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Leases
 9 Months Ended
May 01, 2021
Leases [Abstract]  
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemMay 1, 2021July 25, 2020
Operating lease right-of-use assetsOther assets$928 $921 
Operating lease liabilitiesOther current liabilities$335 $341 
Operating lease liabilitiesOther long-term liabilities671 661 
Total operating lease liabilities$1,006 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months EndedNine Months Ended
May 1, 2021April 25, 2020May 1, 2021April 25, 2020
Operating lease expense$105 $101 $306 $315 
Short-term lease expense14 18 49 51 
Variable lease expense42 37 131 116 
Total lease expense$161 $156 $486 $482 
Supplemental information related to our operating leases is as follows (in millions):
Nine Months Ended
May 1, 2021April 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $306 $309 
Right-of-use assets obtained in exchange for operating leases liabilities$270 $120 
The weighted-average lease term was 4.1 years and 4.0 years as of May 1, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 0.9% and 1.5% as of May 1, 2021 and July 25, 2020, respectively.
The maturities of our operating leases (undiscounted) as of May 1, 2021 are as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$95 
2022321 
2023245 
2024161 
202596 
Thereafter107 
Total lease payments1,025 
Less interest(19)
Total$1,006 
(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 third quarter and first nine months of fiscal 2021 was $19 million and $59 million, respectively, and $23 million and $72 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 May 1, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$77 
2022727 
2023467 
2024272 
2025151 
Thereafter38 
Total1,732 
Less: Present value of lease payments1,642 
Unearned income$90 
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 us and the associated accumulated depreciation are summarized as follows (in millions):
May 1, 2021July 25, 2020
Operating lease assets$311 $337 
Accumulated depreciation(187)(198)
Operating lease assets, net$124 $139 
Our operating lease income for the third quarter and first nine months of fiscal 2021 was $36 million and $119 million, respectively, and $49 million and $143 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 May 1, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$23 
202246 
202323 
20245 
Total$97 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemMay 1, 2021July 25, 2020
Operating lease right-of-use assetsOther assets$928 $921 
Operating lease liabilitiesOther current liabilities$335 $341 
Operating lease liabilitiesOther long-term liabilities671 661 
Total operating lease liabilities$1,006 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months EndedNine Months Ended
May 1, 2021April 25, 2020May 1, 2021April 25, 2020
Operating lease expense$105 $101 $306 $315 
Short-term lease expense14 18 49 51 
Variable lease expense42 37 131 116 
Total lease expense$161 $156 $486 $482 
Supplemental information related to our operating leases is as follows (in millions):
Nine Months Ended
May 1, 2021April 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $306 $309 
Right-of-use assets obtained in exchange for operating leases liabilities$270 $120 
The weighted-average lease term was 4.1 years and 4.0 years as of May 1, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 0.9% and 1.5% as of May 1, 2021 and July 25, 2020, respectively.
The maturities of our operating leases (undiscounted) as of May 1, 2021 are as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$95 
2022321 
2023245 
2024161 
202596 
Thereafter107 
Total lease payments1,025 
Less interest(19)
Total$1,006 
(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 third quarter and first nine months of fiscal 2021 was $19 million and $59 million, respectively, and $23 million and $72 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 May 1, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$77 
2022727 
2023467 
2024272 
2025151 
Thereafter38 
Total1,732 
Less: Present value of lease payments1,642 
Unearned income$90 
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 us and the associated accumulated depreciation are summarized as follows (in millions):
May 1, 2021July 25, 2020
Operating lease assets$311 $337 
Accumulated depreciation(187)(198)
Operating lease assets, net$124 $139 
Our operating lease income for the third quarter and first nine months of fiscal 2021 was $36 million and $119 million, respectively, and $49 million and $143 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 May 1, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$23 
202246 
202323 
20245 
Total$97 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemMay 1, 2021July 25, 2020
Operating lease right-of-use assetsOther assets$928 $921 
Operating lease liabilitiesOther current liabilities$335 $341 
Operating lease liabilitiesOther long-term liabilities671 661 
Total operating lease liabilities$1,006 $1,002 
The components of our lease expenses were as follows (in millions):
Three Months EndedNine Months Ended
May 1, 2021April 25, 2020May 1, 2021April 25, 2020
Operating lease expense$105 $101 $306 $315 
Short-term lease expense14 18 49 51 
Variable lease expense42 37 131 116 
Total lease expense$161 $156 $486 $482 
Supplemental information related to our operating leases is as follows (in millions):
Nine Months Ended
May 1, 2021April 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $306 $309 
Right-of-use assets obtained in exchange for operating leases liabilities$270 $120 
The weighted-average lease term was 4.1 years and 4.0 years as of May 1, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 0.9% and 1.5% as of May 1, 2021 and July 25, 2020, respectively.
The maturities of our operating leases (undiscounted) as of May 1, 2021 are as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$95 
2022321 
2023245 
2024161 
202596 
Thereafter107 
Total lease payments1,025 
Less interest(19)
Total$1,006 
(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 third quarter and first nine months of fiscal 2021 was $19 million and $59 million, respectively, and $23 million and $72 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 May 1, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$77 
2022727 
2023467 
2024272 
2025151 
Thereafter38 
Total1,732 
Less: Present value of lease payments1,642 
Unearned income$90 
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 us and the associated accumulated depreciation are summarized as follows (in millions):
May 1, 2021July 25, 2020
Operating lease assets$311 $337 
Accumulated depreciation(187)(198)
Operating lease assets, net$124 $139 
Our operating lease income for the third quarter and first nine months of fiscal 2021 was $36 million and $119 million, respectively, and $49 million and $143 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 May 1, 2021 are summarized as follows (in millions):
Fiscal YearAmount
2021 (remaining three months)$23 
202246 
202323 
20245 
Total$97