Leases

9 Months Ended

Jan. 27, 2023

8. Leases

We lease real estate, equipment and automobiles in the U.S. and internationally. Our real estate leases, which are responsible for the majority of our aggregate ROU asset and liability balances, include leases for office space, data centers and other facilities, and as of January 27, 2023, have remaining lease terms not exceeding 19 years. Some of these leases contain options that allow us to extend or terminate the lease agreement. Our equipment leases are primarily for servers and networking equipment and as of January 27, 2023, have remaining lease terms not exceeding 4 years. As of January 27, 2023, our automobile leases have remaining lease terms not exceeding 4 years. All our leases are classified as operating leases except for certain immaterial equipment finance leases.

The components of lease cost related to our operating leases were as follows (in millions):


	Three Months Ended				Nine Months Ended
	January 27, 2023		January 28, 2022		January 27, 2023		January 28, 2022
Operating lease cost	$	15	$	15	$	46	$	46
Variable lease cost		4		3		12		11
Total lease cost	$	19	$	18	$	58	$	57

Variable lease cost is primarily attributable to amounts paid to lessors for common area maintenance and utility charges under our real estate leases.

The supplemental cash flow information related to our operating leases is as follows (in millions):


	Nine Months Ended
	January 27, 2023		January 28, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	41	$	41
Right-of-use assets obtained in exchange for new operating lease obligations	$	33	$	236

The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate):


	January 27, 2023			April 29, 2022
Other non-current assets	$	289		$	294
Total operating lease ROU assets	$	289		$	294

Accrued expenses	$	48		$	47
Other long-term liabilities		254			257
Total operating lease liabilities	$	302		$	304

Weighted Average Remaining Lease Term	9.5 years			9.6 years

Weighted Average Discount Rate		2.9	%		2.8	%

Future minimum operating lease payments as of January 27, 2023, are as follows (in millions):


Fiscal Year	Amount
2023 (remainder)	$	14
2024		51
2025		41
2026		36
2027		32
Thereafter		176
Total lease payments		350
Less: Interest		(48	)
Total	$	302