Capital Leases

Capital leases primarily consist of contractual arrangements with HPE Financial Services. Capital lease obligations included on the balance sheets were $305 million and $304 million as of March 31, 2019 and 2018, respectively. During the year ended March 31, 2019, the Company renegotiated certain capital lease obligations, resulting in an increase of $23 million to capital lease obligations, $19 million to property and equipment and $4 million to intangible assets. Net interest expense on capital lease obligations was $20 million, $12 million, $10 million and $31 million for the fiscal years ended March 31, 2019 and 2018, the five months ended March 31, 2017 and the fiscal year ended October 31, 2016, respectively.

As of March 31, 2019, future minimum lease payments required to be made under capital leases were as follows:



Fiscal Year	(in millions)
2020	$	153
2021	98
2022	62
2023	20
2024	3
Total minimum lease payments	336
Less: amount representing interest and executory costs	(31		)
Present value of net minimum lease payments	305
Less: current capital lease liability	(137		)
Non-current capital lease liability	$	168