Condensed Consolidating Financial Information (Tables)

3 Months Ended

Feb. 02, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Consolidating Balance Sheet

	Condensed Consolidating Balance Sheets
	February 2, 2020
	Parent Guarantor				Subsidiary Issuers				Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	576			$	758			$	5,110	$	—		$	6,444
Trade accounts receivable, net	—				—				3,651		—			3,651
Inventory	—				—				944		—			944
Intercompany receivable	3,667				835				145		(4,647		)	—
Intercompany loan receivable	—				9,996				8,228		(18,224		)	—
Other current assets	170				44				856		—			1,070
Total current assets	4,413				11,633				18,934		(22,871		)	12,109
Long-term assets:
Property, plant and equipment, net	—				771				1,845		—			2,616
Goodwill	—				1,360				42,112		—			43,472
Intangible assets, net	—				74				21,391		—			21,465
Investment in subsidiaries	52,576				47,524				—		(100,100		)	—
Intercompany loan receivable, long-term	8,248				—				932		(9,180		)	—
Other long-term assets	23				389				932		—			1,344
Total assets	$	65,260			$	61,751			$	86,146	$	(132,151	)	$	81,006
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	23			$	56			$	906	$	—		$	985
Employee compensation and benefits	—				90				345		—			435
Current portion of long-term debt	1,550				750				11		—			2,311
Intercompany payable	168				2,784				1,695		(4,647		)	—
Intercompany loan payable	11,848				5,271				1,105		(18,224		)	—
Other current liabilities	150				75				3,783		—			4,008
Total current liabilities	13,739				9,026				7,845		(22,871		)	7,739
Long-term liabilities:
Long-term debt	27,287				13,987				1,133		—			42,407
Deferred tax liabilities	(151		)	(a)	(292		)	(a)	1,762		—			1,319
Intercompany loan payable, long-term	—				932				8,248		(9,180		)	—
Unrecognized tax benefits	(11		)	(b)	2,472				836		—			3,297
Other long-term liabilities	—				382				1,466		—			1,848
Total liabilities	40,864				26,507				21,290		(32,051		)	56,610
Preferred stock dividend obligation	28				—				—		—			28
Total stockholders’ equity	24,368				35,244				64,856		(100,100		)	24,368
Total liabilities and equity	$	65,260			$	61,751			$	86,146	$	(132,151	)	$	81,006

________________________________

(a) Amount represents net deferred tax assets that are offset by net deferred tax liabilities on a consolidated basis.

(b) Amount represents net unrecognized tax benefit assets that are offset by net unrecognized tax benefit liabilities on a consolidated basis.

	Condensed Consolidating Balance Sheets
	November 3, 2019
	Parent Guarantor				Subsidiary Issuers				Non-Guarantor Subsidiaries		Eliminations			Consolidated Totals
	(In millions)
ASSETS
Current assets:
Cash and cash equivalents	$	374			$	613			$	4,068	$	—		$	5,055
Trade accounts receivable, net	—				—				3,259		—			3,259
Inventory	—				—				874		—			874
Intercompany receivable	59				439				35		(533		)	—
Intercompany loan receivable	—				10,576				9,188		(19,764		)	—
Other current assets	58				37				634		—			729
Total current assets	491				11,665				18,058		(20,297		)	9,917
Long-term assets:
Property, plant and equipment, net	—				759				1,806		—			2,565
Goodwill	—				1,360				35,354		—			36,714
Intangible assets, net	—				76				17,478		—			17,554
Investment in subsidiaries	51,558				45,981				—		(97,539		)	—
Intercompany loan receivable, long-term	—				—				932		(932		)	—
Other long-term assets	25				95				623		—			743
Total assets	$	52,074			$	59,936			$	74,251	$	(118,768	)	$	67,493
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	24			$	38			$	793	$	—		$	855
Employee compensation and benefits	—				179				462		—			641
Current portion of long-term debt	—				2,750				37		—			2,787
Intercompany payable	32				4				497		(533		)	—
Intercompany loan payable	13,709				4,935				1,120		(19,764		)	—
Other current liabilities	25				186				2,405		—			2,616
Total current liabilities	13,790				8,092				5,314		(20,297		)	6,899
Long-term liabilities:
Long-term debt	13,440				14,731				1,840		—			30,011
Deferred tax liabilities	(126		)	(a)	(295		)	(a)	1,952		—			1,531
Intercompany loan payable, long-term	—				932				—		(932		)	—
Unrecognized tax benefits	—				2,422				847		—			3,269
Other long-term liabilities	—				107				706		—			813
Total liabilities	27,104				25,989				10,659		(21,229		)	42,523
Preferred stock dividend obligation	29				—				—		—			29
Total stockholders’ equity	24,941				33,947				63,592		(97,539		)	24,941
Total liabilities and equity	$	52,074			$	59,936			$	74,251	$	(118,768	)	$	67,493

Condensed Consolidating Statements of Operations

	Condensed Consolidating Statements of Operations and Comprehensive Income
	Fiscal Quarter Ended
	February 2, 2020
	Parent Guarantor			Subsidiary Issuers			Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In millions)
Net revenue:
Products	$	—		$	—		$	4,204		$	—		$	4,204
Subscriptions and services	—			—			1,654			—			1,654
Intercompany revenue	—			405			—			(405		)	—
Total net revenue	—			405			5,858			(405		)	5,858
Cost of revenue:
Cost of products sold	—			33			1,426			—			1,459
Cost of subscriptions and services	—			5			172			—			177
Intercompany cost of products sold	—			—			32			(32		)	—
Amortization of acquisition-related intangible assets	—			—			950			—			950
Restructuring charges	—			—			8			—			8
Total cost of revenue	—			38			2,588			(32		)	2,594
Gross margin	—			367			3,270			(373		)	3,264
Research and development	—			482			807			—			1,289
Intercompany operating expense	—			—			373			(373		)	—
Selling, general and administrative	140			76			385			—			601
Amortization of acquisition-related intangible assets	—			—			603			—			603
Restructuring, impairment and disposal charges	—			5			52			—			57
Total operating expenses	140			563			2,220			(373		)	2,550
Operating income (loss)	(140		)	(196		)	1,050			—			714
Interest expense	(247		)	(145		)	(14		)	—			(406		)
Intercompany interest expense	(66		)	(34		)	(43		)	143			—
Other income (expense), net	3			4			(11		)	—			(4		)
Intercompany interest income	33			64			46			(143		)	—
Intercompany other income (expense), net	166			—			(166		)	—			—
Income (loss) from continuing operations before income taxes and earnings in subsidiaries	(251		)	(307		)	862			—			304
Provision for (benefit from) income taxes	(28		)	81			(129		)	—			(76		)
Income (loss) from continuing operations before earnings in subsidiaries	(223		)	(388		)	991			—			380
Earnings in subsidiaries	608			1,325			—			(1,933		)	—
Income from continuing operations and earnings in subsidiaries	385			937			991			(1,933		)	380
Income from discontinued operations, net of income taxes	—			—			5			—			5
Net income	$	385		$	937		$	996		$	(1,933	)	$	385
Comprehensive income	$	385		$	937		$	996		$	(1,933	)	$	385

	Condensed Consolidating Statements of Operations and Comprehensive Income
	Fiscal Quarter Ended
	February 3, 2019
	Parent Guarantor			Subsidiary Issuers			Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In millions)
Net revenue:
Products	$	—		$	—		$	4,639		$	—		$	4,639
Subscriptions and services	—			—			1,150			—			1,150
Intercompany revenue	—			397			—			(397		)	—
Total net revenue	—			397			5,789			(397		)	5,789
Cost of revenue:
Cost of products sold	—			31			1,523			—			1,554
Cost of subscriptions and services	—			3			135			—			138
Intercompany cost of products sold	—			—			23			(23		)	—
Amortization of acquisition-related intangible assets	—			—			833			—			833
Restructuring charges	—			(7		)	63			—			56
Total cost of revenue	—			27			2,577			(23		)	2,581
Gross margin	—			370			3,212			(374		)	3,208
Research and development	—			447			686			—			1,133
Intercompany operating expense	—			—			374			(374		)	—
Selling, general and administrative	52			81			338			—			471
Amortization of acquisition-related intangible assets	—			—			476			—			476
Restructuring, impairment and disposal charges	—			8			565			—			573
Total operating expenses	52			536			2,439			(374		)	2,653
Operating income (loss)	(52		)	(166		)	773			—			555
Interest expense	(175		)	(148		)	(22		)	—			(345		)
Intercompany interest expense	(86		)	(41		)	(8		)	135			—
Other income (expense), net	(1		)	9			60			—			68
Intercompany interest income	—			79			56			(135		)	—
Intercompany other income (expense), net	77			—			(77		)	—			—
Income (loss) from continuing operations before income taxes and earnings in subsidiaries	(237		)	(267		)	782			—			278
Benefit from income taxes	(24		)	(153		)	(26		)	—			(203		)
Income (loss) from continuing operations before earnings in subsidiaries	(213		)	(114		)	808			—			481
Earnings in subsidiaries	684			1,569			—			(2,253		)	—
Income from continuing operations and earnings in subsidiaries	471			1,455			808			(2,253		)	481
Loss from discontinued operations, net of income taxes	—			—			(10		)	—			(10		)
Net income	$	471		$	1,455		$	798		$	(2,253	)	$	471
Comprehensive income	$	471		$	1,455		$	798		$	(2,253	)	$	471

Condensed Consolidating Statements of Comprehensive Income

	Condensed Consolidating Statements of Operations and Comprehensive Income
	Fiscal Quarter Ended
	February 2, 2020
	Parent Guarantor			Subsidiary Issuers			Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In millions)
Net revenue:
Products	$	—		$	—		$	4,204		$	—		$	4,204
Subscriptions and services	—			—			1,654			—			1,654
Intercompany revenue	—			405			—			(405		)	—
Total net revenue	—			405			5,858			(405		)	5,858
Cost of revenue:
Cost of products sold	—			33			1,426			—			1,459
Cost of subscriptions and services	—			5			172			—			177
Intercompany cost of products sold	—			—			32			(32		)	—
Amortization of acquisition-related intangible assets	—			—			950			—			950
Restructuring charges	—			—			8			—			8
Total cost of revenue	—			38			2,588			(32		)	2,594
Gross margin	—			367			3,270			(373		)	3,264
Research and development	—			482			807			—			1,289
Intercompany operating expense	—			—			373			(373		)	—
Selling, general and administrative	140			76			385			—			601
Amortization of acquisition-related intangible assets	—			—			603			—			603
Restructuring, impairment and disposal charges	—			5			52			—			57
Total operating expenses	140			563			2,220			(373		)	2,550
Operating income (loss)	(140		)	(196		)	1,050			—			714
Interest expense	(247		)	(145		)	(14		)	—			(406		)
Intercompany interest expense	(66		)	(34		)	(43		)	143			—
Other income (expense), net	3			4			(11		)	—			(4		)
Intercompany interest income	33			64			46			(143		)	—
Intercompany other income (expense), net	166			—			(166		)	—			—
Income (loss) from continuing operations before income taxes and earnings in subsidiaries	(251		)	(307		)	862			—			304
Provision for (benefit from) income taxes	(28		)	81			(129		)	—			(76		)
Income (loss) from continuing operations before earnings in subsidiaries	(223		)	(388		)	991			—			380
Earnings in subsidiaries	608			1,325			—			(1,933		)	—
Income from continuing operations and earnings in subsidiaries	385			937			991			(1,933		)	380
Income from discontinued operations, net of income taxes	—			—			5			—			5
Net income	$	385		$	937		$	996		$	(1,933	)	$	385
Comprehensive income	$	385		$	937		$	996		$	(1,933	)	$	385

	Condensed Consolidating Statements of Operations and Comprehensive Income
	Fiscal Quarter Ended
	February 3, 2019
	Parent Guarantor			Subsidiary Issuers			Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In millions)
Net revenue:
Products	$	—		$	—		$	4,639		$	—		$	4,639
Subscriptions and services	—			—			1,150			—			1,150
Intercompany revenue	—			397			—			(397		)	—
Total net revenue	—			397			5,789			(397		)	5,789
Cost of revenue:
Cost of products sold	—			31			1,523			—			1,554
Cost of subscriptions and services	—			3			135			—			138
Intercompany cost of products sold	—			—			23			(23		)	—
Amortization of acquisition-related intangible assets	—			—			833			—			833
Restructuring charges	—			(7		)	63			—			56
Total cost of revenue	—			27			2,577			(23		)	2,581
Gross margin	—			370			3,212			(374		)	3,208
Research and development	—			447			686			—			1,133
Intercompany operating expense	—			—			374			(374		)	—
Selling, general and administrative	52			81			338			—			471
Amortization of acquisition-related intangible assets	—			—			476			—			476
Restructuring, impairment and disposal charges	—			8			565			—			573
Total operating expenses	52			536			2,439			(374		)	2,653
Operating income (loss)	(52		)	(166		)	773			—			555
Interest expense	(175		)	(148		)	(22		)	—			(345		)
Intercompany interest expense	(86		)	(41		)	(8		)	135			—
Other income (expense), net	(1		)	9			60			—			68
Intercompany interest income	—			79			56			(135		)	—
Intercompany other income (expense), net	77			—			(77		)	—			—
Income (loss) from continuing operations before income taxes and earnings in subsidiaries	(237		)	(267		)	782			—			278
Benefit from income taxes	(24		)	(153		)	(26		)	—			(203		)
Income (loss) from continuing operations before earnings in subsidiaries	(213		)	(114		)	808			—			481
Earnings in subsidiaries	684			1,569			—			(2,253		)	—
Income from continuing operations and earnings in subsidiaries	471			1,455			808			(2,253		)	481
Loss from discontinued operations, net of income taxes	—			—			(10		)	—			(10		)
Net income	$	471		$	1,455		$	798		$	(2,253	)	$	471
Comprehensive income	$	471		$	1,455		$	798		$	(2,253	)	$	471

Condensed Consolidating Statements of Cash Flows

	Condensed Consolidating Statements of Cash Flows
	Fiscal Quarter Ended
	February 2, 2020
	Parent Guarantor			Subsidiary Issuers			Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In millions)
Cash flows from operating activities:
Net income	$	385		$	937		$	996		$	(1,933	)	$	385
Adjustments to reconcile net income to net cash provided by (used in) operating activities	(4,106		)	1,166			2,944			1,933			1,937
Net cash provided by (used in) operating activities	(3,721		)	2,103			3,940			—			2,322
Cash flows from investing activities:
Net change in intercompany loans	(8,248		)	580			959			6,709			—
Acquisitions of businesses, net of cash acquired	—			—			(10,870		)	—			(10,870		)
Purchases of property, plant and equipment	—			(40		)	(69		)	1			(108		)
Proceeds from disposals of property, plant and equipment	—			1			—			(1		)	—
Other	—			(4		)	(5		)	—			(9		)
Net cash provided by (used in) investing activities	(8,248		)	537			(9,985		)	6,709			(10,987		)
Cash flows from financing activities:
Net intercompany borrowings	(1,861		)	337			8,233			(6,709		)	—
Proceeds from long-term borrowings	15,381			—			—			—			15,381
Repayment of debt	(1,000		)	(2,750		)	(787		)	—			(4,537		)
Other borrowings, net	991			—			(273		)	—			718
Payment of dividends	(1,372		)	—			—			—			(1,372		)
Shares repurchased for tax withholdings on vesting of equity awards	—			(82		)	(87		)	—			(169		)
Issuance of common stock	37			—			—			—			37
Other	(5		)	—			1			—			(4		)
Net cash provided by (used in) financing activities	12,171			(2,495		)	7,087			(6,709		)	10,054
Net change in cash and cash equivalents	202			145			1,042			—			1,389
Cash and cash equivalents at beginning of period	374			613			4,068			—			5,055
Cash and cash equivalents at end of period	$	576		$	758		$	5,110		$	—		$	6,444

	Condensed Consolidating Statements of Cash Flows
	Fiscal Quarter Ended
	February 3, 2019
	Parent Guarantor			Subsidiary Issuers			Non-Guarantor Subsidiaries			Eliminations			Consolidated Totals
	(In millions)
Cash flows from operating activities:
Net income	$	471		$	1,455		$	798		$	(2,253	)	$	471
Adjustments to reconcile net income to net cash provided by (used in) operating activities	(561		)	(2,451		)	2,420			2,253			1,661
Net cash provided by (used in) operating activities	(90		)	(996		)	3,218			—			2,132
Cash flows from investing activities:
Net change in intercompany loans	800			(592		)	(3,087		)	2,879			—
Acquisitions of businesses, net of cash acquired	(17,865		)	—			1,838			—			(16,027		)
Proceeds from sale of business	—			—			957			—			957
Purchases of property, plant and equipment	—			(36		)	(71		)	8			(99		)
Proceeds from disposals of property, plant and equipment	—			8			—			(8		)	—
Other	—			—			(24		)	—			(24		)
Net cash used in investing activities	(17,065		)	(620		)	(387		)	2,879			(15,193		)
Cash flows from financing activities:
Net intercompany borrowings	3,746			(110		)	(757		)	(2,879		)	—
Proceeds from long-term borrowings	17,896			—			—			—			17,896
Other borrowings, net	—			—			531			—			531
Payment of dividends	(1,067		)	—			—			—			(1,067		)
Repurchases of common stock - repurchase program	(3,436		)	—			—			—			(3,436		)
Shares repurchased for tax withholdings on vesting of equity awards	—			(11		)	(66		)	—			(77		)
Issuance of common stock	62			—			—			—			62
Other	(46		)	—			(1		)	—			(47		)
Net cash provided by (used in) financing activities	17,155			(121		)	(293		)	(2,879		)	13,862
Net change in cash and cash equivalents	—			(1,737		)	2,538			—			801
Cash and cash equivalents at beginning of period	—			2,461			1,831			—			4,292
Cash and cash equivalents at end of period	$	—		$	724		$	4,369		$	—		$	5,093