Leases

12 Months Ended

Aug. 02, 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:

	2020
	Nine Months Ended
Operating lease cost	$	81
Finance lease - amortization of ROU assets	2
Short-term lease cost	39
Variable lease cost(1)	172
Sublease income	(3)
Total	$	291

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

Total lease cost includes $4 related to discontinued operations.

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

	August 2, 2020
	Operating		Finance
Assets
Plant assets, net of depreciation	$	—	$	10
Other assets	254		—
Total lease assets	$	254	$	10
Liabilities
Short-term borrowings	$	—	$	3
Accrued liabilities	67		—
Long-term debt	—		7
Other liabilities	184		—
Total lease liabilities	$	251	$	10

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

	August 2, 2020
	Operating		Finance
Weighted-average remaining term in years	6.7		3.0
Weighted-average discount rate	2.6	%	1.8	%

Future minimum lease payments are as follows:

	August 2, 2020
	Operating		Finance
2021	$	73	$	3
2022	42		4
2023	36		3
2024	27		—
2025	22		—
Thereafter	77		—
Total future undiscounted lease payments	277		10
Less imputed interest	26		—
Total reported lease liability	$	251	$	10

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

	2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	79
Financing cash flows from finance leases	$	2
ROU assets obtained in exchange for lease obligations:
Operating leases	$	88
Finance leases	$	10
ROU assets divested with businesses sold:
Operating leases	$	18
Finance leases	$	5
Lease liabilities derecognized upon adoption:
Build-to-suit lease commitment	$	20