Leases

3 Months Ended

Oct. 27, 2019

Leases [Abstract]

Leases of Lessee Disclosure

Leases

We lease warehouse and distribution facilities, office space, manufacturing facilities, equipment and vehicles, primarily through operating leases.

Leases recorded on our Consolidated Balance Sheet have remaining terms primarily from 1 to 16 years.

Our fleet leases generally include residual value guarantees that are assessed at lease inception in determining ROU assets and corresponding liabilities. No other significant restrictions or covenants are included in our leases.

The components of lease costs were as follows:

	Three Months Ended
	October 27, 2019
Operating lease cost	$	19
Short-term lease cost	10
Variable lease cost(1)	43
Total	$	72

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⁽¹⁾Includes labor and other overhead included in our service contracts with embedded leases.

Total lease cost includes $2 related to discontinued operations.

The following table summarizes the lease amounts recorded in the Consolidated Balance Sheet:

	October 27, 2019
	Operating		Finance
Assets
Plant assets, net of depreciation	$	—	$	2
Other assets	270		—
Noncurrent assets of discontinued operations	13		6
Total lease assets	$	283	$	8
Liabilities
Short-term borrowings	$	—	$	1
Accrued liabilities	64		—
Current liabilities of discontinued operations	5		—
Long-term debt	—		2
Other liabilities	199		—
Noncurrent liabilities of discontinued operations	9		7
Total lease liabilities	$	277	$	10

Weighted-average lease terms and discount rates were as follows:

	October 27, 2019
	Operating		Finance
Weighted-average remaining term in years	6.7		8.7
Weighted-average discount rate	2.6	%	4.1	%

Future minimum lease payments were as follows:

	October 27, 2019								July 28, 2019
	New Guidance								Previous Guidance
	Continuing				Discontinued				Continuing		Discontinued
	Operating		Finance		Operating		Finance		Operating		Operating
2020	$	54	$	—	$	4	$	1	$	61	$	7
2021	60		1		4		1		48		6
2022	40		2		3		1		36		4
2023	29		—		2		1		26		3
2024	22		—		1		1		20		1
Thereafter	88		—		—		5		88		—
Total future undiscounted lease payments	293		3		14		10		$	279	$	21
Less imputed interest	30		—		—		3
Total reported lease liability	$	263	$	3	$	14	$	7

In 2020, we expect to record an operating lease liability of $12 for a 7-year lease that has not yet commenced and is not included in the future minimum lease payments table.

Supplemental cash flow and other information related to leases was as follows:

	Three Months Ended
	October 27, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	19
Operating cash flows from finance leases	$	—
Financing cash flows from finance leases	$	—
ROU assets obtained in exchange for lease obligations:
Operating leases	$	46
Finance leases	$	—
ROU assets divested with businesses sold:
Operating leases	$	6
Lease liabilities derecognized upon adoption:
Build-to-suit lease commitment	$	20