Leases (Tables)

6 Months Ended

Jan. 31, 2023

Leases [Abstract]

Components of lease expense

The components of lease expense were as follows:

	Three Months Ended				Six Months Ended
(In millions)	January 31, 2023		January 31, 2022		January 31, 2023		January 31, 2022
Operating lease cost (1)	$	36	$	25	$	64	$	46
Variable lease cost	5		4		9		7
Sublease income	(3)		(5)		(6)		(10)
Total net lease cost	$	38	$	24	$	67	$	43

(1)    Includes short-term leases, which were not material for each of the three and six months ended January 31, 2023 and 2022.

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

	Six Months Ended
(In millions)	January 31, 2023		January 31, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	48	$	52
Right-of-use assets obtained in exchange for operating lease liabilities	$	17	$	70

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

	January 31, 2023		July 31, 2022
Weighted-average remaining lease term for operating leases	8.0 years		8.1 years
Weighted-average discount rate for operating leases	2.4	%	2.9	%

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

(In millions)	January 31, 2023		July 31, 2022
Operating lease right-of-use assets	$	508	$	549
Other current liabilities	$	86	$	84
Operating lease liabilities	514		542
Total operating lease liabilities	$	600	$	626

Future minimum lease payments

Future minimum lease payments under non-cancellable operating leases as of January 31, 2023 were as follows:

(In millions)	Operating Leases (1)
Fiscal year ending July 31,
2023 (excluding the six months ended January 31, 2023)	$	13
2024	108
2025	94
2026	77
2027	68
Thereafter	339
Total future minimum lease payments	699
Less imputed interest	(99)
Present value of lease liabilities	$	600

(1)    Non-cancellable sublease proceeds for the remainder of the fiscal year ending July 31, 2023 and the fiscal years ending July 31, 2024, 2025, 2026, 2027, and thereafter of $6 million, $10 million, $5 million, $1 million, $1 million, and $3 million, respectively, are not included in the table above.