Employee Benefit Plans (Tables)

6 Months Ended

Jan. 27, 2018

Summary of Share-Based Compensation Expense

Share-based compensation expense consists primarily of expenses for stock options, stock purchase rights, restricted stock, and RSUs granted to employees. The following table summarizes share-based compensation expense (in millions):



	Three Months Ended				Six Months Ended
	January 27, 2018		January 28, 2017		January 27, 2018		January 28, 2017
Cost of sales—product	$	23	$	19	$	46	$	40
Cost of sales—service	31		34		65		67
Share-based compensation expense in cost of sales	54		53		111		107
Research and development	134		129		270		255
Sales and marketing	135		125		270		265
General and administrative	64		45		128		94
Restructuring and other charges	12		—		18		3
Share-based compensation expense in operating expenses	345		299		686		617
Total share-based compensation expense	$	399	$	352	$	797	$	724
Income tax benefit for share-based compensation	$	96	$	102	$	271	$	207

Summary of Share-Based Awards Available for Grant

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



	Share-Based Awards Available for Grant
BALANCE AT JULY 30, 2016	242
Restricted stock, stock units, and other share-based awards granted	(76	)
Share-based awards canceled/forfeited/expired	78
Shares withheld for taxes and not issued	28
BALANCE AT JULY 29, 2017	272
Restricted stock, stock units, and other share-based awards granted	(46	)
Share-based awards canceled/forfeited/expired	10
Shares withheld for taxes and not issued	18
BALANCE AT JANUARY 27, 2018	254

Summary of Restricted Stock and Stock Unit Activity

A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts):



	Restricted Stock/ Stock Units		Weighted-Average Grant Date Fair Value per Share		Aggregate Fair Value
UNVESTED BALANCE AT JULY 30, 2016	145		$	24.26
Granted	50		27.89
Assumed from acquisitions	15		32.21
Vested	(54	)	23.14		$	1,701
Canceled/forfeited	(15	)	23.56
UNVESTED BALANCE AT JULY 29, 2017	141		26.94
Granted	31		33.30
Assumed from acquisitions	1		28.26
Vested	(36	)	25.21		$	1,174
Canceled/forfeited	(10	)	27.83
UNVESTED BALANCE AT JANUARY 27, 2018	127		$	28.90

Summary of Stock Option Activity

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



	STOCK OPTIONS OUTSTANDING
	Number Outstanding		Weighted-Average Exercise Price per Share
BALANCE AT JULY 30, 2016	73		$	26.78
Assumed from acquisitions	8		4.47
Exercised	(14	)	12.11
Canceled/forfeited/expired	(55	)	31.83
BALANCE AT JULY 29, 2017	12		6.15
Assumed from acquisitions	3		8.20
Exercised	(4	)	5.28
BALANCE AT JANUARY 27, 2018	11		$	7.03

Summary of Significant Ranges of Outstanding and Exercisable Stock Options

The following table summarizes significant ranges of outstanding and exercisable stock options as of January 27, 2018 (in millions, except years and share prices):



	STOCK OPTIONS OUTSTANDING						STOCK OPTIONS EXERCISABLE
Range of Exercise Prices	Number Outstanding	Weighted- Average Remaining Contractual Life (in Years)	Weighted- Average Exercise Price per Share		Aggregate Intrinsic Value		Number Exercisable	Weighted- Average Exercise Price per Share		Aggregate Intrinsic Value
$ 0.01 – 35.00	11	6.5	$	7.03	$	380	5	$	6.40	$	194

Schedule of Assumptions Used

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



	RESTRICTED STOCK UNITS						PERFORMANCE BASED RESTRICTED STOCK UNITS
Three Months Ended	January 27, 2018			January 28, 2017			January 27, 2018			January 28, 2017
Number of shares granted (in millions)	21			15			—			3
Grant date fair value per share	$	34.89		$	27.68		$	32.47		$	27.90
Weighted-average assumptions/inputs:
Expected dividend yield	3.1		%	3.4		%	3.2		%	3.4		%
Range of risk-free interest rates	0.0% – 2.1%			0.0% – 1.5%			1.0% – 1.8%			0.3% – 1.5%
Range of expected volatilities for index	N/A			N/A			13.2% – 81.0%			N/A



	RESTRICTED STOCK UNITS						PERFORMANCE BASED RESTRICTED STOCK UNITS
Six Months Ended	January 27, 2018			January 28, 2017			January 27, 2018			January 28, 2017
Number of shares granted (in millions)	28			23			3			6
Grant date fair value per share	$	33.50		$	27.96		$	31.31		$	28.78
Weighted-average assumptions/inputs:
Expected dividend yield	3.2		%	3.4		%	3.6		%	3.4		%
Range of risk-free interest rates	0.0% – 2.1%			0.0% – 1.5%			1.0% – 1.8%			0.1% – 1.5%
Range of expected volatilities for index	N/A			N/A			13.2% – 81.0%			16.7% – 46.8%