Leases

3 Months Ended

Jul. 28, 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 July 28, 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 July 28, 2023, have remaining lease terms not exceeding 4 years. As of July 28, 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
	July 28, 2023		July 29, 2022
Operating lease cost	$	14	$	15
Variable lease cost		4		4
Total lease cost	$	18	$	19

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):


	Three Months Ended
	July 28, 2023		July 29, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	14	$	14
Right-of-use assets obtained in exchange for new operating lease obligations	$	9	$	38

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


	July 28, 2023			April 28, 2023
Other non-current assets	$	270		$	281
Total operating lease ROU assets	$	270		$	281

Accrued expenses	$	44		$	47
Other long-term liabilities		238			248
Total operating lease liabilities	$	282		$	295

Weighted Average Remaining Lease Term	9.6 years			9.4 years

Weighted Average Discount Rate		3.0	%		3.0	%

Future minimum operating lease payments as of July 28, 2023, are as follows (in millions):


Fiscal Year	Amount
2024 (remainder)	$	38
2025		42
2026		36
2027		32
2028		28
Thereafter		152
Total lease payments		328
Less: Interest		(46	)
Total	$	282