CISCO SYSTEMS, INC., 10-Q filed on 11/19/2015
Quarterly Report
Document and Entity Information
3 Months Ended
Oct. 24, 2015
Nov. 13, 2015
Document Documentand Entity Information [Abstract]
 
 
Document Type
10-Q 
 
Amendment Flag
false 
 
Document Period End Date
Oct. 24, 2015 
 
Document Fiscal Period Focus
Q1 
 
Document Fiscal Year Focus
2016 
 
Trading Symbol
CSCO 
 
Entity Registrant Name
CISCO SYSTEMS, INC. 
 
Entity Central Index Key
0000858877 
 
Entity Current Reporting Status
Yes 
 
Current Fiscal Year End Date
--07-30 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
5,076,079,317 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Current assets:
 
 
Cash and cash equivalents
$ 5,758 
$ 6,877 
Investments
53,349 
53,539 
Accounts receivable, net of allowance for doubtful accounts of $300 at October 24, 2015 and $302 at July 25, 2015
4,712 
5,344 
Inventories
1,482 
1,627 
Financing receivables, net
4,506 
4,491 
Deferred tax assets
2,706 
2,915 
Other current assets
1,433 
1,490 
Total current assets
73,946 
76,283 
Property and equipment, net
3,346 
3,332 
Financing receivables, net
4,037 
3,858 
Goodwill
24,882 
24,469 
Purchased intangible assets, net
2,292 
2,376 
Other assets
3,270 
3,163 
TOTAL ASSETS
111,773 
113,481 
Current liabilities:
 
 
Short-term debt
3,027 
3,897 
Accounts payable
1,119 
1,104 
Income taxes payable
122 
62 
Accrued compensation
2,611 
3,049 
Deferred revenue
9,821 
9,824 
Other current liabilities
5,400 
5,687 
Total current liabilities
22,100 
23,623 
Long-term debt
21,594 
21,457 
Income taxes payable
1,490 
1,876 
Deferred revenue
5,341 
5,359 
Other long-term liabilities
1,263 
1,459 
Total liabilities
51,788 
53,774 
Commitments and contingencies (Note 12)
   
   
Cisco shareholders’ equity:
 
 
Preferred stock, no par value: 5 shares authorized; none issued and outstanding
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 5,082 and 5,085 shares issued and outstanding at October 24, 2015 and July 25, 2015, respectively
43,643 
43,592 
Retained earnings
16,586 
16,045 
Accumulated other comprehensive income (loss)
(252)
61 
Total Cisco shareholders’ equity
59,977 
59,698 
Noncontrolling interests
Total equity
59,985 
59,707 
TOTAL LIABILITIES AND EQUITY
$ 111,773 
$ 113,481 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Statement of Financial Position [Abstract]
 
 
Accounts receivable, allowance for doubtful accounts
$ 300 
$ 302 
Preferred stock, par value (in dollars per share)
$ 0 
$ 0 
Preferred stock, shares authorized (in shares)
Preferred stock, issued (in shares)
Preferred stock, outstanding (in shares)
Common stock, par value (in dollars per share)
$ 0.001 
$ 0.001 
Common stock, shares authorized (in shares)
20,000 
20,000 
Common stock, shares issued (in shares)
5,082 
5,085 
Common stock, shares outstanding (in shares)
5,082 
5,085 
Consolidated Statements Of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
REVENUE:
 
 
Product
$ 9,844 
$ 9,435 
Service
2,838 
2,810 
Total revenue
12,682 
12,245 
COST OF SALES:
 
 
Product
3,853 
3,919 
Service
997 
993 
Total cost of sales
4,850 
4,912 
GROSS MARGIN
7,832 
7,333 
OPERATING EXPENSES:
 
 
Research and development
1,560 
1,583 
Sales and marketing
2,443 
2,515 
General and administrative
539 
504 
Amortization of purchased intangible assets
69 
71 
Restructuring and other charges
142 
318 
Total operating expenses
4,753 
4,991 
OPERATING INCOME
3,079 
2,342 
Interest income
225 
179 
Interest expense
(159)
(139)
Other income (loss), net
(8)
(22)
Interest and other income (loss), net
58 
18 
INCOME BEFORE PROVISION FOR INCOME TAXES
3,137 
2,360 
Provision for income taxes
707 
532 
NET INCOME
$ 2,430 
$ 1,828 
Net income per share:
 
 
Basic (in dollars per share)
$ 0.48 
$ 0.36 
Diluted (in dollars per share)
$ 0.48 
$ 0.35 
Shares used in per-share calculation:
 
 
Basic (in shares)
5,080 
5,112 
Diluted (in shares)
5,113 
5,156 
Cash dividends declared per common share (in dollars per share)
$ 0.21 
$ 0.19 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Statement of Comprehensive Income [Abstract]
 
 
Net income
$ 2,430 
$ 1,828 
Change in net unrealized gains, net of tax benefit (expense) of $56 and $14 for the three months ended October 24, 2015 and October 25, 2014, respectively
(100)
(22)
Net gains reclassified into earnings, net of tax expense of $0 and $2 for the three months ended October 24, 2015 and October 25, 2014, respectively
(5)
Total- Available-for-sale investments
(99)
(27)
Change in unrealized gains and losses, net of tax benefit (expense) of $2 and $3 for the three months ended October 24, 2015 and October 25, 2014, respectively
(2)
(53)
Net (gains) losses reclassified into earnings
Total- Cash flow hedging instruments
(49)
Net change in cumulative translation adjustment and actuarial gains and losses net of tax benefit (expense) of $(39) and $11 for the three months ended October 24, 2015 and October 25, 2014, respectively
(216)
(150)
Other comprehensive income (loss)
(314)
(226)
Comprehensive income
2,116 
1,602 
Comprehensive (income) loss attributable to noncontrolling interests
Comprehensive income attributable to Cisco Systems, Inc.
$ 2,117 
$ 1,602 
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Statement of Comprehensive Income [Abstract]
 
 
Other Comprehensive Income (Loss), Available-for-sale Securities, before Reclassification Adjustments, Tax
$ 56 
$ 14 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax
Other Comprehensive Income Loss Foreign Currency Translation Adjustment and actuarial gains and losses,Tax
$ (39)
$ 11 
Consolidated Statements Of Cash Flows (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Cash flows from operating activities:
 
 
Net income
$ 2,430 
$ 1,828 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation, amortization, and other
507 
599 
Share-based compensation expense
376 
369 
Provision for receivables
43 
Deferred income taxes
193 
236 
Excess tax benefits from share-based compensation
(73)
(71)
(Gains) losses on investments and other, net
(4)
29 
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
 
 
Accounts receivable
631 
723 
Inventories
130 
(107)
Financing receivables
(206)
(2)
Other assets
129 
Accounts payable
(5)
Income taxes, net
(315)
(398)
Accrued compensation
(434)
(495)
Deferred revenue
(19)
(328)
Other liabilities
(590)
68 
Net cash provided by operating activities
2,766 
2,491 
Cash flows from investing activities:
 
 
Purchases of investments
(10,823)
(9,761)
Proceeds from sales of investments
6,675 
3,450 
Proceeds from maturities of investments
4,133 
3,906 
Acquisition of businesses, net of cash and cash equivalents acquired
(614)
(184)
Purchases of investments in privately held companies
(78)
(50)
Return of investments in privately held companies
24 
42 
Acquisition of property and equipment
(262)
(285)
Proceeds from sales of property and equipment
Other
(11)
Net cash used in investing activities
(950)
(2,877)
Cash flows from financing activities:
 
 
Issuances of common stock
385 
353 
Repurchases of common stock—repurchase program
(1,210)
(1,088)
Shares repurchased for tax withholdings on vesting of restricted stock units
(382)
(342)
Short-term borrowings, original maturities less than 90 days, net
(4)
(4)
Repayments of debt
(852)
(3)
Excess tax benefits from share-based compensation
73 
71 
Dividends paid
(1,068)
(973)
Other
123 
33 
Net cash used in financing activities
(2,935)
(1,953)
Net decrease in cash and cash equivalents
(1,119)
(2,339)
Cash and cash equivalents, beginning of period
6,877 
6,726 
Cash and cash equivalents, end of period
5,758 
4,387 
Supplemental cash flow information:
 
 
Cash paid for interest
264 
263 
Cash paid for income taxes, net
$ 828 
$ 694 
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 (Loss)
USD ($)
Total Cisco Shareholders’ Equity
USD ($)
Non-controlling Interests
USD ($)
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
1,828 
 
 
1,828 
 
1,828 
 
Other comprehensive (loss) income
(226)
 
 
 
(226)
(226)
Issuance of common stock (in shares)
 
57 
 
 
 
 
 
Issuance of common stock
353 
 
353 
 
 
353 
 
Repurchase of common stock (in shares)
 
(41)
 
 
 
 
 
Repurchase of common stock
(1,013)
 
(338)
(675)
 
(1,013)
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
(14)
(14)
 
 
 
 
 
Shares repurchased for tax withholdings on vesting of restricted stock units
(342)
 
(342)
 
 
(342)
 
Cash dividends declared (per common share)
(973)
 
 
(973)
 
(973)
 
Tax effects from employee stock incentive plans
55 
 
55 
 
 
55 
 
Share-based compensation expense
369 
 
369 
 
 
369 
 
Purchase acquisitions and other
 
 
 
 
Ending Balance at Oct. 25, 2014
56,715 
 
41,984 
14,273 
451 
56,708 
Ending Balance (in shares) at Oct. 25, 2014
 
5,109 
 
 
 
 
 
Beginning balance at Jul. 25, 2015
59,707 
 
43,592 
16,045 
61 
59,698 
Beginning balance (in shares) at Jul. 25, 2015
 
5,085 
 
 
 
 
 
Net income
2,430 
 
 
2,430 
 
2,430 
 
Other comprehensive (loss) income
(314)
 
 
 
(313)
(313)
(1)
Issuance of common stock (in shares)
 
57 
 
 
 
 
 
Issuance of common stock
385 
 
385 
 
 
385 
 
Repurchase of common stock (in shares)
(45)1
(45)
 
 
 
 
 
Repurchase of common stock
(1,207)
 
(386)
(821)
 
(1,207)
 
Shares repurchased for tax withholdings on vesting of restricted stock units (in shares)
(15)
(15)
 
 
 
 
 
Shares repurchased for tax withholdings on vesting of restricted stock units
(382)
 
(382)
 
 
(382)
 
Cash dividends declared (per common share)
(1,068)
 
 
(1,068)
 
(1,068)
 
Tax effects from employee stock incentive plans
39 
 
39 
 
 
39 
 
Share-based compensation expense
376 
 
376 
 
 
376 
 
Purchase acquisitions and other
19 
 
19 
 
 
19 
 
Ending Balance at Oct. 24, 2015
$ 59,985 
 
$ 43,643 
$ 16,586 
$ (252)
$ 59,977 
$ 8 
Ending Balance (in shares) at Oct. 24, 2015
 
5,082 
 
 
 
 
 
Consolidated Statements Of Equity (Parenthetical)
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Statement of Stockholders' Equity [Abstract]
 
 
Cash dividends declared (In dollars per share)
$ 0.21 
$ 0.19 
Supplemental Information
Supplemental Information
Supplemental Information
In September 2001, the Company’s Board of Directors authorized a stock repurchase program. As of October 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
4,488

 
$
23,001

 
$
70,885

 
$
93,886

Basis of Presentation
Basis of Presentation
1.
Basis of Presentation
The fiscal year for Cisco Systems, Inc. (the “Company” or “Cisco”) is the 52 or 53 weeks ending on the last Saturday in July. Fiscal 2016 is a 53-week fiscal year and fiscal 2015 was a 52-week fiscal year. 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 October 24, 2015 and for the three months ended October 24, 2015 and October 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 25, 2015 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 25, 2015.
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 normal recurring adjustments necessary to present fairly the consolidated balance sheet as of October 24, 2015; the results of operations, statements of comprehensive income, cash flows and equity for the three months ended October 24, 2015 and October 25, 2014, as applicable, have been made. The results of operations for the three months ended October 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
Summary of Significant Accounting Policies
2.
Recent Accounting Pronouncements
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, as amended, will be effective for the Company beginning in the first quarter of fiscal 2019. 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 permitted, but no earlier than fiscal 2018. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
In February 2015, the FASB issued an accounting standard update that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
Acquisitions and Divestitures
Business Combinations
3.
Acquisitions and Divestitures
The Company completed three acquisitions during the three months ended October 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
MaintenanceNet
$
105

 
$
(21
)
 
$
65

 
$
61

OpenDNS
545

 
(9
)
 
61

 
493

Other
6

 
(1
)
 
4

 
3

Total
$
656

 
$
(31
)
 
$
130

 
$
557


On August 6, 2015, the Company completed its acquisition of privately held MaintenanceNet, Inc. ("MaintenanceNet"), a provider of a cloud-based software platform that uses data analytics and automation to manage renewals of recurring customer contracts. This acquisition is a component of the Company's strategy for its Services organization to simplify and digitize its business processes.
On August 26, 2015, the Company completed its acquisition of privately held OpenDNS, Inc. ("OpenDNS"), a provider of advanced threat protection for endpoint devices. With the OpenDNS acquisition, the Company aims to strengthen its security offerings by adding broad visibility and threat intelligence delivered through a software-as-a-service platform. Revenue from the OpenDNS acquisition has been included in the Company's Security product category.
The total purchase consideration related to the Company’s acquisitions completed during the three months ended October 24, 2015 consisted of cash consideration and the assumption of vested share-based awards. The total cash and cash equivalents acquired from these business combinations was approximately $9 million. Total transaction costs related to the Company’s acquisition activities were $5 million and $2 million for the three months ended October 24, 2015 and October 25, 2014, respectively. These transaction costs were expensed as incurred in general and administrative expenses ("G&A") in the Consolidated Statements of Operations.
The Company’s purchase price allocation for acquisitions completed during recent periods is preliminary and subject to revision as additional information about fair value of assets and liabilities becomes available. Additional information that existed as of the acquisition date but at that time was unknown to 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 acquisitions completed during the three months ended October 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 acquisition from the date of acquisition. Pro forma results of operations for the acquisitions completed during the three months ended October 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.
Pending Divestiture On July 22, 2015, the Company entered into an exclusive agreement to sell the client premises equipment portion of its Service Provider Video connected devices business to French-based Technicolor for approximately $600 million in cash and stock subject to certain adjustments provided for in the agreement.  In connection with this transaction, the Company had tangible assets of approximately $100 million which were held for sale (of which the most significant component is inventories of approximately $80 million), and current liabilities of approximately $120 million (primarily comprised of supply chain-related liabilities, warranties, rebates and other accrued liabilities), which were held for sale as of October 24, 2015. The Company estimates that approximately $150 million of goodwill is attributable to this business, based on its relative fair value. The Company is working to close the transaction during the second quarter of fiscal 2016, subject to customary closing conditions including the receipt of certain regulatory approvals.
Goodwill and Purchased Intangible Assets
Goodwill and Purchased Intangible Assets
4.
Goodwill and Purchased Intangible Assets
(a)
Goodwill
The following table presents the goodwill allocated to the Company’s reportable segments as of and during the three months ended October 24, 2015 (in millions):
 
Balance at
 
 
 
 
 
Balance at
 
July 25, 2015
 
Acquisitions
 
Other
 
October 24, 2015
Americas
$
15,212

 
$
361

 
$
(90
)
 
$
15,483

EMEA
5,791

 
141

 
(34
)
 
5,898

APJC
3,466

 
55

 
(20
)
 
3,501

Total
$
24,469

 
$
557

 
$
(144
)
 
$
24,882

“Other” in the table above primarily consists of foreign currency translation, as well as immaterial purchase accounting adjustments.
(b)
Purchased Intangible Assets
The following table presents details of the Company’s intangible assets acquired through acquisitions completed during the three months ended October 24, 2015 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Amount
 
Amount
MaintenanceNet
5.0
 
$
50

 
5.0
 
$
2

 
2.0
 
$
2

 
$
11

 
$
65

OpenDNS
5.0
 
43

 
7.0
 
15

 
1.0
 
2

 
1

 
$
61

Other
5.0
 
4

 
0.0
 

 
0.0
 

 

 
$
4

Total
 
 
$
97

 
 
 
$
17

 
 
 
$
4

 
$
12

 
$
130


The following tables present details of the Company’s purchased intangible assets (in millions): 
October 24, 2015
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,454

 
$
(1,902
)
 
$
1,552

Customer relationships
 
1,716

 
(1,036
)
 
680

Other
 
58

 
(27
)
 
31

Total purchased intangible assets with finite lives
 
5,228

 
(2,965
)
 
2,263

In-process research and development, with indefinite lives
 
29

 

 
29

Total
 
$
5,257

 
$
(2,965
)
 
$
2,292

 
July 25, 2015
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,418

 
$
(1,818
)
 
$
1,600

Customer relationships
 
1,699

 
(971
)
 
728

Other
 
55

 
(24
)
 
31

Total purchased intangible assets with finite lives
 
5,172

 
(2,813
)
 
2,359

In-process research and development, with indefinite lives
 
17

 

 
17

Total
 
$
5,189

 
$
(2,813
)
 
$
2,376


Purchased intangible assets include intangible assets acquired through acquisitions as well as through direct purchases or licenses. In fiscal 2015, the Company, along with a number of other companies, entered into an agreement to obtain a license to the patents owned by the Rockstar Consortium, and the Company paid approximately $300 million, of which $188 million was expensed to product cost of sales in the first quarter of fiscal 2015 related to the settlement of patent infringement claims, and the remainder was capitalized as an intangible asset to be amortized over its estimated useful life.
The following table presents the amortization of purchased intangible assets (in millions):
 
Three Months Ended
 
October 24,
2015
 
October 25,
2014
Amortization of purchased intangible assets:
 
 
 
Cost of sales
$
146

 
$
189

Operating expenses
69

 
71

Total
$
215

 
$
260


There were no impairment charges related to purchased intangible assets during the periods presented.
The estimated future amortization expense of purchased intangible assets with finite lives as of October 24, 2015 is as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
574

2017
619

2018
476

2019
379

2020
162

Thereafter
53

Total
$
2,263

Restructuring and Other Charges
Restructuring and Other Charges
5.
Restructuring and Other Charges
Fiscal 2015 Plan The Company announced a restructuring action in August 2014 (the "Fiscal 2015 Plan"), in order to realign its workforce towards key growth areas of its business such as data center, software, security, and cloud. The Company's aggregate pre-tax estimated charges pursuant to the restructuring are expected to be approximately $700 million, consisting of severance and other one-time termination benefits and other associated costs, and the Company has incurred cumulative charges of approximately $630 million in connection with this plan through October 24, 2015. The Company incurred charges of $141 million, net of a $1 million credit to cost of sales, and $318 million for the three months ended October 24, 2015 and October 25, 2014, respectively. These charges are primarily cash-based, and the Company expects the Fiscal 2015 Plan to be substantially completed during the first half of fiscal 2016.
Fiscal 2014 Plan In connection with a restructuring action announced in August 2013 (the "Fiscal 2014 Plan"), the Company incurred cumulative charges of approximately $418 million. 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 PLAN
 
FISCAL 2015 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 25, 2015
 
$
11

 
$
14

 
$
49

 
$
15

 
$
89

Charges
 

 

 
125

 
17

 
142

Cash payments
 
(4
)
 
(1
)
 
(119
)
 
(5
)
 
(129
)
Non-cash items
 

 

 

 
(16
)
 
(16
)
Liability as of October 24, 2015
 
$
7

 
$
13

 
$
55

 
$
11

 
$
86

Balance Sheet Details
Balance Sheet Details
6.
Balance Sheet Details
The following tables provide details of selected balance sheet items (in millions):
 
 
October 24,
2015
 
July 25,
2015
Inventories:
 
 
 
 
Raw materials
 
$
107

 
$
114

Work in process
 
1

 
2

Finished goods:
 
 
 

Distributor inventory and deferred cost of sales
 
631

 
610

Manufactured finished goods
 
464

 
593

Total finished goods
 
1,095

 
1,203

Service-related spares
 
240

 
258

Demonstration systems
 
39

 
50

Total
 
$
1,482

 
$
1,627


Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,561

 
$
4,495

Computer equipment and related software
 
1,276

 
1,310

Production, engineering, and other equipment
 
5,742

 
5,753

Operating lease assets
 
372

 
372

Furniture and fixtures
 
502

 
497

Total gross property and equipment
 
12,453

 
12,427

Less: accumulated depreciation and amortization
 
(9,107
)
 
(9,095
)
Total
 
$
3,346

 
$
3,332


 Other assets:
 
 
 
 
Deferred tax assets
 
$
1,583

 
$
1,648

Investments in privately held companies
 
928

 
897

Other
 
759

 
618

Total
 
$
3,270

 
$
3,163

Deferred revenue:
 
 
 
 
Service
 
$
9,689

 
$
9,757

Product:
 

 
 
Unrecognized revenue on product shipments and other deferred revenue
 
4,888

 
4,766

Cash receipts related to unrecognized revenue from two-tier distributors
 
585

 
660

Total product deferred revenue
 
5,473

 
5,426

Total
 
$
15,162

 
$
15,183

Reported as:
 

 
 
Current
 
$
9,821

 
$
9,824

Noncurrent
 
5,341

 
5,359

Total
 
$
15,162

 
$
15,183

Financing Receivables and Operating Leases
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):
October 24, 2015
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,317

 
$
1,963

 
$
3,598

 
$
8,878

Residual value
225

 

 

 
225

Unearned income
(182
)
 

 

 
(182
)
Allowance for credit loss
(255
)
 
(90
)
 
(33
)
 
(378
)
Total, net
$
3,105

 
$
1,873

 
$
3,565

 
$
8,543

Reported as:
 
 
 
 
 
 
 
Current
$
1,447

 
$
931

 
$
2,128

 
$
4,506

Noncurrent
1,658

 
942

 
1,437

 
4,037

Total, net
$
3,105

 
$
1,873

 
$
3,565

 
$
8,543

July 25, 2015
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,361

 
$
1,763

 
$
3,573

 
$
8,697

Residual value
224

 

 

 
224

Unearned income
(190
)
 

 

 
(190
)
Allowance for credit loss
(259
)
 
(87
)
 
(36
)
 
(382
)
Total, net
$
3,136

 
$
1,676

 
$
3,537

 
$
8,349

Reported as:
 
 
 
 
 
 
 
Current
$
1,468

 
$
856

 
$
2,167

 
$
4,491

Noncurrent
1,668

 
820

 
1,370

 
3,858

Total, net
$
3,136

 
$
1,676

 
$
3,537

 
$
8,349


As of October 24, 2015 and July 25, 2015, the deferred service revenue related to "Financed Service Contracts and Other" was $1,911 million and $1,853 million, respectively.
Future minimum lease payments at October 24, 2015 are summarized as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
1,307

2017
1,079

2018
606

2019
254

2020
70

Thereafter
1

Total
$
3,317


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 October 24, 2015 and July 25, 2015 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
October 24, 2015
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,670

 
$
1,336

 
$
129

 
$
3,135

Loan receivables
1,039

 
783

 
141

 
1,963

Financed service contracts and other
2,111

 
1,437

 
50

 
3,598

Total
$
4,820

 
$
3,556

 
$
320

 
$
8,696

 
INTERNAL CREDIT RISK RATING
July 25, 2015
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,688

 
$
1,342

 
$
141

 
$
3,171

Loan receivables
788

 
823

 
152

 
1,763

Financed service contracts and other
2,133

 
1,389

 
51

 
3,573

Total
$
4,609

 
$
3,554

 
$
344

 
$
8,507


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 October 24, 2015 and July 25, 2015 were $2,308 million and $2,253 million, respectively, and they were associated with total financing receivables before allowance for credit loss of $8,921 million and $8,731 million as of their respective period ends.
The following tables present the aging analysis of gross receivables less unearned income as of October 24, 2015 and July 25, 2015 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
October 24, 2015
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
100

 
$
51

 
$
176

 
$
327

 
$
2,808

 
$
3,135

 
$
83

 
$
72

Loan receivables
22

 
85

 
69

 
176

 
1,787

 
1,963

 
17

 
17

Financed service contracts and other
152

 
50

 
249

 
451

 
3,147

 
3,598

 
26

 
6

Total
$
274

 
$
186

 
$
494

 
$
954

 
$
7,742

 
$
8,696

 
$
126

 
$
95

 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 25, 2015
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
90

 
$
27

 
$
185

 
$
302

 
$
2,869

 
$
3,171

 
$
73

 
$
73

Loan receivables
21

 
3

 
25

 
49

 
1,714

 
1,763

 
32

 
32

Financed service contracts and other
396

 
152

 
414

 
962

 
2,611

 
3,573

 
29

 
9

Total
$
507

 
$
182

 
$
624

 
$
1,313

 
$
7,194

 
$
8,507

 
$
134

 
$
114


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 $333 million and $496 million as of October 24, 2015 and July 25, 2015, respectively.
As of October 24, 2015, the Company had financing receivables of $119 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 as they are well-secured and in the process of collection. Such balance was $70 million as of July 25, 2015.
(c)
Allowance for Credit Loss Rollforward
The allowances for credit loss and the related financing receivables are summarized as follows (in millions):
 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 25, 2015
$
259

 
$
87

 
$
36

 
$
382

Provisions

 
4

 

 
4

Recoveries (write-offs), net
(4
)
 

 
(3
)
 
(7
)
Foreign exchange and other

 
(1
)
 

 
(1
)
Allowance for credit loss as of October 24, 2015
$
255

 
$
90

 
$
33

 
$
378

Financing receivables as of October 24, 2015 (1)
$
3,360

 
$
1,963

 
$
3,598

 
$
8,921

 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 26, 2014
$
233

 
$
98

 
$
18

 
$
349

Provisions
22

 
(13
)
 
19

 
28

Recoveries (write-offs), net
(4
)
 
1

 

 
(3
)
Foreign exchange and other
(3
)
 
(2
)
 
(1
)
 
(6
)
Allowance for credit loss as of October 25, 2014
$
248

 
$
84

 
$
36

 
$
368

Financing receivables as of October 25, 2014 (1)
$
3,509

 
$
1,744

 
$
3,071

 
$
8,324

(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 October 24, 2015 and July 25, 2015, 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):
 
October 24, 2015
 
July 25, 2015
Operating lease assets
$
372

 
$
372

Accumulated depreciation
(207
)
 
(205
)
Operating lease assets, net
$
165

 
$
167


Minimum future rentals on noncancelable operating leases at October 24, 2015 were approximately $0.1 billion for the remaining nine months of fiscal 2016, $0.1 billion for fiscal 2017, and less than $0.1 billion per year for each of fiscal 2018 through fiscal 2020.
Investments
Investments
8.
Investments
(a)
Summary of Available-for-Sale Investments
The following tables summarize the Company’s available-for-sale investments (in millions):
October 24, 2015
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
27,409

 
$
63

 
$
(1
)
 
$
27,471

U.S. government agency securities
3,606

 
11

 

 
3,617

Non-U.S. government and agency securities
1,133

 
3

 

 
1,136

Corporate debt securities
18,314

 
70

 
(78
)
 
18,306

U.S. agency mortgage-backed securities
1,454

 
15

 

 
1,469

Total fixed income securities
51,916

 
162

 
(79
)
 
51,999

Publicly traded equity securities
1,094

 
268

 
(12
)
 
1,350

Total
$
53,010

 
$
430

 
$
(91
)
 
$
53,349


July 25, 2015
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
29,904

 
$
41

 
$
(6
)
 
$
29,939

U.S. government agency securities
3,662

 
2

 
(1
)
 
3,663

Non-U.S. government and agency securities
1,128

 
1

 
(1
)
 
1,128

Corporate debt securities
15,802

 
34

 
(53
)
 
15,783

U.S. agency mortgage-backed securities
1,456

 
8

 
(3
)
 
1,461

Total fixed income securities
51,952

 
86

 
(64
)
 
51,974

Publicly traded equity securities
1,092

 
480

 
(7
)
 
1,565

Total
$
53,044

 
$
566

 
$
(71
)
 
$
53,539

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
 
October 24, 2015
 
October 25, 2014
Gross realized gains
$
35

 
$
21

Gross realized losses
(36
)
 
(14
)
Total
$
(1
)
 
$
7

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
 
October 24, 2015
 
October 25, 2014
Net losses on investments in publicly traded equity securities
$
(9
)
 
$
(4
)
Net gains on investments in fixed income securities
8

 
11

Total
$
(1
)
 
$
7


There were no impairment charges on available-for-sale investments for the periods presented.
The following tables present the breakdown of the available-for-sale investments with gross unrealized losses and the duration that those losses had been unrealized at October 24, 2015 and July 25, 2015 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
October 24, 2015
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
2,566

 
$
(1
)
 
$

 
$

 
$
2,566

 
$
(1
)
U.S. government agency securities
80

 

 

 

 
80

 

Non-U.S. government and agency securities
57

 

 
10

 

 
67

 

Corporate debt securities
7,421

 
(66
)
 
1,048

 
(12
)
 
8,469

 
(78
)
U.S. agency mortgage-backed securities
77

 

 

 

 
77

 

Total fixed income securities
10,201

 
(67
)

1,058


(12
)

11,259


(79
)
Publicly traded equity securities
103

 
(11
)
 
2

 
(1
)
 
105

 
(12
)
Total
$
10,304

 
$
(78
)
 
$
1,060

 
$
(13
)
 
$
11,364

 
$
(91
)
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 25, 2015
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
6,412

 
$
(6
)
 
$

 
$

 
$
6,412

 
$
(6
)
U.S. government agency securities
1,433

 
(1
)
 

 

 
1,433

 
(1
)
Non-U.S. government and agency securities
515

 
(1
)
 
4

 

 
519

 
(1
)
Corporate debt securities
9,552

 
(49
)
 
312

 
(4
)
 
9,864

 
(53
)
U.S. agency mortgage-backed securities
579

 
(3
)
 

 

 
579

 
(3
)
Total fixed income securities
18,491

 
(60
)
 
316

 
(4
)
 
18,807

 
(64
)
Publicly traded equity securities
108

 
(7
)
 
2

 

 
110

 
(7
)
Total
$
18,599

 
$
(67
)
 
$
318

 
$
(4
)
 
$
18,917

 
$
(71
)

As of October 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 October 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 three months ended October 24, 2015.
The Company has evaluated its publicly traded equity securities as of October 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 October 24, 2015 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
17,274

 
$
17,276

Due in 1 to 2 years
15,914

 
15,950

Due in 2 to 5 years
17,105

 
17,138

Due after 5 years
1,623

 
1,635

Total
$
51,916

 
$
51,999



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 three months ended October 24, 2015 and October 25, 2014 was $0.5 billion and $1.0 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 October 24, 2015 and July 25, 2015, 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 October 24, 2015 and July 25, 2015, the amounts are summarized in the following table (in millions):
 
October 24, 2015
 
July 25, 2015
Equity method investments
$
619

 
$
578

Cost method investments
309

 
319

Total
$
928

 
$
897


For additional information on impairment charges related to investments in privately held companies, see Note 9.
Variable Interest Entities In the ordinary course of business, the Company has investments in privately held companies and provides financing to certain customers. These privately held companies and customers may be considered to be variable interest entities. The Company evaluates on an ongoing basis its investments in these privately held companies and its customer financings and has determined that as of October 24, 2015 there were no variable interest entities required to be consolidated in the Company’s Consolidated Financial Statements.
Fair Value
Fair Value
9.
Fair Value
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be either recorded or disclosed at fair value, the Company considers the principal or most advantageous market in which it would transact, and it also considers assumptions that market participants would use when pricing the asset or liability.
(a)
Fair Value Hierarchy
The accounting guidance for fair value measurement requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is as follows:
Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities.
Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.
(b)
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis as of October 24, 2015 and July 25, 2015 were as follows (in millions):
 
OCTOBER 24, 2015
FAIR VALUE MEASUREMENTS
 
JULY 25, 2015
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
$
4,317

 
$

 
$

 
$
4,317

 
$
5,336

 
$

 
$

 
$
5,336

Corporate debt securities

 
25

 

 
25

 

 
14

 

 
14

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. government securities

 
27,471

 

 
27,471

 

 
29,939

 

 
29,939

U.S. government agency securities

 
3,617

 

 
3,617

 

 
3,663

 

 
3,663

Non-U.S. government and agency securities

 
1,136

 

 
1,136

 

 
1,128

 

 
1,128

Corporate debt securities

 
18,306

 

 
18,306

 

 
15,783

 

 
15,783

U.S. agency mortgage-backed securities

 
1,469

 

 
1,469

 

 
1,461

 

 
1,461

Publicly traded equity securities
1,350

 

 

 
1,350

 
1,565

 

 

 
1,565

Derivative assets

 
340

 
3

 
343

 

 
214

 
4

 
218

Total
$
5,667

 
$
52,364

 
$
3

 
$
58,034

 
$
6,901

 
$
52,202

 
$
4

 
$
59,107

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
14

 
$

 
$
14

 
$

 
$
12

 
$

 
$
12

Total
$

 
$
14

 
$

 
$
14

 
$

 
$
12

 
$

 
$
12


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 following table presents the Company's assets that were measured at fair value on a nonrecurring basis during the indicated periods and the related recognized gains and losses for the periods indicated (in millions):
 
LOSSES FOR THE
THREE MONTHS ENDED
 
October 24, 2015
 
October 25, 2014
Investments in privately held companies (impaired)
$
(17
)
 
$
(1
)

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 remaining carrying value of the investments that were impaired was $6 million as of October 24, 2015.
(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 $309 million and $319 million as of October 24, 2015 and July 25, 2015, 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 October 24, 2015 and July 25, 2015 was $2.4 billion and $2.2 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 October 24, 2015, the estimated fair value of the short-term debt approximates its carrying value due to the short maturities. As of October 24, 2015, the fair value of the Company’s senior notes and other long-term debt was $26.0 billion with a carrying amount of $24.6 billion. This compares to a fair value of $26.6 billion and a carrying amount of $25.4 billion as of July 25, 2015. 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
Borrowings
10.
Borrowings
(a)
Short-Term Debt
The following table summarizes the Company’s short-term debt (in millions, except percentages):
 
October 24, 2015
 
July 25, 2015
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
3,025

 
3.09
%
 
$
3,894

 
2.48
%
Other short-term debt
2

 
2.08
%
 
3

 
2.44
%
Total
$
3,027

 
 
 
$
3,897

 


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 September 3, 2015, the Company repaid an aggregate principal amount of $850 million upon the maturity of its 2015 Floating-Rate Notes.
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 October 24, 2015 and July 25, 2015.
(b)
Long-Term Debt
The following table summarizes the Company’s long-term debt (in millions, except percentages):
 
 
 
October 24, 2015
 
July 25, 2015
 
Maturity Date
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior notes:
 
 
 
 
 
 
 
 
 
Floating-rate notes:
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus 0.05%
September 3, 2015
 
$

 
 
$
850

 
0.43%
Three-month LIBOR plus 0.28%
March 3, 2017
 
1,000

 
0.68%
 
1,000

 
0.63%
Three-month LIBOR plus 0.31%
June 15, 2018
 
900

 
0.71%
 
900

 
0.65%
Three-month LIBOR plus 0.50%
March 1, 2019
 
500

 
0.88%
 
500

 
0.84%
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
5.50%
February 22, 2016
 
3,000

 
3.09%
 
3,000

 
3.07%
1.10%
March 3, 2017
 
2,400

 
0.60%
 
2,400

 
0.59%
3.15%
March 14, 2017
 
750

 
0.90%
 
750

 
0.85%
1.65%
June 15, 2018
 
1,600

 
1.72%
 
1,600

 
1.72%
4.95%
February 15, 2019
 
2,000

 
4.70%
 
2,000

 
4.70%
2.125%
March 1, 2019
 
1,750

 
0.81%
 
1,750

 
0.80%
4.45%
January 15, 2020
 
2,500

 
3.02%
 
2,500

 
3.01%
2.45%
June 15, 2020
 
1,500

 
2.54%
 
1,500

 
2.54%
2.90%
March 4, 2021
 
500

 
0.97%
 
500

 
0.96%
3.00%
June 15, 2022
 
500

 
1.22%
 
500

 
1.21%
3.625%
March 4, 2024
 
1,000

 
1.09%
 
1,000

 
1.08%
3.50%
June 15, 2025
 
500

 
1.38%
 
500

 
1.37%
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
 
 

 

 
1

 
2.08%
Total
 
 
24,400

 
 
 
25,251

 
 
Unaccreted discount/issuance costs
 
 
(128
)
 
 
 
(131
)
 
 
Hedge accounting fair value adjustments
 
 
347

 
 
 
231

 
 
Total
 
 
$
24,619

 
 
 
$
25,351

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
$
3,025

 
 
 
$
3,894

 
 
Long-term debt
 
 
21,594

 
 
 
21,457

 
 
Total
 
 
$
24,619

 
 
 
$
25,351

 
 
To achieve its interest rate risk management objectives, the Company entered into interest rate swaps in prior periods with an aggregate notional amount of $11.4 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 issuance costs, 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 October 24, 2015, the Company was in compliance with all debt covenants.
As of October 24, 2015, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
3,000

2017
4,150

2018
2,500

2019
4,250

2020
4,000

Thereafter
6,500

Total
$
24,400


(c)
Credit Facility
On May 15, 2015, 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 May 15, 2020. Any advances under the credit agreement will accrue interest at rates that are equal to, based on certain conditions, either (i) the highest of (a) the Federal Funds rate plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR, or a comparable or successor rate that is approved by the Administrative Agent (“Eurocurrency Rate”), for an interest period of one-month plus 1.00%, or (ii) the Eurocurrency Rate, plus a margin that is based on the Company’s senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than zero. The credit agreement requires the Company to comply with certain covenants, including that it maintain an interest coverage ratio as defined in the agreement.
The Company may also, upon the agreement of either the then-existing lenders or additional lenders not currently parties to the agreement, increase the commitments under the credit facility by up to an additional $2.0 billion and/or extend the expiration date of the credit facility up to May 15, 2022. As of October 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.
Derivative Instruments
Derivative Instruments
11.
Derivative Instruments
(a)
Summary of Derivative Instruments
The Company uses derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. The Company’s primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company does, however, seek to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.
The fair values of the Company’s derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions):
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
 
Balance Sheet Line Item
 
October 24,
2015
 
July 25,
2015
 
Balance Sheet Line Item
 
October 24,
2015
 
July 25,
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
9

 
$
10

 
Other current liabilities
 
$
11

 
$
11

Interest rate derivatives
Other assets
 
330

 
202

 
Other long-term liabilities
 

 

Total
 
 
339

 
212

 
 
 
11

 
11

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

 
2

 
Other current liabilities
 
3

 
1

Equity derivatives
Other assets
 
3

 
4

 
Other long-term liabilities
 

 

Total
 
 
4

 
6

 
 
 
3

 
1

Total
 
 
$
343

 
$
218

 
 
 
$
14

 
$
12


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)
 
 
October 24,
2015
 
October 25,
2014
 
Line Item in
Statements of Operations
 
October 24,
2015
 
October 25,
2014
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(4
)
 
$
(56
)
 
Operating expenses
 
$
(2
)
 
$
(3
)
 
 
 
 
 
 
Cost of salesservice
 
(1
)
 
(1
)
Total
 
$
(4
)
 
$
(56
)
 
 
 
$
(3
)
 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$

 
$
20

 
Other income (loss), net
 
$

 
$


As of October 24, 2015, the Company estimates that approximately $7 million of net derivative losses related to its cash flow hedges included in accumulated other comprehensive income/loss (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
 
October 24,
2015
 
October 25,
2014
 
October 24,
2015
 
October 25,
2014
Equity derivatives
 
Other income (loss), net
 
$

 
$
6

 
$

 
$
(6
)
Interest rate derivatives
 
Interest expense
 
127

 
73

 
(125
)
 
(73
)
Total
 
 
 
$
127

 
$
79

 
$
(125
)
 
$
(79
)

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
Derivatives Not Designated as
Hedging Instruments
 
Line Item in Statements of Operations
 
October 24,
2015
 
October 25,
2014
Foreign currency derivatives
 
Other income (loss), net
 
$
4

 
$
(58
)
Total return swaps—deferred compensation
 
Operating expenses
 
(16
)
 
(13
)
Equity derivatives
 
Other income (loss), net
 
10

 
(4
)
Total
 
 
 
$
(2
)
 
$
(75
)

The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
October 24,
2015
 
July 25,
2015
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
1,083

 
$
1,201

Interest rate derivatives
11,400

 
11,400

Net investment hedging instruments
219

 
192

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
2,244

 
2,023

Total return swaps—deferred compensation
473

 
462

Total
$
15,419

 
$
15,278


(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):
 
October 24, 2015
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Gross Amounts Not Offset in the Consolidated Balance Sheets,
but with Legal Rights to Offset
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
343

 
$

 
$
343

 
$
(14
)
 
$
(225
)
 
$
104

Derivatives liabilities
$
14

 
$

 
$
14

 
$
(14
)
 
$

 
$

 
July 25, 2015
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Gross Amounts Not Offset in the Consolidated Balance Sheets,
but with Legal Rights to Offset
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
218

 
$

 
$
218

 
$
(12
)
 
$
(124
)
 
$
82

Derivatives liabilities
$
12

 
$

 
$
12

 
$
(12
)
 
$

 
$


(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 October 24, 2015 and July 25, 2015, the Company did not have any outstanding interest rate derivatives related to its fixed income securities.
Interest Rate Derivatives Designated as Fair Value Hedges, Long-Term Debt   In fiscal 2016, the Company did not enter into any interest rate swaps. In prior fiscal years, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in fiscal years 2016 through 2025. 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 October 24, 2015 or July 25, 2015.
Commitments and Contingencies
Commitments and Contingencies
12.
Commitments and Contingencies
(a)
Operating Leases
The Company leases office space in many U.S. locations. Outside the United States, larger leased sites include sites in Belgium, Canada, China, France, Germany, India, Israel, Japan, Poland, 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 October 24, 2015 are as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
266

2017
263

2018
189

2019
105

2020
83

Thereafter
189

Total
$
1,095


(b)
Purchase Commitments with Contract Manufacturers and Suppliers
The Company purchases components from a variety of suppliers and uses several contract manufacturers to provide manufacturing services for its products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, the Company enters into agreements with contract manufacturers and suppliers that either allow them to procure inventory based upon criteria as defined by the Company or establish the parameters defining the Company’s requirements. A significant portion of the Company’s reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. In certain instances, these agreements allow the Company the option to cancel, reschedule, and adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of October 24, 2015 and July 25, 2015, the Company had total purchase commitments for inventory of $4,028 million and $4,078 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 October 24, 2015 and July 25, 2015, the liability for these purchase commitments was $178 million and $156 million, respectively, and was included in other current liabilities.
(c)
Other Commitments
In connection with the Company’s acquisitions, 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
 
October 24,
2015
 
October 25,
2014
Compensation expense related to acquisitions
$
73

 
$
98


As of October 24, 2015, the Company estimated that future cash compensation expense of up to $253 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. ("Insieme"), as more fully discussed immediately below.
Insieme Networks, Inc. In the third quarter of fiscal 2012, the Company made an investment in Insieme, an early stage company focused on research and development in the data center market. As set forth in the agreement between the Company and Insieme, this investment 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 $53 million during the three months ended October 24, 2015 and October 25, 2014, respectively, related to the fair value of the vested portion of amounts that were earned or 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 $841 million (which includes the $674 million that has been expensed to date), net of forfeitures.
The former noncontrolling interest holders earned the maximum amount related to the first milestone payment and were paid approximately $291 million for a portion of this amount during the first quarter of fiscal 2016. The balance of the first milestone payment is expected to be paid primarily through the end of fiscal 2016. The second milestone payment, to the extent earned, is expected to be paid primarily during the first half of 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 $192 million and $205 million as of October 24, 2015 and July 25, 2015, respectively.
(d)
Product Warranties
The following table summarizes the activity related to the product warranty liability (in millions):
 
Three Months Ended
 
October 24,
2015
 
October 25,
2014
Balance at beginning of period
$
449

 
$
446

Provision for warranties issued
150

 
143

Payments
(166
)
 
(153
)
Balance at end of period
$
433

 
$
436


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 $6.9 billion and $6.3 billion for the three months ended October 24, 2015 and October 25, 2014, respectively. The balance of the channel partner financing subject to guarantees was $1.2 billion as of each October 24, 2015 and July 25, 2015.
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 $23 million and $26 million for the three months ended October 24, 2015 and October 25, 2014, respectively.
Financing Guarantee Summary   The aggregate amounts of financing guarantees outstanding at October 24, 2015 and July 25, 2015, 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):
 
October 24,
2015
 
July 25,
2015
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
250

 
$
288

End user
124

 
129

Total
$
374

 
$
417

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(96
)
 
$
(127
)
End user
(100
)
 
(107
)
Total
$
(196
)
 
$
(234
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
178

 
$
183


Other Guarantees The Company’s other guarantee arrangements as of October 24, 2015 and July 25, 2015 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 were 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 was beyond the Company's warranty terms, the Company has been 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 a charge to product cost of sales of $655 million being recorded for the second quarter of fiscal 2014. During the third quarter of fiscal 2015, an adjustment to product cost of sales of $164 million was recorded to reduce the liability, reflecting net lower than previously estimated future costs to remediate the impacted customer products. The supplier component remediation liability as of October 24, 2015 and July 25, 2015 was $391 million and $408 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 is providing such indemnifications, among other cases, in matters involving certain of the Company’s service provider customers that are subject to patent infringement claims asserted by Sprint Communications Company, L.P. (“Sprint”) now pending in Kansas and Delaware. Sprint alleges that the service provider customers infringe Sprint’s patents by offering Voice over Internet Protocol-based telephone services utilizing products provided by the Company and other manufacturers. Sprint seeks monetary damages. Sprint’s cases in Kansas include claims against Comcast and Time Warner Cable, and the case in Delaware for which the Company is providing indemnification involves Cox Communications. At the request of Sprint and Comcast, on August 5, 2015, the judge in Sprint’s Kansas action ordered a six-month stay of the patent litigation between those parties for them to pursue a resolution of their dispute. In addition, on May 15, 2015, the judge in Sprint's Delaware action against Cox ruled invalid six of the patents that Sprint asserted Cox had infringed and a final judgment was entered on August 27, 2015, of invalidity, which Sprint appealed on October 1, 2015. In May 2015 the Company filed two declaratory judgment actions against Sprint seeking declarations that the patents Sprint asserted against the Company’s customers are invalid and/or not infringed. Cox has filed a motion for summary judgment of non-infringement for the five remaining Sprint patents that are actively being litigated against Cox in Delaware, Comcast has also won a judgment of non-infringement, now being appealed by Sprint, in a separate case brought against it by Sprint in Delaware. In light of the invalidity rulings against Sprint in Delaware, on October 8, 2015, the judge in Sprint’s Kansas actions ordered an additional stay of Sprint’s Kansas actions including the case against Time Warner Cable, pending resolution of Sprint’s appeal of the Delaware Judge’s judgment of invalidity in the Cox case.
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 Sprint's 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 $222 million for the alleged evasion of import and other taxes, approximately $1.0 billion for interest, and approximately $1.0 billion for various penalties, all determined using an exchange rate as of October 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 that 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.
In addition, the Company is subject to legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. While the outcome of these matters is currently not determinable, the Company does not expect that the ultimate costs to resolve these matters will have a material adverse effect on its consolidated financial position, results of operations, or cash flows.
Shareholders' Equity
Shareholders' Equity
13.
Shareholders’ Equity
(a)
Cash Dividends on Shares of Common Stock
During the three months ended October 24, 2015, the Company declared and paid cash dividends of $0.21 per common share, or $1.1 billion, on the Company’s outstanding common stock. During the three months ended October 25, 2014, the Company declared and paid cash dividends of $0.19 per common share, or $973 million, on the Company’s outstanding common stock.
On November 18, 2015, the Company's Board of Directors declared a quarterly dividend of $0.21 per common share to be paid on January 20, 2016 to all shareholders of record as of the close of business on January 6, 2016. 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 October 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 $3.1 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 25, 2015
4,443

 
$
20.86

 
$
92,679

Repurchase of common stock under the stock repurchase program (1)
45

 
26.83

 
1,207

Cumulative balance at October 24, 2015
4,488

 
$
20.92

 
$
93,886


(1) Includes stock repurchases of $33 million, which were pending settlement as of October 24, 2015. There were $36 million of stock repurchases that were pending settlement as of July 25, 2015.
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 three months ended October 24, 2015 and October 25, 2014, the Company repurchased approximately 15 million and 14 million shares, or $382 million and $342 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
Employee Benefit Plans
14.
Employee Benefit Plans
(a)
Employee Stock Incentive Plans
Stock Incentive Plan Program Description    As of October 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 October 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 annually over the vesting period. The majority of the performance-based and market-based RSUs vests at the end of the three-year requisite service period or earlier if the award recipient meets certain retirement eligibility conditions. Certain performance-based RSUs, that are based on the achievement of financial and/or non-financial operating goals, typically vest upon the achievement of milestones (and may require subsequent service periods), with overall vesting of the shares underlying the award ranging from six months to three years. The Compensation and Management Development Committee of 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 million shares of the Company’s common stock have been reserved for issuance as of October 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, 2020No shares were issued under the Purchase Plan during each of the three months ended October 24, 2015 and October 25, 2014. As of October 24, 2015, 148 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
 
October 24,
2015
 
October 25,
2014
Cost of sales—product
$
13

 
$
11

Cost of sales—service
38

 
37

Share-based compensation expense in cost of sales
51

 
48

Research and development
114

 
119

Sales and marketing
139

 
147

General and administrative
57

 
59

Restructuring and other charges
15

 
(4
)
Share-based compensation expense in operating expenses
325

 
321

Total share-based compensation expense
$
376

 
$
369

Income tax benefit for share-based compensation
$
95

 
$
94


As of October 24, 2015, the total compensation cost related to unvested share-based awards not yet recognized was $2.3 billion, which is expected to be recognized over approximately 2.6 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 26, 2014
310

Restricted stock, stock units, and other share-based awards granted
(101
)
Share-based awards canceled/forfeited/expired
40

Shares withheld for taxes and not issued
27

BALANCE AT JULY 25, 2015
276

Restricted stock, stock units, and other share-based awards granted
(23
)
Share-based awards canceled/forfeited/expired
8

Shares withheld for taxes and not issued
22

Other
1

BALANCE AT OCTOBER 24, 2015
284


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
 
Aggregate Fair  Value
UNVESTED BALANCE AT JULY 26, 2014
149

 
$
19.54

 
 
Granted and assumed
67

 
25.29

 
 
Vested
(57
)
 
19.82

 
$
1,517

Canceled/forfeited
(16
)
 
20.17

 
 
UNVESTED BALANCE AT JULY 25, 2015
143

 
22.08

 
 
Granted and assumed
15

 
24.07

 
 
Vested
(37
)
 
20.24

 
$
970

Canceled/forfeited
(5
)
 
22.10

 
 
UNVESTED BALANCE AT OCTOBER 24, 2015
116

 
$
22.93

 
 

(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 26, 2014
187

 
$
26.03

Assumed from acquisitions
1

 
2.60

Exercised
(71
)
 
21.15

Canceled/forfeited/expired
(14
)
 
29.68

BALANCE AT JULY 25, 2015
103

 
28.68

Assumed from acquisitions
3

 
2.13

Exercised
(17
)
 
22.10

Canceled/forfeited/expired
(5
)
 
30.15

BALANCE AT OCTOBER 24, 2015
84

 
$
29.09


The following table summarizes significant ranges of outstanding and exercisable stock options as of October 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 – 20.00
 
5

 
6.1
 
$
3.88

 
$
150

 
2

 
$
5.14

 
$
76

$ 20.01 – 25.00
 
3

 
0.9
 
23.12

 
16

 
3

 
23.12

 
16

$ 25.01 – 30.00
 
13

 
0.8
 
26.84

 
32

 
13

 
26.85

 
32

$ 30.01 – 35.00
 
63

 
0.9
 
32.16

 

 
63

 
32.16

 

Total
 
84

 
1.2
 
$
29.09

 
$
198

 
81

 
$
29.99

 
$
124


The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on the Company’s closing stock price of $29.35 as of October 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 October 24, 2015 was 18 million. As of July 25, 2015, 102 million outstanding stock options were exercisable and the weighted-average exercise price was $29.02.
(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
October 24, 2015

October 25, 2014

October 24, 2015
 
October 25, 2014
Number of shares granted (in millions)
9


9


4

 
6

Grant date fair value per share
$
24.02


$
23.10


$
24.61

 
$
23.31

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

3.0
%

3.2
%
 
3.0
%
   Range of risk-free interest rates
0.0%  1.1%


0.0%  1.8%


0.0%  1.1%

 
0.0%  1.8%

   Range of expected volatilities for index
N/A

 
N/A

 
15.3% – 54.3%

 
15.1% – 70.0%


The PRSUs granted during the periods presented 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
Comprehensive Income
15.
Comprehensive Income

The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the three months ended October 24, 2015 and October 25, 2014 are summarized as follows (in millions):
 
Net Unrealized Gains on Available-for-Sale Investments
 
Net Unrealized Losses Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 25, 2015
$
310

 
$
(16
)
 
$
(233
)
 
$
61

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(155
)
 
(4
)
 
(178
)
 
(337
)
(Gains) losses reclassified out of AOCI
1

 
3

 
1

 
5

Tax benefit (expense)
56

 
2

 
(39
)
 
19

BALANCE AT OCTOBER 24, 2015
$
212

 
$
(15
)
 
$
(449
)
 
$
(252
)
 
Net Unrealized Gains on Available-for-Sale Investments
 
Net Unrealized Losses Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 26, 2014
$
424

 
$
(12
)
 
$
265

 
$
677

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(36
)
 
(56
)
 
(161
)
 
(253
)
(Gains) losses reclassified out of AOCI
(7
)
 
4

 

 
(3
)
Tax benefit (expense)
16

 
3

 
11

 
30

BALANCE AT OCTOBER 25, 2014
$
397

 
$
(61
)

$
115

 
$
451



The net gains (losses) reclassified out of AOCI into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions):
 
 
Three Months Ended
 
 
 
 
October 24,
2015
 
October 25,
2014
 
 
Comprehensive Income Components
 
Income Before Taxes
 
Line Item in Statements of Operations
Net unrealized gains on available-for-sale investments
 
 
 
 
 
 
 
 
$
(1
)
 
$
7

 
Other income (loss), net
 
 
 
 
 
 
 
Net unrealized losses on cash flow hedging instruments
 
 
 
 
 
 
Foreign currency derivatives
 
(2
)
 
(3
)
 
Operating expenses
Foreign currency derivatives
 
(1
)
 
(1
)
 
Cost of sales—service
 
 
(3
)

(4
)

 
 
 
 
 
 
 
 
Cumulative translation adjustment and actuarial gains and losses
 
 
 
 
 
 
 
 
(1
)
 

 
Operating expenses
 
 
 
 
 
 
 
Total amounts reclassified out of AOCI
 
$
(5
)

$
3


 
Income Taxes
Income Taxes
16.
Income Taxes
The following table provides details of income taxes (in millions, except percentages):
 
 
Three Months Ended
 
 
October 24,
2015
 
October 25,
2014
Income before provision for income taxes
 
$
3,137

 
$
2,360

Provision for income taxes
 
$
707

 
$
532

Effective tax rate
 
22.5
%
 
22.5
%

As of October 24, 2015, the Company had $2.1 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 October 24, 2015 could be reduced in the next 12 months by approximately $825 million, a portion of which could increase earnings.
Segment Information and Major Customers
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 months ended October 24, 2015 and October 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
 
October 24,
2015
 
October 25,
2014
Revenue:
 
 
 
Americas
$
7,799

 
$
7,501

EMEA
3,087

 
3,002

APJC
1,796

 
1,742

Total
$
12,682

 
$
12,245

Gross margin:
 
 
 
Americas
$
4,950

 
$
4,810

EMEA
1,982

 
1,915

APJC
1,078

 
1,025

Segment total
8,010

 
7,750

Unallocated corporate items
(178
)
 
(417
)
Total
$
7,832

 
$
7,333


Revenue in the United States was $6.9 billion and $6.5 billion for the three months ended October 24, 2015 and October 25, 2014, respectively.
(b)
Revenue for Groups of Similar Products and Services
The Company designs and sells broad lines of products, provides services and delivers integrated solutions to develop and connect networks around the world, building the Internet. The Company groups its products and technologies into the following categories: Switching, NGN Routing, Collaboration, Data Center, Service Provider Video, 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
 
October 24,
2015
 
October 25,
2014
Revenue:
 
 
 
Switching
$
4,022

 
$
3,846

NGN Routing
1,793

 
1,949

Collaboration
1,115

 
950

Data Center
859

 
692

Service Provider Video
850

 
871

Wireless
645

 
605

Security
485

 
455

Other
75

 
67

Product
9,844

 
9,435

Service
2,838

 
2,810

Total
$
12,682

 
$
12,245


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, were attributable to its U.S. operations as of each of October 24, 2015 and July 25, 2015. The Company’s total cash and cash equivalents and investments held by various foreign subsidiaries were $54.1 billion and $53.4 billion as of October 24, 2015 and July 25, 2015, respectively, and the remaining $5.0 billion and $7.0 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):
 
October 24,
2015
 
July 25,
2015
Property and equipment, net:
 
 
 
United States
$
2,727

 
$
2,733

International
619

 
599

Total
$
3,346

 
$
3,332

Net Income per Share
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
 
October 24,
2015
 
October 25,
2014
Net income
$
2,430

 
$
1,828

Weighted-average shares—basic
5,080

 
5,112

Effect of dilutive potential common shares
33

 
44

Weighted-average shares—diluted
5,113

 
5,156

Net income per share—basic
$
0.48

 
$
0.36

Net income per share—diluted
$
0.48

 
$
0.35

Antidilutive employee share-based awards, excluded
86

 
114


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)
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, as amended, will be effective for the Company beginning in the first quarter of fiscal 2019. 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 permitted, but no earlier than fiscal 2018. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
In February 2015, the FASB issued an accounting standard update that changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. The accounting standard update will be effective for the Company beginning in the first quarter of fiscal 2017, and early adoption is permitted. The Company is currently evaluating the impact of this accounting standard update on its Consolidated Financial Statements.
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
4,488

 
$
23,001

 
$
70,885

 
$
93,886

Acquisitions and Divestitures (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
MaintenanceNet
$
105

 
$
(21
)
 
$
65

 
$
61

OpenDNS
545

 
(9
)
 
61

 
493

Other
6

 
(1
)
 
4

 
3

Total
$
656

 
$
(31
)
 
$
130

 
$
557

Goodwill and Purchased Intangible Assets (Tables)
Goodwill
The following table presents the goodwill allocated to the Company’s reportable segments as of and during the three months ended October 24, 2015 (in millions):
 
Balance at
 
 
 
 
 
Balance at
 
July 25, 2015
 
Acquisitions
 
Other
 
October 24, 2015
Americas
$
15,212

 
$
361

 
$
(90
)
 
$
15,483

EMEA
5,791

 
141

 
(34
)
 
5,898

APJC
3,466

 
55

 
(20
)
 
3,501

Total
$
24,469

 
$
557

 
$
(144
)
 
$
24,882

“Other” in the table above primarily consists of foreign currency translation, as well as immaterial purchase accounting adjustments.
Purchased Intangible Assets
The following table presents details of the Company’s intangible assets acquired through acquisitions completed during the three months ended October 24, 2015 (in millions, except years):
 
FINITE LIVES
 
INDEFINITE
LIVES
 
TOTAL
 
TECHNOLOGY
 
CUSTOMER
RELATIONSHIPS
 
OTHER
 
IPR&D
 
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Weighted-
Average Useful
Life (in Years)
 
Amount
 
Amount
 
Amount
MaintenanceNet
5.0
 
$
50

 
5.0
 
$
2

 
2.0
 
$
2

 
$
11

 
$
65

OpenDNS
5.0
 
43

 
7.0
 
15

 
1.0
 
2

 
1

 
$
61

Other
5.0
 
4

 
0.0
 

 
0.0
 

 

 
$
4

Total
 
 
$
97

 
 
 
$
17

 
 
 
$
4

 
$
12

 
$
130

The following tables present details of the Company’s purchased intangible assets (in millions): 
October 24, 2015
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,454

 
$
(1,902
)
 
$
1,552

Customer relationships
 
1,716

 
(1,036
)
 
680

Other
 
58

 
(27
)
 
31

Total purchased intangible assets with finite lives
 
5,228

 
(2,965
)
 
2,263

In-process research and development, with indefinite lives
 
29

 

 
29

Total
 
$
5,257

 
$
(2,965
)
 
$
2,292

 
July 25, 2015
 
Gross
 
Accumulated Amortization
 
Net
Purchased intangible assets with finite lives:
 
 
 
 
 
 
Technology
 
$
3,418

 
$
(1,818
)
 
$
1,600

Customer relationships
 
1,699

 
(971
)
 
728

Other
 
55

 
(24
)
 
31

Total purchased intangible assets with finite lives
 
5,172

 
(2,813
)
 
2,359

In-process research and development, with indefinite lives
 
17

 

 
17

Total
 
$
5,189

 
$
(2,813
)
 
$
2,376

The following table presents the amortization of purchased intangible assets (in millions):
 
Three Months Ended
 
October 24,
2015
 
October 25,
2014
Amortization of purchased intangible assets:
 
 
 
Cost of sales
$
146

 
$
189

Operating expenses
69

 
71

Total
$
215

 
$
260

The estimated future amortization expense of purchased intangible assets with finite lives as of October 24, 2015 is as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
574

2017
619

2018
476

2019
379

2020
162

Thereafter
53

Total
$
2,263

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 PLAN
 
FISCAL 2015 PLAN
 
 
 
 
Employee
Severance
 
Other
 
Employee
Severance
 
Other
 
Total
Liability as of July 25, 2015
 
$
11

 
$
14

 
$
49

 
$
15

 
$
89

Charges
 

 

 
125

 
17

 
142

Cash payments
 
(4
)
 
(1
)
 
(119
)
 
(5
)
 
(129
)
Non-cash items
 

 

 

 
(16
)
 
(16
)
Liability as of October 24, 2015
 
$
7

 
$
13

 
$
55

 
$
11

 
$
86

Balance Sheet Details (Tables)
The following tables provide details of selected balance sheet items (in millions):
 
 
October 24,
2015
 
July 25,
2015
Inventories:
 
 
 
 
Raw materials
 
$
107

 
$
114

Work in process
 
1

 
2

Finished goods:
 
 
 

Distributor inventory and deferred cost of sales
 
631

 
610

Manufactured finished goods
 
464

 
593

Total finished goods
 
1,095

 
1,203

Service-related spares
 
240

 
258

Demonstration systems
 
39

 
50

Total
 
$
1,482

 
$
1,627

Property and equipment, net:
 
 
 
 
Gross property and equipment:
 
 
 
 
Land, buildings, and building and leasehold improvements
 
$
4,561

 
$
4,495

Computer equipment and related software
 
1,276

 
1,310

Production, engineering, and other equipment
 
5,742

 
5,753

Operating lease assets
 
372

 
372

Furniture and fixtures
 
502

 
497

Total gross property and equipment
 
12,453

 
12,427

Less: accumulated depreciation and amortization
 
(9,107
)
 
(9,095
)
Total
 
$
3,346

 
$
3,332

 Other assets:
 
 
 
 
Deferred tax assets
 
$
1,583

 
$
1,648

Investments in privately held companies
 
928

 
897

Other
 
759

 
618

Total
 
$
3,270

 
$
3,163

Deferred revenue:
 
 
 
 
Service
 
$
9,689

 
$
9,757

Product:
 

 
 
Unrecognized revenue on product shipments and other deferred revenue
 
4,888

 
4,766

Cash receipts related to unrecognized revenue from two-tier distributors
 
585

 
660

Total product deferred revenue
 
5,473

 
5,426

Total
 
$
15,162

 
$
15,183

Reported as:
 

 
 
Current
 
$
9,821

 
$
9,824

Noncurrent
 
5,341

 
5,359

Total
 
$
15,162

 
$
15,183

Financing Receivables and Operating Leases (Tables)
A summary of the Company's financing receivables is presented as follows (in millions):
October 24, 2015
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,317

 
$
1,963

 
$
3,598

 
$
8,878

Residual value
225

 

 

 
225

Unearned income
(182
)
 

 

 
(182
)
Allowance for credit loss
(255
)
 
(90
)
 
(33
)
 
(378
)
Total, net
$
3,105

 
$
1,873

 
$
3,565

 
$
8,543

Reported as:
 
 
 
 
 
 
 
Current
$
1,447

 
$
931

 
$
2,128

 
$
4,506

Noncurrent
1,658

 
942

 
1,437

 
4,037

Total, net
$
3,105

 
$
1,873

 
$
3,565

 
$
8,543

July 25, 2015
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Gross
$
3,361

 
$
1,763

 
$
3,573

 
$
8,697

Residual value
224

 

 

 
224

Unearned income
(190
)
 

 

 
(190
)
Allowance for credit loss
(259
)
 
(87
)
 
(36
)
 
(382
)
Total, net
$
3,136

 
$
1,676

 
$
3,537

 
$
8,349

Reported as:
 
 
 
 
 
 
 
Current
$
1,468

 
$
856

 
$
2,167

 
$
4,491

Noncurrent
1,668

 
820

 
1,370

 
3,858

Total, net
$
3,136

 
$
1,676

 
$
3,537

 
$
8,349

Future minimum lease payments at October 24, 2015 are summarized as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
1,307

2017
1,079

2018
606

2019
254

2020
70

Thereafter
1

Total
$
3,317

Gross receivables less unearned income categorized by the Company’s internal credit risk rating as of October 24, 2015 and July 25, 2015 are summarized as follows (in millions):
 
INTERNAL CREDIT RISK RATING
October 24, 2015
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,670

 
$
1,336

 
$
129

 
$
3,135

Loan receivables
1,039

 
783

 
141

 
1,963

Financed service contracts and other
2,111

 
1,437

 
50

 
3,598

Total
$
4,820

 
$
3,556

 
$
320

 
$
8,696

 
INTERNAL CREDIT RISK RATING
July 25, 2015
1 to 4
 
5 to 6
 
7 and Higher
 
Total
Lease receivables
$
1,688

 
$
1,342

 
$
141

 
$
3,171

Loan receivables
788

 
823

 
152

 
1,763

Financed service contracts and other
2,133

 
1,389

 
51

 
3,573

Total
$
4,609

 
$
3,554

 
$
344

 
$
8,507

The following tables present the aging analysis of gross receivables less unearned income as of October 24, 2015 and July 25, 2015 (in millions):
 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
October 24, 2015
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
100

 
$
51

 
$
176

 
$
327

 
$
2,808

 
$
3,135

 
$
83

 
$
72

Loan receivables
22

 
85

 
69

 
176

 
1,787

 
1,963

 
17

 
17

Financed service contracts and other
152

 
50

 
249

 
451

 
3,147

 
3,598

 
26

 
6

Total
$
274

 
$
186

 
$
494

 
$
954

 
$
7,742

 
$
8,696

 
$
126

 
$
95

 
DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
 
 
 
 
 
 
 
 
July 25, 2015
31-60
 
61-90 
 
91+
 
Total
Past Due
 
Current
 
Total
 
Nonaccrual
Financing
Receivables
 
Impaired
Financing
Receivables
Lease receivables
$
90

 
$
27

 
$
185

 
$
302

 
$
2,869

 
$
3,171

 
$
73

 
$
73

Loan receivables
21

 
3

 
25

 
49

 
1,714

 
1,763

 
32

 
32

Financed service contracts and other
396

 
152

 
414

 
962

 
2,611

 
3,573

 
29

 
9

Total
$
507

 
$
182

 
$
624

 
$
1,313

 
$
7,194

 
$
8,507

 
$
134

 
$
114

The allowances for credit loss and the related financing receivables are summarized as follows (in millions):
 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 25, 2015
$
259

 
$
87

 
$
36

 
$
382

Provisions

 
4

 

 
4

Recoveries (write-offs), net
(4
)
 

 
(3
)
 
(7
)
Foreign exchange and other

 
(1
)
 

 
(1
)
Allowance for credit loss as of October 24, 2015
$
255

 
$
90

 
$
33

 
$
378

Financing receivables as of October 24, 2015 (1)
$
3,360

 
$
1,963

 
$
3,598

 
$
8,921

 
CREDIT LOSS ALLOWANCES
 
Lease
Receivables
 
Loan
Receivables
 
Financed Service
Contracts and Other
 
Total
Allowance for credit loss as of July 26, 2014
$
233

 
$
98

 
$
18

 
$
349

Provisions
22

 
(13
)
 
19

 
28

Recoveries (write-offs), net
(4
)
 
1

 

 
(3
)
Foreign exchange and other
(3
)
 
(2
)
 
(1
)
 
(6
)
Allowance for credit loss as of October 25, 2014
$
248

 
$
84

 
$
36

 
$
368

Financing receivables as of October 25, 2014 (1)
$
3,509

 
$
1,744

 
$
3,071

 
$
8,324

(1) Total financing receivables before allowance for credit loss.
Amounts relating to equipment on operating lease assets and the associated accumulated depreciation are summarized as follows (in millions):
 
October 24, 2015
 
July 25, 2015
Operating lease assets
$
372

 
$
372

Accumulated depreciation
(207
)
 
(205
)
Operating lease assets, net
$
165

 
$
167

Investments (Tables)
The following tables summarize the Company’s available-for-sale investments (in millions):
October 24, 2015
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
27,409

 
$
63

 
$
(1
)
 
$
27,471

U.S. government agency securities
3,606

 
11

 

 
3,617

Non-U.S. government and agency securities
1,133

 
3

 

 
1,136

Corporate debt securities
18,314

 
70

 
(78
)
 
18,306

U.S. agency mortgage-backed securities
1,454

 
15

 

 
1,469

Total fixed income securities
51,916

 
162

 
(79
)
 
51,999

Publicly traded equity securities
1,094

 
268

 
(12
)
 
1,350

Total
$
53,010

 
$
430

 
$
(91
)
 
$
53,349


July 25, 2015
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Fixed income securities:
 
 
 
 
 
 
 
U.S. government securities
$
29,904

 
$
41

 
$
(6
)
 
$
29,939

U.S. government agency securities
3,662

 
2

 
(1
)
 
3,663

Non-U.S. government and agency securities
1,128

 
1

 
(1
)
 
1,128

Corporate debt securities
15,802

 
34

 
(53
)
 
15,783

U.S. agency mortgage-backed securities
1,456

 
8

 
(3
)
 
1,461

Total fixed income securities
51,952

 
86

 
(64
)
 
51,974

Publicly traded equity securities
1,092

 
480

 
(7
)
 
1,565

Total
$
53,044

 
$
566

 
$
(71
)
 
$
53,539

Non-U.S. government and agency securities include agency and corporate debt securities that are guaranteed by non-U.S. governments.
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
 
October 24, 2015
 
October 25, 2014
Gross realized gains
$
35

 
$
21

Gross realized losses
(36
)
 
(14
)
Total
$
(1
)
 
$
7

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
 
October 24, 2015
 
October 25, 2014
Net losses on investments in publicly traded equity securities
$
(9
)
 
$
(4
)
Net gains on investments in fixed income securities
8

 
11

Total
$
(1
)
 
$
7

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 October 24, 2015 and July 25, 2015 (in millions):
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
October 24, 2015
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
2,566

 
$
(1
)
 
$

 
$

 
$
2,566

 
$
(1
)
U.S. government agency securities
80

 

 

 

 
80

 

Non-U.S. government and agency securities
57

 

 
10

 

 
67

 

Corporate debt securities
7,421

 
(66
)
 
1,048

 
(12
)
 
8,469

 
(78
)
U.S. agency mortgage-backed securities
77

 

 

 

 
77

 

Total fixed income securities
10,201

 
(67
)

1,058


(12
)

11,259


(79
)
Publicly traded equity securities
103

 
(11
)
 
2

 
(1
)
 
105

 
(12
)
Total
$
10,304

 
$
(78
)
 
$
1,060

 
$
(13
)
 
$
11,364

 
$
(91
)
 
UNREALIZED LOSSES
LESS THAN 12 MONTHS
 
UNREALIZED LOSSES
12 MONTHS OR GREATER
 
TOTAL
July 25, 2015
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross
Unrealized
Losses
 
Fair Value
 
Gross 
Unrealized 
Losses
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
U.S. government securities 
$
6,412

 
$
(6
)
 
$

 
$

 
$
6,412

 
$
(6
)
U.S. government agency securities
1,433

 
(1
)
 

 

 
1,433

 
(1
)
Non-U.S. government and agency securities
515

 
(1
)
 
4

 

 
519

 
(1
)
Corporate debt securities
9,552

 
(49
)
 
312

 
(4
)
 
9,864

 
(53
)
U.S. agency mortgage-backed securities
579

 
(3
)
 

 

 
579

 
(3
)
Total fixed income securities
18,491

 
(60
)
 
316

 
(4
)
 
18,807

 
(64
)
Publicly traded equity securities
108

 
(7
)
 
2

 

 
110

 
(7
)
Total
$
18,599

 
$
(67
)
 
$
318

 
$
(4
)
 
$
18,917

 
$
(71
)
The following table summarizes the maturities of the Company’s fixed income securities at October 24, 2015 (in millions): 
 
Amortized Cost
 
Fair Value
Less than 1 year
$
17,274

 
$
17,276

Due in 1 to 2 years
15,914

 
15,950

Due in 2 to 5 years
17,105

 
17,138

Due after 5 years
1,623

 
1,635

Total
$
51,916

 
$
51,999

For such investments that were accounted for under the equity and cost method as of October 24, 2015 and July 25, 2015, the amounts are summarized in the following table (in millions):
 
October 24, 2015
 
July 25, 2015
Equity method investments
$
619

 
$
578

Cost method investments
309

 
319

Total
$
928

 
$
897

Fair Value (Tables)
Assets and liabilities measured at fair value on a recurring basis as of October 24, 2015 and July 25, 2015 were as follows (in millions):
 
OCTOBER 24, 2015
FAIR VALUE MEASUREMENTS
 
JULY 25, 2015
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
$
4,317

 
$

 
$

 
$
4,317

 
$
5,336

 
$

 
$

 
$
5,336

Corporate debt securities

 
25

 

 
25

 

 
14

 

 
14

Available-for-sale investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 

U.S. government securities

 
27,471

 

 
27,471

 

 
29,939

 

 
29,939

U.S. government agency securities

 
3,617

 

 
3,617

 

 
3,663

 

 
3,663

Non-U.S. government and agency securities

 
1,136

 

 
1,136

 

 
1,128

 

 
1,128

Corporate debt securities

 
18,306

 

 
18,306

 

 
15,783

 

 
15,783

U.S. agency mortgage-backed securities

 
1,469

 

 
1,469

 

 
1,461

 

 
1,461

Publicly traded equity securities
1,350

 

 

 
1,350

 
1,565

 

 

 
1,565

Derivative assets

 
340

 
3

 
343

 

 
214

 
4

 
218

Total
$
5,667

 
$
52,364

 
$
3

 
$
58,034

 
$
6,901

 
$
52,202

 
$
4

 
$
59,107

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative liabilities
$

 
$
14

 
$

 
$
14

 
$

 
$
12

 
$

 
$
12

Total
$

 
$
14

 
$

 
$
14

 
$

 
$
12

 
$

 
$
12

The following table presents the Company's assets that were measured at fair value on a nonrecurring basis during the indicated periods and the related recognized gains and losses for the periods indicated (in millions):
 
LOSSES FOR THE
THREE MONTHS ENDED
 
October 24, 2015
 
October 25, 2014
Investments in privately held companies (impaired)
$
(17
)
 
$
(1
)
Borrowings (Tables)
The following table summarizes the Company’s short-term debt (in millions, except percentages):
 
October 24, 2015
 
July 25, 2015
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Current portion of long-term debt
$
3,025

 
3.09
%
 
$
3,894

 
2.48
%
Other short-term debt
2

 
2.08
%
 
3

 
2.44
%
Total
$
3,027

 
 
 
$
3,897

 

The following table summarizes the Company’s long-term debt (in millions, except percentages):
 
 
 
October 24, 2015
 
July 25, 2015
 
Maturity Date
 
Amount
 
Effective Rate
 
Amount
 
Effective Rate
Senior notes:
 
 
 
 
 
 
 
 
 
Floating-rate notes:
 
 
 
 
 
 
 
 
 
Three-month LIBOR plus 0.05%
September 3, 2015
 
$

 
 
$
850

 
0.43%
Three-month LIBOR plus 0.28%
March 3, 2017
 
1,000

 
0.68%
 
1,000

 
0.63%
Three-month LIBOR plus 0.31%
June 15, 2018
 
900

 
0.71%
 
900

 
0.65%
Three-month LIBOR plus 0.50%
March 1, 2019
 
500

 
0.88%
 
500

 
0.84%
Fixed-rate notes:
 
 
 
 
 
 
 
 
 
5.50%
February 22, 2016
 
3,000

 
3.09%
 
3,000

 
3.07%
1.10%
March 3, 2017
 
2,400

 
0.60%
 
2,400

 
0.59%
3.15%
March 14, 2017
 
750

 
0.90%
 
750

 
0.85%
1.65%
June 15, 2018
 
1,600

 
1.72%
 
1,600

 
1.72%
4.95%
February 15, 2019
 
2,000

 
4.70%
 
2,000

 
4.70%
2.125%
March 1, 2019
 
1,750

 
0.81%
 
1,750

 
0.80%
4.45%
January 15, 2020
 
2,500

 
3.02%
 
2,500

 
3.01%
2.45%
June 15, 2020
 
1,500

 
2.54%
 
1,500

 
2.54%
2.90%
March 4, 2021
 
500

 
0.97%
 
500

 
0.96%
3.00%
June 15, 2022
 
500

 
1.22%
 
500

 
1.21%
3.625%
March 4, 2024
 
1,000

 
1.09%
 
1,000

 
1.08%
3.50%
June 15, 2025
 
500

 
1.38%
 
500

 
1.37%
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
 
 

 

 
1

 
2.08%
Total
 
 
24,400

 
 
 
25,251

 
 
Unaccreted discount/issuance costs
 
 
(128
)
 
 
 
(131
)
 
 
Hedge accounting fair value adjustments
 
 
347

 
 
 
231

 
 
Total
 
 
$
24,619

 
 
 
$
25,351

 
 
 
 
 
 
 
 
 
 
 
 
Reported as:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
 
 
$
3,025

 
 
 
$
3,894

 
 
Long-term debt
 
 
21,594

 
 
 
21,457

 
 
Total
 
 
$
24,619

 
 
 
$
25,351

 
 
As of October 24, 2015, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
3,000

2017
4,150

2018
2,500

2019
4,250

2020
4,000

Thereafter
6,500

Total
$
24,400

Derivative Instruments (Tables)
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
 
October 24,
2015
 
July 25,
2015
 
Balance Sheet Line Item
 
October 24,
2015
 
July 25,
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
9

 
$
10

 
Other current liabilities
 
$
11

 
$
11

Interest rate derivatives
Other assets
 
330

 
202

 
Other long-term liabilities
 

 

Total
 
 
339

 
212

 
 
 
11

 
11

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

 
2

 
Other current liabilities
 
3

 
1

Equity derivatives
Other assets
 
3

 
4

 
Other long-term liabilities
 

 

Total
 
 
4

 
6

 
 
 
3

 
1

Total
 
 
$
343

 
$
218

 
 
 
$
14

 
$
12


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)
 
 
October 24,
2015
 
October 25,
2014
 
Line Item in
Statements of Operations
 
October 24,
2015
 
October 25,
2014
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(4
)
 
$
(56
)
 
Operating expenses
 
$
(2
)
 
$
(3
)
 
 
 
 
 
 
Cost of salesservice
 
(1
)
 
(1
)
Total
 
$
(4
)
 
$
(56
)
 
 
 
$
(3
)
 
$
(4
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$

 
$
20

 
Other income (loss), net
 
$

 
$


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
 
October 24,
2015
 
October 25,
2014
 
October 24,
2015
 
October 25,
2014
Equity derivatives
 
Other income (loss), net
 
$

 
$
6

 
$

 
$
(6
)
Interest rate derivatives
 
Interest expense
 
127

 
73

 
(125
)
 
(73
)
Total
 
 
 
$
127

 
$
79

 
$
(125
)
 
$
(79
)

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
Derivatives Not Designated as
Hedging Instruments
 
Line Item in Statements of Operations
 
October 24,
2015
 
October 25,
2014
Foreign currency derivatives
 
Other income (loss), net
 
$
4

 
$
(58
)
Total return swaps—deferred compensation
 
Operating expenses
 
(16
)
 
(13
)
Equity derivatives
 
Other income (loss), net
 
10

 
(4
)
Total
 
 
 
$
(2
)
 
$
(75
)
The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
October 24,
2015
 
July 25,
2015
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
1,083

 
$
1,201

Interest rate derivatives
11,400

 
11,400

Net investment hedging instruments
219

 
192

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
2,244

 
2,023

Total return swaps—deferred compensation
473

 
462

Total
$
15,419

 
$
15,278

Information related to these offsetting arrangements is summarized as follows (in millions):
 
October 24, 2015
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Gross Amounts Not Offset in the Consolidated Balance Sheets,
but with Legal Rights to Offset
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
343

 
$

 
$
343

 
$
(14
)
 
$
(225
)
 
$
104

Derivatives liabilities
$
14

 
$

 
$
14

 
$
(14
)
 
$

 
$

 
July 25, 2015
 
Gross Amounts Offset in the Consolidated Balance Sheets
 
Gross Amounts Not Offset in the Consolidated Balance Sheets,
but with Legal Rights to Offset
 
Gross Amounts Recognized
 
Gross Amounts Offset
 
Net Amounts Presented
 
Gross Derivative Amounts
 
Cash Collateral
 
Net Amount
Derivatives assets
$
218

 
$

 
$
218

 
$
(12
)
 
$
(124
)
 
$
82

Derivatives liabilities
$
12

 
$

 
$
12

 
$
(12
)
 
$

 
$

Commitments and Contingencies (Tables)
Future minimum lease payments under all noncancelable operating leases with an initial term in excess of one year as of October 24, 2015 are as follows (in millions):
Fiscal Year
Amount
2016 (remaining nine months)
$
266

2017
263

2018
189

2019
105

2020
83

Thereafter
189

Total
$
1,095

The following table summarizes the compensation expense related to acquisitions (in millions):
 
Three Months Ended
 
October 24,
2015
 
October 25,
2014
Compensation expense related to acquisitions
$
73

 
$
98

The following table summarizes the activity related to the product warranty liability (in millions):
 
Three Months Ended
 
October 24,
2015
 
October 25,
2014
Balance at beginning of period
$
449

 
$
446

Provision for warranties issued
150

 
143

Payments
(166
)
 
(153
)
Balance at end of period
$
433

 
$
436

The aggregate amounts of financing guarantees outstanding at October 24, 2015 and July 25, 2015, 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):
 
October 24,
2015
 
July 25,
2015
Maximum potential future payments relating to financing guarantees:
 
 
 
Channel partner
$
250

 
$
288

End user
124

 
129

Total
$
374

 
$
417

Deferred revenue associated with financing guarantees:
 
 
 
Channel partner
$
(96
)
 
$
(127
)
End user
(100
)
 
(107
)
Total
$
(196
)
 
$
(234
)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
$
178

 
$
183

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 25, 2015
4,443

 
$
20.86

 
$
92,679

Repurchase of common stock under the stock repurchase program (1)
45

 
26.83

 
1,207

Cumulative balance at October 24, 2015
4,488

 
$
20.92

 
$
93,886


(1) Includes stock repurchases of $33 million, which were pending settlement as of October 24, 2015. There were $36 million of stock repurchases that were pending settlement as of July 25, 2015.
Employee Benefit Plans (Tables)
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
 
October 24,
2015
 
October 25,
2014
Cost of sales—product
$
13

 
$
11

Cost of sales—service
38

 
37

Share-based compensation expense in cost of sales
51

 
48

Research and development
114

 
119

Sales and marketing
139

 
147

General and administrative
57

 
59

Restructuring and other charges
15

 
(4
)
Share-based compensation expense in operating expenses
325

 
321

Total share-based compensation expense
$
376

 
$
369

Income tax benefit for share-based compensation
$
95

 
$
94

A summary of share-based awards available for grant is as follows (in millions):
 
Share-Based Awards
Available for Grant
BALANCE AT JULY 26, 2014
310

Restricted stock, stock units, and other share-based awards granted
(101
)
Share-based awards canceled/forfeited/expired
40

Shares withheld for taxes and not issued
27

BALANCE AT JULY 25, 2015
276

Restricted stock, stock units, and other share-based awards granted
(23
)
Share-based awards canceled/forfeited/expired
8

Shares withheld for taxes and not issued
22

Other
1

BALANCE AT OCTOBER 24, 2015
284

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
 
Aggregate Fair  Value
UNVESTED BALANCE AT JULY 26, 2014
149

 
$
19.54

 
 
Granted and assumed
67

 
25.29

 
 
Vested
(57
)
 
19.82

 
$
1,517

Canceled/forfeited
(16
)
 
20.17

 
 
UNVESTED BALANCE AT JULY 25, 2015
143

 
22.08

 
 
Granted and assumed
15

 
24.07

 
 
Vested
(37
)
 
20.24

 
$
970

Canceled/forfeited
(5
)
 
22.10

 
 
UNVESTED BALANCE AT OCTOBER 24, 2015
116

 
$
22.93

 
 
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 26, 2014
187

 
$
26.03

Assumed from acquisitions
1

 
2.60

Exercised
(71
)
 
21.15

Canceled/forfeited/expired
(14
)
 
29.68

BALANCE AT JULY 25, 2015
103

 
28.68

Assumed from acquisitions
3

 
2.13

Exercised
(17
)
 
22.10

Canceled/forfeited/expired
(5
)
 
30.15

BALANCE AT OCTOBER 24, 2015
84

 
$
29.09

The following table summarizes significant ranges of outstanding and exercisable stock options as of October 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 – 20.00
 
5

 
6.1
 
$
3.88

 
$
150

 
2

 
$
5.14

 
$
76

$ 20.01 – 25.00
 
3

 
0.9
 
23.12

 
16

 
3

 
23.12

 
16

$ 25.01 – 30.00
 
13

 
0.8
 
26.84

 
32

 
13

 
26.85

 
32

$ 30.01 – 35.00
 
63

 
0.9
 
32.16

 

 
63

 
32.16

 

Total
 
84

 
1.2
 
$
29.09

 
$
198

 
81

 
$
29.99

 
$
124

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
October 24, 2015

October 25, 2014

October 24, 2015
 
October 25, 2014
Number of shares granted (in millions)
9


9


4

 
6

Grant date fair value per share
$
24.02


$
23.10


$
24.61

 
$
23.31

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

3.0
%

3.2
%
 
3.0
%
   Range of risk-free interest rates
0.0%  1.1%


0.0%  1.8%


0.0%  1.1%

 
0.0%  1.8%

   Range of expected volatilities for index
N/A

 
N/A

 
15.3% – 54.3%

 
15.1% – 70.0%


Comprehensive Income (Tables)
The components of AOCI, net of tax, and the other comprehensive income (loss), excluding noncontrolling interest, for the three months ended October 24, 2015 and October 25, 2014 are summarized as follows (in millions):
 
Net Unrealized Gains on Available-for-Sale Investments
 
Net Unrealized Losses Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 25, 2015
$
310

 
$
(16
)
 
$
(233
)
 
$
61

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(155
)
 
(4
)
 
(178
)
 
(337
)
(Gains) losses reclassified out of AOCI
1

 
3

 
1

 
5

Tax benefit (expense)
56

 
2

 
(39
)
 
19

BALANCE AT OCTOBER 24, 2015
$
212

 
$
(15
)
 
$
(449
)
 
$
(252
)
 
Net Unrealized Gains on Available-for-Sale Investments
 
Net Unrealized Losses Cash Flow Hedging Instruments
 
Cumulative Translation Adjustment and Actuarial Gains and Losses
 
Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 26, 2014
$
424

 
$
(12
)
 
$
265

 
$
677

Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
(36
)
 
(56
)
 
(161
)
 
(253
)
(Gains) losses reclassified out of AOCI
(7
)
 
4

 

 
(3
)
Tax benefit (expense)
16

 
3

 
11

 
30

BALANCE AT OCTOBER 25, 2014
$
397

 
$
(61
)

$
115

 
$
451

The net gains (losses) reclassified out of AOCI into the Consolidated Statements of Operations, with line item location, during each period were as follows (in millions):
 
 
Three Months Ended
 
 
 
 
October 24,
2015
 
October 25,
2014
 
 
Comprehensive Income Components
 
Income Before Taxes
 
Line Item in Statements of Operations
Net unrealized gains on available-for-sale investments
 
 
 
 
 
 
 
 
$
(1
)
 
$
7

 
Other income (loss), net
 
 
 
 
 
 
 
Net unrealized losses on cash flow hedging instruments
 
 
 
 
 
 
Foreign currency derivatives
 
(2
)
 
(3
)
 
Operating expenses
Foreign currency derivatives
 
(1
)
 
(1
)
 
Cost of sales—service
 
 
(3
)

(4
)

 
 
 
 
 
 
 
 
Cumulative translation adjustment and actuarial gains and losses
 
 
 
 
 
 
 
 
(1
)
 

 
Operating expenses
 
 
 
 
 
 
 
Total amounts reclassified out of AOCI
 
$
(5
)

$
3


 
Income Taxes (Tables)
Income tax provision [Table Text Block]
The following table provides details of income taxes (in millions, except percentages):
 
 
Three Months Ended
 
 
October 24,
2015
 
October 25,
2014
Income before provision for income taxes
 
$
3,137

 
$
2,360

Provision for income taxes
 
$
707

 
$
532

Effective tax rate
 
22.5
%
 
22.5
%
Segment Information and Major Customers (Tables)
Summarized financial information by segment for the three months ended October 24, 2015 and October 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
 
October 24,
2015
 
October 25,
2014
Revenue:
 
 
 
Americas
$
7,799

 
$
7,501

EMEA
3,087

 
3,002

APJC
1,796

 
1,742

Total
$
12,682

 
$
12,245

Gross margin:
 
 
 
Americas
$
4,950

 
$
4,810

EMEA
1,982

 
1,915

APJC
1,078

 
1,025

Segment total
8,010

 
7,750

Unallocated corporate items
(178
)
 
(417
)
Total
$
7,832

 
$
7,333

The following table presents revenue for groups of similar products and services (in millions):
 
Three Months Ended
 
October 24,
2015
 
October 25,
2014
Revenue:
 
 
 
Switching
$
4,022

 
$
3,846

NGN Routing
1,793

 
1,949

Collaboration
1,115

 
950

Data Center
859

 
692

Service Provider Video
850

 
871

Wireless
645

 
605

Security
485

 
455

Other
75

 
67

Product
9,844

 
9,435

Service
2,838

 
2,810

Total
$
12,682

 
$
12,245

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):
 
October 24,
2015
 
July 25,
2015
Property and equipment, net:
 
 
 
United States
$
2,727

 
$
2,733

International
619

 
599

Total
$
3,346

 
$
3,332



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
 
October 24,
2015
 
October 25,
2014
Net income
$
2,430

 
$
1,828

Weighted-average shares—basic
5,080

 
5,112

Effect of dilutive potential common shares
33

 
44

Weighted-average shares—diluted
5,113

 
5,156

Net income per share—basic
$
0.48

 
$
0.36

Net income per share—diluted
$
0.48

 
$
0.35

Antidilutive employee share-based awards, excluded
86

 
114

Supplemental Information (Stock Repurchases Since Inception of Program) (Details) (USD $)
Share data in Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Supplementary Information [Line Items]
 
 
Authorized common stock repurchase amount
$ 97,000,000,000 
 
Cumulative stock repurchased and retired (in shares)
4,488 
4,443 1
Repurchases of common stock under the repurchase program
93,886,000,000 
92,679,000,000 1
Shares of Common Stock (in shares)
 
 
Supplementary Information [Line Items]
 
 
Cumulative stock repurchased and retired (in shares)
4,488 
 
Common Stock and Additional Paid-In Capital
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
23,001,000,000 
 
Retained Earnings
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
70,885,000,000 
 
Total Cisco Shareholders’ Equity
 
 
Supplementary Information [Line Items]
 
 
Repurchases of common stock under the repurchase program
$ 93,886,000,000 
 
Acquisitions and Divestitures (Summary Of Allocation Of Total Purchase Consideration) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Business Acquisition [Line Items]
 
Purchase Consideration
$ 656 
Net Liabilities Assumed
(31)
Purchased Intangible Assets
130 
Goodwill
557 
MaintenanceNet
 
Business Acquisition [Line Items]
 
Purchase Consideration
105 
Net Liabilities Assumed
(21)
Purchased Intangible Assets
65 
Goodwill
61 
OpenDNS
 
Business Acquisition [Line Items]
 
Purchase Consideration
545 
Net Liabilities Assumed
(9)
Purchased Intangible Assets
61 
Goodwill
493 
Other
 
Business Acquisition [Line Items]
 
Purchase Consideration
Net Liabilities Assumed
(1)
Purchased Intangible Assets
Goodwill
$ 3 
Acquisitions and Divestitures (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Supplementary Information [Line Items]
 
 
Number of business combinations (in numbers)
 
Acquired Cash and Cash Equivalents
$ 9 
 
General and administrative
 
 
Supplementary Information [Line Items]
 
 
Business Combination, Acquisition Related Costs
$ 5 
$ 2 
Acquisitions and Divestitures (Additional Information - Pending Divestitures) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Goodwill
$ 557 
Client premises equipment portion of SPV connected devices BU [Member]
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Sale Considerations (Cash and Stock)
600 
Goodwill
150 
Client premises equipment portion of SPV connected devices BU [Member] |
Tangible assets including Inventories
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Tangible assets held for sale
100 
Client premises equipment portion of SPV connected devices BU [Member] |
Inventories
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Tangible assets held for sale
80 
Client premises equipment portion of SPV connected devices BU [Member] |
Supply chain-related liabilities, warranties, rebates and other accruals
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
Disposal Group, Including Discontinued Operation, Accrued Liabilities
$ 120 
Goodwill and Purchased Intangible Assets (Schedule Of Goodwill By Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Goodwill [Roll Forward]
 
Balance (Beg)
$ 24,469 
Acquisitions
557 
Other
(144)
Balance (End)
24,882 
Americas
 
Goodwill [Roll Forward]
 
Balance (Beg)
15,212 
Acquisitions
361 
Other
(90)
Balance (End)
15,483 
EMEA
 
Goodwill [Roll Forward]
 
Balance (Beg)
5,791 
Acquisitions
141 
Other
(34)
Balance (End)
5,898 
APJC
 
Goodwill [Roll Forward]
 
Balance (Beg)
3,466 
Acquisitions
55 
Other
(20)
Balance (End)
$ 3,501 
Goodwill and Purchased Intangible Assets (Schedule Of Intangible Assets Acquired Through Business Combinations) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Intangible Assets Acquired Through Business Combinations
 
Amount
$ 130 
MaintenanceNet
 
Intangible Assets Acquired Through Business Combinations
 
Amount
65 
OpenDNS
 
Intangible Assets Acquired Through Business Combinations
 
Amount
61 
Other
 
Intangible Assets Acquired Through Business Combinations
 
Amount
Total
 
Intangible Assets Acquired Through Business Combinations
 
Amount
130 
IPR&D
 
Intangible Assets Acquired Through Business Combinations
 
Amount
12 
IPR&D |
MaintenanceNet
 
Intangible Assets Acquired Through Business Combinations
 
Amount
11 
IPR&D |
OpenDNS
 
Intangible Assets Acquired Through Business Combinations
 
Amount
IPR&D |
Other
 
Intangible Assets Acquired Through Business Combinations
 
Amount
TECHNOLOGY
 
Intangible Assets Acquired Through Business Combinations
 
Amount
97 
TECHNOLOGY |
MaintenanceNet
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
5 years 
Amount
50 
TECHNOLOGY |
OpenDNS
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
5 years 
Amount
43 
TECHNOLOGY |
Other
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
5 years 
Amount
CUSTOMER RELATIONSHIPS
 
Intangible Assets Acquired Through Business Combinations
 
Amount
17 
CUSTOMER RELATIONSHIPS |
MaintenanceNet
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
5 years 
Amount
CUSTOMER RELATIONSHIPS |
OpenDNS
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
7 years 
Amount
15 
CUSTOMER RELATIONSHIPS |
Other
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
0 years 
Amount
OTHER |
MaintenanceNet
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
2 years 
Amount
OTHER |
OpenDNS
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
1 year 
Amount
OTHER |
Other
 
Intangible Assets Acquired Through Business Combinations
 
Weighted- Average Useful Life (in Years)
0 years 
Amount
$ 0 
Goodwill and Purchased Intangible Assets (Schedule Of Purchased Intangible Assets With Finite And Indefinite Lives) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Business Acquisition [Line Items]
 
 
Gross
$ 5,228 
$ 5,172 
Accumulated Amortization
(2,965)
(2,813)
Total purchased intangible assets with finite lives, net
2,263 
2,359 
In-process research and development, with indefinite lives
29 
17 
Total finite and indefinite lives Intangible assets, Gross
5,257 
5,189 
Total finite and indefinite lives intangible assets, net
2,292 
2,376 
TECHNOLOGY
 
 
Business Acquisition [Line Items]
 
 
Gross
3,454 
3,418 
Accumulated Amortization
(1,902)
(1,818)
Total purchased intangible assets with finite lives, net
1,552 
1,600 
CUSTOMER RELATIONSHIPS
 
 
Business Acquisition [Line Items]
 
 
Gross
1,716 
1,699 
Accumulated Amortization
(1,036)
(971)
Total purchased intangible assets with finite lives, net
680 
728 
OTHER
 
 
Business Acquisition [Line Items]
 
 
Gross
58 
55 
Accumulated Amortization
(27)
(24)
Total purchased intangible assets with finite lives, net
$ 31 
$ 31 
Goodwill and Purchased Intangible Assets (Schedule Of Amortization Of Purchased Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]
 
 
Amortization of purchased intangible assets
$ 69 
$ 71 
Cost of sales
 
 
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]
 
 
Amortization of purchased intangible assets
146 
189 
Operating expenses
 
 
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]
 
 
Amortization of purchased intangible assets
69 
71 
Total
 
 
Acquired Intangible Asset Amortization by Statement of Operations Class [Line Items]
 
 
Amortization of purchased intangible assets
$ 215 
$ 260 
Goodwill and Purchased Intangible Assets (Schedule Of Estimated Future Amortization Expense Of Purchased Intangible Assets) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract]
 
 
2016 (remaining nine months)
$ 574 
 
2017
619 
 
2018
476 
 
2019
379 
 
2020
162 
 
Thereafter
53 
 
Total purchased intangible assets with finite lives, net
$ 2,263 
$ 2,359 
Goodwill and Purchased Intangible Assets (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Finite-Lived Intangible Assets [Line Items]
 
 
Impairment
$ 0 
$ 0 
Cost of Goods Sold
3,853 
3,919 
Rockstar Consortium
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
Settlement of Patent Infringement Claims (Include capitalized and expensed portion)
 
300 
Cost of Goods Sold
 
$ 188 
Restructuring and Other Charges (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
FISCAL 2015 PLAN
Oct. 24, 2015
FISCAL 2015 PLAN
Oct. 24, 2015
FISCAL 2015 PLAN
Cost of Sales and Operating Expenses
Oct. 24, 2015
FISCAL 2015 PLAN
Cost of sales
Oct. 24, 2015
FISCAL 2015 PLAN
Expected Maximum
Jul. 26, 2014
FISCAL 2014 PLAN
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
Credit to cost of sales
 
 
 
 
$ 1 
 
 
Restructuring Charges
142 
318 
 
141 
 
 
 
Cumulative restructuring charges
 
 
630 
 
 
 
418 
Restructuring and Related Cost, Expected Cost
 
 
 
 
 
$ 700 
 
Balance Sheet Details (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Inventories:
 
 
Raw materials
$ 107 
$ 114 
Work in process
Distributor inventory and deferred cost of sales
631 
610 
Manufactured finished goods
464 
593 
Total finished goods
1,095 
1,203 
Service-related spares
240 
258 
Demonstration systems
39 
50 
Total
1,482 
1,627 
Property and equipment, net:
 
 
Land, buildings, and building and leasehold improvements
4,561 
4,495 
Computer equipment and related software
1,276 
1,310 
Production, engineering, and other equipment
5,742 
5,753 
Operating lease assets
372 
372 
Furniture and fixtures
502 
497 
Property, plant and equipment, gross
12,453 
12,427 
Less: accumulated depreciation and amortization
(9,107)
(9,095)
Total
3,346 
3,332 
Other assets:
 
 
Deferred tax assets
1,583 
1,648 
Investments in privately held companies
928 
897 
Other
759 
618 
Total
3,270 
3,163 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
15,162 
15,183 
Current
9,821 
9,824 
Noncurrent
5,341 
5,359 
Service
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
9,689 
9,757 
Product:
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
5,473 
5,426 
Product: |
Unrecognized revenue on product shipments and other deferred revenue
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
4,888 
4,766 
Product: |
Cash receipts related to unrecognized revenue from two-tier distributors
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Deferred revenue:
$ 585 
$ 660 
Financing Receivables and Operating Leases (Schedule Of Financing Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Oct. 25, 2014
Jul. 26, 2014
Financing Receivables [Line Items]
 
 
 
 
Allowance for credit loss
$ (378)
$ (382)
$ (368)
$ (349)
Current
4,506 
4,491 
 
 
Deferred revenue:
15,162 
15,183 
 
 
Lease Receivables
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
3,317 
3,361 
 
 
Residual value
225 
224 
 
 
Unearned income
(182)
(190)
 
 
Allowance for credit loss
(255)
(259)
 
 
Current
1,447 
1,468 
 
 
Noncurrent
1,658 
1,668 
 
 
Total, net
3,105 
3,136 
 
 
Loan Receivables
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
1,963 
1,763 
 
 
Residual value
 
 
Unearned income
 
 
Allowance for credit loss
(90)
(87)
 
 
Current
931 
856 
 
 
Noncurrent
942 
820 
 
 
Total, net
1,873 
1,676 
 
 
Financed Service Contracts and Other
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
3,598 
3,573 
 
 
Residual value
 
 
Unearned income
 
 
Allowance for credit loss
(33)
(36)
 
 
Current
2,128 
2,167 
 
 
Noncurrent
1,437 
1,370 
 
 
Total, net
3,565 
3,537 
 
 
Total
 
 
 
 
Financing Receivables [Line Items]
 
 
 
 
Gross
8,878 
8,697 
 
 
Residual value
225 
224 
 
 
Unearned income
(182)
(190)
 
 
Allowance for credit loss
(378)
(382)
 
 
Current
4,506 
4,491 
 
 
Noncurrent
4,037 
3,858 
 
 
Total, net
$ 8,543 
$ 8,349 
 
 
Financing Receivables and Operating Leases (Schedule Of Contractual Maturities Of Gross Lease Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Financing Receivables And Guarantees [Abstract]
 
2016 (remaining nine months)
$ 1,307 
2017
1,079 
2018
606 
2019
254 
2020
70 
Thereafter
Total
$ 3,317 
Financing Receivables and Operating Leases (Schedule Of Financing Receivables Categorized By Internal Credit Risk Rating) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
$ 8,696 
$ 8,507 
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
4,820 
4,609 
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
3,556 
3,554 
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
320 
344 
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
8,696 
8,507 
Lease Receivables |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,670 
1,688 
Lease Receivables |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,336 
1,342 
Lease Receivables |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
129 
141 
Lease Receivables |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
3,135 
3,171 
Loan Receivables |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,039 
788 
Loan Receivables |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
783 
823 
Loan Receivables |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
141 
152 
Loan Receivables |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,963 
1,763 
Financed Service Contracts and Other |
1 to 4
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
2,111 
2,133 
Financed Service Contracts and Other |
5 to 6
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
1,437 
1,389 
Financed Service Contracts and Other |
7 and Higher
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
50 
51 
Financed Service Contracts and Other |
Total
 
 
Financing Receivable, Recorded Investment [Line Items]
 
 
Gross receivables less unearned income
$ 3,598 
$ 3,573 
Financing Receivables and Operating Leases (Schedule Of Aging Analysis Of Financing Receivables) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
$ 954 
$ 1,313 
Current
7,742 
7,194 
Total
8,696 
8,507 
Nonaccrual Financing Receivables
126 
134 
Impaired Financing Receivables
95 
114 
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
274 
507 
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
186 
182 
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
494 
624 
Lease Receivables
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
327 
302 
Current
2,808 
2,869 
Total
3,135 
3,171 
Nonaccrual Financing Receivables
83 
73 
Impaired Financing Receivables
72 
73 
Lease Receivables |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
100 
90 
Lease Receivables |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
51 
27 
Lease Receivables |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
176 
185 
Loan Receivables
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
176 
49 
Current
1,787 
1,714 
Total
1,963 
1,763 
Nonaccrual Financing Receivables
17 
32 
Impaired Financing Receivables
17 
32 
Loan Receivables |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
22 
21 
Loan Receivables |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
85 
Loan Receivables |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
69 
25 
Financed Service Contracts and Other
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
451 
962 
Current
3,147 
2,611 
Total
3,598 
3,573 
Nonaccrual Financing Receivables
26 
29 
Impaired Financing Receivables
Financed Service Contracts and Other |
Past due 31-60 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
152 
396 
Financed Service Contracts and Other |
Past due 61-90 days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
50 
152 
Financed Service Contracts and Other |
Past due 91 or above days
 
 
Financing Receivable, Recorded Investment, Past Due [Line Items]
 
 
Past Due Amount
$ 249 
$ 414 
Financing Receivables and Operating Leases (Operating Lease Schedule) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Operating lease [Abstract]
 
 
Operating lease assets
$ 372 
$ 372 
Accumulated depreciation
(207)
(205)
Operating lease assets, net
$ 165 
$ 167 
Financing Receivables and Operating Leases (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 24, 2015
Rating
Jul. 25, 2015
Oct. 25, 2014
Financing Receivables And Guarantees [Line Items]
 
 
 
Average lease term (in years)
4 years 
 
 
Deferred revenue:
$ 15,162,000,000 
$ 15,183,000,000 
 
Financing receivable, allowance for credit loss and deferred revenue
2,308,000,000 
2,253,000,000 
 
Total financing receivables before allowance for credit loss
8,921,000,000 1
8,731,000,000 
8,324,000,000 1
Threshold for past due receivables (in days)
31 days 
 
 
Unbilled or current financing receivables included in greater than 91 days plus past due
333,000,000 
496,000,000 
 
Financing Receivable, 90 Days Past Due and Still Accruing
119,000,000 
70,000,000 
 
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year
100,000,000 
 
 
Minimum future rental from operating leases (per year amount in Fiscal 2017)
100,000,000 
 
 
Investment Credit Risk Ratings Range Lowest
 
 
Investment Credit Risk Ratings Range Highest
10 
 
 
Rating at or higher when receivables deemed impaired
 
 
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 2018)
100,000,000 
 
 
Minimum future rentals from operating leases (per year amount in Fiscal 2019)
100,000,000 
 
 
Minimum future rentals from operating leases (per year amount in Fiscal 2020)
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
 
 
Investment-grade ratings |
Maximum
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Financing credit risk rating-investment-lowest
 
 
Non-investment grade ratings |
Minimum
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Financing credit risk rating-investment-lowest
 
 
Non-investment grade ratings |
Maximum
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Financing credit risk rating-investment-lowest
 
 
Substandard |
Minimum
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Financing credit risk rating-investment-lowest
 
 
Loan Receivables
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Total financing receivables before allowance for credit loss
1,963,000,000 1
 
1,744,000,000 1
Financed Service Contracts and Other
 
 
 
Financing Receivables And Guarantees [Line Items]
 
 
 
Deferred revenue:
1,911,000,000 
1,853,000,000 
 
Total financing receivables before allowance for credit loss
$ 3,598,000,000 1
 
$ 3,071,000,000 1
Investments (Summary Of Available-For-Sale Investments) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
$ 53,010 
$ 53,044 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
430 
566 
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(91)
(71)
Fair Value
53,349 
53,539 
Total fixed income securities
 
 
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
51,916 
51,952 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
162 
86 
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(79)
(64)
Fair Value
51,999 
51,974 
Total fixed income securities |
U.S. government securities
 
 
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
27,409 
29,904 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
63 
41 
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(1)
(6)
Fair Value
27,471 
29,939 
Total fixed income securities |
U.S. government agency securities
 
 
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
3,606 
3,662 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
11 
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(1)
Fair Value
3,617 
3,663 
Total fixed income securities |
Non-U.S. government and agency securities
 
 
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
1,133 
1,128 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(1)
Fair Value
1,136 
1,128 
Total fixed income securities |
Corporate debt securities
 
 
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
18,314 
15,802 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
70 
34 
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(78)
(53)
Fair Value
18,306 
15,783 
Total fixed income securities |
U.S. agency mortgage-backed securities
 
 
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
1,454 
1,456 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
15 
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(3)
Fair Value
1,469 
1,461 
Publicly traded equity securities [Member]
 
 
Available-for-sale investments: [Line Items]
 
 
Amortized Cost
1,094 
1,092 
Available-for-sale Securities, Accumulated Gross Unrealized Gain, before Tax
268 
480 
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax
(12)
(7)
Fair Value
$ 1,350 
$ 1,565 
Investments (Available-For-Sale Investments With Gross Unrealized Losses) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Schedule of Investments [Line Items]
 
 
Fair value of investment securities with unrealized losses less than 12 months
$ 10,304 
$ 18,599 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss
(78)
(67)
Fair value of investment securities with unrealized losses12 months or greater
1,060 
318 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
(13)
(4)
Fair value of investment securities with unrealized losses
11,364 
18,917 
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss
(91)
(71)
Publicly traded equity securities
 
 
Schedule of Investments [Line Items]
 
 
Fair value of investment securities with unrealized losses less than 12 months
103 
108 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss
(11)
(7)
Fair value of investment securities with unrealized losses12 months or greater
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
(1)
Fair value of investment securities with unrealized losses
105 
110 
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss
(12)
(7)
Total fixed income securities
 
 
Schedule of Investments [Line Items]
 
 
Fair value of investment securities with unrealized losses less than 12 months
10,201 
18,491 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss
(67)
(60)
Fair value of investment securities with unrealized losses12 months or greater
1,058 
316 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
(12)
(4)
Fair value of investment securities with unrealized losses
11,259 
18,807 
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss
(79)
(64)
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
2,566 
6,412 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss
(1)
(6)
Fair value of investment securities with unrealized losses12 months or greater
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Fair value of investment securities with unrealized losses
2,566 
6,412 
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss
(1)
(6)
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
80 
1,433 
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
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Fair value of investment securities with unrealized losses
80 
1,433 
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
57 
515 
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
10 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Fair value of investment securities with unrealized losses
67 
519 
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
7,421 
9,552 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss
(66)
(49)
Fair value of investment securities with unrealized losses12 months or greater
1,048 
312 
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
(12)
(4)
Fair value of investment securities with unrealized losses
8,469 
9,864 
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss
(78)
(53)
Total fixed income securities |
U.S. agency mortgage-backed securities
 
 
Schedule of Investments [Line Items]
 
 
Fair value of investment securities with unrealized losses less than 12 months
77 
579 
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss
(3)
Fair value of investment securities with unrealized losses12 months or greater
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss
Fair value of investment securities with unrealized losses
77 
579 
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss
$ 0 
$ (3)
Investments (Maturities Of Fixed Income Securities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Schedule of Investments [Line Items]
 
Amortized Cost
$ 51,916 
Fair Value
51,999 
Less than 1 year
 
Schedule of Investments [Line Items]
 
Amortized Cost
17,274 
Fair Value
17,276 
Due in 1 to 2 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
15,914 
Fair Value
15,950 
Due in 2 to 5 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
17,105 
Fair Value
17,138 
Due after 5 years
 
Schedule of Investments [Line Items]
 
Amortized Cost
1,623 
Fair Value
$ 1,635 
Investments (Equity Method and Cost Method Investment) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
Equity method investments
$ 619 
$ 578 
Cost method investments
309 
319 
Total
$ 928 
$ 897 
Investments (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Jul. 25, 2015
Investments, Debt and Equity Securities [Abstract]
 
 
 
Impairment charges on available-for-sale investments
$ 0 
$ 0 
 
Other than temporary impairment, credit losses recognized in earnings, credit losses on debt securities held
 
 
Average daily balance of securities lending
500,000,000 
1,000,000,000 
 
Fair Value Of Securities Received As Collateral That Can Be Resold Or RePledged Percentage
102.00% 
102.00% 
 
Secured lending transactions outstanding
 
Cost method investment carrying value
$ 309,000,000 
 
$ 319,000,000 
Fair Value (Assets and Liabilities Measured At Fair Value On Recurring Basis) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
$ 58,034 
$ 59,107 
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
4,317 
5,336 
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
25 
14 
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
27,471 
29,939 
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
3,617 
3,663 
Available-for-sale investments: |
Non-U.S. government and agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
1,136 
1,128 
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
18,306 
15,783 
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
1,469 
1,461 
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
1,350 
1,565 
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
343 
218 
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities:
14 
12 
Level 1
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
5,667 
6,901 
Level 1 |
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
4,317 
5,336 
Level 1 |
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 1 |
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 1 |
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
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:
Level 1 |
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 1 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 1 |
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
1,350 
1,565 
Level 1 |
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 1 |
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities:
Level 2
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
52,364 
52,202 
Level 2 |
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 2 |
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
25 
14 
Level 2 |
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
27,471 
29,939 
Level 2 |
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
3,617 
3,663 
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:
1,136 
1,128 
Level 2 |
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
18,306 
15,783 
Level 2 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
1,469 
1,461 
Level 2 |
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 2 |
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
340 
214 
Level 2 |
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities:
14 
12 
Level 3
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Cash equivalents: |
Money market funds
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Cash equivalents: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Available-for-sale investments: |
U.S. government securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Available-for-sale investments: |
U.S. government agency securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
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:
Level 3 |
Available-for-sale investments: |
Corporate debt securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Available-for-sale investments: |
U.S. agency mortgage-backed securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Available-for-sale investments: |
Publicly traded equity securities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Derivative assets
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Assets:
Level 3 |
Derivative liabilities
 
 
Fair Value, Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Liabilities:
$ 0 
$ 0 
Fair Value (Fair Value, Nonrecurring Measurement) (Details) (Level 3, Investments In Privately Held Companies, Other Income (loss), net, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Level 3 |
Investments In Privately Held Companies |
Other Income (loss), net
 
 
Fair Value Assets And Liabilities Measured On Nonrecurring Basis [Line Items]
 
 
Gains (losses) for assets measured on a nonrecurring basis
$ (17)
$ (1)
Fair Value (Additional Information) (Details) (USD $)
Oct. 24, 2015
Jul. 25, 2015
Fair Value Measurements [Line Items]
 
 
Senior notes, carrying value
$ 24,619,000,000 
$ 25,351,000,000 
Level 2
 
 
Fair Value Measurements [Line Items]
 
 
Senior notes, fair value
26,000,000,000 
26,600,000,000 
Senior notes, carrying value
24,600,000,000 
25,400,000,000 
Level 3
 
 
Fair Value Measurements [Line Items]
 
 
Long term loan receivables and financed service contracts and others carrying value
2,400,000,000 
2,200,000,000 
Remaining carrying value of impaired investments [Member] |
Level 3
 
 
Fair Value Measurements [Line Items]
 
 
Assets, Fair Value Disclosure, Nonrecurring
6,000,000 
 
Investments In Privately Held Companies [Member]
 
 
Fair Value Measurements [Line Items]
 
 
Carrying Value, Cost Method Investments
$ 309,000,000 
$ 319,000,000 
Borrowings (Schedule Of Short-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Short-term Debt [Line Items]
 
 
Amount
$ 3,027 
$ 3,897 
Current portion of long-term debt
 
 
Short-term Debt [Line Items]
 
 
Amount
3,025 
3,894 
Effective Rate
3.09% 
2.48% 
Other short-term debt
 
 
Short-term Debt [Line Items]
 
 
Amount
$ 2 
$ 3 
Effective Rate
2.08% 
2.44% 
Borrowings (Schedule Of Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 24, 2015
Jul. 25, 2015
Debt Instrument [Line Items]
 
 
Total
$ 24,400 
$ 25,251 
Unaccreted discount/issuance costs
(128)
(131)
Hedge accounting fair value adjustments
347 
231 
Total
24,619 
25,351 
Current portion of long-term debt
3,025 
3,894 
Long-term debt
21,594 
21,457 
Floating Rate Notes 3-month Libor Plus 0.05% Due September 2015 [Member]
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Sep. 03, 2015 
Sep. 03, 2015 
Notes
850 
Three-month LIBOR plus this Percentage (in %)
0.00% 
0.05% 
Effective Rate
0.00% 
0.43% 
Floating Rate Notes 3-month Libor Plus 0.28% Due March 2017
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Mar. 03, 2017 
Mar. 03, 2017 
Notes
1,000 
1,000 
Three-month LIBOR plus this Percentage (in %)
0.28% 
0.28% 
Effective Rate
0.68% 
0.63% 
Floating Rate Notes 3-month Libor Plus 0.31% Due June 2018
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Jun. 15, 2018 
Jun. 15, 2018 
Notes
900 
900 
Three-month LIBOR plus this Percentage (in %)
0.31% 
0.31% 
Effective Rate
0.71% 
0.65% 
Floating rate notes 3-month Libor plus 0.50% due March 2019
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Mar. 01, 2019 
Mar. 01, 2019 
Notes
500 
500 
Three-month LIBOR plus this Percentage (in %)
0.50% 
0.50% 
Effective Rate
0.88% 
0.84% 
Fixed-Rate Notes, 5.5%, Due February 2016
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Feb. 22, 2016 
Feb. 22, 2016 
Notes
3,000 
3,000 
Debt Instrument, Interest Rate, Stated Percentage
5.50% 
5.50% 
Effective Rate
3.09% 
3.07% 
Fixed-Rate Notes, 1.1%, Due March 2017
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Mar. 03, 2017 
Mar. 03, 2017 
Notes
2,400 
2,400 
Debt Instrument, Interest Rate, Stated Percentage
1.10% 
1.10% 
Effective Rate
0.60% 
0.59% 
Fixed-Rate Notes, 3.15%, Due March 2017
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Mar. 14, 2017 
Mar. 14, 2017 
Notes
750 
750 
Debt Instrument, Interest Rate, Stated Percentage
3.15% 
3.15% 
Effective Rate
0.90% 
0.85% 
Fixed rate notes 1.65% due June 2018
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Jun. 15, 2018 
Jun. 15, 2018 
Notes
1,600 
1,600 
Debt Instrument, Interest Rate, Stated Percentage
1.65% 
1.65% 
Effective Rate
1.72% 
1.72% 
Fixed-Rate Notes, 4.95%, Due February 2019
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Feb. 15, 2019 
Feb. 15, 2019 
Notes
2,000 
2,000 
Debt Instrument, Interest Rate, Stated Percentage
4.95% 
4.95% 
Effective Rate
4.70% 
4.70% 
Fixed-Rate Notes, 2.125%, Due March 2019
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Mar. 01, 2019 
Mar. 01, 2019 
Notes
1,750 
1,750 
Debt Instrument, Interest Rate, Stated Percentage
2.125% 
2.125% 
Effective Rate
0.81% 
0.80% 
Fixed-Rate Notes, 4.45%, Due January 2020
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Jan. 15, 2020 
Jan. 15, 2020 
Notes
2,500 
2,500 
Debt Instrument, Interest Rate, Stated Percentage
4.45% 
4.45% 
Effective Rate
3.02% 
3.01% 
Fixed-Rate Notes, 2.45%, Due June 2020
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Jun. 15, 2020 
Jun. 15, 2020 
Notes
1,500 
1,500 
Debt Instrument, Interest Rate, Stated Percentage
2.45% 
2.45% 
Effective Rate
2.54% 
2.54% 
Fixed-Rate Notes, 2.90%, Due March 2021
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Mar. 04, 2021 
Mar. 04, 2021 
Notes
500 
500 
Debt Instrument, Interest Rate, Stated Percentage
2.90% 
2.90% 
Effective Rate
0.97% 
0.96% 
Fixed-Rate Notes, 3.0 %, Due June 15, 2022 [Member]
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Jun. 15, 2022 
Jun. 15, 2022 
Notes
500 
500 
Debt Instrument, Interest Rate, Stated Percentage
3.00% 
3.00% 
Effective Rate
1.22% 
1.21% 
Fixed-Rate Notes,3.625%, Due March 2024
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Mar. 04, 2024 
Mar. 04, 2024 
Notes
1,000 
1,000 
Debt Instrument, Interest Rate, Stated Percentage
3.625% 
3.625% 
Effective Rate
1.09% 
1.08% 
Fixed-Rate Notes,3.5%, Due June 15, 2025 [Member]
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Jun. 15, 2025 
Jun. 15, 2025 
Notes
500 
500 
Debt Instrument, Interest Rate, Stated Percentage
3.50% 
3.50% 
Effective Rate
1.38% 
1.37% 
Fixed-Rate Notes, 5.9%, Due February 2039
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Feb. 15, 2039 
Feb. 15, 2039 
Notes
2,000 
2,000 
Debt Instrument, Interest Rate, Stated Percentage
5.90% 
5.90% 
Effective Rate
6.11% 
6.11% 
Fixed-Rate Notes, 5.5%, Due January 2040
 
 
Debt Instrument [Line Items]
 
 
Maturity Date
Jan. 15, 2040 
Jan. 15, 2040 
Notes
2,000 
2,000 
Debt Instrument, Interest Rate, Stated Percentage
5.50% 
5.50% 
Effective Rate
5.67% 
5.67% 
Other long-term debt
 
 
Debt Instrument [Line Items]
 
 
Other long-term debt
$ 0 
$ 1 
Effective Rate
   
2.08% 
Borrowings (Schedule Of Future Principal Payments For Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Debt Disclosure [Abstract]
 
 
2016 (remaining nine months)
$ 3,000 
 
2017
4,150 
 
2018
2,500 
 
2019
4,250 
 
2020
4,000 
 
Thereafter
6,500 
 
Total
$ 24,400 
$ 25,251 
Borrowings (Additional Information) (Details) (USD $)
3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Jul. 25, 2015
Oct. 24, 2015
Derivatives designated as hedging instruments:
Interest rate derivatives
Jul. 25, 2015
Derivatives designated as hedging instruments:
Interest rate derivatives
Oct. 24, 2015
Floating Rate Notes 3-month Libor Plus 0.05% Due September 2015 [Member]
Jul. 25, 2015
Floating Rate Notes 3-month Libor Plus 0.05% Due September 2015 [Member]
Oct. 24, 2015
Unsecured revolving credit facility
Oct. 24, 2015
Unsecured revolving credit facility
Federal fund rate plus 0.50% [Member]
Oct. 24, 2015
Unsecured revolving credit facility
One-month LIBOR plus 1%
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Commercial paper, maximum borrowing limit
$ 3,000,000,000 
 
 
 
 
 
 
 
 
 
Commercial paper outstanding, Description
The Company had no commercial paper notes outstanding as of each of October 24, 2015 and July 25, 2015. 
 
 
 
 
 
 
 
 
 
Repayments of Senior Debt
852,000,000 
3,000,000 
 
 
 
850,000,000 
 
 
 
 
Derivative, Notional Amount
15,419,000,000 
 
15,278,000,000 
11,400,000,000 
11,400,000,000 
 
 
 
 
 
Line of Credit Facility, Current Borrowing Capacity
 
 
 
 
 
 
 
3,000,000,000 
 
 
Maturity date
 
 
 
 
 
 
 
May 15, 2020 
 
 
Interest rate based on % above pre-defined market rate
 
 
 
 
 
0.00% 
0.05% 
 
0.50% 
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 highest of (a) the Federal Funds rate plus 0.50%, (b) Bank of America’s “prime rate” as announced from time to time, or (c) LIBOR or a comparable or successor rate which rate is approved by the Administrative Agent (“Eurocurrency Rate”) for an interest period of one-month plus 1.00%, or (ii) the Eurocurrency Rate, plus a margin that is based on the Company’s senior debt credit ratings as published by Standard & Poor’s Financial Services, LLC and Moody’s Investors Service, Inc., provided that in no event will the Eurocurrency Rate be less than zero. The credit agreement requires the Company to comply with certain covenants, including that it maintain an interest coverage ratio as defined in the agreement.  
 
 
Additional credit facility upon agreement
 
 
 
 
 
 
 
2,000,000,000 
 
 
Additional unsecured revolving credit facility maturity date
 
 
 
 
 
 
 
May 15, 2022 
 
 
Commercial Paper
$ 0 
 
$ 0 
 
 
 
 
 
 
 
Derivative Instruments (Derivatives Recorded At Fair Value) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
$ 343 
$ 218 
DERIVATIVE LIABILITIES
14 
12 
Derivatives designated as hedging instruments:
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
339 
212 
DERIVATIVE LIABILITIES
11 
11 
Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
10 
Derivatives designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
11 
11 
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
330 
202 
Derivatives designated as hedging instruments: |
Interest rate derivatives |
Other long-term liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
Derivatives not designated as hedging instruments:
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
DERIVATIVE LIABILITIES
Derivatives not designated as hedging instruments: |
Foreign currency derivatives |
Other current assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
Derivatives not designated as hedging instruments: |
Foreign currency derivatives |
Other current liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
Derivatives not designated as hedging instruments: |
Equity derivatives |
Other assets
 
 
Derivative [Line Items]
 
 
DERIVATIVE ASSETS
Derivatives not designated as hedging instruments: |
Equity derivatives |
Other long-term liabilities
 
 
Derivative [Line Items]
 
 
DERIVATIVE LIABILITIES
$ 0 
$ 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
Oct. 24, 2015
Oct. 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)
$ (4)
$ (56)
GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE THREE MONTHS ENDED (EFFECTIVE PORTION)
(3)
(4)
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)
(4)
(56)
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)
(2)
(3)
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)
(1)
(1)
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)
20 
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 
$ 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
Oct. 24, 2015
Oct. 25, 2014
Hedge Underlying Gain Loss [Line Items]
 
 
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED
$ 127 
$ 79 
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
(125)
(79)
Equity derivatives |
Other income (loss), net
 
 
Hedge Underlying Gain Loss [Line Items]
 
 
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
(6)
Interest rate derivatives |
Interest expense
 
 
Hedge Underlying Gain Loss [Line Items]
 
 
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE THREE MONTHS ENDED
127 
73 
GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE THREE MONTHS ENDED
$ (125)
$ (73)
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
Oct. 24, 2015
Oct. 25, 2014
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE THREE MONTHS ENDED
$ (2)
$ (75)
Foreign currency derivatives |
Other income (loss), net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE THREE MONTHS ENDED
(58)
Total return swaps—deferred compensation |
Operating expenses
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE THREE MONTHS ENDED
(16)
(13)
Equity derivatives |
Other income (loss), net
 
 
Derivative Instruments, Gain (Loss) [Line Items]
 
 
GAINS (LOSSES) FOR THE THREE MONTHS ENDED
$ 10 
$ (4)
Derivative Instruments (Schedule Of Notional Amounts Of Derivatives Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Derivative [Line Items]
 
 
Derivatives
$ 15,419 
$ 15,278 
Derivatives designated as hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
1,083 
1,201 
Derivatives designated as hedging instruments: |
Interest rate derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
11,400 
11,400 
Derivatives designated as hedging instruments: |
Net investment hedging instruments
 
 
Derivative [Line Items]
 
 
Derivatives
219 
192 
Derivatives not designated as hedging instruments: |
Foreign currency derivatives
 
 
Derivative [Line Items]
 
 
Derivatives
2,244 
2,023 
Derivatives not designated as hedging instruments: |
Total return swaps—deferred compensation
 
 
Derivative [Line Items]
 
 
Derivatives
$ 473 
$ 462 
Derivative Instruments (Offsetting of Derivative Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
 
Gross Amount of Recognized Assets
$ 343 
$ 218 
Gross Amounts Offset in Consolidated Balance Sheets
Net Amount Presented on Consolidated Balance Sheets
343 
218 
Gross Derivative Amounts with Legal Rights to Offset
(14)
(12)
Cash Collateral Received
(225)
(124)
Net Amount
104 
82 
Gross Amount of Recognized Liabilities
14 
12 
Gross Amounts Offset in Consolidated Balance Sheets
Net Amount Presented on Consolidated Balance Sheets
14 
12 
Gross Derivative Amounts with Legal Rights to Offset
(14)
(12)
Cash Collateral Pledged
Net Amount
$ 0 
$ 0 
Derivative Instruments (Additional Information) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Jul. 25, 2015
Derivative [Line Items]
 
 
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement
$ 343 
$ 218 
Net derivative gains or losses to be reclassified from AOCI into earnings in next twelve months
 
Description of Interest Rate Derivative Activities
In fiscal 2016, the Company did not enter into any interest rate swaps. In prior fiscal years, the Company entered into interest rate swaps designated as fair value hedges related to fixed-rate senior notes that are due in fiscal years 2016 through 2025. 
 
Net liability position
14 
12 
Derivatives designated as cash flow hedging instruments:
 
 
Derivative [Line Items]
 
 
Foreign currency cash flow hedges maturity period, maximum, months
18 months 
 
Net investment hedging instruments
 
 
Derivative [Line Items]
 
 
Foreign currency cash flow hedges maturity period, maximum, months
6 months 
 
Fixed Income Securities [Member]
 
 
Derivative [Line Items]
 
 
Number of Interest Rate Derivatives Held
Right to request collateral subject to specified credit rating and in net liability position [Member]
 
 
Derivative [Line Items]
 
 
Net liability position
$ 0 
$ 0 
Commitments and Contingencies (Schedule Of Future Minimum Lease Payments Under All Noncancelable Operating Leases) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Commitments and Contingencies Disclosure [Abstract]
 
2016 (remaining nine months)
$ 266 
2017
263 
2018
189 
2019
105 
2020
83 
Thereafter
189 
Total
$ 1,095 
Commitments and Contingencies (Schedule of Other Commitments) (Details) (Acquisition, USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Acquisition
 
 
Contingency [Line Items]
 
 
Other Labor-related Expenses
$ 73 
$ 98 
Commitments and Contingencies (Schedule Of Product Warranty Liability) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward]
 
 
Balance at beginning of period
$ 449 
$ 446 
Provision for warranties issued
150 
143 
Payments
(166)
(153)
Balance at end of period
$ 433 
$ 436 
Commitments and Contingencies (Schedule of Financing Guarantees Outstanding) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
$ 374 
$ 417 
Deferred revenue associated with financing guarantees:
(196)
(234)
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue
178 
183 
Channel partner
 
 
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
250 
288 
Deferred revenue associated with financing guarantees:
(96)
(127)
End user
 
 
Loss Contingencies [Line Items]
 
 
Maximum potential future payments relating to financing guarantees:
124 
129 
Deferred revenue associated with financing guarantees:
$ (100)
$ (107)
Commitments and Contingencies (Additional Information) (Details) (USD $)
3 Months Ended 3 Months Ended 27 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Jul. 25, 2015
Oct. 24, 2015
Minimum
Oct. 24, 2015
Maximum
Oct. 24, 2015
Insieme Networks Inc
Oct. 25, 2014
Insieme Networks Inc
Apr. 28, 2012
Insieme Networks Inc
Oct. 24, 2015
Insieme Networks Inc
Oct. 24, 2015
Insieme Networks Inc
Partial First Milestone Payment [Member]
Oct. 24, 2015
Investments In Privately Held Companies
Jul. 25, 2015
Investments In Privately Held Companies
Apr. 25, 2015
Supplier Component Remediation Liability
Jan. 25, 2014
Supplier Component Remediation Liability
Oct. 24, 2015
Supplier Component Remediation Liability
Jul. 25, 2015
Supplier Component Remediation Liability
Oct. 24, 2015
Russia and the Commonwealth of Independent States [Member]
Oct. 24, 2015
Including compensation that has been expensed through current reporting period [Member]
Insieme Networks Inc
Maximum
Contingency [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase Commitments
$ 4,028,000,000 
 
$ 4,078,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability for purchase commitments
178,000,000 
 
156,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future compensation expense & contingent consideration, maximum
253,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable Interest Entities Investment
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
Ownership percentage as a result of investment
 
 
 
 
 
 
83.00% 
 
 
 
 
 
 
 
 
 
 
 
Compensation expense related to acquisitions
 
 
 
 
 
51,000,000 
53,000,000 
 
674,000,000 
291,000,000 
 
 
 
 
 
 
 
 
Commitments and contingencies
   
 
   
 
 
 
 
 
 
 
192,000,000 
205,000,000 
 
63,000,000 
391,000,000 
408,000,000 
 
841,000,000 
Warranty period for products, in days
 
 
 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warranty period for products, in years
 
 
 
 
5 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Channel partners revolving short-term financing payment term, in days
 
 
 
60 days 
90 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
Volume of channel partner financing
6,900,000,000 
6,300,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance of the channel partner financing subject to guarantees
1,200,000,000 
 
1,200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
End User Lease And Loan Term, in years
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financing provided by third parties for leases and loans on which the Company has provided guarantees
23,000,000 
26,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of Goods Sold
3,853,000,000 
3,919,000,000 
 
 
 
 
 
 
 
 
 
 
(164,000,000)
655,000,000 
 
 
 
 
Brazilian Authority Claim Of Import Tax Evasion By Importer Tax Portion
222,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian Authority Claim Of Import Tax Evasion By Importer Interest Portion
1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Brazilian Authority Claim Of Import Tax Evasion By Importer Penalties Portion
$ 1,000,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of revenue, Percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2.00% 
 
Shareholders' Equity (Stock Repurchase Program) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Stockholders' Equity Note [Abstract]
 
Cumulative Shares Repurchased, Beginning balance (in shares)
4,443 1
Repurchase of Common Stock During Period (in shares)
45 2
Cumulative Shares Repurchased, Ending balance (in shares)
4,488 
Cumulative Weighted-Average Price per Share, Beginning balance, dollars per share
$ 20.86 
Repurchase of common stock under the stock repurchase program, Weighted-Average Price per Share, dollars per share
$ 26.83 
Cumulative Weighted-Average Price per Share, Ending balance, dollars per share
$ 20.92 
Cumulative Amount Repurchased, Beginning balance (in dollars)
$ 92,679 1
Stock Repurchased During the Period (in dollars)
1,207 2
Cumulative Amount Repurchased, Ending balance (in dollars)
$ 93,886 
Shareholders' Equity (Additional Information) (Details) (USD $)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended 3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Oct. 24, 2015
Stock repurchase program
Jul. 25, 2015
Stock repurchase program
Jan. 23, 2016
Subsequent Event [Member]
Class of Stock [Line Items]
 
 
 
 
 
Cash dividends paid per common share (in dollars per share)
$ 0.21 
$ 0.19 
 
 
$ 0.21 
Cash dividends declared (In dollars per share)
$ 0.21 
$ 0.19 
 
 
 
Payments of Dividends
$ 1,068,000,000 
$ 973,000,000 
 
 
 
Dividends Payable, Date Declared
 
 
 
 
Nov. 18, 2015 
Dividends Payable, Date to be Paid
 
 
 
 
Jan. 20, 2016 
Dividends Payable, Date of Record
 
 
 
 
Jan. 06, 2016 
Authorized common stock repurchase amount
97,000,000,000 
 
 
 
 
Remaining authorized repurchase amount
3,100,000,000 
 
 
 
 
Accrued Liabilities, Current
 
 
33,000,000 
36,000,000 
 
Shares Paid for Tax Withholding for Share Based Compensation (shares in million)
15 
14 
 
 
 
Payments Related to Tax Withholding for Share-based Compensation
$ 382,000,000 
$ 342,000,000 
 
 
 
Employee Benefit Plans (Summary Of Share-Based Compensation Expense) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
$ 376 
$ 369 
Income tax benefit for share-based compensation
95 
94 
Cost of sales—product
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
13 
11 
Cost of sales—service
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
38 
37 
Cost of sales
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
51 
48 
Research and development
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
114 
119 
Sales and marketing
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
139 
147 
General and administrative
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
57 
59 
Restructuring and other charges
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
15 
(4)
Operating expenses
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Total share-based compensation expense
$ 325 
$ 321 
Employee Benefit Plans (Summary of Share-Based Awards available for Grant) (Details)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 24, 2015
Jul. 25, 2015
Employee Stock Benefit Plans [Abstract]
 
 
Balance at beginning of fiscal period
276 
310 
Restricted stock, stock units, and other share-based awards granted
(23)
(101)
Share-based awards canceled/forfeited/expired
40 
Shares withheld for taxes and not issued
22 
27 
Other
 
Balance at end of fiscal period
284 
276 
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
3 Months Ended 12 Months Ended
Oct. 24, 2015
Jul. 25, 2015
Restricted Stock/Stock Units
 
 
Restricted Stock and Stock Unit Activity [Roll Forward]
 
 
Beginning balance, Restricted Stock/Stock Units, shares
143 
149 
Granted and assumed
15 
67 
Vested
(37)
(57)
Canceled/forfeited
(5)
(16)
Ending balance, Restricted Stock/Stock Units, shares
116 
143 
Beginning balance, Weighted-Average Grant-Date Fair Value per Share, dollars per share
$ 22.08 
$ 19.54 
Granted and assumed, Weighted-Average Grant-Date Fair Value per Share, dollars per share
$ 24.07 
$ 25.29 
Vested, Weighted-Average Grant-Date Fair Value per Share, dollars per share
$ 20.24 
$ 19.82 
Canceled/forfeited, Weighted-Average Grant-Date Fair Value per Share, dollars per share
$ 22.10 
$ 20.17 
Ending balance, Weighted-Average Grant-Date Fair Value per Share, dollars per share
$ 22.93 
$ 22.08 
Vested, Vest-Date Fair Value in Aggregate
$ 970 
$ 1,517 
Employee Benefit Plans (Summary Of Stock Option Activity) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 24, 2015
Jul. 25, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
 
Beginning balance, Number Outstanding, options
103 
187 
Assumed from acquisitions
Exercised
(17)
(71)
Canceled/forfeited/expired
(5)
(14)
Ending balance, Number Outstanding, options
84 
103 
Weighted-Average Exercise Price per Share, Beginning Balance, dollars per share
$ 28.68 
$ 26.03 
Assumed from acquisitions, Weighted-Average Exercise Price per Share, dollars per share
$ 2.13 
$ 2.60 
Exercised, Weighted-Average Exercise Price per Share, dollars per share
$ 22.10 
$ 21.15 
Canceled/forfeited/expired, Weighted-Average Exercise Price per Share, dollars per share
$ 30.15 
$ 29.68 
Weighted-Average Exercise Price per Share, Ending Balance, dollars per share
$ 29.09 
$ 28.68 
Employee Benefit Plans (Summary Of Significant Ranges Of Outstanding And Exercisable Stock Options) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Jul. 25, 2015
Jul. 26, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
84 
103 
187 
Weighted- Average Remaining Contractual Life (in Year/Month/Date))
1 year 2 months 12 days 
 
 
Weighted- Average Exercise Price per Share
$ 29.09 
$ 28.68 
$ 26.03 
Aggregate Intrinsic Value (Outstanding Options)
$ 198 
 
 
Number Exercisable, shares
81 
102 
 
Weighted- Average Exercise Price per Share
$ 29.99 
$ 29.02 
 
Aggregate Intrinsic Value (Exercisable Options)
124 
 
 
$ 0.01 – 20.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
 
 
Weighted- Average Remaining Contractual Life (in Year/Month/Date))
6 years 1 month 6 days 
 
 
Weighted- Average Exercise Price per Share
$ 3.88 
 
 
Aggregate Intrinsic Value (Outstanding Options)
150 
 
 
Number Exercisable, shares
 
 
Weighted- Average Exercise Price per Share
$ 5.14 
 
 
Aggregate Intrinsic Value (Exercisable Options)
76 
 
 
$ 20.01 – 25.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
 
 
Weighted- Average Remaining Contractual Life (in Year/Month/Date))
0 years 10 months 24 days 
 
 
Weighted- Average Exercise Price per Share
$ 23.12 
 
 
Aggregate Intrinsic Value (Outstanding Options)
16 
 
 
Number Exercisable, shares
 
 
Weighted- Average Exercise Price per Share
$ 23.12 
 
 
Aggregate Intrinsic Value (Exercisable Options)
16 
 
 
$ 25.01 – 30.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
13 
 
 
Weighted- Average Remaining Contractual Life (in Year/Month/Date))
0 years 9 months 18 days 
 
 
Weighted- Average Exercise Price per Share
$ 26.84 
 
 
Aggregate Intrinsic Value (Outstanding Options)
32 
 
 
Number Exercisable, shares
13 
 
 
Weighted- Average Exercise Price per Share
$ 26.85 
 
 
Aggregate Intrinsic Value (Exercisable Options)
32 
 
 
$30.01 - 35.00
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number Outstanding (in shares)
63 
 
 
Weighted- Average Remaining Contractual Life (in Year/Month/Date))
0 years 10 months 24 days 
 
 
Weighted- Average Exercise Price per Share
$ 32.16 
 
 
Aggregate Intrinsic Value (Outstanding Options)
 
 
Number Exercisable, shares
63 
 
 
Weighted- Average Exercise Price per Share
$ 32.16 
 
 
Aggregate Intrinsic Value (Exercisable Options)
$ 0 
 
 
Employee Benefit Plans (Additional Information) (Details) (USD $)
In Billions, except Share data, unless otherwise specified
3 Months Ended
Oct. 24, 2015
stock_incentive_plan
Oct. 23, 2015
Jul. 25, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of stock incentive plans
 
 
Total compensation cost related to unvested share-based awards
$ 2.3 
 
 
Expected period of recognition of compensation cost, years
2 years 7 months 18 days 
 
 
Closing stock price
 
$ 29.35 
 
In-the-money exercisable stock option shares
18,000,000 
 
 
Number Exercisable, shares
81,000,000 
 
102,000,000 
Weighted- Average Exercise Price per Share
$ 29.99 
 
$ 29.02 
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. 
 
 
2005 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Shares reserved for issuance (in shares)
694,000,000 
 
 
Exercise price as a percentage of market value for Options (in percentage)
100.00% 
 
 
PRSU allocation between Financial operating goals and TSR
50.00% 
 
 
2005 Plan |
Stock awards prior to November 12, 2009 |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expiration date for stock options and stock appreciation rights (in years)
9 years 
 
 
2005 Plan |
Stock awards subsequent to November 12, 2009 [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Reduction in shares available for issuance pursuant to November 12, 2009 amendment (ratio)
1.5 
 
 
2005 Plan |
Stock awards subsequent to November 12, 2009 [Member] |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expiration date for stock options and stock appreciation rights (in years)
10 years 
 
 
2005 Plan |
Employee Stock Option |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
20.00% 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
36 months 
 
 
2005 Plan |
Employee Stock Option |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
25.00% 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
48 months 
 
 
2005 Plan |
Time based stock award |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
20.00% 
 
 
2005 Plan |
Time based stock award |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
25.00% 
 
 
2005 Plan |
Performance base and Market base RSU [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
3 years 
 
 
2005 Plan |
PRSU based on financial performance metrics |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
0.00% 
 
 
2005 Plan |
PRSU based on financial performance metrics |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
150.00% 
 
 
2005 Plan |
PRSU based on TSR [Member] |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
0.00% 
 
 
2005 Plan |
PRSU based on TSR [Member] |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
150.00% 
 
 
2005 Plan |
Performance based RSU based on Financial or nonFinancial operating goal [Member] |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
6 months 
 
 
2005 Plan |
Performance based RSU based on Financial or nonFinancial operating goal [Member] |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
3 years 
 
 
2005 Plan |
PRSU based on nonfinancial operating goals |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
0.00% 
 
 
2005 Plan |
PRSU based on nonfinancial operating goals |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Award Vesting Rights, Percentage
100.00% 
 
 
1996 Plan
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Shares reserved for issuance (in shares)
2,500,000,000 
 
 
Termination of Stock Plan
Dec. 31, 2006 
 
 
Exercise price as a percentage of market value for Options (in percentage)
100.00% 
 
 
Expiration date for stock options and stock appreciation rights (in years)
9 years 
 
 
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 
 
 
1996 Plan |
Employee Stock Option
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
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% 
 
 
1996 Plan |
Employee Stock Option |
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
36 months 
 
 
1996 Plan |
Employee Stock Option |
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period
48 months 
 
 
Employee Benefit Plans (Additional Information- Employee Stock Purchase Plan) (Details) (Employee Stock Purchase Plan)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Employee Stock Purchase Plan
 
 
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items]
 
 
Shares reserved for issuance (in shares)
621 
 
Employee Stock Ownership Plan (ESOP), Plan Description
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.  
 
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date
15.00% 
 
Termination of Stock Plan
Jan. 03, 2020 
 
Stock Issued During Period, Shares, Employee Stock Ownership Plan
Shares available for issuance
148 
 
Comprehensive Income (AOCI components) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Jul. 25, 2015
Oct. 24, 2015
Net Unrealized Gains on Available-for-Sale Investments
Oct. 25, 2014
Net Unrealized Gains on Available-for-Sale Investments
Oct. 24, 2015
Net Unrealized Losses Cash Flow Hedging Instruments
Oct. 25, 2014
Net Unrealized Losses Cash Flow Hedging Instruments
Oct. 24, 2015
Cumulative Translation Adjustment and Actuarial Gains and Losses
Oct. 25, 2014
Cumulative Translation Adjustment and Actuarial Gains and Losses
Oct. 24, 2015
Accumulated Other Comprehensive Income (Loss)
Oct. 25, 2014
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
AOCI Balance
$ (252)
$ 61 
$ 310 
$ 424 
$ (16)
$ (12)
$ (233)
$ 265 
$ 61 
$ 677 
Other comprehensive income (loss) before reclassifications attributable to Cisco Systems, Inc.
 
 
(155)
(36)
(4)
(56)
(178)
(161)
(337)
(253)
(Gains) losses reclassified out of AOCI
 
 
(7)
(3)
Tax benefit (expense)
 
 
56 
16 
(39)
11 
19 
30 
AOCI Balance
$ (252)
$ 61 
$ 212 
$ 397 
$ (15)
$ (61)
$ (449)
$ 115 
$ (252)
$ 451 
Comprehensive Income (Reclassification out of other comprehensive income) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Net Unrealized Gains on Available-for-Sale 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
$ (1)
$ 7 
Derivatives designated as cash flow hedging instruments:
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Total amounts reclassified out of AOCI
(3)
(4)
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 AOCI
(2)
(3)
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 AOCI
(1)
(1)
Cumulative translation adjustment and Actuarial gains and losses [Member] |
Operating expenses
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Total amounts reclassified out of AOCI
(1)
Total Cisco Shareholders’ Equity
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
 
 
Total amounts reclassified out of AOCI
$ (5)
$ 3 
Income Taxes (Income Before Provision For Income Taxes) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Income Tax Disclosure [Abstract]
 
 
INCOME BEFORE PROVISION FOR INCOME TAXES
$ 3,137 
$ 2,360 
Provision for income taxes
$ 707 
$ 532 
Effective Income Tax Rate Reconciliation, Percent
22.50% 
22.50% 
Income Taxes (Additional Information) (Details) (USD $)
Oct. 24, 2015
Income Tax Disclosure [Abstract]
 
Unrecognized Tax Benefits
$ 2,100,000,000 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
1,800,000,000 
Unrecognized tax benefit that could be reduced in next 12 months
$ 825,000,000 
Segment Information and Major Customers (Summary Of Reportable Segments) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Segment Reporting Information [Line Items]
 
 
Revenue
$ 12,682 
$ 12,245 
Gross margin
7,832 
7,333 
Unallocated corporate items
 
 
Segment Reporting Information [Line Items]
 
 
Gross margin
(178)
(417)
Americas
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
7,799 
7,501 
Gross margin
4,950 
4,810 
EMEA
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
3,087 
3,002 
Gross margin
1,982 
1,915 
APJC
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
1,796 
1,742 
Gross margin
1,078 
1,025 
Consolidated by Segment
 
 
Segment Reporting Information [Line Items]
 
 
Revenue
12,682 
12,245 
Total by Segment
 
 
Segment Reporting Information [Line Items]
 
 
Gross margin
$ 8,010 
$ 7,750 
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
Oct. 24, 2015
Oct. 25, 2014
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
$ 12,682 
$ 12,245 
Switching
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
4,022 
3,846 
NGN Routing
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
1,793 
1,949 
Collaboration
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
1,115 
950 
Data Center
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
859 
692 
Service Provider Video
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
850 
871 
Wireless
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
645 
605 
Security
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
485 
455 
Other
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
75 
67 
Product
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
9,844 
9,435 
Service
 
 
Segment Reporting, Revenue Reconciling Item [Line Items]
 
 
Revenue
$ 2,838 
$ 2,810 
Segment Information and Major Customers (Property and Equipment Information for Geographic Areas) (Details) (USD $)
In Millions, unless otherwise specified
Oct. 24, 2015
Jul. 25, 2015
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
$ 3,346 
$ 3,332 
United States
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
2,727 
2,733 
International
 
 
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
Property and equipment, net
$ 619 
$ 599 
Segment Information and Major Customers (Additional Information) (Details) (USD $)
3 Months Ended
Oct. 24, 2015
Oct. 25, 2014
Jul. 25, 2015
Segment Reporting Information [Line Items]
 
 
 
Number of geographic segments
 
 
Revenue
$ 12,682,000,000 
$ 12,245,000,000 
 
United States
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Revenue
6,900,000,000 
6,500,000,000 
 
Cash and cash equivalents and investments
5,000,000,000 
 
7,000,000,000 
International
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Cash and cash equivalents and investments
$ 54,100,000,000 
 
$ 53,400,000,000 
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
Oct. 24, 2015
Oct. 25, 2014
Earnings Per Share [Abstract]
 
 
Net income
$ 2,430 
$ 1,828 
Weighted-average shares—basic (in shares)
5,080 
5,112 
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements (in shares)
33 
44 
Weighted-average shares—diluted (in shares)
5,113 
5,156 
Net income per share—basic
$ 0.48 
$ 0.36 
Net income per share—diluted
$ 0.48 
$ 0.35 
Antidilutive employee share-based awards, excluded (in shares)
86 
114