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Leases and Other Commitments
6 Months Ended
Jul. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Leases and Other Commitments Leases and Other Commitments
Leases
The Company has operating leases for corporate offices, data centers, and equipment under non-cancelable operating leases with various expiration dates. The leases have remaining terms of 1 year to 23 years, some of which include options to extend for up to 5 years, and some of which include options to terminate within 1 year.
The components of lease expense were as follows (in millions):
 
Three Months Ended July 31, 2019
 
Six Months Ended July 31, 2019
Operating lease cost
$
217

 
$
423

 
 
 
 
Finance lease cost:
 
 
 
Amortization of right-of-use assets
$
17

 
$
33

Interest on lease liabilities
5

 
11

Total finance lease cost
$
22

 
$
44

Supplemental cash flow information related to operating and finance leases was as follows (in millions):
 
Three Months Ended July 31, 2019
 
Six Months Ended July 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
 
 
 
Operating cash outflows for operating leases
$
209

 
$
391

Operating cash outflows for finance leases
4

 
8

Financing cash outflows for finance leases
134

 
136

Right-of-use assets obtained in exchange for lease obligations:
 
 
 
Operating leases
171

 
330


Supplemental balance sheet information related to operating and finance leases was as follows (in millions):
 
As of July 31, 2019
Operating leases:
 
Operating lease right-of-use assets
$
2,904

 
 
Operating lease liabilities, current
$
706

Noncurrent operating lease liabilities
2,341

Total operating lease liabilities
$
3,047

 
 
Finance leases:
 
Buildings and building improvements
$
325

Computers, equipment and software
468

Accumulated depreciation
(372
)
Property and equipment, net
$
421

 
 
Accrued expenses and other liabilities
$
76

Other noncurrent liabilities
336

Total finance lease liabilities
$
412

Other information related to leases was as follows:
 
As of July 31, 2019
Weighted average remaining lease term
 
Operating leases
7 years

Finance leases
21 years

Weighted average discount rate
 
Operating leases
2.8
%
Finance leases
4.5
%

The weighted average remaining lease term for real estate leases with multiple floors with different lease end dates is calculated based on the lease end date for each individual floor.
As of July 31, 2019, the maturities of lease liabilities under non-cancelable operating and finance leases are as follows (in millions):
 
Operating Leases
 
Finance Leases
Fiscal Period:
 
 
 
Remaining six months of Fiscal 2020
$
384

 
$
36

Fiscal 2021
723

 
67

Fiscal 2022
516

 
23

Fiscal 2023
356

 
23

Fiscal 2024
284

 
24

Thereafter
1,133

 
434

Total minimum lease payments
3,396

 
607

Less: Imputed interest
(349
)
 
(195
)
Total
$
3,047

 
$
412


Operating lease amounts above do not include sublease income. The Company has entered into various sublease agreements with third parties. Under these agreements, the Company expects to receive sublease income of approximately $14 million in the remainder of fiscal 2020, $130 million in the next four years and $73 million thereafter.
The Company’s lease terms may include options to extend or terminate the lease. These options are reflected in the Company's future contractual obligations when it is reasonably certain that the Company will exercise that option. The Company did not use hindsight when determining lease term, therefore, as of July 31, 2019, renewal options are only included for the Company's finance lease for 350 Mission.
As of July 31, 2019, the Company has additional operating leases that have not yet commenced totaling $2.0 billion and therefore not reflected on the condensed consolidated balance sheet and tables above. These operating leases include agreements for office facilities to be constructed. These operating leases will commence between fiscal year 2021 and fiscal year 2025 with lease terms of 9 to 17 years.
Of the total operating lease commitment balance, including leases not yet commenced, of $5.4 billion, approximately $4.7 billion is related to facilities space. The remaining commitment amount is primarily related to equipment.
Letters of Credit
As of July 31, 2019, the Company had a total of $92 million in letters of credit outstanding substantially in favor of certain landlords for office space. These letters of credit renew annually and expire at various dates through 2033.