Derivative Instruments (Tables)

6 Months Ended

Jan. 26, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair values of our 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 26, 2019		July 28, 2018		Balance Sheet Line Item	January 26, 2019		July 28, 2018
Derivatives designated as hedging instruments:
Foreign currency derivatives	Other current assets	$	1	$	1	Other current liabilities	$	8	$	—
Interest rate derivatives	Other current assets	—		—		Other current liabilities	13		10
Interest rate derivatives	Other assets	12		—		Other long-term liabilities	15		62
Total		13		1			36		72
Derivatives not designated as hedging instruments:
Foreign currency derivatives	Other current assets	10		1		Other current liabilities	4		2
Total		10		1			4		2
Total		$	23	$	2		$	40	$	74

Gains and Losses on Derivatives Designated as Cash Flow Hedges

The effects of our 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 26, 2019			January 27, 2018			Line Item in Statements of Operations	January 26, 2019			January 27, 2018
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	(6	)	$	30		Revenue — product	$	1		$	—
							Revenue — service	1			—
							Cost of sales — service	(1		)	4
							Operating expenses	—			14
Total	$	(6	)	$	30			$	1		$	18

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	(1	)	$	(12	)	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 26, 2019			January 27, 2018			Line Item in Statements of Operations	January 26, 2019			January 27, 2018
Derivatives designated as cash flow hedging instruments:
Foreign currency derivatives	$	(10	)	$	38		Revenue — product	$	1		$	—
							Revenue — service	2			—
							Cost of sales — service	(1		)	7
							Operating expenses	(1		)	24
Total	$	(10	)	$	38			$	1		$	31

Derivatives designated as net investment hedging instruments:
Foreign currency derivatives	$	3		$	(17	)	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 26, 2019		January 27, 2018			January 26, 2019			January 27, 2018
Interest rate derivatives	Interest expense	$	64	$	(63	)	$	(61	)	$	63
Equity derivatives	Other income (loss), net	—		(35		)	—			35
Total		$	64	$	(98	)	$	(61	)	$	98



		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 26, 2019		January 27, 2018			January 26, 2019			January 27, 2018
Interest rate derivatives	Interest expense	$	55	$	(109	)	$	(52	)	$	109
Equity derivatives	Other income (loss), net	—		(49		)	—			49
Total		$	55	$	(158	)	$	(52	)	$	158

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 26, 2019			January 27, 2018			January 26, 2019			January 27, 2018
Foreign currency derivatives	Other income (loss), net	$	(1	)	$	66		$	(28	)	$	73
Total return swaps—deferred compensation	Operating expenses	(9		)	39			(33		)	54
	Cost of sales — product	—			1			(1		)	1
	Cost of sales — service	(1		)	1			(2		)	2
	Other income (loss), net	(4		)	(3		)	(8		)	(5		)
Equity derivatives	Other income (loss), net	—			2			1			3
Total		$	(15	)	$	106		$	(71	)	$	128

Schedule of Notional Amounts of Derivatives Outstanding

The notional amounts of our outstanding derivatives are summarized as follows (in millions):



	January 26, 2019		July 28, 2018
Derivatives designated as hedging instruments:
Foreign currency derivatives—cash flow hedges	$	890	$	147
Interest rate derivatives	6,750		6,750
Net investment hedging instruments	299		250
Derivatives not designated as hedging instruments:
Foreign currency derivatives	2,643		2,298
Total return swaps—deferred compensation	536		566
Total	$	11,118	$	10,011

Offsetting Assets and Liabilities

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



	January 26, 2019
	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	$	23	$	—	$	23	$	(12	)	$	(11	)	$	—
Derivatives liabilities	$	40	$	—	$	40	$	(12	)	$	(19	)	$	9



	July 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	$	2	$	—	$	2	$	(2	)	$	—		$	—
Derivatives liabilities	$	74	$	—	$	74	$	(2	)	$	(53	)	$	19