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Derivative Instruments (Tables)
6 Months Ended
Jan. 27, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives Recorded at Fair Value
The fair values of the Company’s derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions):
 
DERIVATIVE ASSETS
 
DERIVATIVE LIABILITIES
 
Balance Sheet Line Item
 
January 27,
2018
 
July 29,
2017
 
Balance Sheet Line Item
 
January 27,
2018
 
July 29,
2017
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
$
47

 
$
46

 
Other current liabilities
 
$

 
$
1

Equity derivatives
Other current assets
 

 

 
Other current liabilities
 
49

 

Interest rate derivatives
Other assets
 
18

 
102

 
Other long-term liabilities
 
26

 

Total
 
 
65

 
148

 
 
 
75

 
1

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
Other current assets
 
24

 
1

 
Other current liabilities
 
1

 
3

Total return swaps—deferred compensation

Other current assets
 
1

 

 
Other current liabilities
 

 

Total
 
 
25

 
1

 
 
 
1

 
3

Total
 
 
$
90

 
$
149

 
 
 
$
76

 
$
4

Gains and Losses on Derivatives Designated as Cash Flow Hedges
The effects of the Company’s cash flow and net investment hedging instruments on other comprehensive income (OCI) and the Consolidated Statements of Operations are summarized as follows (in millions):
GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
THREE MONTHS ENDED (EFFECTIVE PORTION)
 
 
January 27,
2018
 
January 28,
2017
 
Line Item in
Statements of Operations
 
January 27,
2018
 
January 28,
2017
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
30

 
$
(2
)
 
Operating expenses
 
$
14

 
$
(21
)
 
 
 
 
 
 
Cost of salesservice
 
4

 
(6
)
Total
 
$
30

 
$
(2
)
 
 
 
$
18

 
$
(27
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(12
)
 
$
(3
)
 
Other income (loss), net
 
$

 
$



GAINS (LOSSES) RECOGNIZED
IN OCI ON DERIVATIVES FOR THE
SIX MONTHS ENDED (EFFECTIVE PORTION)
 
GAINS (LOSSES) RECLASSIFIED FROM
AOCI INTO INCOME FOR THE
SIX MONTHS ENDED (EFFECTIVE PORTION)
 
 
January 27,
2018
 
January 28,
2017
 
Line Item in
Statements of Operations
 
January 27,
2018
 
January 28,
2017
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
38

 
$
(48
)
 
Operating expenses
 
$
24

 
$
(30
)
 
 
 
 
 
 
Cost of salesservice
 
7

 
(9
)
Total
 
$
38

 
$
(48
)
 
 
 
$
31

 
$
(39
)
 
 
 
 
 
 
 
 
 
 
 
Derivatives designated as net investment hedging instruments:
 
 
 
 
 
 
 
 
 
 
Foreign currency derivatives
 
$
(17
)
 
$
6

 
Other income (loss), net
 
$

 
$

Schedule of Derivative Fair Value Hedge Instruments Gain Loss in Statement of Financial Performance
The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value hedges and the underlying hedged items is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) ON
DERIVATIVE
INSTRUMENTS FOR THE
THREE MONTHS ENDED
 
GAINS (LOSSES)
RELATED TO HEDGED
ITEMS FOR THE
THREE MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
January 27,
2018
 
January 28,
2017
 
January 27,
2018
 
January 28,
2017
Interest rate derivatives
 
Interest expense
 
$
(63
)
 
$
(175
)
 
$
63

 
$
172

Equity derivatives
 
Other income (loss), net
 
(35
)
 

 
35

 

Total
 
 
 
$
(98
)
 
$
(175
)
 
$
98

 
$
172



 
 
 
 
GAINS (LOSSES) ON
DERIVATIVE
INSTRUMENTS FOR THE
SIX MONTHS ENDED
 
GAINS (LOSSES)
RELATED TO HEDGED
ITEMS FOR THE
SIX MONTHS ENDED
Derivatives Designated as Fair Value Hedging Instruments
 
Line Item in Statements of Operations
 
January 27,
2018
 
January 28,
2017
 
January 27,
2018
 
January 28,
2017
Interest rate derivatives
 
Interest expense
 
$
(109
)
 
$
(266
)
 
$
109

 
$
262

Equity derivatives
 
Other income (loss), net
 
(49
)
 

 
49

 

Total
 
 
 
$
(158
)
 
$
(266
)
 
$
158

 
$
262

Effect of Derivative Instruments Not Designated as Fair Value Hedges on Consolidated Statement of Operations Summary
The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions):
 
 
 
 
GAINS (LOSSES) FOR THE
THREE MONTHS ENDED
 
GAINS (LOSSES) FOR THE
SIX MONTHS ENDED
Derivatives Not Designated as
Hedging Instruments
 
Line Item in Statements of Operations
 
January 27,
2018
 
January 28,
2017
 
January 27,
2018
 
January 28,
2017
Foreign currency derivatives
 
Other income (loss), net
 
$
66

 
$
(20
)
 
$
73

 
$
(36
)
Total return swaps—deferred compensation
 
Operating expenses
 
41

 
26

 
57

 
23

Equity derivatives
 
Other income (loss), net
 
2

 
8

 
3

 
9

Total
 
 
 
$
109

 
$
14

 
$
133

 
$
(4
)
Schedule of Notional Amounts of Derivatives Outstanding
The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):
 
January 27,
2018
 
July 29,
2017
Derivatives designated as hedging instruments:
 
 
 
Foreign currency derivatives—cash flow hedges
$
792

 
$
1,696

Interest rate derivatives
6,750

 
6,750

Net investment hedging instruments
214

 
351

Equity derivatives
302

 

Derivatives not designated as hedging instruments:
 
 
 
Foreign currency derivatives
3,072

 
2,258

Total return swaps—deferred compensation
590

 
535

Total
$
11,720

 
$
11,590

Offsetting Assets and Liabilities
Information related to these offsetting arrangements is summarized as follows (in millions):
 
January 27, 2018
 
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
$
90

 
$

 
$
90

 
$
(32
)
 
$
(18
)
 
$
40

Derivatives liabilities
$
76

 
$

 
$
76

 
$
(32
)
 
$
(18
)
 
$
26

 
July 29, 2017
 
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
$
149

 
$

 
$
149

 
$
(4
)
 
$
(81
)
 
$
64

Derivatives liabilities
$
4

 
$

 
$
4

 
$
(4
)
 
$

 
$