Leases

3 Months Ended

Oct. 28, 2023

Leases [Abstract]

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	October 28, 2023		July 29, 2023
Operating lease right-of-use assets	Other assets	$	997	$	971
Operating lease liabilities	Other current liabilities	$	302	$	313
Operating lease liabilities	Other long-term liabilities	741		707
Total operating lease liabilities		$	1,043	$	1,020

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

	Three Months Ended
	October 28, 2023		October 29, 2022
Operating lease expense	$	100	$	96
Short-term lease expense	11		17
Variable lease expense	56		58
Total lease expense	$	167	$	171

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

	Three Months Ended
	October 28, 2023		October 29, 2022
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	88	$	96
Right-of-use assets obtained in exchange for operating leases liabilities	$	126	$	35

The weighted-average lease term was 4.8 years and 4.6 years as of October 28, 2023 and July 29, 2023, respectively. The weighted-average discount rate was 3.5% and 3.1% as of October 28, 2023 and July 29, 2023, respectively.

The maturities of our operating leases (undiscounted) as of October 28, 2023 are as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	258
2025	278
2026	189
2027	116
2028	88
Thereafter	227
Total lease payments	1,156
Less interest	(113)
Total	$	1,043

(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 $14 million and $12 million for the first quarter of fiscal 2024 and 2023, 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 28, 2023 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	433
2025	166
2026	182
2027	160
2028	126
Thereafter	45
Total	1,112
Less: Present value of lease payments	(1,015)
Unearned income	$	97

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 28, 2023		July 29, 2023
Operating lease assets	$	123	$	135
Accumulated depreciation	(72)		(78)
Operating lease assets, net	$	51	$	57

Our operating lease income was $16 million and $21 million for the first quarter of fiscal 2024 and 2023, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of October 28, 2023 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	18
2025	12
2026	6
Total	$	36

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	October 28, 2023		July 29, 2023
Operating lease right-of-use assets	Other assets	$	997	$	971
Operating lease liabilities	Other current liabilities	$	302	$	313
Operating lease liabilities	Other long-term liabilities	741		707
Total operating lease liabilities		$	1,043	$	1,020

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

	Three Months Ended
	October 28, 2023		October 29, 2022
Operating lease expense	$	100	$	96
Short-term lease expense	11		17
Variable lease expense	56		58
Total lease expense	$	167	$	171

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

	Three Months Ended
	October 28, 2023		October 29, 2022
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	88	$	96
Right-of-use assets obtained in exchange for operating leases liabilities	$	126	$	35

The weighted-average lease term was 4.8 years and 4.6 years as of October 28, 2023 and July 29, 2023, respectively. The weighted-average discount rate was 3.5% and 3.1% as of October 28, 2023 and July 29, 2023, respectively.

The maturities of our operating leases (undiscounted) as of October 28, 2023 are as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	258
2025	278
2026	189
2027	116
2028	88
Thereafter	227
Total lease payments	1,156
Less interest	(113)
Total	$	1,043

(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 $14 million and $12 million for the first quarter of fiscal 2024 and 2023, 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 28, 2023 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	433
2025	166
2026	182
2027	160
2028	126
Thereafter	45
Total	1,112
Less: Present value of lease payments	(1,015)
Unearned income	$	97

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 28, 2023		July 29, 2023
Operating lease assets	$	123	$	135
Accumulated depreciation	(72)		(78)
Operating lease assets, net	$	51	$	57

Our operating lease income was $16 million and $21 million for the first quarter of fiscal 2024 and 2023, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of October 28, 2023 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	18
2025	12
2026	6
Total	$	36

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	October 28, 2023		July 29, 2023
Operating lease right-of-use assets	Other assets	$	997	$	971
Operating lease liabilities	Other current liabilities	$	302	$	313
Operating lease liabilities	Other long-term liabilities	741		707
Total operating lease liabilities		$	1,043	$	1,020

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

	Three Months Ended
	October 28, 2023		October 29, 2022
Operating lease expense	$	100	$	96
Short-term lease expense	11		17
Variable lease expense	56		58
Total lease expense	$	167	$	171

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

	Three Months Ended
	October 28, 2023		October 29, 2022
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	88	$	96
Right-of-use assets obtained in exchange for operating leases liabilities	$	126	$	35

The weighted-average lease term was 4.8 years and 4.6 years as of October 28, 2023 and July 29, 2023, respectively. The weighted-average discount rate was 3.5% and 3.1% as of October 28, 2023 and July 29, 2023, respectively.

The maturities of our operating leases (undiscounted) as of October 28, 2023 are as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	258
2025	278
2026	189
2027	116
2028	88
Thereafter	227
Total lease payments	1,156
Less interest	(113)
Total	$	1,043

(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 $14 million and $12 million for the first quarter of fiscal 2024 and 2023, 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 28, 2023 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	433
2025	166
2026	182
2027	160
2028	126
Thereafter	45
Total	1,112
Less: Present value of lease payments	(1,015)
Unearned income	$	97

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 28, 2023		July 29, 2023
Operating lease assets	$	123	$	135
Accumulated depreciation	(72)		(78)
Operating lease assets, net	$	51	$	57

Our operating lease income was $16 million and $21 million for the first quarter of fiscal 2024 and 2023, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of October 28, 2023 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining nine months)	$	18
2025	12
2026	6
Total	$	36