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Leases
 9 Months Ended
Apr. 30, 2022
Leases [Abstract]  
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemApril 30, 2022July 31, 2021
Operating lease right-of-use assetsOther assets$1,024 $1,095 
Operating lease liabilitiesOther current liabilities$334 $337 
Operating lease liabilitiesOther long-term liabilities739 831 
Total operating lease liabilities$1,073 $1,168 
The components of our lease expenses were as follows (in millions):
Three Months EndedNine Months Ended
April 30, 2022May 1, 2021April 30, 2022May 1, 2021
Operating lease expense$99 $105 $292 $306 
Short-term lease expense17 14 49 49 
Variable lease expense37 42 127 131 
Total lease expense$153 $161 $468 $486 
Supplemental information related to our operating leases is as follows (in millions):
Nine Months Ended
April 30, 2022May 1, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $306 $306 
Right-of-use assets obtained in exchange for operating leases liabilities$237 $270 
The weighted-average lease term was 4.6 years and 5.2 years as of April 30, 2022 and July 31, 2021, respectively. The weighted-average discount rate was 1.8% and 1.7% as of April 30, 2022 and July 31, 2021, respectively.
The maturities of our operating leases (undiscounted) as of April 30, 2022 are as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$99 
2023328 
2024242 
2025166 
202692 
Thereafter216 
Total lease payments1,143 
Less interest(70)
Total$1,073 
(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 2022 was $13 million and $42 million, respectively, and $19 million and $59 million for the corresponding periods of fiscal 2021, 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 April 30, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$249 
2023502 
2024317 
2025154 
202665 
Thereafter17 
Total1,304 
Less: Present value of lease payments1,245 
Unearned income$59 
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):
April 30, 2022July 31, 2021
Operating lease assets$205 $273 
Accumulated depreciation(119)(165)
Operating lease assets, net$86 $108 
Our operating lease income for the third quarter and first nine months of fiscal 2022 was $26 million and $87 million, respectively, and $36 million and $119 million for the corresponding periods of fiscal 2021, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of April 30, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$11 
202332 
202415 
20254 
Total$62 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemApril 30, 2022July 31, 2021
Operating lease right-of-use assetsOther assets$1,024 $1,095 
Operating lease liabilitiesOther current liabilities$334 $337 
Operating lease liabilitiesOther long-term liabilities739 831 
Total operating lease liabilities$1,073 $1,168 
The components of our lease expenses were as follows (in millions):
Three Months EndedNine Months Ended
April 30, 2022May 1, 2021April 30, 2022May 1, 2021
Operating lease expense$99 $105 $292 $306 
Short-term lease expense17 14 49 49 
Variable lease expense37 42 127 131 
Total lease expense$153 $161 $468 $486 
Supplemental information related to our operating leases is as follows (in millions):
Nine Months Ended
April 30, 2022May 1, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $306 $306 
Right-of-use assets obtained in exchange for operating leases liabilities$237 $270 
The weighted-average lease term was 4.6 years and 5.2 years as of April 30, 2022 and July 31, 2021, respectively. The weighted-average discount rate was 1.8% and 1.7% as of April 30, 2022 and July 31, 2021, respectively.
The maturities of our operating leases (undiscounted) as of April 30, 2022 are as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$99 
2023328 
2024242 
2025166 
202692 
Thereafter216 
Total lease payments1,143 
Less interest(70)
Total$1,073 
(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 2022 was $13 million and $42 million, respectively, and $19 million and $59 million for the corresponding periods of fiscal 2021, 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 April 30, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$249 
2023502 
2024317 
2025154 
202665 
Thereafter17 
Total1,304 
Less: Present value of lease payments1,245 
Unearned income$59 
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):
April 30, 2022July 31, 2021
Operating lease assets$205 $273 
Accumulated depreciation(119)(165)
Operating lease assets, net$86 $108 
Our operating lease income for the third quarter and first nine months of fiscal 2022 was $26 million and $87 million, respectively, and $36 million and $119 million for the corresponding periods of fiscal 2021, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of April 30, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$11 
202332 
202415 
20254 
Total$62 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemApril 30, 2022July 31, 2021
Operating lease right-of-use assetsOther assets$1,024 $1,095 
Operating lease liabilitiesOther current liabilities$334 $337 
Operating lease liabilitiesOther long-term liabilities739 831 
Total operating lease liabilities$1,073 $1,168 
The components of our lease expenses were as follows (in millions):
Three Months EndedNine Months Ended
April 30, 2022May 1, 2021April 30, 2022May 1, 2021
Operating lease expense$99 $105 $292 $306 
Short-term lease expense17 14 49 49 
Variable lease expense37 42 127 131 
Total lease expense$153 $161 $468 $486 
Supplemental information related to our operating leases is as follows (in millions):
Nine Months Ended
April 30, 2022May 1, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $306 $306 
Right-of-use assets obtained in exchange for operating leases liabilities$237 $270 
The weighted-average lease term was 4.6 years and 5.2 years as of April 30, 2022 and July 31, 2021, respectively. The weighted-average discount rate was 1.8% and 1.7% as of April 30, 2022 and July 31, 2021, respectively.
The maturities of our operating leases (undiscounted) as of April 30, 2022 are as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$99 
2023328 
2024242 
2025166 
202692 
Thereafter216 
Total lease payments1,143 
Less interest(70)
Total$1,073 
(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 2022 was $13 million and $42 million, respectively, and $19 million and $59 million for the corresponding periods of fiscal 2021, 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 April 30, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$249 
2023502 
2024317 
2025154 
202665 
Thereafter17 
Total1,304 
Less: Present value of lease payments1,245 
Unearned income$59 
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):
April 30, 2022July 31, 2021
Operating lease assets$205 $273 
Accumulated depreciation(119)(165)
Operating lease assets, net$86 $108 
Our operating lease income for the third quarter and first nine months of fiscal 2022 was $26 million and $87 million, respectively, and $36 million and $119 million for the corresponding periods of fiscal 2021, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of April 30, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2022 (remaining three months)$11 
202332 
202415 
20254 
Total$62