Supplemental Financial Information

6 Months Ended

Oct. 25, 2019

Supplemental Financial Information [Abstract]

Supplemental Financial Information

5. Supplemental Financial Information

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 25, 2019		April 26, 2019
Cash and cash equivalents	$	2,545	$	2,325
Restricted cash		6		6
Cash, cash equivalents and restricted cash	$	2,551	$	2,331

Inventories (in millions):

	October 25, 2019		April 26, 2019
Purchased components	$	14	$	8
Finished goods		97		123
Inventories	$	111	$	131

Property and equipment, net (in millions):

	October 25, 2019			April 26, 2019
Land	$	104		$	106
Buildings and improvements		609			605
Leasehold improvements		86			86
Computer, production, engineering and other equipment		841			817
Computer software		358			357
Furniture and fixtures		106			105
Construction-in-progress		21			10
		2,125			2,086
Accumulated depreciation and amortization		(1,379	)		(1,327	)
Property and equipment, net	$	746		$	759

In September 2017, we entered into an agreement to sell certain land and buildings located in Sunnyvale, California, through two separate and independent closings, the first of which was completed in the third quarter of fiscal 2018. The remaining properties, consisting of land, were classified as assets held for sale, and included as other current assets in our condensed consolidated balance sheets as of April 26, 2019. On August 29, 2019, the second closing occurred and we consummated the sale of the land, with a net book value of $53 million, and received cash proceeds of $96 million, resulting in a gain, net of direct selling costs, of $38 million.

Other non-current assets (in millions):

	October 25, 2019		April 26, 2019
Deferred tax assets	$	223	$	201
Operating lease ROU assets		143		—
Other assets		348		389
Other non-current assets	$	714	$	590

Other non-current assets as of October 25, 2019 and April 26, 2019 includes $77 million and $78 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 25, 2019		April 26, 2019
Accrued compensation and benefits	$	279	$	433
Product warranty liabilities		26		25
Operating lease liabilities		49		—
Other current liabilities		252		393
Accrued expenses	$	606	$	851

Product warranty liabilities:

Equipment and software systems sales include a standard product warranty. 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 25, 2019			October 26, 2018			October 25, 2019			October 26, 2018
Balance at beginning of period	$	39		$	38		$	40		$	40
Expense accrued during the period		7			6			12			10
Warranty costs incurred		(6	)		(5	)		(12	)		(11	)
Balance at end of period	$	40		$	39		$	40		$	39

	October 25, 2019		April 26, 2019
Accrued expenses	$	26	$	25
Other long-term liabilities		14		15
Total warranty liabilities	$	40	$	40

Warranty expense accrued 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 25, 2019		April 26, 2019
Liability for uncertain tax positions	$	251	$	252
Income taxes payable		399		447
Product warranty liabilities		14		15
Operating lease liabilities		102		—
Other liabilities		71		83
Other long-term liabilities	$	837	$	797

Other income, net (in millions):

	Three Months Ended						Six Months Ended
	October 25, 2019			October 26, 2018			October 25, 2019			October 26, 2018
Interest income	$	12		$	21		$	31		$	46
Interest expense		(12	)		(14	)		(27	)		(28	)
Other income, net		3			—			14			7
Total other income, net	$	3		$	7		$	18		$	25

Statements of cash flows additional information (in millions):

Supplemental cash flow information related to our operating leases is included in Note 9 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below:

	Six Months Ended
	October 25, 2019		October 26, 2018
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	6	$	7
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	260	$	104
Interest paid	$	25	$	26