Leases

12 Months Ended

Aug. 01, 2021

Leases [Abstract]

Leases of Lessee Disclosure

Leases

We lease warehouse and distribution facilities, office space, manufacturing facilities, equipment and vehicles, primarily through operating leases.

Leases recorded on our Consolidated Balance Sheet have remaining terms primarily from 1 to 14 years.

Our fleet leases generally include residual value guarantees that are assessed at lease inception in determining ROU assets and corresponding liabilities. No other significant restrictions or covenants are included in our leases.

The components of lease costs were as follows:

	2021		2020
Operating lease cost	$	80	$	81
Finance lease - amortization of ROU assets	6		2
Short-term lease cost	48		39
Variable lease cost(1)	201		172
Sublease income	(2)		(3)
Total(2)	$	333	$	291

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(1)Includes labor and other overhead included in our service contracts with embedded leases.

(2)Total lease cost in 2020 included $4 related to discontinued operations.

The following table summarizes the lease amounts recorded in the Consolidated Balance Sheets:

	Operating Leases
	Balance sheet classification	2021		2020
ROU assets, net	Other assets	$	235	$	254
Lease liabilities (current)	Accrued liabilities	54		67
Lease liabilities (noncurrent)	Other liabilities	180		184
	Financing Leases
	Balance sheet classification	2021		2020
ROU assets, net	Plant assets, net of depreciation	$	29	$	10
Lease liabilities (current)	Short-term borrowings	11		3
Lease liabilities (noncurrent)	Long-term debt	19		7

Weighted-average lease terms and discount rates were as follows:

	August 1, 2021				August 2, 2020
	Operating		Finance		Operating		Finance
Weighted-average remaining term in years	6.4		3.1		6.7		3.0
Weighted-average discount rate	2.3	%	0.8	%	2.6	%	1.8	%

Future minimum lease payments are as follows:

	August 1, 2021
	Operating		Finance
2022	$	59	$	11
2023	49		9
2024	38		5
2025	27		2
2026	19		3
Thereafter	63		—
Total future undiscounted lease payments	255		30
Less imputed interest	21		—
Total reported lease liability	$	234	$	30

The following table summarizes cash flow and other information related to leases:

	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	79	$	79
Financing cash flows from finance leases	$	5	$	2
ROU assets obtained in exchange for lease obligations:
Operating leases	$	59	$	88
Finance leases	$	25	$	10
ROU assets divested with businesses sold:
Operating leases	$	—	$	18
Finance leases	$	—	$	5
Lease liabilities derecognized upon adoption:
Build-to-suit lease commitment	$	—	$	20