Revenue (Tables)

6 Months Ended

Oct. 26, 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				Six Months Ended
	October 26, 2018		October 27, 2017		October 26, 2018		October 27, 2017
Product revenues	$	913	$	819	$	1,788	$	1,546
Strategic	649		566			1,261		1,064
Mature	264		253			527		482
Software maintenance revenues	236		224			465	447
Hardware maintenance and other services revenues	368		372			738	743
Hardware maintenance support contracts	303		306			606		604
Professional and other services	65		66			132		139
Net revenues	$	1,517	$	1,415	$	2,991	$	2,736

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):

	October 26, 2018		April 27, 2018
Deferred product revenue	$	102	$	107
Deferred services revenue		3,010		3,134
Financed unearned services revenue		94		122
Total	$	3,206	$	3,363
Reported as:
Short-term	$	1,538	$	1,712
Long-term		1,668		1,651
Total	$	3,206	$	3,363

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

	Six Months Ended
	October 26, 2018			October 27, 2017
Balance at beginning of period	$	3,363		$	3,213
Additions		1,067			1,031
Revenue recognized during the period		(1,224	)		(1,185	)
Balance at end of period	$	3,206		$	3,059

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):

	Six Months Ended
	October 26, 2018			October 27, 2017
Balance at beginning of period	$	137		$	113
Additions		35			34
Expense recognized during the period		(41	)		(32	)
Balance at end of period	$	131		$	115

	October 26, 2018		April 27, 2018
Other current assets	$	61	$	66
Other non-current assets		70		71
Total deferred commissions	$	131	$	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 second quarter and first six months of fiscal 2018:

	Three Months Ended							Six Months Ended
	October 27, 2017							October 27, 2017
	As Previously Reported		Impact of ASC 606 Adoption			As Adjusted		As Previously Reported		Impact of ASC 606 Adoption			As Adjusted
Revenues:
Product	$	807	$	12		$	819	$	1,530	$	16		$	1,546
Software maintenance		240		(16	)		224		474		(27	)		447
Hardware maintenance and other services		375		(3	)		372		743		—			743
Net revenues		1,422		(7	)		1,415		2,747		(11	)		2,736
Cost of revenues:
Cost of product		399		(2	)		397		770		3			773
Cost of software maintenance		6		—			6		13		—			13
Cost of hardware maintenance and other services		115		(3	)		112		228		(2	)		226
Total cost of revenues		520		(5	)		515		1,011		1			1,012
Gross profit		902		(2	)		900		1,736		(12	)		1,724
Operating expenses:
Sales and marketing		420		1			421		845		(1	)		844
Research and development		194		—			194		387		—			387
General and administrative		69		—			69		137		—			137
Total operating expenses		683		1			684		1,369		(1	)		1,368
Income from operations		219		(3	)		216		367		(11	)		356
Other income, net		6		—			6		11		—			11
Income before income taxes		225		(3	)		222		378		(11	)		367
Provision for income taxes		50		(2	)		48		67		(5	)		62
Net income	$	175	$	(1	)	$	174	$	311	$	(6	)	$	305
Net income per share:
Basic	$	0.65	$	—		$	0.65	$	1.15	$	(0.02	)	$	1.13
Diluted	$	0.64	$	(0.01	)	$	0.63	$	1.12	$	(0.02	)	$	1.10
Shares used in net income per share calculations:
Basic		269		269			269		270		270			270
Diluted		275		275			275		277		277			277