Leases

12 Months Ended

Apr. 29, 2022

The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation, data processing, and other equipment. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement, the Company recognizes a right-of-use asset and lease liability. Right-of-use assets represent the Company's right to use the underlying asset for the lease term. Lease liabilities are the Company's obligation to make the lease payments arising from a lease. As the Company’s leases typically do not provide an implicit rate, the Company’s lease liabilities are measured on a discounted basis using the Company's incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. Additionally, lease terms underlying the right-of-use assets and lease liabilities consider terminations that are reasonably certain to be executed.

The Company's lease agreements include leases that have both lease and associated nonlease components. The Company has elected to account for lease components and the associated nonlease components as a single lease component. The consolidated balance sheets do not include recognized assets or liabilities for leases that, at the commencement date, have a term of twelve months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised. The Company recognizes such leases in the consolidated statements of income on a straight-line basis over the lease term. Additionally, the Company recognizes variable lease payments not included in its lease liabilities in the period in which the obligation for those payments is incurred. Variable lease payments for fiscal year 2022, 2021, and 2020 were not material.

The Company's lease agreements include leases accounted for as operating leases and those accounted for as finance leases. The right-of-use assets, lease liabilities, lease costs, cash flows, and lease maturities associated with the Company's finance leases were not material to the consolidated financial statements at April 29, 2022 or April 30, 2021 or for fiscal year 2022, 2021 and 2020. Finance lease right-of-use assets are included in property, plant, and equipment, net, and finance lease liabilities are included in current debt obligations and long-term debt on the consolidated balance sheets.

The following table summarizes the balance sheet classification of the Company's operating leases and amounts of the right-of-use assets and lease liabilities at April 29, 2022 and April 30, 2021:


(in millions)	Balance Sheet Classification	April 29, 2022		April 30, 2021
Right-of-use assets	Other assets	$	854	$	998
Current liability	Other accrued expenses	167		186
Non-current liability	Other liabilities	703		829

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate for the Company's operating leases at April 29, 2022, April 30, 2021, and April 24, 2020:

April 29, 2022

April 30, 2021

April 24, 2020

Weighted-average remaining lease term

7.3 Years

7.5 years

7.2 years

Weighted-average discount rate

2.0%

2.3%

3.0%

The following table summarizes the components of total operating lease cost for fiscal year 2022, 2021, and 2020:


	Fiscal Year
(in millions)	2022		2021		2020
Operating lease cost	$	195	$	216	$	223
Short-term lease cost	65		35		46
Total operating lease cost	$	260	$	251	$	269

The following table summarizes the cash paid for amounts included in the measurement of operating lease liabilities and right-of-use assets obtained in exchange for operating lease liabilities for fiscal year 2022, 2021, and 2020:


	Fiscal Year
(in millions)	2022		2021		2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	174	$	216	$	221
Right-of-use assets obtained in exchange for operating lease liabilities	78		230		174

The following table summarizes the maturities of the Company's operating leases at April 29, 2022:


(in millions) Fiscal Year	Operating Leases
2023	$	213
2024	164
2025	130
2026	103
2027	82
Thereafter	284
Total expected lease payments	976
Less: Imputed interest	(105)
Total lease liability	$	871

The Company makes certain products available to customers under lease arrangements, including arrangements whereby equipment is placed with customers who then purchase consumable products to accompany the use of the equipment. Income arising from arrangements where the Company is the lessor is recognized within net sales in the consolidated statements of income and the Company's net investments in sales-type leases are included in other current assets and other assets in the consolidated balance sheets. Lessor income and the related assets and lease maturities were not material to the consolidated financial statements at or for the fiscal year ended April 29, 2022 and April 30, 2021.