Leases

12 Months Ended

Oct. 29, 2023

A contract contains a lease when we have the right to control the use of an identified asset for a period of time in exchange for consideration. A majority of our lease arrangements are operating leases. We also have certain leases that qualify as finance leases. We lease certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Our finance leases are those that contain a purchase option which we are reasonably certain to exercise at the end of the lease term. Our leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, we use the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease expense is generally recognized on a straight-line basis over the life of the underlying leased asset.

We elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, we elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due.

The components of lease expense and supplemental information were as follows:


	2023			2022			2021
	(In millions, except percentage)
Operating lease cost	$	102		$	93		$	79
Finance lease cost:
Amortization of right-of-use assets	$	2		$	—		$	—
Interest on lease liabilities	$	3		$	—		$	—
Weighted-average remaining lease term (in years) - operating leases	5.7			6.3			5.1
Weighted-average remaining lease term (in years) - finance leases	0.9			n/a			n/a
Weighted-average discount rate - operating leases	3.1		%	2.5		%	1.7		%
Weighted-average discount rate - finance leases	4.6		%	n/a			n/a

Supplemental cash flow information related to leases are as follows:


	2023		2022		2021
	(In millions)
Operating cash flows paid for operating leases	$	112	$	107	$	79
Operating cash flows paid for finance leases	$	3	$	—	$	—
Financing cash flows paid for finance leases	$	7	$	—	$	—
Right-of-use assets obtained in exchange for operating lease liabilities	$	106	$	204	$	123
Right-of-use assets obtained in exchange for finance lease liabilities	$	109	$	—	$	—

As of October 29, 2023, the maturities of lease liabilities are as follows:


	Operating Leases		Finance Leases
Fiscal	(In millions)
2024	$	93	$	106
2025	82		—
2026	47		—
2027	37		—
2028	30		—
Thereafter	81		—
Total lease payments	370		106
Less imputed interest	(34)		(4)
Total	$	336	$	102