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Revenue (Tables) | 6 Months Ended
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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 |

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