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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 | 4,563 | $ | 23,651 | $ | 72,146 | $ | 95,797 |
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1. | Basis of Presentation |
|
2. | Recent Accounting Pronouncements |
|
3. | Acquisitions and Divestitures |
Purchase Consideration | Net Tangible Assets Acquired (Liabilities Assumed) | Purchased Intangible Assets | Goodwill | ||||||||||||
MaintenanceNet | $ | 105 | $ | (21 | ) | $ | 65 | $ | 61 | ||||||
OpenDNS | 545 | (9 | ) | 61 | 493 | ||||||||||
Lancope | 410 | (34 | ) | 121 | 323 | ||||||||||
Acano | 528 | (27 | ) | 103 | 452 | ||||||||||
Leaba | 219 | (18 | ) | 96 | 141 | ||||||||||
Jasper | 1,234 | 5 | 361 | 868 | |||||||||||
CliQr | 225 | (3 | ) | 69 | 159 | ||||||||||
Others (five in total) | 112 | (17 | ) | 64 | 65 | ||||||||||
Total | $ | 3,378 | $ | (124 | ) | $ | 940 | $ | 2,562 |
|
4. | Goodwill and Purchased Intangible Assets |
(a) | Goodwill |
Balance at | Balance at | ||||||||||||||||||
July 25, 2015 | Acquisitions | Divestiture | Other | April 30, 2016 | |||||||||||||||
Americas | $ | 15,212 | $ | 1,607 | $ | (126 | ) | $ | (80 | ) | $ | 16,613 | |||||||
EMEA | 5,791 | 554 | (12 | ) | (31 | ) | 6,302 | ||||||||||||
APJC | 3,466 | 401 | (3 | ) | (17 | ) | 3,847 | ||||||||||||
Total | $ | 24,469 | $ | 2,562 | $ | (141 | ) | $ | (128 | ) | $ | 26,762 |
(b) | Purchased Intangible Assets |
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 | |||||||||||||||||
Lancope | 5.0 | 79 | 6.0 | 29 | 3.0 | 3 | 10 | 121 | |||||||||||||||||
Acano | 5.0 | 9 | 5.0 | 12 | 0.0 | — | 82 | 103 | |||||||||||||||||
Leaba | 0.0 | — | 0.0 | — | 0.0 | — | 96 | 96 | |||||||||||||||||
Jasper | 6.0 | 240 | 7.0 | 75 | 2.0 | 23 | 23 | 361 | |||||||||||||||||
CliQr | 6.0 | 65 | 6.0 | 3 | 2.0 | 1 | — | 69 | |||||||||||||||||
Others (five in total) | 4.1 | 58 | 6.3 | 6 | 0.0 | — | — | 64 | |||||||||||||||||
Total | $ | 544 | $ | 142 | $ | 31 | $ | 223 | $ | 940 |
April 30, 2016 | Gross | Accumulated Amortization | Net | |||||||||
Purchased intangible assets with finite lives: | ||||||||||||
Technology | $ | 3,103 | $ | (1,297 | ) | $ | 1,806 | |||||
Customer relationships | 1,821 | (1,156 | ) | 665 | ||||||||
Other | 85 | (36 | ) | 49 | ||||||||
Total purchased intangible assets with finite lives | 5,009 | (2,489 | ) | 2,520 | ||||||||
In-process research and development, with indefinite lives | 224 | — | 224 | |||||||||
Total | $ | 5,233 | $ | (2,489 | ) | $ | 2,744 |
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 |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Amortization of purchased intangible assets: | |||||||||||||||
Cost of sales | $ | 134 | $ | 187 | $ | 419 | $ | 618 | |||||||
Operating expenses | 81 | 70 | 221 | 213 | |||||||||||
Total | $ | 215 | $ | 257 | $ | 640 | $ | 831 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 211 | |
2017 | 742 | ||
2018 | 595 | ||
2019 | 502 | ||
2020 | 276 | ||
Thereafter | 194 | ||
Total | $ | 2,520 |
|
5. | Restructuring and Other Charges |
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 | — | (1 | ) | 224 | 32 | 255 | ||||||||||||||
Cash payments | (11 | ) | (3 | ) | (227 | ) | (10 | ) | (251 | ) | ||||||||||
Non-cash items | — | — | — | (21 | ) | (21 | ) | |||||||||||||
Liability as of April 30, 2016 | $ | — | $ | 10 | $ | 46 | $ | 16 | $ | 72 |
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6. | Balance Sheet Details |
April 30, 2016 | July 25, 2015 | |||||||
Inventories: | ||||||||
Raw materials | $ | 108 | $ | 114 | ||||
Work in process | — | 2 | ||||||
Finished goods: | ||||||||
Distributor inventory and deferred cost of sales | 513 | 610 | ||||||
Manufactured finished goods | 469 | 593 | ||||||
Total finished goods | 982 | 1,203 | ||||||
Service-related spares | 234 | 258 | ||||||
Demonstration systems | 19 | 50 | ||||||
Total | $ | 1,343 | $ | 1,627 |
Property and equipment, net: | ||||||||
Gross property and equipment: | ||||||||
Land, buildings, and building and leasehold improvements | $ | 4,706 | $ | 4,495 | ||||
Computer equipment and related software | 1,384 | 1,310 | ||||||
Production, engineering, and other equipment | 5,700 | 5,753 | ||||||
Operating lease assets | 325 | 372 | ||||||
Furniture and fixtures | 527 | 497 | ||||||
Total gross property and equipment | 12,642 | 12,427 | ||||||
Less: accumulated depreciation and amortization | (9,113 | ) | (9,095 | ) | ||||
Total | $ | 3,529 | $ | 3,332 |
Other assets: | ||||||||
Deferred tax assets | $ | 1,345 | $ | 1,648 | ||||
Investments in privately held companies | 976 | 897 | ||||||
Other | 827 | 618 | ||||||
Total | $ | 3,148 | $ | 3,163 |
Deferred revenue: | ||||||||
Service | $ | 9,866 | $ | 9,757 | ||||
Product: | ||||||||
Unrecognized revenue on product shipments and other deferred revenue | 4,987 | 4,766 | ||||||
Cash receipts related to unrecognized revenue from two-tier distributors | 419 | 660 | ||||||
Total product deferred revenue | 5,406 | 5,426 | ||||||
Total | $ | 15,272 | $ | 15,183 | ||||
Reported as: | ||||||||
Current | $ | 9,662 | $ | 9,824 | ||||
Noncurrent | 5,610 | 5,359 | ||||||
Total | $ | 15,272 | $ | 15,183 |
|
7. | Financing Receivables and Operating Leases |
(a) | Financing Receivables |
April 30, 2016 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Gross | $ | 3,245 | $ | 2,223 | $ | 3,504 | $ | 8,972 | |||||||
Residual value | 205 | — | — | 205 | |||||||||||
Unearned income | (178 | ) | — | — | (178 | ) | |||||||||
Allowance for credit loss | (250 | ) | (93 | ) | (40 | ) | (383 | ) | |||||||
Total, net | $ | 3,022 | $ | 2,130 | $ | 3,464 | $ | 8,616 | |||||||
Reported as: | |||||||||||||||
Current | $ | 1,495 | $ | 1,052 | $ | 2,169 | $ | 4,716 | |||||||
Noncurrent | 1,527 | 1,078 | 1,295 | 3,900 | |||||||||||
Total, net | $ | 3,022 | $ | 2,130 | $ | 3,464 | $ | 8,616 |
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 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 408 | |
2017 | 1,430 | ||
2018 | 833 | ||
2019 | 402 | ||
2020 | 152 | ||
Thereafter | 20 | ||
Total | $ | 3,245 |
(b) | Credit Quality of Financing Receivables |
INTERNAL CREDIT RISK RATING | |||||||||||||||
April 30, 2016 | 1 to 4 | 5 to 6 | 7 and Higher | Total | |||||||||||
Lease receivables | $ | 1,677 | $ | 1,276 | $ | 114 | $ | 3,067 | |||||||
Loan receivables | 991 | 1,079 | 153 | 2,223 | |||||||||||
Financed service contracts and other | 2,216 | 1,242 | 46 | 3,504 | |||||||||||
Total | $ | 4,884 | $ | 3,597 | $ | 313 | $ | 8,794 |
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 |
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) | |||||||||||||||||||||||||||||||
April 30, 2016 | 31-60 | 61-90 | 91+ | Total Past Due | Current | Total | Nonaccrual Financing Receivables | Impaired Financing Receivables | |||||||||||||||||||||||
Lease receivables | $ | 41 | $ | 44 | $ | 181 | $ | 266 | $ | 2,801 | $ | 3,067 | $ | 67 | $ | 65 | |||||||||||||||
Loan receivables | 51 | 11 | 78 | 140 | 2,083 | 2,223 | 47 | 47 | |||||||||||||||||||||||
Financed service contracts and other | 79 | 115 | 237 | 431 | 3,073 | 3,504 | 36 | 16 | |||||||||||||||||||||||
Total | $ | 171 | $ | 170 | $ | 496 | $ | 837 | $ | 7,957 | $ | 8,794 | $ | 150 | $ | 128 |
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 |
(c) | Allowance for Credit Loss Rollforward |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Three months ended April 30, 2016 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of January 23, 2016 | $ | 248 | $ | 80 | $ | 37 | $ | 365 | |||||||
Provisions | 7 | 8 | 2 | 17 | |||||||||||
Recoveries (write-offs), net | (6 | ) | — | — | (6 | ) | |||||||||
Foreign exchange and other | 1 | 5 | 1 | 7 | |||||||||||
Allowance for credit loss as of April 30, 2016 | $ | 250 | $ | 93 | $ | 40 | $ | 383 |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Nine months ended April 30, 2016 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of July 25, 2015 | $ | 259 | $ | 87 | $ | 36 | $ | 382 | |||||||
Provisions | 3 | 2 | 7 | 12 | |||||||||||
Recoveries (write-offs), net | (10 | ) | — | (4 | ) | (14 | ) | ||||||||
Foreign exchange and other | (2 | ) | 4 | 1 | 3 | ||||||||||
Allowance for credit loss as of April 30, 2016 | $ | 250 | $ | 93 | $ | 40 | $ | 383 |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Three months ended April 25, 2015 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of January 24, 2015 | $ | 250 | $ | 85 | $ | 40 | $ | 375 | |||||||
Provisions | (4 | ) | (5 | ) | (2 | ) | (11 | ) | |||||||
Recoveries (write-offs), net | (1 | ) | — | — | (1 | ) | |||||||||
Foreign exchange and other | (3 | ) | — | (1 | ) | (4 | ) | ||||||||
Allowance for credit loss as of April 25, 2015 | $ | 242 | $ | 80 | $ | 37 | $ | 359 |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Nine months ended April 25, 2015 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of July 26, 2014 | $ | 233 | $ | 98 | $ | 18 | $ | 349 | |||||||
Provisions | 25 | (15 | ) | 21 | 31 | ||||||||||
Recoveries (write-offs), net | (6 | ) | 1 | — | (5 | ) | |||||||||
Foreign exchange and other | (10 | ) | (4 | ) | (2 | ) | (16 | ) | |||||||
Allowance for credit loss as of April 25, 2015 | $ | 242 | $ | 80 | $ | 37 | $ | 359 |
(d) | Operating Leases |
April 30, 2016 | July 25, 2015 | ||||||
Operating lease assets | $ | 325 | $ | 372 | |||
Accumulated depreciation | (184 | ) | (205 | ) | |||
Operating lease assets, net | $ | 141 | $ | 167 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 54 | |
2017 | 189 | ||
2018 | 129 | ||
2019 | 39 | ||
2020 | 8 | ||
Thereafter | 5 | ||
Total | $ | 424 |
|
8. | Investments |
(a) | Summary of Available-for-Sale Investments |
April 30, 2016 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Fixed income securities: | |||||||||||||||
U.S. government securities | $ | 24,003 | $ | 44 | $ | (3 | ) | $ | 24,044 | ||||||
U.S. government agency securities | 2,883 | 5 | — | 2,888 | |||||||||||
Non-U.S. government and agency securities | 1,063 | 2 | — | 1,065 | |||||||||||
Corporate debt securities | 23,193 | 160 | (37 | ) | 23,316 | ||||||||||
U.S. agency mortgage-backed securities | 1,746 | 16 | — | 1,762 | |||||||||||
Total fixed income securities | 52,888 | 227 | (40 | ) | 53,075 | ||||||||||
Publicly traded equity securities | 1,354 | 218 | (30 | ) | 1,542 | ||||||||||
Total | $ | 54,242 | $ | 445 | $ | (70 | ) | $ | 54,617 |
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 |
(b) | Gains and Losses on Available-for-Sale Investments |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Gross realized gains | $ | 68 | $ | 55 | $ | 119 | $ | 168 | |||||||
Gross realized losses | (74 | ) | (11 | ) | (145 | ) | (48 | ) | |||||||
Total | $ | (6 | ) | $ | 44 | $ | (26 | ) | $ | 120 |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Net gains/(losses) on investments in publicly traded equity securities | $ | 25 | $ | 38 | $ | 18 | $ | 94 | |||||||
Net gains/(losses) on investments in fixed income securities | (31 | ) | 6 | (44 | ) | 26 | |||||||||
Total | $ | (6 | ) | $ | 44 | $ | (26 | ) | $ | 120 |
UNREALIZED LOSSES LESS THAN 12 MONTHS | UNREALIZED LOSSES 12 MONTHS OR GREATER | TOTAL | |||||||||||||||||||||
April 30, 2016 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. government securities | $ | 4,315 | $ | (3 | ) | $ | — | $ | — | $ | 4,315 | $ | (3 | ) | |||||||||
U.S. government agency securities | 287 | — | — | — | 287 | — | |||||||||||||||||
Non-U.S. government and agency securities | 192 | — | — | — | 192 | — | |||||||||||||||||
Corporate debt securities | 5,145 | (27 | ) | 1,089 | (10 | ) | 6,234 | (37 | ) | ||||||||||||||
U.S. agency mortgage-backed securities | 137 | — | 18 | — | 155 | — | |||||||||||||||||
Total fixed income securities | 10,076 | (30 | ) | 1,107 | (10 | ) | 11,183 | (40 | ) | ||||||||||||||
Publicly traded equity securities | 320 | (30 | ) | — | — | 320 | (30 | ) | |||||||||||||||
Total | $ | 10,396 | $ | (60 | ) | $ | 1,107 | $ | (10 | ) | $ | 11,503 | $ | (70 | ) |
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 | ) |
(c) | Maturities of Fixed Income Securities |
Amortized Cost | Fair Value | ||||||
Less than 1 year | $ | 13,883 | $ | 13,890 | |||
Due in 1 to 2 years | 17,460 | 17,487 | |||||
Due in 2 to 5 years | 19,610 | 19,745 | |||||
Due after 5 years | 1,935 | 1,953 | |||||
Total | $ | 52,888 | $ | 53,075 |
(d) | Securities Lending |
(e) | Investments in Privately Held Companies |
April 30, 2016 | July 25, 2015 | ||||||
Equity method investments | $ | 609 | $ | 578 | |||
Cost method investments | 367 | 319 | |||||
Total | $ | 976 | $ | 897 |
|
9. | Fair Value |
(a) | Fair Value Hierarchy |
(b) | Assets and Liabilities Measured at Fair Value on a Recurring Basis |
APRIL 30, 2016 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 | $ | 7,178 | $ | — | $ | — | $ | 7,178 | $ | 5,336 | $ | — | $ | — | $ | 5,336 | |||||||||||||||
Corporate debt securities | — | 3 | — | 3 | — | 14 | — | 14 | |||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||
U.S. government securities | — | 24,044 | — | 24,044 | — | 29,939 | — | 29,939 | |||||||||||||||||||||||
U.S. government agency securities | — | 2,888 | — | 2,888 | — | 3,663 | — | 3,663 | |||||||||||||||||||||||
Non-U.S. government and agency securities | — | 1,065 | — | 1,065 | — | 1,128 | — | 1,128 | |||||||||||||||||||||||
Corporate debt securities | — | 23,316 | — | 23,316 | — | 15,783 | — | 15,783 | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | — | 1,762 | — | 1,762 | — | 1,461 | — | 1,461 | |||||||||||||||||||||||
Publicly traded equity securities | 1,542 | — | — | 1,542 | 1,565 | — | — | 1,565 | |||||||||||||||||||||||
Derivative assets | — | 345 | — | 345 | — | 214 | 4 | 218 | |||||||||||||||||||||||
Total | $ | 8,720 | $ | 53,423 | $ | — | $ | 62,143 | $ | 6,901 | $ | 52,202 | $ | 4 | $ | 59,107 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | $ | 12 | $ | — | $ | 12 | |||||||||||||||
Total | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | $ | 12 | $ | — | $ | 12 |
(c) | Assets Measured at Fair Value on a Nonrecurring Basis |
LOSSES FOR THE THREE MONTHS ENDED | LOSSES FOR THE NINE MONTHS ENDED | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Investments in privately held companies (impaired) | $ | (7 | ) | $ | (17 | ) | $ | (63 | ) | $ | (20 | ) | |||
Purchased intangible assets (impaired) | (7 | ) | (1 | ) | (44 | ) | (57 | ) | |||||||
Property held for sale - land and buildings | — | (5 | ) | — | (5 | ) | |||||||||
Total | $ | (14 | ) | $ | (23 | ) | $ | (107 | ) | $ | (82 | ) |
(d) | Other Fair Value Disclosures |
|
10. | Borrowings |
(a) | Short-Term Debt |
April 30, 2016 | July 25, 2015 | ||||||||||||
Amount | Effective Rate | Amount | Effective Rate | ||||||||||
Current portion of long-term debt | $ | 4,163 | 0.94 | % | $ | 3,894 | 2.48 | % | |||||
Other short-term debt | 1 | 2.08 | % | 3 | 2.44 | % | |||||||
Total | $ | 4,164 | $ | 3,897 |
(b) | Long-Term Debt |
April 30, 2016 | 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 | 0.98% | 1,000 | 0.63% | ||||||||
Three-month LIBOR plus 0.60% | February 21, 2018 | (1) | 1,000 | 1.30% | — | — | |||||||
Three-month LIBOR plus 0.31% | June 15, 2018 | 900 | 1.01% | 900 | 0.65% | ||||||||
Three-month LIBOR plus 0.50% | March 1, 2019 | 500 | 1.20% | 500 | 0.84% | ||||||||
Fixed-rate notes: | |||||||||||||
5.50% | February 22, 2016 | — | — | 3,000 | 3.07% | ||||||||
1.10% | March 3, 2017 | 2,400 | 0.84% | 2,400 | 0.59% | ||||||||
3.15% | March 14, 2017 | 750 | 1.20% | 750 | 0.85% | ||||||||
1.40% | February 28, 2018 | (1) | 1,250 | 1.47% | — | — | |||||||
1.65% | June 15, 2018 | 1,600 | 1.72% | 1,600 | 1.72% | ||||||||
4.95% | February 15, 2019 | 2,000 | 4.76% | 2,000 | 4.70% | ||||||||
1.60% | February 28, 2019 | (1) | 1,000 | 1.67% | — | — | |||||||
2.125% | March 1, 2019 | 1,750 | 1.05% | 1,750 | 0.80% | ||||||||
4.45% | January 15, 2020 | 2,500 | 3.21% | 2,500 | 3.01% | ||||||||
2.45% | June 15, 2020 | 1,500 | 2.54% | 1,500 | 2.54% | ||||||||
2.20% | February 28, 2021 | (1) | 2,500 | 2.30% | — | — | |||||||
2.90% | March 4, 2021 | 500 | 1.21% | 500 | 0.96% | ||||||||
3.00% | June 15, 2022 | 500 | 1.46% | 500 | 1.21% | ||||||||
2.60% | February 28, 2023 | (1) | 500 | 2.68% | — | — | |||||||
3.625% | March 4, 2024 | 1,000 | 1.33% | 1,000 | 1.08% | ||||||||
3.50% | June 15, 2025 | 500 | 1.62% | 500 | 1.37% | ||||||||
2.95% | February 28, 2026 | (1) | 750 | 3.01% | — | — | |||||||
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 | 28,400 | 25,251 | |||||||||||
Unaccreted discount/issuance costs | (141 | ) | (131 | ) | |||||||||
Hedge accounting fair value adjustments | 335 | 231 | |||||||||||
Total | $ | 28,594 | $ | 25,351 | |||||||||
Reported as: | |||||||||||||
Current portion of long-term debt | $ | 4,163 | $ | 3,894 | |||||||||
Long-term debt | 24,431 | 21,457 | |||||||||||
Total | $ | 28,594 | $ | 25,351 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | — | |
2017 | 4,150 | ||
2018 | 4,750 | ||
2019 | 5,250 | ||
2020 | 4,000 | ||
Thereafter | 10,250 | ||
Total | $ | 28,400 |
(c) | Credit Facility |
|
11. | Derivative Instruments |
(a) | Summary of Derivative Instruments |
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||
Balance Sheet Line Item | April 30, 2016 | July 25, 2015 | Balance Sheet Line Item | April 30, 2016 | July 25, 2015 | ||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency derivatives | Other current assets | $ | 13 | $ | 10 | Other current liabilities | $ | 3 | $ | 11 | |||||||||
Interest rate derivatives | Other assets | 332 | 202 | Other long-term liabilities | — | — | |||||||||||||
Total | 345 | 212 | 3 | 11 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency derivatives | Other current assets | — | 2 | Other current liabilities | 1 | 1 | |||||||||||||
Equity derivatives | Other assets | — | 4 | Other long-term liabilities | — | — | |||||||||||||
Total | — | 6 | 1 | 1 | |||||||||||||||
Total | $ | 345 | $ | 218 | $ | 4 | $ | 12 |
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) | |||||||||||||||||
April 30, 2016 | April 25, 2015 | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | 21 | $ | (32 | ) | Operating expenses | $ | (7 | ) | $ | (50 | ) | ||||||
Cost of sales—service | (2 | ) | (14 | ) | ||||||||||||||
Total | $ | 21 | $ | (32 | ) | $ | (9 | ) | $ | (64 | ) | |||||||
Derivatives designated as net investment hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (15 | ) | $ | 2 | Other income (loss), net | $ | — | $ | — |
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE NINE MONTHS ENDED (EFFECTIVE PORTION) | GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE NINE MONTHS ENDED (EFFECTIVE PORTION) | |||||||||||||||||
April 30, 2016 | April 25, 2015 | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (3 | ) | $ | (163 | ) | Operating expenses | $ | (13 | ) | $ | (74 | ) | |||||
Cost of sales—service | (4 | ) | (20 | ) | ||||||||||||||
Total | $ | (3 | ) | $ | (163 | ) | $ | (17 | ) | $ | (94 | ) | ||||||
Derivatives designated as net investment hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (4 | ) | $ | 46 | Other income (loss), net | $ | — | $ | — |
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 | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||
Equity derivatives | Other income (loss), net | $ | — | $ | (8 | ) | $ | — | $ | 8 | ||||||||
Interest rate derivatives | Interest expense | 19 | (9 | ) | (18 | ) | 9 | |||||||||||
Total | $ | 19 | $ | (17 | ) | $ | (18 | ) | $ | 17 |
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE NINE MONTHS ENDED | GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE NINE MONTHS ENDED | |||||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||
Equity derivatives | Other income (loss), net | $ | — | $ | (20 | ) | $ | — | $ | 20 | ||||||||
Interest rate derivatives | Interest expense | 130 | 122 | (125 | ) | (125 | ) | |||||||||||
Total | $ | 130 | $ | 102 | $ | (125 | ) | $ | (105 | ) |
GAINS (LOSSES) FOR THE THREE MONTHS ENDED | GAINS (LOSSES) FOR THE NINE MONTHS ENDED | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||
Foreign currency derivatives | Other income (loss), net | $ | 80 | $ | (56 | ) | $ | 26 | $ | (165 | ) | |||||||
Total return swaps—deferred compensation | Operating expenses | 46 | 23 | (8 | ) | 23 | ||||||||||||
Equity derivatives | Other income (loss), net | 1 | 6 | 14 | 10 | |||||||||||||
Total | $ | 127 | $ | (27 | ) | $ | 32 | $ | (132 | ) |
April 30, 2016 | July 25, 2015 | ||||||
Derivatives designated as hedging instruments: | |||||||
Foreign currency derivatives—cash flow hedges | $ | 958 | $ | 1,201 | |||
Interest rate derivatives | 9,900 | 11,400 | |||||
Net investment hedging instruments | 180 | 192 | |||||
Derivatives not designated as hedging instruments: | |||||||
Foreign currency derivatives | 1,925 | 2,023 | |||||
Total return swaps—deferred compensation | 470 | 462 | |||||
Total | $ | 13,433 | $ | 15,278 |
(b) | Offsetting of Derivative Instruments |
April 30, 2016 | |||||||||||||||||||||||
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 | $ | 345 | $ | — | $ | 345 | $ | (4 | ) | $ | (247 | ) | $ | 94 | |||||||||
Derivatives liabilities | $ | 4 | $ | — | $ | 4 | $ | (4 | ) | $ | — | $ | — |
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 |
(d) | Interest Rate Risk |
(e) | Equity Price Risk |
(f) | Hedge Effectiveness |
|
12. | Commitments and Contingencies |
(a) | Operating Leases |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 95 | |
2017 | 288 | ||
2018 | 220 | ||
2019 | 130 | ||
2020 | 106 | ||
Thereafter | 229 | ||
Total | $ | 1,068 |
(b) | Purchase Commitments with Contract Manufacturers and Suppliers |
(c) | Other Commitments |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Compensation expense related to acquisitions | $ | 68 | $ | 72 | $ | 212 | $ | 264 |
(d) | Product Warranties |
Nine Months Ended | |||||||
April 30, 2016 | April 25, 2015 | ||||||
Balance at beginning of period | $ | 449 | $ | 446 | |||
Provision for warranties issued | 512 | 517 | |||||
Payments | (524 | ) | (512 | ) | |||
Divestitures | (28 | ) | — | ||||
Balance at end of period | $ | 409 | $ | 451 |
(e) | Financing and Other Guarantees |
April 30, 2016 | July 25, 2015 | ||||||
Maximum potential future payments relating to financing guarantees: | |||||||
Channel partner | $ | 228 | $ | 288 | |||
End user | 104 | 129 | |||||
Total | $ | 332 | $ | 417 | |||
Deferred revenue associated with financing guarantees: | |||||||
Channel partner | $ | (98 | ) | $ | (127 | ) | |
End user | (82 | ) | (107 | ) | |||
Total | $ | (180 | ) | $ | (234 | ) | |
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue | $ | 152 | $ | 183 |
(f) | Supplier Component Remediation Liability |
(g) | Indemnifications |
(h) | Legal Proceedings |
|
14. | Employee Benefit Plans |
(a) | Employee Stock Incentive Plans |
(b) | Employee Stock Purchase Plan |
(c) | Summary of Share-Based Compensation Expense |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Cost of sales—product | $ | 21 | $ | 12 | $ | 50 | $ | 34 | |||||||
Cost of sales—service | 37 | 44 | 110 | 115 | |||||||||||
Share-based compensation expense in cost of sales | 58 | 56 | 160 | 149 | |||||||||||
Research and development | 130 | 114 | 351 | 338 | |||||||||||
Sales and marketing | 148 | 147 | 413 | 408 | |||||||||||
General and administrative | 59 | 50 | 163 | 151 | |||||||||||
Restructuring and other charges | — | — | 14 | (2 | ) | ||||||||||
Share-based compensation expense in operating expenses | 337 | 311 | 941 | 895 | |||||||||||
Total share-based compensation expense | $ | 395 | $ | 367 | $ | 1,101 | $ | 1,044 | |||||||
Income tax benefit for share-based compensation | $ | 91 | $ | 88 | $ | 289 | $ | 267 |
(d) | Share-Based Awards Available for Grant |
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 | (68 | ) |
Share-based awards canceled/forfeited/expired | 26 | |
Shares withheld for taxes and not issued | 26 | |
Other | 1 | |
BALANCE AT APRIL 30, 2016 | 261 |
(e) | Restricted Stock and Stock Unit Awards |
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 | 51 | 24.73 | ||||||||
Vested | (46 | ) | 20.33 | $ | 1,188 | |||||
Canceled/forfeited | (12 | ) | 22.75 | |||||||
UNVESTED BALANCE AT APRIL 30, 2016 | 136 | $ | 23.60 |
(f) | Stock Option Awards |
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 | 18 | 5.14 | ||||
Exercised | (25 | ) | 19.60 | |||
Canceled/forfeited/expired | (13 | ) | 29.62 | |||
BALANCE AT APRIL 30, 2016 | 83 | $ | 26.16 |
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 | 17 | 6.4 | $ | 5.49 | $ | 366 | 6 | $ | 5.11 | $ | 138 | |||||||||||||
$ 20.01 – 25.00 | 2 | 0.6 | 22.97 | 7 | 2 | 22.97 | 7 | |||||||||||||||||
$ 25.01 – 30.00 | 7 | 0.7 | 26.88 | 8 | 7 | 26.88 | 8 | |||||||||||||||||
$ 30.01 – 35.00 | 57 | 0.4 | 32.16 | — | 57 | 32.16 | — | |||||||||||||||||
Total | 83 | 1.6 | $ | 26.16 | $ | 381 | 72 | $ | 29.12 | $ | 153 |
(g) | Valuation of Employee Share-Based Awards |
RESTRICTED STOCK UNITS | PERFORMANCE RESTRICTED STOCK UNITS | ||||||||||||||
Three Months Ended | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||
Number of shares granted (in millions) | 2 | 33 | 1 | 1 | |||||||||||
Grant date fair value per share | $ | 24.01 | $ | 25.31 | $ | 23.32 | $ | 25.87 | |||||||
Weighted-average assumptions/inputs: | |||||||||||||||
Expected dividend yield | 3.6 | % | 2.8 | % | 3.6 | % | 3.0 | % | |||||||
Range of risk-free interest rates | 0.2% – 1.1% | 0.0% – 1.4% | 0.2% – 1.1% | 0.0% – 1.4% | |||||||||||
Range of expected volatilities for index | N/A | N/A | N/A | N/A |
RESTRICTED STOCK UNITS | PERFORMANCE RESTRICTED STOCK UNITS | ||||||||||||||
Nine Months Ended | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||
Number of shares granted (in millions) | 38 | 44 | 5 | 8 | |||||||||||
Grant date fair value per share | $ | 24.87 | $ | 24.83 | $ | 24.56 | $ | 23.97 | |||||||
Weighted-average assumptions/inputs: | |||||||||||||||
Expected dividend yield | 3.2 | % | 2.9 | % | 3.0 | % | 3.0 | % | |||||||
Range of risk-free interest rates | 0.0% – 1.2% | 0.0% – 1.8% | 0.0% – 1.2% | 0.0% – 1.8% | |||||||||||
Range of expected volatilities for index | N/A | N/A | 15.3% – 54.3% | 14.4% – 70.0% |
|
15. | Comprehensive Income |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (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. | (145 | ) | (3 | ) | (190 | ) | (338 | ) | |||||||
(Gains) losses reclassified out of AOCI | 26 | 17 | 2 | 45 | |||||||||||
Tax benefit (expense) | 50 | (2 | ) | (43 | ) | 5 | |||||||||
BALANCE AT APRIL 30, 2016 | $ | 241 | $ | (4 | ) | $ | (464 | ) | $ | (227 | ) |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (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. | 111 | (163 | ) | (473 | ) | (525 | ) | ||||||||
(Gains) losses reclassified out of AOCI | (120 | ) | 94 | — | (26 | ) | |||||||||
Tax benefit (expense) | 8 | 3 | 50 | 61 | |||||||||||
BALANCE AT APRIL 25, 2015 | $ | 423 | $ | (78 | ) | $ | (158 | ) | $ | 187 |
Three Months Ended | Nine Months Ended | |||||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||||
Comprehensive Income Components | Income Before Taxes | Income Before Taxes | Line Item in Statements of Operations | |||||||||||||||
Net unrealized gains on available-for-sale investments | ||||||||||||||||||
$ | (6 | ) | $ | 44 | $ | (26 | ) | $ | 120 | Other income (loss), net | ||||||||
Net unrealized losses on cash flow hedging instruments | ||||||||||||||||||
Foreign currency derivatives | (7 | ) | (50 | ) | (13 | ) | (74 | ) | Operating expenses | |||||||||
Foreign currency derivatives | (2 | ) | (14 | ) | (4 | ) | (20 | ) | Cost of sales—service | |||||||||
(9 | ) | (64 | ) | (17 | ) | (94 | ) | |||||||||||
Cumulative translation adjustment and actuarial gains and losses | ||||||||||||||||||
(1 | ) | — | (2 | ) | — | Operating expenses | ||||||||||||
Total amounts reclassified out of AOCI | $ | (16 | ) | $ | (20 | ) | $ | (45 | ) | $ | 26 |
|
16. | Income Taxes |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Income before provision for income taxes | $ | 3,083 | $ | 3,035 | $ | 9,526 | $ | 8,268 | |||||||
Provision for income taxes | $ | 734 | $ | 598 | $ | 1,600 | $ | 1,606 | |||||||
Effective tax rate | 23.8 | % | 19.7 | % | 16.8 | % | 19.4 | % |
|
17. | Segment Information and Major Customers |
(a) | Revenue and Gross Margin by Segment |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Americas | $ | 7,062 | $ | 7,252 | $ | 21,773 | $ | 21,854 | |||||||
EMEA | 3,001 | 3,119 | 9,176 | 9,212 | |||||||||||
APJC | 1,937 | 1,766 | 5,660 | 5,252 | |||||||||||
Total | $ | 12,000 | $ | 12,137 | $ | 36,609 | $ | 36,318 | |||||||
Gross margin: | |||||||||||||||
Americas | $ | 4,684 | $ | 4,560 | $ | 14,046 | $ | 13,776 | |||||||
EMEA | 1,966 | 1,949 | 5,953 | 5,774 | |||||||||||
APJC | 1,170 | 1,080 | 3,437 | 3,157 | |||||||||||
Segment total | 7,820 | 7,589 | 23,436 | 22,707 | |||||||||||
Unallocated corporate items | (99 | ) | (64 | ) | (451 | ) | (759 | ) | |||||||
Total | $ | 7,721 | $ | 7,525 | $ | 22,985 | $ | 21,948 |
(b) | Revenue for Groups of Similar Products and Services |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Switching | $ | 3,447 | $ | 3,560 | $ | 10,952 | $ | 11,021 | |||||||
NGN Routing | 1,894 | 1,999 | 5,532 | 5,712 | |||||||||||
Collaboration | 1,069 | 974 | 3,203 | 2,915 | |||||||||||
Data Center | 811 | 801 | 2,492 | 2,339 | |||||||||||
Service Provider Video (1) | 468 | 914 | 1,980 | 2,561 | |||||||||||
Wireless | 615 | 611 | 1,873 | 1,827 | |||||||||||
Security | 482 | 412 | 1,429 | 1,283 | |||||||||||
Other | 89 | 55 | 241 | 181 | |||||||||||
Product | 8,875 | 9,326 | 27,702 | 27,839 | |||||||||||
Service | 3,125 | 2,811 | 8,907 | 8,479 | |||||||||||
Total | $ | 12,000 | $ | 12,137 | $ | 36,609 | $ | 36,318 |
(c) | Additional Segment Information |
April 30, 2016 | July 25, 2015 | ||||||
Property and equipment, net: | |||||||
United States | $ | 2,823 | $ | 2,733 | |||
International | 706 | 599 | |||||
Total | $ | 3,529 | $ | 3,332 |
|
(a) | Fair Value Hierarchy |
|
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 | 4,563 | $ | 23,651 | $ | 72,146 | $ | 95,797 |
|
Purchase Consideration | Net Tangible Assets Acquired (Liabilities Assumed) | Purchased Intangible Assets | Goodwill | ||||||||||||
MaintenanceNet | $ | 105 | $ | (21 | ) | $ | 65 | $ | 61 | ||||||
OpenDNS | 545 | (9 | ) | 61 | 493 | ||||||||||
Lancope | 410 | (34 | ) | 121 | 323 | ||||||||||
Acano | 528 | (27 | ) | 103 | 452 | ||||||||||
Leaba | 219 | (18 | ) | 96 | 141 | ||||||||||
Jasper | 1,234 | 5 | 361 | 868 | |||||||||||
CliQr | 225 | (3 | ) | 69 | 159 | ||||||||||
Others (five in total) | 112 | (17 | ) | 64 | 65 | ||||||||||
Total | $ | 3,378 | $ | (124 | ) | $ | 940 | $ | 2,562 |
|
Balance at | Balance at | ||||||||||||||||||
July 25, 2015 | Acquisitions | Divestiture | Other | April 30, 2016 | |||||||||||||||
Americas | $ | 15,212 | $ | 1,607 | $ | (126 | ) | $ | (80 | ) | $ | 16,613 | |||||||
EMEA | 5,791 | 554 | (12 | ) | (31 | ) | 6,302 | ||||||||||||
APJC | 3,466 | 401 | (3 | ) | (17 | ) | 3,847 | ||||||||||||
Total | $ | 24,469 | $ | 2,562 | $ | (141 | ) | $ | (128 | ) | $ | 26,762 |
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 | |||||||||||||||||
Lancope | 5.0 | 79 | 6.0 | 29 | 3.0 | 3 | 10 | 121 | |||||||||||||||||
Acano | 5.0 | 9 | 5.0 | 12 | 0.0 | — | 82 | 103 | |||||||||||||||||
Leaba | 0.0 | — | 0.0 | — | 0.0 | — | 96 | 96 | |||||||||||||||||
Jasper | 6.0 | 240 | 7.0 | 75 | 2.0 | 23 | 23 | 361 | |||||||||||||||||
CliQr | 6.0 | 65 | 6.0 | 3 | 2.0 | 1 | — | 69 | |||||||||||||||||
Others (five in total) | 4.1 | 58 | 6.3 | 6 | 0.0 | — | — | 64 | |||||||||||||||||
Total | $ | 544 | $ | 142 | $ | 31 | $ | 223 | $ | 940 |
April 30, 2016 | Gross | Accumulated Amortization | Net | |||||||||
Purchased intangible assets with finite lives: | ||||||||||||
Technology | $ | 3,103 | $ | (1,297 | ) | $ | 1,806 | |||||
Customer relationships | 1,821 | (1,156 | ) | 665 | ||||||||
Other | 85 | (36 | ) | 49 | ||||||||
Total purchased intangible assets with finite lives | 5,009 | (2,489 | ) | 2,520 | ||||||||
In-process research and development, with indefinite lives | 224 | — | 224 | |||||||||
Total | $ | 5,233 | $ | (2,489 | ) | $ | 2,744 |
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 |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Amortization of purchased intangible assets: | |||||||||||||||
Cost of sales | $ | 134 | $ | 187 | $ | 419 | $ | 618 | |||||||
Operating expenses | 81 | 70 | 221 | 213 | |||||||||||
Total | $ | 215 | $ | 257 | $ | 640 | $ | 831 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 211 | |
2017 | 742 | ||
2018 | 595 | ||
2019 | 502 | ||
2020 | 276 | ||
Thereafter | 194 | ||
Total | $ | 2,520 |
|
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 | — | (1 | ) | 224 | 32 | 255 | ||||||||||||||
Cash payments | (11 | ) | (3 | ) | (227 | ) | (10 | ) | (251 | ) | ||||||||||
Non-cash items | — | — | — | (21 | ) | (21 | ) | |||||||||||||
Liability as of April 30, 2016 | $ | — | $ | 10 | $ | 46 | $ | 16 | $ | 72 |
|
April 30, 2016 | July 25, 2015 | |||||||
Inventories: | ||||||||
Raw materials | $ | 108 | $ | 114 | ||||
Work in process | — | 2 | ||||||
Finished goods: | ||||||||
Distributor inventory and deferred cost of sales | 513 | 610 | ||||||
Manufactured finished goods | 469 | 593 | ||||||
Total finished goods | 982 | 1,203 | ||||||
Service-related spares | 234 | 258 | ||||||
Demonstration systems | 19 | 50 | ||||||
Total | $ | 1,343 | $ | 1,627 |
Property and equipment, net: | ||||||||
Gross property and equipment: | ||||||||
Land, buildings, and building and leasehold improvements | $ | 4,706 | $ | 4,495 | ||||
Computer equipment and related software | 1,384 | 1,310 | ||||||
Production, engineering, and other equipment | 5,700 | 5,753 | ||||||
Operating lease assets | 325 | 372 | ||||||
Furniture and fixtures | 527 | 497 | ||||||
Total gross property and equipment | 12,642 | 12,427 | ||||||
Less: accumulated depreciation and amortization | (9,113 | ) | (9,095 | ) | ||||
Total | $ | 3,529 | $ | 3,332 |
Other assets: | ||||||||
Deferred tax assets | $ | 1,345 | $ | 1,648 | ||||
Investments in privately held companies | 976 | 897 | ||||||
Other | 827 | 618 | ||||||
Total | $ | 3,148 | $ | 3,163 |
Deferred revenue: | ||||||||
Service | $ | 9,866 | $ | 9,757 | ||||
Product: | ||||||||
Unrecognized revenue on product shipments and other deferred revenue | 4,987 | 4,766 | ||||||
Cash receipts related to unrecognized revenue from two-tier distributors | 419 | 660 | ||||||
Total product deferred revenue | 5,406 | 5,426 | ||||||
Total | $ | 15,272 | $ | 15,183 | ||||
Reported as: | ||||||||
Current | $ | 9,662 | $ | 9,824 | ||||
Noncurrent | 5,610 | 5,359 | ||||||
Total | $ | 15,272 | $ | 15,183 |
|
April 30, 2016 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Gross | $ | 3,245 | $ | 2,223 | $ | 3,504 | $ | 8,972 | |||||||
Residual value | 205 | — | — | 205 | |||||||||||
Unearned income | (178 | ) | — | — | (178 | ) | |||||||||
Allowance for credit loss | (250 | ) | (93 | ) | (40 | ) | (383 | ) | |||||||
Total, net | $ | 3,022 | $ | 2,130 | $ | 3,464 | $ | 8,616 | |||||||
Reported as: | |||||||||||||||
Current | $ | 1,495 | $ | 1,052 | $ | 2,169 | $ | 4,716 | |||||||
Noncurrent | 1,527 | 1,078 | 1,295 | 3,900 | |||||||||||
Total, net | $ | 3,022 | $ | 2,130 | $ | 3,464 | $ | 8,616 |
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 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 408 | |
2017 | 1,430 | ||
2018 | 833 | ||
2019 | 402 | ||
2020 | 152 | ||
Thereafter | 20 | ||
Total | $ | 3,245 |
INTERNAL CREDIT RISK RATING | |||||||||||||||
April 30, 2016 | 1 to 4 | 5 to 6 | 7 and Higher | Total | |||||||||||
Lease receivables | $ | 1,677 | $ | 1,276 | $ | 114 | $ | 3,067 | |||||||
Loan receivables | 991 | 1,079 | 153 | 2,223 | |||||||||||
Financed service contracts and other | 2,216 | 1,242 | 46 | 3,504 | |||||||||||
Total | $ | 4,884 | $ | 3,597 | $ | 313 | $ | 8,794 |
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 |
DAYS PAST DUE (INCLUDES BILLED AND UNBILLED) | |||||||||||||||||||||||||||||||
April 30, 2016 | 31-60 | 61-90 | 91+ | Total Past Due | Current | Total | Nonaccrual Financing Receivables | Impaired Financing Receivables | |||||||||||||||||||||||
Lease receivables | $ | 41 | $ | 44 | $ | 181 | $ | 266 | $ | 2,801 | $ | 3,067 | $ | 67 | $ | 65 | |||||||||||||||
Loan receivables | 51 | 11 | 78 | 140 | 2,083 | 2,223 | 47 | 47 | |||||||||||||||||||||||
Financed service contracts and other | 79 | 115 | 237 | 431 | 3,073 | 3,504 | 36 | 16 | |||||||||||||||||||||||
Total | $ | 171 | $ | 170 | $ | 496 | $ | 837 | $ | 7,957 | $ | 8,794 | $ | 150 | $ | 128 |
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 |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Three months ended April 30, 2016 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of January 23, 2016 | $ | 248 | $ | 80 | $ | 37 | $ | 365 | |||||||
Provisions | 7 | 8 | 2 | 17 | |||||||||||
Recoveries (write-offs), net | (6 | ) | — | — | (6 | ) | |||||||||
Foreign exchange and other | 1 | 5 | 1 | 7 | |||||||||||
Allowance for credit loss as of April 30, 2016 | $ | 250 | $ | 93 | $ | 40 | $ | 383 |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Nine months ended April 30, 2016 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of July 25, 2015 | $ | 259 | $ | 87 | $ | 36 | $ | 382 | |||||||
Provisions | 3 | 2 | 7 | 12 | |||||||||||
Recoveries (write-offs), net | (10 | ) | — | (4 | ) | (14 | ) | ||||||||
Foreign exchange and other | (2 | ) | 4 | 1 | 3 | ||||||||||
Allowance for credit loss as of April 30, 2016 | $ | 250 | $ | 93 | $ | 40 | $ | 383 |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Three months ended April 25, 2015 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of January 24, 2015 | $ | 250 | $ | 85 | $ | 40 | $ | 375 | |||||||
Provisions | (4 | ) | (5 | ) | (2 | ) | (11 | ) | |||||||
Recoveries (write-offs), net | (1 | ) | — | — | (1 | ) | |||||||||
Foreign exchange and other | (3 | ) | — | (1 | ) | (4 | ) | ||||||||
Allowance for credit loss as of April 25, 2015 | $ | 242 | $ | 80 | $ | 37 | $ | 359 |
CREDIT LOSS ALLOWANCES | |||||||||||||||
Nine months ended April 25, 2015 | Lease Receivables | Loan Receivables | Financed Service Contracts and Other | Total | |||||||||||
Allowance for credit loss as of July 26, 2014 | $ | 233 | $ | 98 | $ | 18 | $ | 349 | |||||||
Provisions | 25 | (15 | ) | 21 | 31 | ||||||||||
Recoveries (write-offs), net | (6 | ) | 1 | — | (5 | ) | |||||||||
Foreign exchange and other | (10 | ) | (4 | ) | (2 | ) | (16 | ) | |||||||
Allowance for credit loss as of April 25, 2015 | $ | 242 | $ | 80 | $ | 37 | $ | 359 |
April 30, 2016 | July 25, 2015 | ||||||
Operating lease assets | $ | 325 | $ | 372 | |||
Accumulated depreciation | (184 | ) | (205 | ) | |||
Operating lease assets, net | $ | 141 | $ | 167 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 54 | |
2017 | 189 | ||
2018 | 129 | ||
2019 | 39 | ||
2020 | 8 | ||
Thereafter | 5 | ||
Total | $ | 424 |
|
April 30, 2016 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Fixed income securities: | |||||||||||||||
U.S. government securities | $ | 24,003 | $ | 44 | $ | (3 | ) | $ | 24,044 | ||||||
U.S. government agency securities | 2,883 | 5 | — | 2,888 | |||||||||||
Non-U.S. government and agency securities | 1,063 | 2 | — | 1,065 | |||||||||||
Corporate debt securities | 23,193 | 160 | (37 | ) | 23,316 | ||||||||||
U.S. agency mortgage-backed securities | 1,746 | 16 | — | 1,762 | |||||||||||
Total fixed income securities | 52,888 | 227 | (40 | ) | 53,075 | ||||||||||
Publicly traded equity securities | 1,354 | 218 | (30 | ) | 1,542 | ||||||||||
Total | $ | 54,242 | $ | 445 | $ | (70 | ) | $ | 54,617 |
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 |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Gross realized gains | $ | 68 | $ | 55 | $ | 119 | $ | 168 | |||||||
Gross realized losses | (74 | ) | (11 | ) | (145 | ) | (48 | ) | |||||||
Total | $ | (6 | ) | $ | 44 | $ | (26 | ) | $ | 120 |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Net gains/(losses) on investments in publicly traded equity securities | $ | 25 | $ | 38 | $ | 18 | $ | 94 | |||||||
Net gains/(losses) on investments in fixed income securities | (31 | ) | 6 | (44 | ) | 26 | |||||||||
Total | $ | (6 | ) | $ | 44 | $ | (26 | ) | $ | 120 |
UNREALIZED LOSSES LESS THAN 12 MONTHS | UNREALIZED LOSSES 12 MONTHS OR GREATER | TOTAL | |||||||||||||||||||||
April 30, 2016 | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | |||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||
U.S. government securities | $ | 4,315 | $ | (3 | ) | $ | — | $ | — | $ | 4,315 | $ | (3 | ) | |||||||||
U.S. government agency securities | 287 | — | — | — | 287 | — | |||||||||||||||||
Non-U.S. government and agency securities | 192 | — | — | — | 192 | — | |||||||||||||||||
Corporate debt securities | 5,145 | (27 | ) | 1,089 | (10 | ) | 6,234 | (37 | ) | ||||||||||||||
U.S. agency mortgage-backed securities | 137 | — | 18 | — | 155 | — | |||||||||||||||||
Total fixed income securities | 10,076 | (30 | ) | 1,107 | (10 | ) | 11,183 | (40 | ) | ||||||||||||||
Publicly traded equity securities | 320 | (30 | ) | — | — | 320 | (30 | ) | |||||||||||||||
Total | $ | 10,396 | $ | (60 | ) | $ | 1,107 | $ | (10 | ) | $ | 11,503 | $ | (70 | ) |
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 | ) |
Amortized Cost | Fair Value | ||||||
Less than 1 year | $ | 13,883 | $ | 13,890 | |||
Due in 1 to 2 years | 17,460 | 17,487 | |||||
Due in 2 to 5 years | 19,610 | 19,745 | |||||
Due after 5 years | 1,935 | 1,953 | |||||
Total | $ | 52,888 | $ | 53,075 |
April 30, 2016 | July 25, 2015 | ||||||
Equity method investments | $ | 609 | $ | 578 | |||
Cost method investments | 367 | 319 | |||||
Total | $ | 976 | $ | 897 |
|
APRIL 30, 2016 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 | $ | 7,178 | $ | — | $ | — | $ | 7,178 | $ | 5,336 | $ | — | $ | — | $ | 5,336 | |||||||||||||||
Corporate debt securities | — | 3 | — | 3 | — | 14 | — | 14 | |||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||||
U.S. government securities | — | 24,044 | — | 24,044 | — | 29,939 | — | 29,939 | |||||||||||||||||||||||
U.S. government agency securities | — | 2,888 | — | 2,888 | — | 3,663 | — | 3,663 | |||||||||||||||||||||||
Non-U.S. government and agency securities | — | 1,065 | — | 1,065 | — | 1,128 | — | 1,128 | |||||||||||||||||||||||
Corporate debt securities | — | 23,316 | — | 23,316 | — | 15,783 | — | 15,783 | |||||||||||||||||||||||
U.S. agency mortgage-backed securities | — | 1,762 | — | 1,762 | — | 1,461 | — | 1,461 | |||||||||||||||||||||||
Publicly traded equity securities | 1,542 | — | — | 1,542 | 1,565 | — | — | 1,565 | |||||||||||||||||||||||
Derivative assets | — | 345 | — | 345 | — | 214 | 4 | 218 | |||||||||||||||||||||||
Total | $ | 8,720 | $ | 53,423 | $ | — | $ | 62,143 | $ | 6,901 | $ | 52,202 | $ | 4 | $ | 59,107 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Derivative liabilities | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | $ | 12 | $ | — | $ | 12 | |||||||||||||||
Total | $ | — | $ | 4 | $ | — | $ | 4 | $ | — | $ | 12 | $ | — | $ | 12 |
LOSSES FOR THE THREE MONTHS ENDED | LOSSES FOR THE NINE MONTHS ENDED | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Investments in privately held companies (impaired) | $ | (7 | ) | $ | (17 | ) | $ | (63 | ) | $ | (20 | ) | |||
Purchased intangible assets (impaired) | (7 | ) | (1 | ) | (44 | ) | (57 | ) | |||||||
Property held for sale - land and buildings | — | (5 | ) | — | (5 | ) | |||||||||
Total | $ | (14 | ) | $ | (23 | ) | $ | (107 | ) | $ | (82 | ) |
|
April 30, 2016 | July 25, 2015 | ||||||||||||
Amount | Effective Rate | Amount | Effective Rate | ||||||||||
Current portion of long-term debt | $ | 4,163 | 0.94 | % | $ | 3,894 | 2.48 | % | |||||
Other short-term debt | 1 | 2.08 | % | 3 | 2.44 | % | |||||||
Total | $ | 4,164 | $ | 3,897 |
April 30, 2016 | 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 | 0.98% | 1,000 | 0.63% | ||||||||
Three-month LIBOR plus 0.60% | February 21, 2018 | (1) | 1,000 | 1.30% | — | — | |||||||
Three-month LIBOR plus 0.31% | June 15, 2018 | 900 | 1.01% | 900 | 0.65% | ||||||||
Three-month LIBOR plus 0.50% | March 1, 2019 | 500 | 1.20% | 500 | 0.84% | ||||||||
Fixed-rate notes: | |||||||||||||
5.50% | February 22, 2016 | — | — | 3,000 | 3.07% | ||||||||
1.10% | March 3, 2017 | 2,400 | 0.84% | 2,400 | 0.59% | ||||||||
3.15% | March 14, 2017 | 750 | 1.20% | 750 | 0.85% | ||||||||
1.40% | February 28, 2018 | (1) | 1,250 | 1.47% | — | — | |||||||
1.65% | June 15, 2018 | 1,600 | 1.72% | 1,600 | 1.72% | ||||||||
4.95% | February 15, 2019 | 2,000 | 4.76% | 2,000 | 4.70% | ||||||||
1.60% | February 28, 2019 | (1) | 1,000 | 1.67% | — | — | |||||||
2.125% | March 1, 2019 | 1,750 | 1.05% | 1,750 | 0.80% | ||||||||
4.45% | January 15, 2020 | 2,500 | 3.21% | 2,500 | 3.01% | ||||||||
2.45% | June 15, 2020 | 1,500 | 2.54% | 1,500 | 2.54% | ||||||||
2.20% | February 28, 2021 | (1) | 2,500 | 2.30% | — | — | |||||||
2.90% | March 4, 2021 | 500 | 1.21% | 500 | 0.96% | ||||||||
3.00% | June 15, 2022 | 500 | 1.46% | 500 | 1.21% | ||||||||
2.60% | February 28, 2023 | (1) | 500 | 2.68% | — | — | |||||||
3.625% | March 4, 2024 | 1,000 | 1.33% | 1,000 | 1.08% | ||||||||
3.50% | June 15, 2025 | 500 | 1.62% | 500 | 1.37% | ||||||||
2.95% | February 28, 2026 | (1) | 750 | 3.01% | — | — | |||||||
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 | 28,400 | 25,251 | |||||||||||
Unaccreted discount/issuance costs | (141 | ) | (131 | ) | |||||||||
Hedge accounting fair value adjustments | 335 | 231 | |||||||||||
Total | $ | 28,594 | $ | 25,351 | |||||||||
Reported as: | |||||||||||||
Current portion of long-term debt | $ | 4,163 | $ | 3,894 | |||||||||
Long-term debt | 24,431 | 21,457 | |||||||||||
Total | $ | 28,594 | $ | 25,351 |
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | — | |
2017 | 4,150 | ||
2018 | 4,750 | ||
2019 | 5,250 | ||
2020 | 4,000 | ||
Thereafter | 10,250 | ||
Total | $ | 28,400 |
|
DERIVATIVE ASSETS | DERIVATIVE LIABILITIES | ||||||||||||||||||
Balance Sheet Line Item | April 30, 2016 | July 25, 2015 | Balance Sheet Line Item | April 30, 2016 | July 25, 2015 | ||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
Foreign currency derivatives | Other current assets | $ | 13 | $ | 10 | Other current liabilities | $ | 3 | $ | 11 | |||||||||
Interest rate derivatives | Other assets | 332 | 202 | Other long-term liabilities | — | — | |||||||||||||
Total | 345 | 212 | 3 | 11 | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
Foreign currency derivatives | Other current assets | — | 2 | Other current liabilities | 1 | 1 | |||||||||||||
Equity derivatives | Other assets | — | 4 | Other long-term liabilities | — | — | |||||||||||||
Total | — | 6 | 1 | 1 | |||||||||||||||
Total | $ | 345 | $ | 218 | $ | 4 | $ | 12 |
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) | |||||||||||||||||
April 30, 2016 | April 25, 2015 | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | 21 | $ | (32 | ) | Operating expenses | $ | (7 | ) | $ | (50 | ) | ||||||
Cost of sales—service | (2 | ) | (14 | ) | ||||||||||||||
Total | $ | 21 | $ | (32 | ) | $ | (9 | ) | $ | (64 | ) | |||||||
Derivatives designated as net investment hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (15 | ) | $ | 2 | Other income (loss), net | $ | — | $ | — |
GAINS (LOSSES) RECOGNIZED IN OCI ON DERIVATIVES FOR THE NINE MONTHS ENDED (EFFECTIVE PORTION) | GAINS (LOSSES) RECLASSIFIED FROM AOCI INTO INCOME FOR THE NINE MONTHS ENDED (EFFECTIVE PORTION) | |||||||||||||||||
April 30, 2016 | April 25, 2015 | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | ||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (3 | ) | $ | (163 | ) | Operating expenses | $ | (13 | ) | $ | (74 | ) | |||||
Cost of sales—service | (4 | ) | (20 | ) | ||||||||||||||
Total | $ | (3 | ) | $ | (163 | ) | $ | (17 | ) | $ | (94 | ) | ||||||
Derivatives designated as net investment hedging instruments: | ||||||||||||||||||
Foreign currency derivatives | $ | (4 | ) | $ | 46 | Other income (loss), net | $ | — | $ | — |
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 | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||
Equity derivatives | Other income (loss), net | $ | — | $ | (8 | ) | $ | — | $ | 8 | ||||||||
Interest rate derivatives | Interest expense | 19 | (9 | ) | (18 | ) | 9 | |||||||||||
Total | $ | 19 | $ | (17 | ) | $ | (18 | ) | $ | 17 |
GAINS (LOSSES) ON DERIVATIVE INSTRUMENTS FOR THE NINE MONTHS ENDED | GAINS (LOSSES) RELATED TO HEDGED ITEMS FOR THE NINE MONTHS ENDED | |||||||||||||||||
Derivatives Designated as Fair Value Hedging Instruments | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||
Equity derivatives | Other income (loss), net | $ | — | $ | (20 | ) | $ | — | $ | 20 | ||||||||
Interest rate derivatives | Interest expense | 130 | 122 | (125 | ) | (125 | ) | |||||||||||
Total | $ | 130 | $ | 102 | $ | (125 | ) | $ | (105 | ) |
GAINS (LOSSES) FOR THE THREE MONTHS ENDED | GAINS (LOSSES) FOR THE NINE MONTHS ENDED | |||||||||||||||||
Derivatives Not Designated as Hedging Instruments | Line Item in Statements of Operations | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||
Foreign currency derivatives | Other income (loss), net | $ | 80 | $ | (56 | ) | $ | 26 | $ | (165 | ) | |||||||
Total return swaps—deferred compensation | Operating expenses | 46 | 23 | (8 | ) | 23 | ||||||||||||
Equity derivatives | Other income (loss), net | 1 | 6 | 14 | 10 | |||||||||||||
Total | $ | 127 | $ | (27 | ) | $ | 32 | $ | (132 | ) |
April 30, 2016 | July 25, 2015 | ||||||
Derivatives designated as hedging instruments: | |||||||
Foreign currency derivatives—cash flow hedges | $ | 958 | $ | 1,201 | |||
Interest rate derivatives | 9,900 | 11,400 | |||||
Net investment hedging instruments | 180 | 192 | |||||
Derivatives not designated as hedging instruments: | |||||||
Foreign currency derivatives | 1,925 | 2,023 | |||||
Total return swaps—deferred compensation | 470 | 462 | |||||
Total | $ | 13,433 | $ | 15,278 |
April 30, 2016 | |||||||||||||||||||||||
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 | $ | 345 | $ | — | $ | 345 | $ | (4 | ) | $ | (247 | ) | $ | 94 | |||||||||
Derivatives liabilities | $ | 4 | $ | — | $ | 4 | $ | (4 | ) | $ | — | $ | — |
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 | ) | $ | — | $ | — |
|
Fiscal Year | Amount | ||
2016 (remaining three months) | $ | 95 | |
2017 | 288 | ||
2018 | 220 | ||
2019 | 130 | ||
2020 | 106 | ||
Thereafter | 229 | ||
Total | $ | 1,068 |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Compensation expense related to acquisitions | $ | 68 | $ | 72 | $ | 212 | $ | 264 |
Nine Months Ended | |||||||
April 30, 2016 | April 25, 2015 | ||||||
Balance at beginning of period | $ | 449 | $ | 446 | |||
Provision for warranties issued | 512 | 517 | |||||
Payments | (524 | ) | (512 | ) | |||
Divestitures | (28 | ) | — | ||||
Balance at end of period | $ | 409 | $ | 451 |
April 30, 2016 | July 25, 2015 | ||||||
Maximum potential future payments relating to financing guarantees: | |||||||
Channel partner | $ | 228 | $ | 288 | |||
End user | 104 | 129 | |||||
Total | $ | 332 | $ | 417 | |||
Deferred revenue associated with financing guarantees: | |||||||
Channel partner | $ | (98 | ) | $ | (127 | ) | |
End user | (82 | ) | (107 | ) | |||
Total | $ | (180 | ) | $ | (234 | ) | |
Maximum potential future payments relating to financing guarantees, net of associated deferred revenue | $ | 152 | $ | 183 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Cost of sales—product | $ | 21 | $ | 12 | $ | 50 | $ | 34 | |||||||
Cost of sales—service | 37 | 44 | 110 | 115 | |||||||||||
Share-based compensation expense in cost of sales | 58 | 56 | 160 | 149 | |||||||||||
Research and development | 130 | 114 | 351 | 338 | |||||||||||
Sales and marketing | 148 | 147 | 413 | 408 | |||||||||||
General and administrative | 59 | 50 | 163 | 151 | |||||||||||
Restructuring and other charges | — | — | 14 | (2 | ) | ||||||||||
Share-based compensation expense in operating expenses | 337 | 311 | 941 | 895 | |||||||||||
Total share-based compensation expense | $ | 395 | $ | 367 | $ | 1,101 | $ | 1,044 | |||||||
Income tax benefit for share-based compensation | $ | 91 | $ | 88 | $ | 289 | $ | 267 |
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 | (68 | ) |
Share-based awards canceled/forfeited/expired | 26 | |
Shares withheld for taxes and not issued | 26 | |
Other | 1 | |
BALANCE AT APRIL 30, 2016 | 261 |
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 | 51 | 24.73 | ||||||||
Vested | (46 | ) | 20.33 | $ | 1,188 | |||||
Canceled/forfeited | (12 | ) | 22.75 | |||||||
UNVESTED BALANCE AT APRIL 30, 2016 | 136 | $ | 23.60 |
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 | 18 | 5.14 | ||||
Exercised | (25 | ) | 19.60 | |||
Canceled/forfeited/expired | (13 | ) | 29.62 | |||
BALANCE AT APRIL 30, 2016 | 83 | $ | 26.16 |
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 | 17 | 6.4 | $ | 5.49 | $ | 366 | 6 | $ | 5.11 | $ | 138 | |||||||||||||
$ 20.01 – 25.00 | 2 | 0.6 | 22.97 | 7 | 2 | 22.97 | 7 | |||||||||||||||||
$ 25.01 – 30.00 | 7 | 0.7 | 26.88 | 8 | 7 | 26.88 | 8 | |||||||||||||||||
$ 30.01 – 35.00 | 57 | 0.4 | 32.16 | — | 57 | 32.16 | — | |||||||||||||||||
Total | 83 | 1.6 | $ | 26.16 | $ | 381 | 72 | $ | 29.12 | $ | 153 |
RESTRICTED STOCK UNITS | PERFORMANCE RESTRICTED STOCK UNITS | ||||||||||||||
Three Months Ended | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||
Number of shares granted (in millions) | 2 | 33 | 1 | 1 | |||||||||||
Grant date fair value per share | $ | 24.01 | $ | 25.31 | $ | 23.32 | $ | 25.87 | |||||||
Weighted-average assumptions/inputs: | |||||||||||||||
Expected dividend yield | 3.6 | % | 2.8 | % | 3.6 | % | 3.0 | % | |||||||
Range of risk-free interest rates | 0.2% – 1.1% | 0.0% – 1.4% | 0.2% – 1.1% | 0.0% – 1.4% | |||||||||||
Range of expected volatilities for index | N/A | N/A | N/A | N/A |
RESTRICTED STOCK UNITS | PERFORMANCE RESTRICTED STOCK UNITS | ||||||||||||||
Nine Months Ended | April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||
Number of shares granted (in millions) | 38 | 44 | 5 | 8 | |||||||||||
Grant date fair value per share | $ | 24.87 | $ | 24.83 | $ | 24.56 | $ | 23.97 | |||||||
Weighted-average assumptions/inputs: | |||||||||||||||
Expected dividend yield | 3.2 | % | 2.9 | % | 3.0 | % | 3.0 | % | |||||||
Range of risk-free interest rates | 0.0% – 1.2% | 0.0% – 1.8% | 0.0% – 1.2% | 0.0% – 1.8% | |||||||||||
Range of expected volatilities for index | N/A | N/A | 15.3% – 54.3% | 14.4% – 70.0% |
|
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (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. | (145 | ) | (3 | ) | (190 | ) | (338 | ) | |||||||
(Gains) losses reclassified out of AOCI | 26 | 17 | 2 | 45 | |||||||||||
Tax benefit (expense) | 50 | (2 | ) | (43 | ) | 5 | |||||||||
BALANCE AT APRIL 30, 2016 | $ | 241 | $ | (4 | ) | $ | (464 | ) | $ | (227 | ) |
Net Unrealized Gains (Losses) on Available-for-Sale Investments | Net Unrealized Gains (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. | 111 | (163 | ) | (473 | ) | (525 | ) | ||||||||
(Gains) losses reclassified out of AOCI | (120 | ) | 94 | — | (26 | ) | |||||||||
Tax benefit (expense) | 8 | 3 | 50 | 61 | |||||||||||
BALANCE AT APRIL 25, 2015 | $ | 423 | $ | (78 | ) | $ | (158 | ) | $ | 187 |
Three Months Ended | Nine Months Ended | |||||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | |||||||||||||||
Comprehensive Income Components | Income Before Taxes | Income Before Taxes | Line Item in Statements of Operations | |||||||||||||||
Net unrealized gains on available-for-sale investments | ||||||||||||||||||
$ | (6 | ) | $ | 44 | $ | (26 | ) | $ | 120 | Other income (loss), net | ||||||||
Net unrealized losses on cash flow hedging instruments | ||||||||||||||||||
Foreign currency derivatives | (7 | ) | (50 | ) | (13 | ) | (74 | ) | Operating expenses | |||||||||
Foreign currency derivatives | (2 | ) | (14 | ) | (4 | ) | (20 | ) | Cost of sales—service | |||||||||
(9 | ) | (64 | ) | (17 | ) | (94 | ) | |||||||||||
Cumulative translation adjustment and actuarial gains and losses | ||||||||||||||||||
(1 | ) | — | (2 | ) | — | Operating expenses | ||||||||||||
Total amounts reclassified out of AOCI | $ | (16 | ) | $ | (20 | ) | $ | (45 | ) | $ | 26 |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Income before provision for income taxes | $ | 3,083 | $ | 3,035 | $ | 9,526 | $ | 8,268 | |||||||
Provision for income taxes | $ | 734 | $ | 598 | $ | 1,600 | $ | 1,606 | |||||||
Effective tax rate | 23.8 | % | 19.7 | % | 16.8 | % | 19.4 | % |
|
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Americas | $ | 7,062 | $ | 7,252 | $ | 21,773 | $ | 21,854 | |||||||
EMEA | 3,001 | 3,119 | 9,176 | 9,212 | |||||||||||
APJC | 1,937 | 1,766 | 5,660 | 5,252 | |||||||||||
Total | $ | 12,000 | $ | 12,137 | $ | 36,609 | $ | 36,318 | |||||||
Gross margin: | |||||||||||||||
Americas | $ | 4,684 | $ | 4,560 | $ | 14,046 | $ | 13,776 | |||||||
EMEA | 1,966 | 1,949 | 5,953 | 5,774 | |||||||||||
APJC | 1,170 | 1,080 | 3,437 | 3,157 | |||||||||||
Segment total | 7,820 | 7,589 | 23,436 | 22,707 | |||||||||||
Unallocated corporate items | (99 | ) | (64 | ) | (451 | ) | (759 | ) | |||||||
Total | $ | 7,721 | $ | 7,525 | $ | 22,985 | $ | 21,948 |
Three Months Ended | Nine Months Ended | ||||||||||||||
April 30, 2016 | April 25, 2015 | April 30, 2016 | April 25, 2015 | ||||||||||||
Revenue: | |||||||||||||||
Switching | $ | 3,447 | $ | 3,560 | $ | 10,952 | $ | 11,021 | |||||||
NGN Routing | 1,894 | 1,999 | 5,532 | 5,712 | |||||||||||
Collaboration | 1,069 | 974 | 3,203 | 2,915 | |||||||||||
Data Center | 811 | 801 | 2,492 | 2,339 | |||||||||||
Service Provider Video (1) | 468 | 914 | 1,980 | 2,561 | |||||||||||
Wireless | 615 | 611 | 1,873 | 1,827 | |||||||||||
Security | 482 | 412 | 1,429 | 1,283 | |||||||||||
Other | 89 | 55 | 241 | 181 | |||||||||||
Product | 8,875 | 9,326 | 27,702 | 27,839 | |||||||||||
Service | 3,125 | 2,811 | 8,907 | 8,479 | |||||||||||
Total | $ | 12,000 | $ | 12,137 | $ | 36,609 | $ | 36,318 |
April 30, 2016 | July 25, 2015 | ||||||
Property and equipment, net: | |||||||
United States | $ | 2,823 | $ | 2,733 | |||
International | 706 | 599 | |||||
Total | $ | 3,529 | $ | 3,332 |
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