Leases

3 Months Ended

Oct. 30, 2021

Leases [Abstract]

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	October 30, 2021		July 31, 2021
Operating lease right-of-use assets	Other assets	$	1,118	$	1,095
Operating lease liabilities	Other current liabilities	$	353	$	337
Operating lease liabilities	Other long-term liabilities	834		831
Total operating lease liabilities		$	1,187	$	1,168

The components of our lease expenses were as follows (in millions):

	Three Months Ended
	October 30, 2021		October 24, 2020
Operating lease expense	$	95	$	98
Short-term lease expense	17		18
Variable lease expense	49		46
Total lease expense	$	161	$	162

Supplemental information related to our operating leases is as follows (in millions):

	Three Months Ended
	October 30, 2021		October 24, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	98	$	105
Right-of-use assets obtained in exchange for operating leases liabilities	$	120	$	115

The weighted-average lease term was 4.9 years and 5.2 years as of October 30, 2021 and July 31, 2021, respectively. The weighted-average discount rate was 1.7% as of each of October 30, 2021 and July 31, 2021.

The maturities of our operating leases (undiscounted) as of October 30, 2021 are as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	283
2023	307
2024	224
2025	145
2026	84
Thereafter	218
Total lease payments	1,261
Less interest	(74)
Total	$	1,187

(b)Lessor Arrangements

Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $15 million and $21 million for the first quarter of fiscal 2022 and 2021, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.

Future minimum lease payments on our lease receivables as of October 30, 2021 are summarized as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	557
2023	514
2024	290
2025	146
2026	48
Thereafter	5
Total	1,560
Less: Present value of lease payments	1,490
Unearned income	$	70

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.

We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):

	October 30, 2021		July 31, 2021
Operating lease assets	$	250	$	273
Accumulated depreciation	(156)		(165)
Operating lease assets, net	$	94	$	108

Our operating lease income was $32 million and $43 million for the first quarter of fiscal 2022 and 2021, respectively, and was included in product revenue in the Consolidated Statement of Operations.

Minimum future rentals on noncancelable operating leases as of October 30, 2021 are summarized as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	35
2023	25
2024	7
2025	1
Total	$	68

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	October 30, 2021		July 31, 2021
Operating lease right-of-use assets	Other assets	$	1,118	$	1,095
Operating lease liabilities	Other current liabilities	$	353	$	337
Operating lease liabilities	Other long-term liabilities	834		831
Total operating lease liabilities		$	1,187	$	1,168

The components of our lease expenses were as follows (in millions):

	Three Months Ended
	October 30, 2021		October 24, 2020
Operating lease expense	$	95	$	98
Short-term lease expense	17		18
Variable lease expense	49		46
Total lease expense	$	161	$	162

Supplemental information related to our operating leases is as follows (in millions):

	Three Months Ended
	October 30, 2021		October 24, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	98	$	105
Right-of-use assets obtained in exchange for operating leases liabilities	$	120	$	115

The weighted-average lease term was 4.9 years and 5.2 years as of October 30, 2021 and July 31, 2021, respectively. The weighted-average discount rate was 1.7% as of each of October 30, 2021 and July 31, 2021.

The maturities of our operating leases (undiscounted) as of October 30, 2021 are as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	283
2023	307
2024	224
2025	145
2026	84
Thereafter	218
Total lease payments	1,261
Less interest	(74)
Total	$	1,187

(b)Lessor Arrangements

Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $15 million and $21 million for the first quarter of fiscal 2022 and 2021, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.

Future minimum lease payments on our lease receivables as of October 30, 2021 are summarized as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	557
2023	514
2024	290
2025	146
2026	48
Thereafter	5
Total	1,560
Less: Present value of lease payments	1,490
Unearned income	$	70

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.

We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):

	October 30, 2021		July 31, 2021
Operating lease assets	$	250	$	273
Accumulated depreciation	(156)		(165)
Operating lease assets, net	$	94	$	108

Our operating lease income was $32 million and $43 million for the first quarter of fiscal 2022 and 2021, respectively, and was included in product revenue in the Consolidated Statement of Operations.

Minimum future rentals on noncancelable operating leases as of October 30, 2021 are summarized as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	35
2023	25
2024	7
2025	1
Total	$	68

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	October 30, 2021		July 31, 2021
Operating lease right-of-use assets	Other assets	$	1,118	$	1,095
Operating lease liabilities	Other current liabilities	$	353	$	337
Operating lease liabilities	Other long-term liabilities	834		831
Total operating lease liabilities		$	1,187	$	1,168

The components of our lease expenses were as follows (in millions):

	Three Months Ended
	October 30, 2021		October 24, 2020
Operating lease expense	$	95	$	98
Short-term lease expense	17		18
Variable lease expense	49		46
Total lease expense	$	161	$	162

Supplemental information related to our operating leases is as follows (in millions):

	Three Months Ended
	October 30, 2021		October 24, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	98	$	105
Right-of-use assets obtained in exchange for operating leases liabilities	$	120	$	115

The weighted-average lease term was 4.9 years and 5.2 years as of October 30, 2021 and July 31, 2021, respectively. The weighted-average discount rate was 1.7% as of each of October 30, 2021 and July 31, 2021.

The maturities of our operating leases (undiscounted) as of October 30, 2021 are as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	283
2023	307
2024	224
2025	145
2026	84
Thereafter	218
Total lease payments	1,261
Less interest	(74)
Total	$	1,187

(b)Lessor Arrangements

Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $15 million and $21 million for the first quarter of fiscal 2022 and 2021, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.

Future minimum lease payments on our lease receivables as of October 30, 2021 are summarized as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	557
2023	514
2024	290
2025	146
2026	48
Thereafter	5
Total	1,560
Less: Present value of lease payments	1,490
Unearned income	$	70

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.

We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):

	October 30, 2021		July 31, 2021
Operating lease assets	$	250	$	273
Accumulated depreciation	(156)		(165)
Operating lease assets, net	$	94	$	108

Our operating lease income was $32 million and $43 million for the first quarter of fiscal 2022 and 2021, respectively, and was included in product revenue in the Consolidated Statement of Operations.

Minimum future rentals on noncancelable operating leases as of October 30, 2021 are summarized as follows (in millions):

Fiscal Year	Amount
2022 (remaining nine months)	$	35
2023	25
2024	7
2025	1
Total	$	68