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Revenue
 12 Months Ended
Apr. 30, 2021
Revenue From Contract With Customer [Abstract]  
Revenue

7. Revenue

    

Disaggregation of revenue

 

Product revenues include the sale of our hardware and software solutions across our entire product set, including All-Flash FAS, SolidFire, EF-series, Hybrid FAS, E-series, NetApp HCI, and StorageGrid. In addition to the sale of our products and solutions, we provide a variety of services to our customers, including software support, hardware support and other services including professional services, and customer education and training. Revenues generated by our Public Cloud Services (formerly referred to as Cloud Data Services) offerings, are included in software support revenues.

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

 

Year Ended

 

 

April 30, 2021

 

 

April 24, 2020

 

 

April 26, 2019

 

Product revenues

$

2,991

 

 

$

2,995

 

 

$

3,755

 

Software support revenues

 

1,281

 

 

 

1,034

 

 

 

946

 

Hardware support and other services revenues

 

1,472

 

 

 

1,383

 

 

 

1,445

 

Hardware support contracts

 

1,195

 

 

 

1,142

 

 

 

1,182

 

Professional and other services

 

277

 

 

 

241

 

 

 

263

 

Net revenues

$

5,744

 

 

$

5,412

 

 

$

6,146

 

 

 

Revenues by geographic region are presented in Note 16 – Segment, Geographic, and Significant Customer Information.

 

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 consolidated balance sheets (in millions):

 

April 30, 2021

 

 

April 20, 2020

 

Deferred product revenue

$

59

 

 

$

75

 

Deferred services revenue

 

3,873

 

 

 

3,567

 

Financed unearned services revenue

 

71

 

 

 

56

 

Total

$

4,003

 

 

$

3,698

 

 

 

 

 

 

 

 

 

Reported as:

 

 

 

 

 

 

 

Short-term

$

2,062

 

 

$

1,894

 

Long-term

 

1,941

 

 

 

1,804

 

Total

$

4,003

 

 

$

3,698

 

 

Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware support contracts and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 18 – Commitments and Contingencies for additional information related to these arrangements.

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

 

Year Ended

 

 

April 30, 2021

 

 

April 20, 2020

 

Balance at beginning of period

$

3,698

 

 

$

3,668

 

Additions

 

3,191

 

 

 

2,513

 

Revenue recognized during the period

 

(2,886

)

 

 

(2,483

)

Balance at end of period

$

4,003

 

 

$

3,698

 

 

During the years ended April 30, 2021 and April 24, 2020, we recognized $1,894 million and $1,822 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.

 

As of April 30, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $4,003 million, which is equivalent to our deferred revenue and unearned services revenue balance. Because customer orders are typically placed on an as-needed basis, and cancellable without penalty prior to shipment, orders in backlog may not be a meaningful indicator of future revenue and have not been included in this amount. We expect to recognize as revenue approximately 52% of our deferred revenue and financed unearned services revenue balance in the next 12 months, approximately 24% in the next 13 to 24 months, and the remainder thereafter.

 

 

Deferred commissions

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

 

Year Ended

 

 

April 30, 2021

 

 

April 24, 2020

 

Balance at beginning of period

$

156

 

 

$

172

 

Additions

 

142

 

 

 

79

 

Expense recognized during the period

 

(101

)

 

 

(95

)

Balance at end of period

$

197

 

 

$

156

 

 

 

April 30, 2021

 

 

April 24, 2020

 

Other current assets

$

86

 

 

$

67

 

Other non-current assets

 

111

 

 

 

89

 

Total deferred commissions

$

197

 

 

$

156