Supplemental Financial Information

3 Months Ended

Jul. 31, 2020

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:

	July 31, 2020		April 24, 2020
Cash and cash equivalents	$	3,633	$	2,658
Restricted cash		8		8
Cash, cash equivalents and restricted cash	$	3,641	$	2,666

Inventories (in millions):

	July 31, 2020		April 24, 2020
Purchased components	$	25	$	28
Finished goods		111		117
Inventories	$	136	$	145

Property and equipment, net (in millions):

	July 31, 2020			April 24, 2020
Land	$	103		$	103
Buildings and improvements		598			597
Leasehold improvements		91			89
Computer, production, engineering and other equipment		834			802
Computer software		359			359
Furniture and fixtures		107			106
Construction-in-progress		38			32
		2,130			2,088
Accumulated depreciation and amortization		(1,393	)		(1,361	)
Property and equipment, net	$	737		$	727

Other non-current assets (in millions):

	July 31, 2020		April 24, 2020
Deferred tax assets	$	208	$	220
Operating lease ROU assets		135		137
Other assets		341		342
Other non-current assets	$	684	$	699

Other non-current assets as of July 31, 2020 and April 24, 2020 were $68 million and $67 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):

	July 31, 2020		April 24, 2020
Accrued compensation and benefits	$	254	$	322
Product warranty liabilities		24		26
Operating lease liabilities		52		51
Other current liabilities		286		375
Accrued expenses	$	616	$	774

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
	July 31, 2020			July 26, 2019
Balance at beginning of period	$	41		$	40
Expense accrued during the period		1			5
Warranty costs incurred		(5	)		(6	)
Balance at end of period	$	37		$	39

	July 31, 2020		April 24, 2020
Accrued expenses	$	24	$	26
Other long-term liabilities		13		15
Total warranty liabilities	$	37	$	41

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):

	July 31, 2020		April 24, 2020
Liability for uncertain tax positions	$	142	$	136
Income taxes payable		399		399
Product warranty liabilities		13		15
Operating lease liabilities		90		93
Other liabilities		76		71
Other long-term liabilities	$	720	$	714

Other income (expense), net (in millions):

	Three Months Ended
	July 31, 2020			July 26, 2019
Interest income	$	3		$	19
Interest expense		(18	)		(15	)
Other income (expense), net		(17	)		11
Total other income (expense), net	$	(32	)	$	15

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:

	Three Months Ended
	July 31, 2020		July 26, 2019
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	10	$	10
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	136	$	55
Interest paid	$	16	$	14