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Leases
 6 Months Ended
Jan. 23, 2021
Leases [Abstract]  
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJanuary 23, 2021July 25, 2020
Operating lease right-of-use assetsOther assets$974 $921 
Operating lease liabilitiesOther current liabilities$366 $341 
Operating lease liabilitiesOther long-term liabilities688 661 
Total operating lease liabilities$1,054 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months EndedSix Months Ended
January 23, 2021January 25, 2020January 23, 2021January 25, 2020
Operating lease expense$103 $101 $201 $214 
Short-term lease expense17 16 35 33 
Variable lease expense43 39 89 79 
Total lease expense$163 $156 $325 $326 
Supplemental information related to our operating leases is as follows (in millions):
Six Months Ended
January 23, 2021January 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $201 $206 
Right-of-use assets obtained in exchange for operating leases liabilities$218 $77 
The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively.
The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$193 
2022304 
2023232 
2024151 
202592 
Thereafter104 
Total lease payments1,076 
Less interest(22)
Total$1,054 
(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 for the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 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 January 23, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$330 
2022685 
2023455 
2024237 
2025130 
Thereafter28 
Total1,865 
Less: Present value of lease payments1,768 
Unearned income$97 
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):
January 23, 2021July 25, 2020
Operating lease assets$343 $337 
Accumulated depreciation(201)(198)
Operating lease assets, net$142 $139 
Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$38 
202244 
202320 
20244 
Total$106 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJanuary 23, 2021July 25, 2020
Operating lease right-of-use assetsOther assets$974 $921 
Operating lease liabilitiesOther current liabilities$366 $341 
Operating lease liabilitiesOther long-term liabilities688 661 
Total operating lease liabilities$1,054 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months EndedSix Months Ended
January 23, 2021January 25, 2020January 23, 2021January 25, 2020
Operating lease expense$103 $101 $201 $214 
Short-term lease expense17 16 35 33 
Variable lease expense43 39 89 79 
Total lease expense$163 $156 $325 $326 
Supplemental information related to our operating leases is as follows (in millions):
Six Months Ended
January 23, 2021January 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $201 $206 
Right-of-use assets obtained in exchange for operating leases liabilities$218 $77 
The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively.
The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$193 
2022304 
2023232 
2024151 
202592 
Thereafter104 
Total lease payments1,076 
Less interest(22)
Total$1,054 
(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 for the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 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 January 23, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$330 
2022685 
2023455 
2024237 
2025130 
Thereafter28 
Total1,865 
Less: Present value of lease payments1,768 
Unearned income$97 
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):
January 23, 2021July 25, 2020
Operating lease assets$343 $337 
Accumulated depreciation(201)(198)
Operating lease assets, net$142 $139 
Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$38 
202244 
202320 
20244 
Total$106 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJanuary 23, 2021July 25, 2020
Operating lease right-of-use assetsOther assets$974 $921 
Operating lease liabilitiesOther current liabilities$366 $341 
Operating lease liabilitiesOther long-term liabilities688 661 
Total operating lease liabilities$1,054 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months EndedSix Months Ended
January 23, 2021January 25, 2020January 23, 2021January 25, 2020
Operating lease expense$103 $101 $201 $214 
Short-term lease expense17 16 35 33 
Variable lease expense43 39 89 79 
Total lease expense$163 $156 $325 $326 
Supplemental information related to our operating leases is as follows (in millions):
Six Months Ended
January 23, 2021January 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $201 $206 
Right-of-use assets obtained in exchange for operating leases liabilities$218 $77 
The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively.
The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$193 
2022304 
2023232 
2024151 
202592 
Thereafter104 
Total lease payments1,076 
Less interest(22)
Total$1,054 
(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 for the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 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 January 23, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$330 
2022685 
2023455 
2024237 
2025130 
Thereafter28 
Total1,865 
Less: Present value of lease payments1,768 
Unearned income$97 
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):
January 23, 2021July 25, 2020
Operating lease assets$343 $337 
Accumulated depreciation(201)(198)
Operating lease assets, net$142 $139 
Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining six months)$38 
202244 
202320 
20244 
Total$106