Allowance for credit loss as of

$ 368

$ 350

$ 349

$ 344

Provisions

14

29

42

32

Recoveries (write off), net

1

Recoveries (write-offs), net

(1)

(4)

Foreign exchange and other

(6)

(12)

(3)

Allowance for credit loss as of

375

374

375

374

Total financing receivables before allowance for credit loss

8,134 ¹

8,018 ¹

8,134 ¹

8,018 ¹

8,420

Lease Receivables

Financing Receivable, Allowance for Credit Losses [Roll Forward]

Allowance for credit loss as of

248

237

233

238

Provisions

7

18

29

15

Recoveries (write off), net

1

Recoveries (write-offs), net

(1)

(5)

Foreign exchange and other

(4)

(2)

(7)

0

Allowance for credit loss as of

250

254

250

254

Total financing receivables before allowance for credit loss

3,391 ¹

3,551 ¹

3,391 ¹

3,551 ¹

Loan Receivables

Financing Receivable, Allowance for Credit Losses [Roll Forward]

Allowance for credit loss as of

84

93

98

86

Provisions

3

9

(10)

15

Recoveries (write off), net

0

1

0

Recoveries (write-offs), net

0

Foreign exchange and other

(2)

(4)

(3)

Allowance for credit loss as of

85

98

85

98

Total financing receivables before allowance for credit loss

1,674 ¹

1,660 ¹

1,674 ¹

1,660 ¹

Financed Service Contracts and Other

Financing Receivable, Allowance for Credit Losses [Roll Forward]

Allowance for credit loss as of

36

20

18

20

Provisions

4

2

23

2

Recoveries (write off), net

0

Recoveries (write-offs), net

0

Foreign exchange and other

0

(1)

0

Allowance for credit loss as of

40

22

40

22

Total financing receivables before allowance for credit loss

$ 3,069 ¹

$ 2,807 ¹

$ 3,069 ¹

$ 2,807 ¹

[1] Total financing receivables before allowance for credit loss.

Financing Receivables and Operating Leases (Operating Lease Schedule) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Operating lease [Abstract]

Operating lease assets

$ 343

$ 362

Accumulated depreciation

(195)

(202)

Operating lease assets, net

$ 148

$ 160

Financing Receivables and Operating Leases (Additional Information) (Details) (USD $)

3 Months Ended

6 Months Ended

Jan. 24, 2015

Rating

Jul. 26, 2014

Jan. 25, 2014

Financing Receivables And Guarantees [Line Items]

Average lease term (in years)

4 years

Deferred revenue:

$ 14,021,000,000

$ 14,142,000,000

Financing receivable, allowance for credit loss and deferred revenue

1,928,000,000

2,220,000,000

Total financing receivables before allowance for credit loss

8,134,000,000 ¹

8,420,000,000

8,018,000,000 ¹

Threshold for past due receivables (in days)

31 days

Unbilled or current financing receivables included in greater than 91 days plus past due

542,000,000

334,000,000

Financing Receivable, 90 Days Past Due and Still Accruing

217,000,000

78,000,000

Operating Leases, Future Minimum Payments, Remainder of Fiscal Year

100,000,000

Minimum future rental from operating leases (per year amount in Fiscal 2016)

200,000,000

Investment Credit Risk Ratings Range Lowest

1

Investment Credit Risk Ratings Range Highest

10

Rating at or higher when receivables deemed impaired

8

Maximum

Financing Receivables And Guarantees [Line Items]

Loan receivables term (in years)

3 years

Minimum future rentals from operating leases (per year amount in Fiscal 2017)

100,000,000

Minimum future rentals from operating leases (per year amount in Fiscal 2018)

100,000,000

Minimum future rentals from operating leases (per year amount in Fiscal 2019)

100,000,000

Financed Service Contracts and Other |
Minimum

Financing Receivables And Guarantees [Line Items]

Financed service contracts term (in years)

1 year

Financed Service Contracts and Other |
Maximum

Financing Receivables And Guarantees [Line Items]

Financed service contracts term (in years)

3 years

Investment-grade ratings |
Minimum

Financing Receivables And Guarantees [Line Items]

Financing credit risk rating-investment-lowest

1

Investment-grade ratings |
Maximum

Financing Receivables And Guarantees [Line Items]

Financing credit risk rating-investment-lowest

4

Non-investment grade ratings |
Minimum

Financing Receivables And Guarantees [Line Items]

Financing credit risk rating-investment-lowest

5

Non-investment grade ratings |
Maximum

Financing Receivables And Guarantees [Line Items]

Financing credit risk rating-investment-lowest

6

Substandard |
Minimum

Financing Receivables And Guarantees [Line Items]

Financing credit risk rating-investment-lowest

7

Lease Receivables

Financing Receivables And Guarantees [Line Items]

Total financing receivables before allowance for credit loss

3,391,000,000 ¹

3,551,000,000 ¹

Loan Receivables

Financing Receivables And Guarantees [Line Items]

Total financing receivables before allowance for credit loss

1,674,000,000 ¹

1,660,000,000 ¹

Financed Service Contracts and Other

Financing Receivables And Guarantees [Line Items]

Deferred revenue:

1,530,000,000

1,843,000,000

Total financing receivables before allowance for credit loss

$ 3,069,000,000 ¹

$ 2,807,000,000 ¹

[1] Total financing receivables before allowance for credit loss.

Investments (Summary Of Available-For-Sale Investments) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Available-for-sale investments: [Line Items]

Amortized Cost

$ 47,570

$ 44,619

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

695

759

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(40)

(30)

Fair Value

48,225

45,348

Total fixed income securities

Available-for-sale investments: [Line Items]

Amortized Cost

46,274

43,305

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

133

111

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(30)

(20)

Fair Value

46,377

43,396

Total fixed income securities |
U.S. government securities

Available-for-sale investments: [Line Items]

Amortized Cost

30,302

31,717

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

53

29

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(1)

(12)

Fair Value

30,354

31,734

Total fixed income securities |
U.S. government agency securities

Available-for-sale investments: [Line Items]

Amortized Cost

2,324

1,062

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

3

1

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(1)

0

Fair Value

2,326

1,063

Total fixed income securities |
Non-U.S. government and agency securities

Available-for-sale investments: [Line Items]

Amortized Cost

1,108

860

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

1

2

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

0

(1)

Fair Value

1,109

861

Total fixed income securities |
Corporate debt securities

Available-for-sale investments: [Line Items]

Amortized Cost

11,180

9,092

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

61

74

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(28)

(7)

Fair Value

11,213

9,159

Total fixed income securities |
U.S. agency mortgage-backed securities

Available-for-sale investments: [Line Items]

Amortized Cost

1,360

574

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

15

5

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

0

Fair Value

1,375

579

Publicly traded equity securities [Member]

Available-for-sale investments: [Line Items]

Amortized Cost

1,296

1,314

Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax

562

648

Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax

(10)

Fair Value

$ 1,848

$ 1,952

Investments (Gross Realized Gains And Gross Realized Losses Related To Available-For-Sale Investment) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Investments [Abstract]

Gross realized gains

$ 92

$ 97

$ 113

$ 192

Gross realized losses

(23)

(15)

(37)

(27)

Total

$ 69

$ 82

$ 76

$ 165

Investments (Realized Net Gains (Losses) Related To Available-For-Sale Investments) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Schedule of Available-for-sale Securities [Line Items]

Total

$ 69

$ 82

$ 76

$ 165

Net gains (losses) on investments in publicly traded equity securities

Schedule of Available-for-sale Securities [Line Items]

Total

60

69

56

144

Net gains on investments in fixed income securities

Schedule of Available-for-sale Securities [Line Items]

Total

$ 9

$ 13

$ 20

$ 21

Investments (Available-For-Sale Investments With Gross Unrealized Losses) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Schedule of Investments [Line Items]

Fair value of investment securities with unrealized losses less than 12 months

$ 9,483

$ 10,044

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(37)

(26)

Fair value of investment securities with unrealized losses12 months or greater

364

558

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

(3)

(4)

Fair value of investment securities with unrealized losses

9,847

10,602

Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss

(40)

(30)

Publicly traded equity securities

Schedule of Investments [Line Items]

Fair value of investment securities with unrealized losses less than 12 months

119

132

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(10)

Fair value of investment securities with unrealized losses12 months or greater

1

0

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

0

Fair value of investment securities with unrealized losses

120

132

Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss

(10)

Total fixed income securities

Schedule of Investments [Line Items]

Fair value of investment securities with unrealized losses less than 12 months

9,364

9,912

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(27)

(16)

Fair value of investment securities with unrealized losses12 months or greater

363

558

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

(3)

(4)

Fair value of investment securities with unrealized losses

9,727

10,470

Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss

(30)

(20)

Total fixed income securities |
U.S. government securities

Schedule of Investments [Line Items]

Fair value of investment securities with unrealized losses less than 12 months

4,558

7,676

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(1)

(12)

Fair value of investment securities with unrealized losses12 months or greater

0

45

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

0

Fair value of investment securities with unrealized losses

4,558

7,721

Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss

(1)

(12)

Total fixed income securities |
U.S. government agency securities

Schedule of Investments [Line Items]

Fair value of investment securities with unrealized losses less than 12 months

854

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(1)

Fair value of investment securities with unrealized losses12 months or greater

0

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

0

Fair value of investment securities with unrealized losses

854

Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss

(1)

Total fixed income securities |
Non-U.S. government and agency securities

Schedule of Investments [Line Items]

Fair value of investment securities with unrealized losses less than 12 months

361

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(1)

Fair value of investment securities with unrealized losses12 months or greater

22

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

0

Fair value of investment securities with unrealized losses

383

Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss

(1)

Total fixed income securities |
Corporate debt securities

Schedule of Investments [Line Items]

Fair value of investment securities with unrealized losses less than 12 months

3,952

1,875

Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss

(25)

(3)

Fair value of investment securities with unrealized losses12 months or greater

363

491

Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss

(3)

(4)

Fair value of investment securities with unrealized losses

4,315

2,366

Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss

$ (28)

$ (7)

Investments (Maturities Of Fixed Income Securities) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Schedule of Investments [Line Items]

Amortized Cost

$ 46,274

Fair Value

46,377

Less than 1 year

Schedule of Investments [Line Items]

Amortized Cost

15,355

Fair Value

15,362

Due in 1 to 2 years

Schedule of Investments [Line Items]

Amortized Cost

14,963

Fair Value

14,995

Due in 2 to 5 years

Schedule of Investments [Line Items]

Amortized Cost

14,383

Fair Value

14,431

Due after 5 years

Schedule of Investments [Line Items]

Amortized Cost

1,573

Fair Value

$ 1,589

Investments (Equity Method and Cost Method Investment) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Investments, Debt and Equity Securities [Abstract]

Equity method investments

$ 541

$ 630

Cost method investments

316

269

Total

$ 857

$ 899

Investments (Additional Information) (Details) (USD $)

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

66 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Jul. 26, 2014

Jan. 24, 2015

VCE

Jan. 25, 2014

VCE

Jan. 24, 2015

VCE

Jan. 25, 2014

VCE

Jan. 24, 2015

VCE

Oct. 25, 2014

VCE

Schedule of Investments [Line Items]

Impairment charges on available-for-sale investments

$ 0

$ 11,000,000

$ 0

$ 11,000,000

Other than temporary impairment, credit losses recognized in earnings, credit losses on debt securities held

0

Average daily balance of securities lending

600,000,000

900,000,000

Minimum market value percentage for collateral on loaned securities

102.00%

Secured lending transactions outstanding

0

Cumulative gross investment in VCE

716,000,000

Losses from VCE

0

58,000,000

47,000,000

111,000,000

691,000,000

Proceeds from Sale of Equity Method Investments

152,000,000

Equity Method Investment, Ownership Percentage (in %)

35.00%

Ownership interest in cost method investment (in %)

10.00%

Cost method investment carrying value

316,000,000

269,000,000

0

Gains recognized related to restructuring of VCE

$ 126,000,000

Fair Value (Assets and Liabilities Measured At Fair Value On Recurring Basis) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

$ 51,557

$ 50,443

Cash equivalents: |
Money market funds

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

2,977

4,935

Cash equivalents: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

67

0

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

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

30,354

31,734

Available-for-sale investments: |
U.S. government agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

2,326

1,063

Available-for-sale investments: |
Non-U.S. government and agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

1,109

861

Available-for-sale investments: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

11,213

9,159

Available-for-sale investments: |
U.S. agency mortgage-backed securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

1,375

579

Available-for-sale investments: |
Publicly traded equity securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

1,848

1,952

Derivative assets

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

288

160

Derivative liabilities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Liabilities:

162

67

Level 1

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

4,825

6,887

Level 1 |
Cash equivalents: |
Money market funds

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

2,977

4,935

Level 1 |
Cash equivalents: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 1 |
Available-for-sale investments: |
U.S. government securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 1 |
Available-for-sale investments: |
U.S. government agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 1 |
Available-for-sale investments: |
Non-U.S. government and agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 1 |
Available-for-sale investments: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 1 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 1 |
Available-for-sale investments: |
Publicly traded equity securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

1,848

1,952

Level 1 |
Derivative assets

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 1 |
Derivative liabilities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Liabilities:

0

Level 2

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

46,732

43,554

Level 2 |
Cash equivalents: |
Money market funds

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 2 |
Cash equivalents: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

67

0

Level 2 |
Available-for-sale investments: |
U.S. government securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

30,354

31,734

Level 2 |
Available-for-sale investments: |
U.S. government agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

2,326

1,063

Level 2 |
Available-for-sale investments: |
Non-U.S. government and agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

1,109

861

Level 2 |
Available-for-sale investments: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

11,213

9,159

Level 2 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

1,375

579

Level 2 |
Available-for-sale investments: |
Publicly traded equity securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 2 |
Derivative assets

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

288

158

Level 2 |
Derivative liabilities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Liabilities:

162

67

Level 3

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

2

Level 3 |
Cash equivalents: |
Money market funds

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Cash equivalents: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Available-for-sale investments: |
U.S. government securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Available-for-sale investments: |
U.S. government agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Available-for-sale investments: |
Non-U.S. government and agency securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Available-for-sale investments: |
Corporate debt securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Available-for-sale investments: |
Publicly traded equity securities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

Level 3 |
Derivative assets

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Assets:

0

2

Level 3 |
Derivative liabilities

Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]

Liabilities:

$ 0

Fair Value (Additional Information) (Details) (USD $)

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Jul. 26, 2014

Fair Value Measurements [Line Items]

Impairment of Intangible assets

$ 56,000,000

$ 0

$ 56,000,000

$ 0

Carrying Value, Cost Method Investments

316,000,000

269,000,000

Senior notes, carrying value

20,517,000,000

20,901,000,000

Level 2

Fair Value Measurements [Line Items]

Senior notes, fair value

22,300,000,000

22,400,000,000

Senior notes, carrying value

20,500,000,000

20,900,000,000

Level 3

Fair Value Measurements [Line Items]

Long term loan receivables and financed service contracts and others carrying value

1,900,000,000

2,100,000,000

Level 3 |
Other Nonoperating Income (Expense)

Fair Value Measurements [Line Items]

Private investment impairment

2,000,000

9,000,000

3,000,000

10,000,000

Level 3 |
Product cost of sales or operating expenses

Fair Value Measurements [Line Items]

Impairment of Intangible assets

$ 56,000,000

$ 0

$ 56,000,000

$ 0

Borrowings (Schedule Of Short-Term Debt) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Short-term Debt [Line Items]

Amount

$ 855

$ 508

Current portion of long-term debt

Short-term Debt [Line Items]

Amount

850

500

Effective Rate

0.36%

3.11%

Other short-term debt

Short-term Debt [Line Items]

Amount

$ 5

$ 8

Effective Rate

2.73%

2.67%

Borrowings (Schedule Of Long-Term Debt) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

12 Months Ended

Jan. 24, 2015

Jul. 26, 2014

Debt Instrument [Line Items]

Total

$ 20,252

$ 20,754

Unaccreted discount

(61)

(63)

Hedge accounting fair value adjustments

326

210

Total

20,517

20,901

Current portion of long-term debt

850

500

Long-term debt

19,667

20,401

Floating Rate Notes 3-month Libor Plus 0.05% Due September 2015 [Member]

Debt Instrument [Line Items]

Maturity Date

Sep. 03, 2015

Notes

850

Effective Rate

0.36%

0.35%

Three-month LIBOR plus this Percentage (in %)

0.05%

Floating Rate Notes 3-month Libor Plus 0.28% Due March 2017 [Member]

Debt Instrument [Line Items]

Maturity Date

Mar. 03, 2017

Notes

1,000

Effective Rate

0.57%

0.56%

Three-month LIBOR plus this Percentage (in %)

0.28%

Floating rate notes 3-month Libor plus 0.5% due March 2019 [Member]

Debt Instrument [Line Items]

Maturity Date

Mar. 01, 2019

Notes

500

Effective Rate

0.79%

0.78%

Three-month LIBOR plus this Percentage (in %)

0.50%

Fixed-Rate Notes, 2.90%, Due November 2014

Debt Instrument [Line Items]

Maturity Date

Nov. 17, 2014

Notes

0

500

Debt Instrument, Interest Rate, Stated Percentage

2.90%

Effective Rate

0.00%

3.11%

Fixed-Rate Notes, 5.5%, Due February 2016

Debt Instrument [Line Items]

Maturity Date

Feb. 22, 2016

Notes

3,000

Debt Instrument, Interest Rate, Stated Percentage

5.50%

Effective Rate

3.05%

3.04%

Fixed-Rate Notes, 1.1%, Due March 2017

Debt Instrument [Line Items]

Maturity Date

Mar. 03, 2017

Notes

2,400

Debt Instrument, Interest Rate, Stated Percentage

1.10%

Effective Rate

0.57%

0.56%

Fixed-Rate Notes, 3.15%, Due March 2017

Debt Instrument [Line Items]

Maturity Date

Mar. 14, 2017

Notes

750

Debt Instrument, Interest Rate, Stated Percentage

3.15%

Effective Rate

0.80%

0.79%

Fixed-Rate Notes, 4.95%, Due February 2019

Debt Instrument [Line Items]

Maturity Date

Feb. 15, 2019

Notes

2,000

Debt Instrument, Interest Rate, Stated Percentage

4.95%

Effective Rate

4.69%

Fixed-Rate Notes, 2.125%, Due March 2019

Debt Instrument [Line Items]

Maturity Date

Mar. 01, 2019

Notes

1,750

Debt Instrument, Interest Rate, Stated Percentage

2.125%

Effective Rate

0.78%

0.77%

Fixed-Rate Notes, 4.45%, Due January 2020

Debt Instrument [Line Items]

Maturity Date

Jan. 15, 2020

Notes

2,500

Debt Instrument, Interest Rate, Stated Percentage

4.45%

Effective Rate

2.99%

2.98%

Fixed-Rate Notes, 2.90%, Due March 2021

Debt Instrument [Line Items]

Maturity Date

Mar. 04, 2021

Notes

500

Debt Instrument, Interest Rate, Stated Percentage

2.90%

Effective Rate

0.94%

0.93%

Fixed-Rate Notes,3.625%, Due March 2024

Debt Instrument [Line Items]

Maturity Date

Mar. 04, 2024

Notes

1,000

Debt Instrument, Interest Rate, Stated Percentage

3.625%

Effective Rate

1.06%

1.05%

Fixed-Rate Notes, 5.9%, Due February 2039

Debt Instrument [Line Items]

Maturity Date

Feb. 15, 2039

Notes

2,000

Debt Instrument, Interest Rate, Stated Percentage

5.90%

Effective Rate

6.11%

Fixed-Rate Notes, 5.5%, Due January 2040

Debt Instrument [Line Items]

Maturity Date

Jan. 15, 2040

Notes

2,000

Debt Instrument, Interest Rate, Stated Percentage

5.50%

Effective Rate

5.67%

Other long-term debt

Debt Instrument [Line Items]

Other long-term debt

$ 2

$ 4

Effective Rate

2.08%

2.39%

Borrowings (Schedule Of Future Principal Payments For Long-Term Debt) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Debt Disclosure [Abstract]

2015 (remaining six months)

$ 0

2016

3,851

2017

4,151

2018

0

2019

4,250

Thereafter

8,000

Total

$ 20,252

$ 20,754

Borrowings (Additional Information) (Details) (USD $)

6 Months Ended

3 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jul. 26, 2014

Jan. 24, 2015

Derivatives designated as hedging instruments:

Interest rate derivatives

Jul. 26, 2014

Derivatives designated as hedging instruments:

Interest rate derivatives

Jan. 24, 2015

Fixed-Rate Notes, 2.90%, Due November 2014

Jan. 24, 2015

Unsecured revolving credit facility

Debt Instrument [Line Items]

Commercial paper, maximum borrowing limit

$ 3,000,000,000

Commercial paper

0

Repayments of Senior Debt

506,000,000

22,000,000

500,000,000

Derivative, Notional Amount

14,913,000,000

15,557,000,000

10,400,000,000

Line of Credit Facility, Current Borrowing Capacity

3,000,000,000

Maturity date

Feb. 17, 2017

Interest Rate-Federal Funds rate plus 0.50%

0.50%

Interest rate-one-month LIBOR plus 1.00%

1.00%

Line of Credit Facility, Interest Rate Description

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.

Additional credit facility upon agreement

$ 2,000,000,000

Additional unsecured revolving credit facility maturity date

Feb. 17, 2019

Derivative Instruments (Derivatives Recorded At Fair Value) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Derivative [Line Items]

DERIVATIVE ASSETS

$ 288

$ 160

DERIVATIVE LIABILITIES

162

67

Derivatives designated as hedging instruments:

Derivative [Line Items]

DERIVATIVE ASSETS

283

155

DERIVATIVE LIABILITIES

156

65

Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current assets

Derivative [Line Items]

DERIVATIVE ASSETS

4

7

Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities

Derivative [Line Items]

DERIVATIVE LIABILITIES

88

6

Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other assets

Derivative [Line Items]

DERIVATIVE ASSETS

279

148

Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other long-term liabilities

Derivative [Line Items]

DERIVATIVE LIABILITIES

0

3

Derivatives designated as hedging instruments: |
Equity derivatives |
Other current assets

Derivative [Line Items]

DERIVATIVE ASSETS

0

Derivatives designated as hedging instruments: |
Equity derivatives |
Other current liabilities

Derivative [Line Items]

DERIVATIVE LIABILITIES

68

56

Derivatives not designated as hedging instruments:

Derivative [Line Items]

DERIVATIVE ASSETS

5

DERIVATIVE LIABILITIES

6

2

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

Derivative [Line Items]

DERIVATIVE ASSETS

5

3

Derivatives not designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities

Derivative [Line Items]

DERIVATIVE LIABILITIES

6

2

Derivatives not designated as hedging instruments: |
Equity derivatives |
Other assets

Derivative [Line Items]

DERIVATIVE ASSETS

0

2

Derivatives not designated as hedging instruments: |
Equity derivatives |
Other long-term liabilities

Derivative [Line Items]

DERIVATIVE LIABILITIES

$ 0

Derivative Instruments (Effect Of Derivative Instruments Designated As Cash Flow Hedges On Other Comprehensive Income And Consolidated Statements Of Operations Summary) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Derivatives designated as cash flow hedging instruments:

Derivative [Line Items]

GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)

$ (75)

$ (4)

$ (131)

$ 34

GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)

(26)

19

(30)

28

Derivatives designated as cash flow hedging instruments: |
Foreign currency derivatives

Derivative [Line Items]

GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)

(75)

(4)

(131)

34

Derivatives designated as cash flow hedging instruments: |
Foreign currency derivatives |
Operating expenses

Derivative [Line Items]

GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)

(21)

16

(24)

23

Derivatives designated as cash flow hedging instruments: |
Foreign currency derivatives |
Cost of sales—service

Derivative [Line Items]

GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)

(5)

3

(6)

5

Derivatives designated as net investment hedging instruments: |
Foreign currency derivatives

Derivative [Line Items]

GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)

24

16

44

(3)

Derivatives designated as net investment hedging instruments: |
Foreign currency derivatives |
Other income (loss), net

Derivative [Line Items]

GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)

$ 0

Derivative Instruments (Effect Of Derivative Instruments Designated As Fair Value Hedges And Underlying Hedged Items On Consolidated Statements Of Operations) (Details) (Derivatives Designated as Fair Value Hedging Instruments, USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Hedge Underlying Gain Loss [Line Items]

GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED

$ 43

$ (65)

$ 119

$ (82)

GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED

(43)

66

(122)

81

Equity derivatives |
Other income (loss), net

Hedge Underlying Gain Loss [Line Items]

GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED

(18)

(12)

(47)

GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED

18

12

47

Interest rate derivatives |
Interest expense

Hedge Underlying Gain Loss [Line Items]

GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED

61

(53)

131

(35)

GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED

$ (61)

$ 54

$ (134)

$ 34

Derivative Instruments (Effect Of Derivative Instruments Not Designated As Hedges On Consolidated Statement Of Operations Summary) (Details) (Derivatives not designated as hedging instruments:, USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Derivative Instruments, Gain (Loss) [Line Items]

GAINS (LOSSES) FOR THE THREE MONTHS ENDED

$ (30)

$ (38)

$ (105)

$ 33

Foreign currency derivatives |
Other income (loss), net

Derivative Instruments, Gain (Loss) [Line Items]

GAINS (LOSSES) FOR THE THREE MONTHS ENDED

(51)

(63)

(109)

(20)

Total return swaps—deferred compensation |
Operating expenses

Derivative Instruments, Gain (Loss) [Line Items]

GAINS (LOSSES) FOR THE THREE MONTHS ENDED

13

12

0

29

Equity derivatives |
Other income (loss), net

Derivative Instruments, Gain (Loss) [Line Items]

GAINS (LOSSES) FOR THE THREE MONTHS ENDED

$ 8

$ 13

$ 4

$ 24

Derivative Instruments (Schedule Of Notional Amounts Of Derivatives Outstanding) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Derivative [Line Items]

Derivatives

$ 14,913

$ 15,557

Derivatives designated as hedging instruments: |
Foreign currency derivatives

Derivative [Line Items]

Derivatives

1,641

1,618

Derivatives designated as hedging instruments: |
Interest rate derivatives

Derivative [Line Items]

Derivatives

10,400

Derivatives designated as hedging instruments: |
Net investment hedging instruments

Derivative [Line Items]

Derivatives

216

345

Derivatives designated as hedging instruments: |
Equity derivatives

Derivative [Line Items]

Derivatives

238

Derivatives not designated as hedging instruments: |
Foreign currency derivatives

Derivative [Line Items]

Derivatives

1,969

2,528

Derivatives not designated as hedging instruments: |
Total return swaps—deferred compensation

Derivative [Line Items]

Derivatives

$ 449

$ 428

Derivative Instruments (Offsetting of Derivative Assets and Liabilities) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Gross Amount of Recognized Assets

$ 288

$ 160

Gross Amounts Offset in Consolidated Balance Sheets

0

Net Amount Presented on Consolidated Balance Sheets

288

160

Gross Derivative Amounts with Legal Rights to Offset

(58)

(39)

Cash Collateral Received

(186)

(60)

Net Amount

44

61

Gross Amount of Recognized Liabilities

162

67

Gross Amounts Offset in Consolidated Balance Sheets

0

Net Amount Presented on Consolidated Balance Sheets

162

67

Gross Derivative Amounts with Legal Rights to Offset

(58)

(39)

Cash Collateral Pledged

0

(1)

Net Amount

$ 104

$ 27

Derivative Instruments (Additional Information) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

3 Months Ended

Jan. 24, 2015

Jul. 26, 2014

Jan. 24, 2015

Long-term Debt

Jan. 24, 2015

Derivatives designated as cash flow hedging instruments:

Jan. 24, 2015

Net investment hedging instruments

Jan. 24, 2015

Fixed Income Securities [Member]

Jul. 26, 2014

Fixed Income Securities [Member]

Jan. 24, 2015

Right to request collateral subject to specified credit rating and in net liability position [Member]

Jul. 26, 2014

Right to request collateral subject to specified credit rating and in net liability position [Member]

Derivative [Line Items]

Net derivative gains to be reclassified from AOCI into earnings in next twelve months

$ 102.0

Foreign currency cash flow hedges maturity period, maximum, months

18 months

6 months

Description of Interest Rate Derivative Activities

In fiscal 2014 and 2013, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due on various dates from 2017 through 2024. In the periods prior to fiscal 2013, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in 2016 and 2017.

Number of Interest Rate Derivatives Held

0

Net liability position

$ 162

$ 67

$ 0

$ 3

Commitments and Contingencies (Schedule Of Future Minimum Lease Payments Under All Noncancelable Operating Leases) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Commitments and Contingencies Disclosure [Abstract]

2015 (remaining six months)

$ 195

2016

287

2017

196

2018

139

2019

72

Thereafter

209

Total

$ 1,098

Commitments and Contingencies (Schedule of Other Commitments) (Details) (Acquisition, USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Acquisition

Contingency [Line Items]

Compensation expense related to acquisitions

$ 94

$ 106

$ 192

$ 410

Commitments and Contingencies (Schedule Of Product Warranty Liability) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]

Balance at beginning of period

$ 446

$ 402

Provision for warranties issued

355

356

Payments

(327)

(333)

Balance at end of period

$ 474

$ 425

Commitments and Contingencies (Schedule of Financing Guarantees Outstanding) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Loss Contingencies [Line Items]

Maximum potential future payments relating to financing guarantees:

$ 471

$ 465

Deferred revenue associated with financing guarantees:

(269)

(293)

Maximum potential future payments relating to financing guarantees, net of associated deferred revenue

202

172

Channel partner

Loss Contingencies [Line Items]

Maximum potential future payments relating to financing guarantees:

316

263

Deferred revenue associated with financing guarantees:

(148)

(127)

End user

Loss Contingencies [Line Items]

Maximum potential future payments relating to financing guarantees:

155

202

Deferred revenue associated with financing guarantees:

$ (121)

$ (166)

Commitments and Contingencies (Additional Information) (Details) (USD $)

3 Months Ended

6 Months Ended

3 Months Ended

6 Months Ended

15 Months Ended

3 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Jul. 26, 2014

Jan. 24, 2015

Minimum

Jan. 24, 2015

Maximum

Jan. 24, 2015

Insieme Networks Inc

Oct. 25, 2014

Insieme Networks Inc

Jan. 25, 2014

Insieme Networks Inc

Apr. 28, 2012

Insieme Networks Inc

Jan. 24, 2015

Insieme Networks Inc

Jan. 25, 2014

Insieme Networks Inc

Oct. 25, 2014

Insieme Networks Inc

Jan. 24, 2015

Insieme Networks Inc

Maximum

Including compensation that has been expensed through current reporting period [Member]

Jan. 24, 2015

Investments In Privately Held Companies

Jul. 26, 2014

Investments In Privately Held Companies

Jan. 25, 2014

Supplier Component Remediation Liability

Jan. 24, 2015

Supplier Component Remediation Liability

Jul. 26, 2014

Supplier Component Remediation Liability

Jan. 24, 2015

Russia and the Commonwealth of Independent States [Member]

Oct. 25, 2014

Rockstar [Member]

Apr. 25, 2015

Rockstar [Member]

Subsequent Event [Member]

Partially offset to $188 million accrued to Cost of goods sold in Q1'15

Contingency [Line Items]

Purchase Commitments

$ 4,257,000,000

$ 4,169,000,000

Liability for purchase commitments

165,000,000

162,000,000

Future compensation expense & contingent consideration, maximum

428,000,000

Variable Interest Entities Investment

100,000,000

Ownership percentage as a result of investment

83.00%

Compensation expense related to acquisitions

51,000,000

54,000,000

104,000,000

311,000,000

520,000,000

Commitments and contingencies

845,000,000

230,000,000

255,000,000

63,000,000

613,000,000

670,000,000

Warranty period for products, in days

90 days

Warranty period for products, in years

5 years

Channel partners revolving short-term financing payment term

60 days

90 days

Volume of channel partner financing

6,200,000,000

5,900,000,000

12,500,000,000

12,200,000,000

Balance of the channel partner financing subject to guarantees

1,300,000,000

1,200,000,000

End User Lease And Loan Term

3 years

Financing provided by third parties for leases and loans on which the Company has provided guarantees

39,000,000

20,000,000

65,000,000

45,000,000

Cost of Goods Sold

3,806,000,000

4,323,000,000

7,725,000,000

8,070,000,000

655,000,000

188,000,000

Brazilian Authority Claim Of Import Tax Evasion By Importer Tax Portion

335,000,000

Brazilian Authority Claim Of Import Tax Evasion By Importer Interest Portion

1,300,000,000

Brazilian Authority Claim Of Import Tax Evasion By Importer Penalties Portion

1,500,000,000

Percentage of revenue, Percentage

2.00%

Loss Contingency, Damages Awarded, Value

$ 300,000,000

Shareholders' Equity (Stock Repurchase Program) (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Stockholders' Equity Note [Abstract]

Cumulative Shares Repurchased, Beginning balance (in shares)

4,288

Repurchase of Common Stock During Period (in shares)

85 ¹

Cumulative Shares Repurchased, Ending balance (in shares)

4,373

Cumulative Weighted-Average Price per Share, Beginning balance, dollars per share

$ 20.63

Repurchase of common stock under the stock repurchase program, Weighted-Average Price per Share, dollars per share

$ 26.15

Cumulative Weighted-Average Price per Share, Ending balance, dollars per share

$ 20.73

Cumulative Amount Repurchased, Beginning balance

$ 88,445

Stock Repurchased During the Period, Shares

2,221 ¹

Cumulative Amount Repurchased, Ending balance

$ 90,666

[1] Includes stock repurchases of $150 million, which were pending settlement as of January 24, 2015. There were $126 million of stock repurchases that were pending settlement as of July 26, 2014.

Shareholders' Equity (Additional Information) (Details) (USD $)

Share data in Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

3 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Stock repurchase program

Jul. 26, 2014

Stock repurchase program

Apr. 25, 2015

Subsequent Event [Member]

Class of Stock [Line Items]

Cash dividends paid per common share (in dollars per share)

$ 0.19

$ 0.17

$ 0.38

$ 0.34

Dividends Payable, Date Declared

Feb. 11, 2015

Cash dividends declared, per common share

$ 0.38

$ 0.34

$ 0.21

Dividends Payable, Date of Record

Apr. 02, 2015

Dividends Payable, Date to be Paid

Apr. 22, 2015

Payments of Dividends

$ 1,947,000,000

$ 1,810,000,000

Authorized common stock repurchase amount

97,000,000,000

Remaining authorized repurchase amount

6,300,000,000

Accrued Liabilities, Current

150,000,000

126,000,000

Shares Paid for Tax Withholding for Share Based Compensation (shares in million)

15

13

Payments Related to Tax Withholding for Share-based Compensation

$ 369,000,000

$ 309,000,000

$ 369,000,000

$ 309,000,000

Employee Benefit Plans (Summary Of Share-Based Compensation Expense) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

$ 308

$ 347

$ 677

$ 656

Income tax benefit for share-based compensation

85

82

179

160

Cost of sales—product

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

11

12

22

Cost of sales—service

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

34

40

71

73

Cost of sales

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

45

52

93

95

Research and development

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

105

108

224

200

Sales and marketing

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

114

141

261

264

General and administrative

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

42

47

101

Restructuring and other charges

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

2

(1)

(2)

(4)

Operating expenses

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Total share-based compensation expense

$ 263

$ 295

$ 584

$ 561

Employee Benefit Plans (Summary of Share-Based Awards available for Grant) (Details)

In Millions, unless otherwise specified

6 Months Ended

12 Months Ended

Jan. 24, 2015

Jul. 26, 2014

Employee Stock Benefit Plans [Abstract]

Balance at beginning of fiscal period

310

228

Restricted stock, stock units, and other share-based awards granted

(28)

(98)

Share-based awards canceled/forfeited/expired

27

36

Additional shares reserved

135

Shares withheld for taxes and not issued

21

6

Other

(2)

3

Balance at end of fiscal period

328

310

Employee Benefit Plans (Summary Of Restricted Stock And Stock Unit Activity) (Details) (Restricted Stock/Stock Units, USD $)

In Millions, except Per Share data, unless otherwise specified

6 Months Ended

12 Months Ended

Jan. 24, 2015

Jul. 26, 2014

Restricted Stock/Stock Units

Restricted Stock and Stock Unit Activity [Roll Forward]

Beginning balance, Restricted Stock/Stock Units, shares

149

143

Granted and assumed

18

72

Vested

(41)

(53)

Canceled/forfeited

(11)

(13)

Ending balance, Restricted Stock/Stock Units, shares

115

149

Beginning balance, Weighted-Average Grant-Date Fair Value per Share, dollars per share

$ 19.54

$ 18.80

Granted and assumed, Weighted-Average Grant-Date Fair Value per Share, dollars per share

$ 23.47

$ 20.85

Vested, Weighted-Average Grant-Date Fair Value per Share, dollars per share

$ 19.47

$ 19.55

Canceled/forfeited, Weighted-Average Grant-Date Fair Value per Share, dollars per share

$ 19.70

$ 18.61

Ending balance, Weighted-Average Grant-Date Fair Value per Share, dollars per share

$ 20.18

$ 19.54

Vested, Vest-Date Fair Value in Aggregate

$ 1,053

$ 1,229

Employee Benefit Plans (Summary Of Stock Option Activity) (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

6 Months Ended

12 Months Ended

Jan. 24, 2015

Jul. 26, 2014

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]

Beginning balance, Number Outstanding, options

187

276

Assumed from acquisitions

1

6

Exercised

(45)

(78)

Canceled/forfeited/expired

(10)

(17)

Ending balance, Number Outstanding, options

133

187

Weighted-Average Exercise Price per Share, Beginning Balance, dollars per share

$ 26.03

$ 24.44

Assumed from acquisitions, Weighted-Average Exercise Price per Share, dollars per share

$ 2.72

$ 3.60

Exercised, Weighted-Average Exercise Price per Share, dollars per share

$ 20.49

$ 18.30

Canceled/forfeited/expired, Weighted-Average Exercise Price per Share, dollars per share

$ 29.48

$ 27.53

Weighted-Average Exercise Price per Share, Ending Balance, dollars per share

$ 27.45

$ 26.03

Employee Benefit Plans (Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options) (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Jul. 26, 2014

Jul. 27, 2013

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number Outstanding (in shares)

133

187

276

Weighted- Average Remaining Contractual Life (in Year/Month/Date))

1 year 6 months

Weighted- Average Exercise Price per Share

$ 27.45

$ 26.03

$ 24.44

Aggregate Intrinsic Value

$ 377

Number Exercisable, shares

131

183

Weighted- Average Exercise Price per Share

$ 27.94

$ 26.50

Aggregate Intrinsic Value

311

$ 0.01 – 15.00

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number Outstanding (in shares)

5

Weighted- Average Remaining Contractual Life (in Year/Month/Date))

5 years 4 months 24 days

Weighted- Average Exercise Price per Share

$ 4.17

Aggregate Intrinsic Value

135

Number Exercisable, shares

3

Weighted- Average Exercise Price per Share

$ 5.66

Aggregate Intrinsic Value

69

15.01 – 18.00

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number Outstanding (in shares)

1

Weighted- Average Remaining Contractual Life (in Year/Month/Date))

2 years

Weighted- Average Exercise Price per Share

$ 16.91

Aggregate Intrinsic Value

3

Number Exercisable, shares

1

Weighted- Average Exercise Price per Share

$ 16.91

Aggregate Intrinsic Value

3

18.01 – 20.00

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number Outstanding (in shares)

1

Weighted- Average Remaining Contractual Life (in Year/Month/Date))

0 years 3 months 18 days

Weighted- Average Exercise Price per Share

$ 19.69

Aggregate Intrinsic Value

9

Number Exercisable, shares

1

Weighted- Average Exercise Price per Share

$ 19.69

Aggregate Intrinsic Value

9

20.01 – 25.00

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number Outstanding (in shares)

37

Weighted- Average Remaining Contractual Life (in Year/Month/Date))

0 years 9 months 18 days

Weighted- Average Exercise Price per Share

$ 22.90

Aggregate Intrinsic Value

198

Number Exercisable, shares

37

Weighted- Average Exercise Price per Share

$ 22.90

Aggregate Intrinsic Value

198

25.01 – 30.00

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number Outstanding (in shares)

20

Weighted- Average Remaining Contractual Life (in Year/Month/Date))

1 year 6 months

Weighted- Average Exercise Price per Share

$ 26.72

Aggregate Intrinsic Value

32

Number Exercisable, shares

20

Weighted- Average Exercise Price per Share

$ 26.72

Aggregate Intrinsic Value

32

30.01 – 35.00

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number Outstanding (in shares)

69

Weighted- Average Remaining Contractual Life (in Year/Month/Date))

1 year 6 months

Weighted- Average Exercise Price per Share

$ 32.16

Aggregate Intrinsic Value

0

Number Exercisable, shares

69

Weighted- Average Exercise Price per Share

$ 32.16

Aggregate Intrinsic Value

$ 0

Employee Benefit Plans (Summary Assumptions Related To And Valuation Of Employee Share-Based Awards (Time-Based Restricted Stock Units)) (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

RESTRICTED STOCK UNITS

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of shares granted (in millions)

1

37

11

47

Grant date fair value per share

$ 25.07

$ 19.90

$ 23.34

$ 20.57

Expected dividend

2.80%

3.20%

3.00%

3.10%

Range of Risk Free Interest Rate, Minimum

0.00%

0.10%

0.00%

Range of Risk Free Interest Rate, Maximum

1.60%

1.40%

1.80%

1.40%

PERFORMANCE RESTRICTED STOCK UNITS

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of shares granted (in millions)

1

0

7

4

Grant date fair value per share

$ 25.39

$ 23.70

$ 22.70

Expected dividend

2.80%

3.00%

2.30%

Range of Risk Free Interest Rate, Minimum

0.00%

Range of Risk Free Interest Rate, Maximum

1.60%

1.80%

1.40%

Range of Expected Volatility Rate, Minimum

14.40%

17.40%

Range of Expected Volatility Rate, Maximum

63.70%

70.00%

70.50%

Employee Benefit Plans (Additional Information) (Details) (USD $)

In Billions, except Share data, unless otherwise specified

6 Months Ended

Jan. 24, 2015

stock_incentive_plan

Jan. 23, 2015

Jul. 26, 2014

Jan. 24, 2015

2005 Plan

Jan. 24, 2015

2005 Plan

Stock awards prior to November 12, 2009

Maximum

Jan. 24, 2015

2005 Plan

Stock awards subsequent to November 12, 2009 [Member]

Jan. 24, 2015

2005 Plan

Stock awards subsequent to November 12, 2009 [Member]

Maximum

Jan. 24, 2015

2005 Plan

Employee Stock Option

Minimum

Jan. 24, 2015

2005 Plan

Employee Stock Option

Maximum

Jan. 24, 2015

2005 Plan

Time based stock award

Minimum

Jan. 24, 2015

2005 Plan

Time based stock award

Maximum

Jan. 24, 2015

2005 Plan

Performance base and Market base RSU [Member]

Jan. 24, 2015

2005 Plan

PRSU based on financial performance metrics

Minimum

Jan. 24, 2015

2005 Plan

PRSU based on financial performance metrics

Maximum

Jan. 24, 2015

2005 Plan

PRSU based on TSR [Member]

Minimum

Jan. 24, 2015

2005 Plan

PRSU based on TSR [Member]

Maximum

Jan. 24, 2015

2005 Plan

Performance based RSU based on Financial or nonFinancial operating goal [Member]

Minimum

Jan. 24, 2015

2005 Plan

Performance based RSU based on Financial or nonFinancial operating goal [Member]

Maximum

Jan. 24, 2015

2005 Plan

PRSU based on nonfinancial operating goals

Minimum

Jan. 24, 2015

2005 Plan

PRSU based on nonfinancial operating goals

Maximum

Jan. 24, 2015

1996 Plan

Month

Jan. 24, 2015

1996 Plan

Employee Stock Option

Minimum

Jan. 24, 2015

1996 Plan

Employee Stock Option

Maximum

Jan. 24, 2015

Employee Stock Purchase Rights

Jan. 25, 2014

Employee Stock Purchase Rights

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of stock incentive plans

4

Shares reserved for issuance (in shares)

694,000,000

2,500,000,000

621,400,000

Reduction in shares available for issuance pursuant to November 12, 2009 amendment (ratio)

1.5

Exercise price as a percentage of market value (in percentage)

100.00%

Expiration date for stock options and stock appreciation rights (in years)

9 years

10 years

9 years

Share-based Compensation Award Vesting Rights, Percentage

20.00%

25.00%

20.00%

25.00%

0.00%

150.00%

0.00%

150.00%

0.00%

100.00%

Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period

48 months

36 months

3 years

6 months

3 years

36 months

48 months

Percentage in which stock options and RSUs become exercisable for within one year from date of grant, minimum

20.00%

Percentage in which stock options and RSUs become exercisable for within one year from date of grant, maximum

25.00%

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights

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.

Stock options ratable vesting schedule, nonstandard (in months)

60

ESPP-Offering Period Plan Description

24-month offering period, which consists of four consecutive 6-month purchase periods

ESPP-Discount rate

15.00%

Termination of Stock Plan

Dec. 31, 2006

Jan. 03, 2020

Stock Issued During Period, Shares, Employee Stock Purchase Plans

14,000,000

ESPP-shares available for issuance, shares

161,000,000

Total compensation cost related to unvested share-based awards

$ 2.0

Expected period of recognition of compensation cost, years

2 years 3 months 18 days

Closing stock price

$ 28.21

In-the-money exercisable stock option shares

59,000,000

Number Exercisable, shares

131,000,000

183,000,000

Weighted- Average Exercise Price per Share

$ 27.94

$ 26.50

Description of PRSU granted contingent on performance metrics

generally 50% of the PRSUs are earned based on the average of annual operating cash flow and earnings per share goals established at the beginning of each fiscal year over a three-year performance period. Generally, the remaining 50% of the PRSUs are earned based on the Company’s TSR measured against the benchmark TSR of a peer group over the same period.

PRSU allocation between Financial operating goals and TSR

50.00%

Comprehensive Income (AOCI components) (Details) (USD $)

In Millions, unless otherwise specified

6 Months Ended

Jan. 24, 2015

Jul. 26, 2014

Jan. 24, 2015

Net Unrealized Gains on Investments

Jan. 25, 2014

Net Unrealized Gains on Investments

Jan. 24, 2015

Net Unrealized Gains (Losses) Cash Flow Hedging Instruments

Jan. 25, 2014

Net Unrealized Gains (Losses) Cash Flow Hedging Instruments

Jan. 24, 2015

Cumulative Translation Adjustment and Actuarial Gains (Losses)

Jan. 25, 2014

Cumulative Translation Adjustment and Actuarial Gains (Losses)

Jan. 24, 2015

Accumulated Other Comprehensive Income

Jan. 25, 2014

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]

AOCI Balance

$ 186

$ 677

$ 424

$ 379

$ (12)

$ 8

$ 265

$ 221

$ 677

$ 608

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

(23)

332

(131)

33

(379)

(14)

(533)

351

(Gains) losses reclassified out of other comprehensive income

(76)

(165)

30

(28)

0

(46)

(193)

Tax benefit (expense)

49

(60)

3

(2)

36

(1)

88

(63)

AOCI Balance

$ 186

$ 677

$ 374

$ 486

$ (110)

$ 11

$ (78)

$ 206

$ 186

$ 703

Comprehensive Income (Reclassification out of other comprehensive income) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Net Unrealized Gains on Investments |
Other income (loss), net

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Net unrealized gains on available-for-sale investments

$ 69

$ 82

$ 76

$ 165

Derivatives designated as cash flow hedging instruments:

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Total amounts reclassified out of other comprehensive income

(26)

19

(30)

28

Derivatives designated as cash flow hedging instruments: |
Operating expenses

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Total amounts reclassified out of other comprehensive income

(21)

16

(24)

23

Derivatives designated as cash flow hedging instruments: |
Cost of sales—service

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Total amounts reclassified out of other comprehensive income

(5)

3

(6)

5

Total Cisco Shareholders’ Equity

Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]

Total amounts reclassified out of other comprehensive income

$ 43

$ 101

$ 46

$ 193

Income Taxes (Income Before Provision For Income Taxes) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Income Tax Disclosure [Abstract]

INCOME BEFORE PROVISION FOR INCOME TAXES

$ 2,873

$ 1,755

$ 5,233

$ 4,295

Provision for income taxes

$ 476

$ 326

$ 1,008

$ 870

Effective Income Tax Rate Reconciliation, Percent

16.60%

18.60%

19.30%

20.30%

Income Taxes (Additional Information) (Details) (USD $)

3 Months Ended

6 Months Ended

Jan. 24, 2015

Income Tax Disclosure [Abstract]

R&D tax benefit related to FY 2014

$ 91,000,000

Unrecognized Tax Benefits

2,000,000,000

Unrecognized Tax Benefits that Would Impact Effective Tax Rate

1,800,000,000

Unrecognized tax benefit that could be reduced in next 12 months

$ 300,000,000

Segment Information and Major Customers (Summary Of Reportable Segments) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Segment Reporting Information [Line Items]

Revenue

$ 11,936

$ 11,155

$ 24,181

$ 23,240

Gross margin

7,090

5,951

14,423

13,358

Unallocated corporate items

Segment Reporting Information [Line Items]

Gross margin

(278)

(889)

(695)

(1,099)

Americas

Segment Reporting Information [Line Items]

Revenue

7,101

6,460

14,602

13,776

Gross margin

4,406

3,977

9,216

8,627

EMEA

Segment Reporting Information [Line Items]

Revenue

3,091

2,896

6,093

5,829

Gross margin

1,910

1,870

3,825

3,758

APJC

Segment Reporting Information [Line Items]

Revenue

1,744

1,799

3,486

3,635

Gross margin

1,052

993

2,077

2,072

Segment total

Segment Reporting Information [Line Items]

Gross margin

$ 7,368

$ 6,840

$ 15,118

$ 14,457

Segment Information and Major Customers (Summary Of Net Revenue For Groups Of Similar Products And Services) (Details) (USD $)

In Millions, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

$ 11,936

$ 11,155

$ 24,181

$ 23,240

Switching

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

3,616

3,258

7,462

6,998

NGN Routing

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

1,764

1,730

3,713

3,756

Collaboration

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

990

899

1,939

1,950

Service Provider Video

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

776

957

1,647

1,944

Data Center

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

846

605

1,539

1,206

Wireless

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

611

517

1,216

1,064

Security

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

416

393

871

758

Other

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

59

64

126

144

Product:

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

9,078

8,423

18,513

17,820

Service

Segment Reporting, Revenue Reconciling Item [Line Items]

Revenue

$ 2,858

$ 2,732

$ 5,668

$ 5,420

Segment Information and Major Customers (Property and Equipment Information for Geographic Areas) (Details) (USD $)

In Millions, unless otherwise specified

Jan. 24, 2015

Jul. 26, 2014

Segment Reporting, Asset Reconciling Item [Line Items]

Property and equipment, net

$ 3,212

$ 3,252

United States

Segment Reporting, Asset Reconciling Item [Line Items]

Property and equipment, net

2,668

2,697

International

Segment Reporting, Asset Reconciling Item [Line Items]

Property and equipment, net

$ 544

$ 555

Segment Information and Major Customers (Additional Information) (Details) (USD $)

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Jul. 26, 2014

Segment Reporting Information [Line Items]

Number of geographic segments

3

Revenue

$ 11,936,000,000

$ 11,155,000,000

$ 24,181,000,000

$ 23,240,000,000

United States

Segment Reporting Information [Line Items]

Revenue

6,100,000,000

5,600,000,000

12,700,000,000

12,000,000,000

Cash and cash equivalents and investments

3,200,000,000

4,700,000,000

International

Segment Reporting Information [Line Items]

Cash and cash equivalents and investments

$ 49,800,000,000

$ 47,400,000,000

Net Income per Share (Calculation Of Basic And Diluted Net Income Per Share) (Details) (USD $)

In Millions, except Per Share data, unless otherwise specified

3 Months Ended

6 Months Ended

Jan. 24, 2015

Jan. 25, 2014

Jan. 24, 2015

Jan. 25, 2014

Earnings Per Share [Abstract]

Net income

$ 2,397

$ 1,429

$ 4,225

$ 3,425

Weighted-average shares—basic (in shares)

5,117

5,294

5,115

5,336

Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements (in shares)

43

33

44

47

Weighted-average shares—diluted (in shares)

5,160

5,327

5,159

5,383

Net income per share—basic

$ 0.47

$ 0.27

$ 0.83

$ 0.64

Net income per share—diluted

$ 0.46

$ 0.27

$ 0.82

$ 0.64

Antidilutive employee share-based awards, excluded (in shares)

83

278

156

252