Leases

9 Months Ended

Apr. 26, 2020

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 15 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:

	April 26, 2020
	Three Months Ended		Nine Months Ended
Operating lease cost	$	20	$	60
Finance lease - amortization of ROU assets	1		2
Short-term lease cost	11		31
Variable lease cost(1)	43		129
Sublease income	(1)		(3)
Total	$	74	$	219

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

Total lease cost includes $4 for the nine-month period ended April 26, 2020, related to discontinued operations.

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

	April 26, 2020
	Operating		Finance
Assets
Plant assets, net of depreciation	$	—	$	9
Other assets	257		—
Total lease assets	$	257	$	9
Liabilities
Short-term borrowings	$	—	$	3
Accrued liabilities	66		—
Long-term debt	—		7
Other liabilities	187		—
Total lease liabilities	$	253	$	10

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

	April 26, 2020
	Operating		Finance
Weighted-average remaining term in years	6.8		2.9
Weighted-average discount rate	2.7	%	1.9	%

Future minimum lease payments were as follows:

	April 26, 2020				July 28, 2019
	New Guidance				Previous Guidance
	Continuing				Continuing		Discontinued
	Operating		Finance		Operating		Operating
2020	$	20	$	1	$	61	$	7
2021	66		3		48		6
2022	39		4		36		4
2023	33		2		26		3
2024	25		—		20		1
Thereafter	98		—		88		—
Total future undiscounted lease payments	281		10		$	279	$	21
Less imputed interest	28		—
Total reported lease liability	$	253	$	10

In 2020, we expect to record an operating lease liability of $6 for leases with terms up to 5 years that have not yet commenced and are not included in the future minimum lease payments table.

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

	Nine Months Ended
	April 26, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	59
Operating cash flows from finance leases	$	—
Financing cash flows from finance leases	$	1
ROU assets obtained in exchange for lease obligations:
Operating leases	$	77
Finance leases	$	8
ROU assets divested with businesses sold:
Operating leases	$	18
Finance leases	$	5
Lease liabilities derecognized upon adoption:
Build-to-suit lease commitment	$	20