Leases (Tables)

3 Months Ended

Oct. 31, 2020

Leases [Abstract]

Components of Lease Expense

The components of lease expense were as follows:

	Three Months Ended
(In millions)	October 31, 2020		October 31, 2019
Operating lease cost (1)	$	15	$	18
Variable lease cost	3		3
Sublease income	(4)		(7)
Total net lease cost	$	14	$	14

(1)    Includes short-term leases, which were not significant for each of the three months ended October 31, 2020 and 2019.

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

	Three Months Ended
	October 31, 2020		October 31, 2019
(In millions)
Cash paid for amounts included in the measurement of operating lease liabilities	$	14	$	16
Right-of-use assets obtained in exchange for new operating lease liabilities (1)	$	19	$	322

(1)    For the three months ended October 31, 2019, this includes $319 million for operating leases existing on August 1, 2019 and $3 million for operating leases that commenced in the first three months of fiscal 2020.

Other information related to operating leases was as follows at the dates indicated:

	October 31, 2020		July 31, 2020
Weighted-average remaining lease term for operating leases (in years)	5.7		5.5
Weighted-average discount rate for operating leases	2.95	%	3.1	%

Supplemental balance sheet information related to operating leases was as follows at the dates indicated:

(In millions)	October 31, 2020		July 31, 2020
Operating lease right-of-use assets	$	232	$	226
Other current liabilities	$	49	$	46
Operating lease liabilities	228		221
Total operating lease liabilities	$	277	$	267

Future Minimum Lease Payments

Future minimum lease payments under non-cancellable operating leases as of October 31, 2020 were as follows:

(In millions)	Operating Leases (1)
Fiscal year ending July 31,
2021 (excluding the three months ended October 31, 2020)	$	41
2022	59
2023	53
2024	52
2025	40
Thereafter	56
Total future minimum lease payments	301
Less imputed interest	(24)
Present value of lease liabilities	$	277

(1)    Non-cancellable sublease proceeds for the remainder of the fiscal year ending July 31, 2021 and the fiscal years ending July 31, 2022, 2023, 2024, and 2025, of $11 million, $11 million, $3 million, $2 million, and $1 million, respectively, are not included in the table above.