Revenue (Tables)

3 Months Ended

Jul. 27, 2018

Disaggregation Of Revenue [Line Items]

Summary of Disaggregation of Revenue

The following table depicts the disaggregation of revenue by our products and services (in millions):

	Three Months Ended
	July 27, 2018		July 28, 2017
Product revenues	$	875	$	727
Strategic		612		498
Mature		263		229
Software maintenance revenues	229		223
Hardware maintenance and other services revenues	370		371
Hardware maintenance support contracts		303		298
Professional and other services		67		73
Net revenues	$	1,474	$	1,321

Deferred Revenue and Financed Unearned Services Revenue

      The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our condensed consolidated balance sheets (in millions):

	July 27, 2018		April 27, 2018
Deferred product revenue	$	102	$	107
Deferred services revenue		3,046		3,134
Financed unearned services revenue		112		122
Total	$	3,260	$	3,363
Reported as:
Short-term	$	1,623	$	1,712
Long-term		1,637		1,651
Total	$	3,260	$	3,363

The following tables summarize the activity related to deferred revenue and financed unearned services revenue (in millions):

	Three Months Ended
	July 27, 2018			July 28, 2017
Balance at beginning of period	$	3,363		$	3,213
Additions		511			497
Revenue recognized during the period		(614	)		(583	)
Balance at end of period	$	3,260		$	3,127

Summary of Activity Related to Deferred Commissions and their Balances in Condensed Consolidated Balance Sheets

The following tables summarize the activity related to deferred commissions and their balances as reported in our condensed consolidated balance sheets (in millions):

	Three Months Ended
	July 27, 2018			July 28, 2017
Balance at beginning of period	$	137		$	113
Additions		19			18
Expense recognized during the period		(21	)		(15	)
Balance at end of period	$	135		$	116

	July 27, 2018		April 27, 2018
Other current assets	$	64	$	66
Other non-current assets		71		71
Total deferred commissions	$	135	$	137

ASC 606

Disaggregation Of Revenue [Line Items]

Schedule of Impacts of Adoption of ASC 606 on Condensed Consolidated Balance Sheet and Statement of Operations

      The following table presents the impacts of adoption of ASC 606 to select line items of our condensed consolidated balance sheet as of the end of fiscal 2018:

	As of April 27, 2018
	As Previously Reported			Impact of ASC 606 Adoption					As Adjusted
ASSETS
Accounts receivable	$	1,009		$	38		(1	)	$	1,047
Inventories		126			(4	)				122
Other current assets		330			62		(2	)		392
Other non-current assets		420			30		(2	)		450
LIABILITIES AND STOCKHOLDERS' EQUITY
Short-term deferred revenue and financed unearned services revenue	$	1,804		$	(92	)	(3	)	$	1,712
Other long-term liabilities		961			31		(4	)		992
Long-term deferred revenue and financed unearned services revenue		1,673			(22	)	(3	)		1,651
Accumulated deficit		(218	)		209		(5	)		(9	)

(1) Netting of accounts receivable and deferred revenue balances for certain customer arrangements has been updated to reflect the impact of adoption

(2) Reflects capitalization of commissions and reduction of long-term deferred tax assets

(3) Reflects cumulative change in revenue and the impact of adoption to the netting of accounts receivable and deferred revenue balances for certain customer arrangements

(4) Reflects increase in long-term deferred tax liabilities

(5) Reflects cumulative impact to net income (loss)

      The following table presents the impacts of adoption of ASC 606 to our statement of operations for the first quarter of fiscal 2018:

	Three Months Ended
	July 28, 2017
	As Previously Reported		Impact of ASC 606 Adoption			As Adjusted
Revenues:
Product	$	723	$	4		$	727
Software maintenance		234		(11	)		223
Hardware maintenance and other services		368		3			371
Net revenues		1,325		(4	)		1,321
Cost of revenues:
Cost of product		371		5			376
Cost of software maintenance		7		—			7
Cost of hardware maintenance and other services		113		1			114
Total cost of revenues		491		6			497
Gross profit		834		(10	)		824
Operating expenses:
Sales and marketing		425		(2	)		423
Research and development		193		—			193
General and administrative		68		—			68
Total operating expenses		686		(2	)		684
Income from operations		148		(8	)		140
Other income, net		5		—			5
Income before income taxes		153		(8	)		145
Provision for income taxes		17		(3	)		14
Net income	$	136	$	(5	)	$	131
Net income per share:
Basic	$	0.50	$	(0.01	)	$	0.49
Diluted	$	0.49	$	(0.02	)	$	0.47
Shares used in net income per share calculations:
Basic		270		270			270
Diluted		278		278			278