Leases

12 Months Ended

Jul. 30, 2022

Leases [Abstract]

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	July 30, 2022		July 31, 2021
Operating lease right-of-use assets	Other assets	$	1,003	$	1,095
Operating lease liabilities	Other current liabilities	$	322	$	337
Operating lease liabilities	Other long-term liabilities	724		831
Total operating lease liabilities		$	1,046	$	1,168

The components of our lease expenses were as follows (in millions):

Years Ended	July 30, 2022		July 31, 2021
Operating lease expense	$	390	$	399
Short-term lease expense	66		65
Variable lease expense	173		173
Total lease expense	$	629	$	637

Supplemental information related to our operating leases is as follows (in millions):

Years Ended	July 30, 2022		July 31, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	408	$	407
Right-of-use assets obtained in exchange for operating leases liabilities	$	331	$	536

The weighted-average lease term was 4.7 years and 5.2 years as of July 30, 2022 and July 31, 2021, respectively. The weighted-average discount rate was 2.2% and 1.7% as of July 30, 2022 and July 31, 2021, respectively.

The maturities of our operating leases (undiscounted) as of July 30, 2022 are as follows (in millions):

Fiscal Year	Amount
2023	$	343
2024	255
2025	176
2026	104
2027	64
Thereafter	185
Total lease payments	1,127
Less interest	(81)
Total	$	1,046

(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 fiscal 2022 and 2021 was $54 million and $75 million, 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 July 30, 2022 are summarized as follows (in millions):

Fiscal Year	Amount
2023	$	582
2024	314
2025	171
2026	80
2027	28
Thereafter	1
Total	1,176
Less: Present value of lease payments	1,122
Unearned income	$	54

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):

	July 30, 2022		July 31, 2021
Operating lease assets	$	185	$	273
Accumulated depreciation	(111)		(165)
Operating lease assets, net	$	74	$	108

Our operating lease income for fiscal 2022 and 2021 was $107 million and $151 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.

Minimum future rentals on noncancelable operating leases as of July 30, 2022 are summarized as follows (in millions):

Fiscal Year	Amount
2023	$	33
2024	16
2025	4
2026	—
Total	$	53

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	July 30, 2022		July 31, 2021
Operating lease right-of-use assets	Other assets	$	1,003	$	1,095
Operating lease liabilities	Other current liabilities	$	322	$	337
Operating lease liabilities	Other long-term liabilities	724		831
Total operating lease liabilities		$	1,046	$	1,168

The components of our lease expenses were as follows (in millions):

Years Ended	July 30, 2022		July 31, 2021
Operating lease expense	$	390	$	399
Short-term lease expense	66		65
Variable lease expense	173		173
Total lease expense	$	629	$	637

Supplemental information related to our operating leases is as follows (in millions):

Years Ended	July 30, 2022		July 31, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	408	$	407
Right-of-use assets obtained in exchange for operating leases liabilities	$	331	$	536

The weighted-average lease term was 4.7 years and 5.2 years as of July 30, 2022 and July 31, 2021, respectively. The weighted-average discount rate was 2.2% and 1.7% as of July 30, 2022 and July 31, 2021, respectively.

The maturities of our operating leases (undiscounted) as of July 30, 2022 are as follows (in millions):

Fiscal Year	Amount
2023	$	343
2024	255
2025	176
2026	104
2027	64
Thereafter	185
Total lease payments	1,127
Less interest	(81)
Total	$	1,046

(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 fiscal 2022 and 2021 was $54 million and $75 million, 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 July 30, 2022 are summarized as follows (in millions):

Fiscal Year	Amount
2023	$	582
2024	314
2025	171
2026	80
2027	28
Thereafter	1
Total	1,176
Less: Present value of lease payments	1,122
Unearned income	$	54

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):

	July 30, 2022		July 31, 2021
Operating lease assets	$	185	$	273
Accumulated depreciation	(111)		(165)
Operating lease assets, net	$	74	$	108

Our operating lease income for fiscal 2022 and 2021 was $107 million and $151 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.

Minimum future rentals on noncancelable operating leases as of July 30, 2022 are summarized as follows (in millions):

Fiscal Year	Amount
2023	$	33
2024	16
2025	4
2026	—
Total	$	53

Leases

Leases

(a)Lessee Arrangements

The following table presents our operating lease balances (in millions):

	Balance Sheet Line Item	July 30, 2022		July 31, 2021
Operating lease right-of-use assets	Other assets	$	1,003	$	1,095
Operating lease liabilities	Other current liabilities	$	322	$	337
Operating lease liabilities	Other long-term liabilities	724		831
Total operating lease liabilities		$	1,046	$	1,168

The components of our lease expenses were as follows (in millions):

Years Ended	July 30, 2022		July 31, 2021
Operating lease expense	$	390	$	399
Short-term lease expense	66		65
Variable lease expense	173		173
Total lease expense	$	629	$	637

Supplemental information related to our operating leases is as follows (in millions):

Years Ended	July 30, 2022		July 31, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	408	$	407
Right-of-use assets obtained in exchange for operating leases liabilities	$	331	$	536

The weighted-average lease term was 4.7 years and 5.2 years as of July 30, 2022 and July 31, 2021, respectively. The weighted-average discount rate was 2.2% and 1.7% as of July 30, 2022 and July 31, 2021, respectively.

The maturities of our operating leases (undiscounted) as of July 30, 2022 are as follows (in millions):

Fiscal Year	Amount
2023	$	343
2024	255
2025	176
2026	104
2027	64
Thereafter	185
Total lease payments	1,127
Less interest	(81)
Total	$	1,046

(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 fiscal 2022 and 2021 was $54 million and $75 million, 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 July 30, 2022 are summarized as follows (in millions):

Fiscal Year	Amount
2023	$	582
2024	314
2025	171
2026	80
2027	28
Thereafter	1
Total	1,176
Less: Present value of lease payments	1,122
Unearned income	$	54

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):

	July 30, 2022		July 31, 2021
Operating lease assets	$	185	$	273
Accumulated depreciation	(111)		(165)
Operating lease assets, net	$	74	$	108

Our operating lease income for fiscal 2022 and 2021 was $107 million and $151 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.

Minimum future rentals on noncancelable operating leases as of July 30, 2022 are summarized as follows (in millions):

Fiscal Year	Amount
2023	$	33
2024	16
2025	4
2026	—
Total	$	53