Derivative Instruments (Tables)

9 Months Ended

Apr. 28, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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	April 28, 2018		July 29, 2017		Balance Sheet Line Item	April 28, 2018		July 29, 2017
Derivatives designated as hedging instruments:
Foreign currency derivatives	Other current assets	$	12	$	46	Other current liabilities	$	1	$	1
Equity derivatives	Other current assets	—		—		Other current liabilities	24		—
Interest rate derivatives	Other current assets	—		—		Other current liabilities	12		—
Interest rate derivatives	Other assets	—		102		Other long-term liabilities	54		—
Total		12		148			91		1
Derivatives not designated as hedging instruments:
Foreign currency derivatives	Other current assets	1		1		Other current liabilities	1		3
Total return swaps—deferred compensation	Other current assets	—		—		Other current liabilities	—		—
Total		1		1			1		3
Total		$	13	$	149		$	92	$	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)
	April 28, 2018			April 29, 2017			Line Item in Statements of Operations	April 28, 2018		April 29, 2017
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	(10	)	$	25		Operating expenses	$	21	$	(20	)
							Cost of sales—service	7		(7		)
Total	$	(10	)	$	25			$	28	$	(27	)

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	7		$	(10	)	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 28, 2018			April 29, 2017			Line Item in Statements of Operations	April 28, 2018		April 29, 2017
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	28		$	(23	)	Operating expenses	$	45	$	(50	)
							Cost of sales—service	14		(16		)
Total	$	28		$	(23	)		$	59	$	(66	)

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	(10	)	$	(4	)	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	April 28, 2018			April 29, 2017			April 28, 2018			April 29, 2017
Interest rate derivatives	Interest expense	$	(59	)	$	(6	)	$	58		$	7
Equity derivatives	Other income (loss), net	25			—			(25		)	—
Total		$	(34	)	$	(6	)	$	33		$	7



		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 28, 2018			April 29, 2017			April 28, 2018		April 29, 2017
Interest rate derivatives	Interest expense	$	(168	)	$	(272	)	$	167	$	269
Equity derivatives	Other income (loss), net	(24		)	—			24		—
Total		$	(192	)	$	(272	)	$	191	$	269

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 NINE MONTHS ENDED
Derivatives Not Designated as Hedging Instruments	Line Item in Statements of Operations	April 28, 2018			April 29, 2017		April 28, 2018			April 29, 2017
Foreign currency derivatives	Other income (loss), net	$	(53	)	$	4	$	20		$	(32	)
Total return swaps—deferred compensation	Operating expenses	(28		)	19		29			42
Equity derivatives	Other income (loss), net	(7		)	1		(4		)	10
Total		$	(88	)	$	24	$	45		$	20

Schedule of Notional Amounts of Derivatives Outstanding

The notional amounts of the Company’s outstanding derivatives are summarized as follows (in millions):



	April 28, 2018		July 29, 2017
Derivatives designated as hedging instruments:
Foreign currency derivatives—cash flow hedges	$	326	$	1,696
Interest rate derivatives	6,750		6,750
Net investment hedging instruments	455		351
Equity derivatives	302		—
Derivatives not designated as hedging instruments:
Foreign currency derivatives	2,199		2,258
Total return swaps—deferred compensation	553		535
Total	$	10,585	$	11,590

Offsetting Assets and Liabilities

Information related to these offsetting arrangements is summarized as follows (in millions):



	April 28, 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	$	13	$	—	$	13	$	(8	)	$	—		$	5
Derivatives liabilities	$	92	$	—	$	92	$	(8	)	$	(50	)	$	34



	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	)	$	—		$	—