LEASES (Notes)

12 Months Ended

Oct. 31, 2021

10. LEASES

We have operating leases for items including office space, order fulfillment, sales and service centers, R&D and certain equipment, primarily automobiles. Our leases have remaining terms of up to 13 years, some of which may include options to extend the leases, primarily for 3 to 5 years. We consider options to renew in our lease terms and measurement of ROU assets and lease liabilities if we determine they are reasonably certain to be exercised.

The weighted average lease term of our operating leases was 8.2 years and 7.3 years as of October 31, 2021 and 2020, respectively. The weighted average discount rate of our operating leases was 3 percent as of both October 31, 2021 and 2020.

The following table summarizes the components of our lease cost:


	Year ended October 31,
	2021		2020
	(in millions)
Operating lease cost	$	51	$	49
Variable lease cost	$	14	$	16

Short-term lease costs, sublease income and finance lease costs were immaterial for the year ended October 31, 2021 and 2020.

Supplemental cash flow information related to our operating leases was as follows:


	Year ended October 31,
	2021		2020
	(in millions)
Cash payments for operating leases	$	53	$	48
ROU assets obtained in exchange for operating lease obligations	$	78	$	67

The maturities of our operating leases as of October 31, 2021 with initial terms exceeding one year were as follows:


	Operating Leases
	(in millions)
2022	$	45
2023	38
2024	30
2025	24
Thereafter	123
Total undiscounted lease liability	260
Imputed interest	28
Total discounted lease liability	$	232

As of October 31, 2021, we did not have material leases that had not yet commenced.

Rental income from leasing out excess facilities was $11 million for both the year ended October 31, 2021 and 2020 and is included in other operating expense (income), net. Other lessor arrangements were immaterial.