Cash, cash equivalents and restricted cash (in millions):

The following table presents cash and cash equivalents as reported in our condensed consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our condensed consolidated statements of cash flows:


	October 29, 2021		April 30, 2021
Cash and cash equivalents	$	4,509	$	4,529
Restricted cash		7		6
Cash, cash equivalents and restricted cash	$	4,516	$	4,535

Inventories (in millions):


	October 29, 2021		April 30, 2021
Purchased components	$	48	$	22
Finished goods		107		92
Inventories	$	155	$	114

Property and equipment, net (in millions):


	October 29, 2021			April 30, 2021
Land	$	46		$	46
Buildings and improvements		350			356
Leasehold improvements		77			83
Computer, production, engineering and other equipment		903			869
Computer software		305			305
Furniture and fixtures		76			93
Construction-in-progress		65			46
		1,822			1,798
Accumulated depreciation and amortization		(1,273	)		(1,273	)
Property and equipment, net	$	549		$	525

Other non-current assets (in millions):


	October 29, 2021		April 30, 2021
Deferred tax assets	$	249	$	219
Operating lease ROU assets		263		114
Other assets		355		361
Other non-current assets	$	867	$	694

Other non-current assets as of October 29, 2021 and April 30, 2021 include $75 million and $71 million, respectively, for our 49% non-controlling equity interest in Lenovo NetApp Technology Limited, a China-based entity that we formed with Lenovo (Beijing) Information Technology Ltd. in fiscal 2019.

Accrued expenses (in millions):


	October 29, 2021		April 30, 2021
Accrued compensation and benefits	$	400	$	505
Product warranty liabilities		19		21
Operating lease liabilities		49		49
Other current liabilities		328		395
Accrued expenses	$	796	$	970

Equipment and software systems sales include a standard product warranty. Estimated future hardware and software warranty costs are recorded as a cost of product revenues at the time of product shipment, based on historical and projected warranty claim rates, historical and projected cost-per-claim and knowledge of specific product failures that are outside our typical experience.

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


	Three Months Ended						Six Months Ended
	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Balance at beginning of period	$	31		$	37		$	32		$	41
Expense accrued during the period		2			4			6			5
Warranty costs incurred		(5	)		(6	)		(10	)		(11	)
Balance at end of period	$	28		$	35		$	28		$	35


	October 29, 2021		April 30, 2021
Accrued expenses	$	19	$	21
Other long-term liabilities		9		11
Total warranty liabilities	$	28	$	32

Warranty expense recognized during the period includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods.

Other long-term liabilities (in millions):


	October 29, 2021		April 30, 2021
Liability for uncertain tax positions	$	111	$	127
Income taxes payable		303		351
Product warranty liabilities		9		11
Operating lease liabilities		224		71
Other liabilities		88		90
Other long-term liabilities	$	735	$	650

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 29, 2021		April 30, 2021
Deferred product revenue	$	47	$	59
Deferred services revenue		3,758		3,873
Financed unearned services revenue		61		71
Total	$	3,866	$	4,003


Reported as:
Short-term	$	1,967	$	2,062
Long-term		1,899		1,941
Total	$	3,866	$	4,003

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, Public Cloud, and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 15 – 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):


	Six Months Ended
	October 29, 2021			October 30, 2020
Balance at beginning of period	$	4,003		$	3,698
Additions		1,363			1,364
Revenue recognized during the period		(1,500	)		(1,411	)
Balance at end of period	$	3,866		$	3,651

During the six months ended October 29, 2021 and October 30, 2020, we recognized $1,183 million and $1,207 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.

As of October 29, 2021, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied approximated 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 51% 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.

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 29, 2021			October 30, 2020
Balance at beginning of period	$	197		$	156
Additions		76			57
Expense recognized during the period		(71	)		(45	)
Balance at end of period	$	202		$	168


	October 29, 2021		April 30, 2021
Other current assets	$	86	$	86
Other non-current assets		116		111
Total deferred commissions	$	202	$	197

Other expense, net (in millions):


	Three Months Ended						Six Months Ended
	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Interest income	$	1		$	2		$	3		$	5
Interest expense		(18	)		(18	)		(36	)		(36	)
Other income (expense), net		3			9			7			(8	)
Total other expense, net	$	(14	)	$	(7	)	$	(26	)	$	(39	)

Supplemental cash flow information related to our operating leases is included in Note 8 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below:


	Six Months Ended
	October 29, 2021		October 30, 2020
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	21	$	9
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	232	$	238
Interest paid	$	34	$	23