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Leases
 3 Months Ended
Oct. 24, 2020
Leases [Abstract]  
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemOctober 24, 2020July 25, 2020
Operating lease right-of-use assetsOther assets$953 $921 
Operating lease liabilitiesOther current liabilities$332 $341 
Operating lease liabilitiesOther long-term liabilities695 661 
Total operating lease liabilities$1,027 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months Ended
October 24, 2020October 26, 2019
Operating lease expense$98 $113 
Short-term lease expense18 17 
Variable lease expense46 40 
Total lease expense$162 $170 
Supplemental information related to our operating leases is as follows (in millions):
Three Months Ended
October 24, 2020October 26, 2019
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $105 $104 
Right-of-use assets obtained in exchange for operating leases liabilities$115 $48 
The weighted-average lease term was 4.2 years as of each of October 24, 2020 and October 26, 2019. The weighted-average discount rate was 1.3% and 1.9% as of October 24, 2020 and October 26, 2019, respectively.
The maturities of our operating leases (undiscounted) as of October 24, 2020 are as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$272 
2022269 
2023211 
2024136 
202581 
Thereafter87 
Total lease payments1,056 
Less interest(29)
Total$1,027 
(b)Lessor Arrangements
Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $21 million and $26 million for the first quarter of fiscal 2021 and 2020, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.
Future minimum lease payments on our lease receivables as of October 24, 2020 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$670 
2022664 
2023418 
2024202 
2025109 
Total2,063 
Less: Present value of lease payments1,958 
Unearned income$105 
Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by Cisco and the associated accumulated depreciation are summarized as follows (in millions):
October 24, 2020July 25, 2020
Operating lease assets$338 $337 
Accumulated depreciation(200)(198)
Operating lease assets, net$138 $139 
Our operating lease income was $43 million and $44 million for the first quarter of fiscal 2021 and 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of October 24, 2020 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$58 
202233 
202312 
20241 
Total$104 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemOctober 24, 2020July 25, 2020
Operating lease right-of-use assetsOther assets$953 $921 
Operating lease liabilitiesOther current liabilities$332 $341 
Operating lease liabilitiesOther long-term liabilities695 661 
Total operating lease liabilities$1,027 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months Ended
October 24, 2020October 26, 2019
Operating lease expense$98 $113 
Short-term lease expense18 17 
Variable lease expense46 40 
Total lease expense$162 $170 
Supplemental information related to our operating leases is as follows (in millions):
Three Months Ended
October 24, 2020October 26, 2019
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $105 $104 
Right-of-use assets obtained in exchange for operating leases liabilities$115 $48 
The weighted-average lease term was 4.2 years as of each of October 24, 2020 and October 26, 2019. The weighted-average discount rate was 1.3% and 1.9% as of October 24, 2020 and October 26, 2019, respectively.
The maturities of our operating leases (undiscounted) as of October 24, 2020 are as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$272 
2022269 
2023211 
2024136 
202581 
Thereafter87 
Total lease payments1,056 
Less interest(29)
Total$1,027 
(b)Lessor Arrangements
Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $21 million and $26 million for the first quarter of fiscal 2021 and 2020, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.
Future minimum lease payments on our lease receivables as of October 24, 2020 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$670 
2022664 
2023418 
2024202 
2025109 
Total2,063 
Less: Present value of lease payments1,958 
Unearned income$105 
Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by Cisco and the associated accumulated depreciation are summarized as follows (in millions):
October 24, 2020July 25, 2020
Operating lease assets$338 $337 
Accumulated depreciation(200)(198)
Operating lease assets, net$138 $139 
Our operating lease income was $43 million and $44 million for the first quarter of fiscal 2021 and 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of October 24, 2020 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$58 
202233 
202312 
20241 
Total$104 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemOctober 24, 2020July 25, 2020
Operating lease right-of-use assetsOther assets$953 $921 
Operating lease liabilitiesOther current liabilities$332 $341 
Operating lease liabilitiesOther long-term liabilities695 661 
Total operating lease liabilities$1,027 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months Ended
October 24, 2020October 26, 2019
Operating lease expense$98 $113 
Short-term lease expense18 17 
Variable lease expense46 40 
Total lease expense$162 $170 
Supplemental information related to our operating leases is as follows (in millions):
Three Months Ended
October 24, 2020October 26, 2019
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $105 $104 
Right-of-use assets obtained in exchange for operating leases liabilities$115 $48 
The weighted-average lease term was 4.2 years as of each of October 24, 2020 and October 26, 2019. The weighted-average discount rate was 1.3% and 1.9% as of October 24, 2020 and October 26, 2019, respectively.
The maturities of our operating leases (undiscounted) as of October 24, 2020 are as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$272 
2022269 
2023211 
2024136 
202581 
Thereafter87 
Total lease payments1,056 
Less interest(29)
Total$1,027 
(b)Lessor Arrangements
Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income was $21 million and $26 million for the first quarter of fiscal 2021 and 2020, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.
Future minimum lease payments on our lease receivables as of October 24, 2020 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$670 
2022664 
2023418 
2024202 
2025109 
Total2,063 
Less: Present value of lease payments1,958 
Unearned income$105 
Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by Cisco and the associated accumulated depreciation are summarized as follows (in millions):
October 24, 2020July 25, 2020
Operating lease assets$338 $337 
Accumulated depreciation(200)(198)
Operating lease assets, net$138 $139 
Our operating lease income was $43 million and $44 million for the first quarter of fiscal 2021 and 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of October 24, 2020 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining nine months)$58 
202233 
202312 
20241 
Total$104