Derivative Instruments (Tables)

9 Months Ended

Apr. 25, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Recorded at Fair Value

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	April 25, 2020		July 27, 2019		Balance Sheet Line Item	April 25, 2020		July 27, 2019
Derivatives designated as hedging instruments:
Foreign currency derivatives	Other current assets	$	16	$	5	Other current liabilities	$	3	$	8
Interest rate derivatives	Other current assets	9		—		Other current liabilities	—		1
Interest rate derivatives	Other assets	170		75		Other long-term liabilities	—		—
Total		195		80			3		9
Derivatives not designated as hedging instruments:
Foreign currency derivatives	Other current assets	5		9		Other current liabilities	18		6
Equity derivatives	Other current assets	—		—		Other current liabilities	1		—
Total		5		9			19		6
Total		$	200	$	89		$	22	$	15

Cumulative Basis Adjustment For Fair Value Hedges

The following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for our fair value hedges (in millions):

	CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES)						CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES
Balance Sheet Line Item of Hedged Item	April 25, 2020			July 27, 2019			April 25, 2020			July 27, 2019
Short-term debt	$	(508	)	$	(2,000	)	$	(8	)	$	—
Long-term debt	$	(2,160	)	$	(2,565	)	$	(166	)	$	(73	)

Effect on Consolidated Statements of Operations of Derivative Instruments

The effect on the Consolidated Statements of Operations of derivative instruments designated as fair value and cash flow hedges is summarized as follows (in millions):

	April 25, 2020
	Three Months Ended									Nine Months Ended
	Revenue		Cost of sales		Operating expenses		Interest and other income (loss), net			Revenue			Cost of sales		Operating expenses		Interest and other income (loss), net
Total amounts presented in the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	11,983	$	4,212	$	4,357	$	30		$	37,147		$	13,148	$	13,626	$	291
The effects of fair value and cash flow hedging:
Gains (losses) on fair value hedging relationships:
Interest rate derivatives
Hedged items	—		—		—		(87		)	—			—		—		(101		)
Derivatives designated as hedging instruments	—		—		—		89			—			—		—		105
Gains (losses) on cash flow hedging relationships:
Foreign currency derivatives
Amount of gains (losses) reclassified from AOCI to income	1		—		—		—			(4		)	1		2		—
Total gains (losses)	$	1	$	—	$	—	$	2		$	(4	)	$	1	$	2	$	4

	April 27, 2019
	Three Months Ended									Nine Months Ended
	Revenue		Cost of sales		Operating expenses		Interest and other income (loss), net			Revenue		Cost of sales			Operating expenses			Interest and other income (loss), net
Total amounts presented in the Consolidated Statements of Operations in which the effects of fair value or cash flow hedges are recorded	$	12,958	$	4,785	$	4,660	$	102		$	38,476	$	14,384		$	13,563		$	338
The effects of fair value and cash flow hedging:
Gains (losses) on fair value hedging relationships:
Interest rate derivatives
Hedged items	—		—		—		(31		)	—		—			—			(83		)
Derivatives designated as hedging instruments	—		—		—		33			—		—			—			88
Gains (losses) on cash flow hedging relationships:
Foreign currency derivatives
Amount of gains (losses) reclassified from AOCI to income	—		—		—		—			3		(1		)	(1		)	—
Total gains (losses)	$	—	$	—	$	—	$	2		$	3	$	(1	)	$	(1	)	$	5

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 25, 2020			April 27, 2019			April 25, 2020			April 27, 2019
Foreign currency derivatives	Other income (loss), net	$	(47	)	$	(29	)	$	(56	)	$	(57	)
Total return swaps—deferred compensation	Operating expenses	(93		)	42			(49		)	9
	Cost of sales	(9		)	4			(5		)	1
	Other income (loss), net	(2		)	(4		)	(9		)	(12		)
Equity derivatives	Other income (loss), net	(6		)	1			(1		)	2
Total		$	(157	)	$	14		$	(120	)	$	(57	)

Schedule of Notional Amounts of Derivatives Outstanding

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

	April 25, 2020		July 27, 2019
Derivatives designated as hedging instruments:
Foreign currency derivatives—cash flow hedges	$	610	$	663
Interest rate derivatives	2,500		4,500
Net investment hedging instruments	210		309
Derivatives not designated as hedging instruments:
Foreign currency derivatives	2,645		2,708
Total return swaps—deferred compensation	508		574
Total	$	6,473	$	8,754