Commitments

Letters of Credit

As of July 31, 2018, the Company had a total of $104 million in letters of credit outstanding substantially in favor of certain landlords for office space. These letters of credit renew annually and expire at various dates through December 2030.

Leases

The Company leases facilities space and certain fixed assets under non-cancelable operating and capital leases with various expiration dates.

As of July 31, 2018, the future minimum lease payments under non-cancelable operating and capital leases are as follows (in millions):



	Capital Leases			Operating Leases		Financing Obligation -Leased Facility (1)
Fiscal Period:
Remaining six months of Fiscal 2019	$	12		$	369	$	11
Fiscal 2020	202			692		22
Fiscal 2021	0			558		23
Fiscal 2022	0			374		23
Fiscal 2023	0			317		24
Thereafter	0			1,305		187
Total minimum lease payments	214			$	3,615	$	290
Less: amount representing interest	(9		)
Present value of capital lease obligations	$	205

(1) Total Financing Obligation - Leased Facility noted above represents the total obligation on the lease agreement including amounts allocated to interest and the implied lease for the land. As of July 31, 2018, $217 million of the total $290 million above was recorded to Financing obligation leased facility, of which the current portion is included in "Accounts payable, accrued expenses and other liabilities" and the noncurrent portion is included in “Other noncurrent liabilities” on the condensed consolidated balance sheet.

The Company’s agreements for the facilities and certain services provide the Company with the option to renew. The Company’s future contractual obligations would change if the Company exercised these options.

The terms of the lease agreements provide for rental payments on a graduated basis. The Company recognizes rent expense on a straight-line basis over the lease period and has accrued for rent expense incurred but not paid. Of the total operating lease commitment balance of $3.6 billion, approximately $2.9 billion is related to facilities space. The remaining commitment amount is related to computer equipment and furniture and fixtures.

The Company has entered into various contractual commitments with infrastructure service providers for a total commitment of $2.0 billion. As of July 31, 2018 the total remaining commitment is approximately $1.9 billion and $79 million is remaining to be paid this fiscal year.