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Leases
 3 Months Ended
Oct. 29, 2022
Leases [Abstract]  
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemOctober 29, 2022July 30, 2022
Operating lease right-of-use assetsOther assets$929 $1,003 
Operating lease liabilitiesOther current liabilities$308 $322 
Operating lease liabilitiesOther long-term liabilities667 724 
Total operating lease liabilities$975 $1,046 
The components of our lease expenses were as follows (in millions):
Three Months Ended
October 29, 2022October 30, 2021
Operating lease expense$96 $95 
Short-term lease expense17 17 
Variable lease expense58 49 
Total lease expense$171 $161 
Supplemental information related to our operating leases is as follows (in millions):
Three Months Ended
October 29, 2022October 30, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $96 $98 
Right-of-use assets obtained in exchange for operating leases liabilities$35 $120 
The weighted-average lease term was 4.6 years and 4.7 years as of October 29, 2022 and July 30, 2022, respectively. The weighted-average discount rate was 2.3% and 2.2% as of October 29, 2022 and July 30, 2022, respectively.
The maturities of our operating leases (undiscounted) as of October 29, 2022 are as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$254 
2024262 
2025183 
2026106 
202763 
Thereafter181 
Total lease payments1,049 
Less interest(74)
Total$975 
(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 $12 million and $15 million for the first quarter of fiscal 2023 and 2022, 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 29, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$461 
2024329 
2025182 
202690 
202763 
Thereafter4 
Total1,129 
Less: Present value of lease payments1,074 
Unearned income$55 
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):
October 29, 2022July 30, 2022
Operating lease assets$161 $185 
Accumulated depreciation(97)(111)
Operating lease assets, net$64 $74 
Our operating lease income was $21 million and $32 million for the first quarter of fiscal 2023 and 2022, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of October 29, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$23 
202417 
20255 
Total$45 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemOctober 29, 2022July 30, 2022
Operating lease right-of-use assetsOther assets$929 $1,003 
Operating lease liabilitiesOther current liabilities$308 $322 
Operating lease liabilitiesOther long-term liabilities667 724 
Total operating lease liabilities$975 $1,046 
The components of our lease expenses were as follows (in millions):
Three Months Ended
October 29, 2022October 30, 2021
Operating lease expense$96 $95 
Short-term lease expense17 17 
Variable lease expense58 49 
Total lease expense$171 $161 
Supplemental information related to our operating leases is as follows (in millions):
Three Months Ended
October 29, 2022October 30, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $96 $98 
Right-of-use assets obtained in exchange for operating leases liabilities$35 $120 
The weighted-average lease term was 4.6 years and 4.7 years as of October 29, 2022 and July 30, 2022, respectively. The weighted-average discount rate was 2.3% and 2.2% as of October 29, 2022 and July 30, 2022, respectively.
The maturities of our operating leases (undiscounted) as of October 29, 2022 are as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$254 
2024262 
2025183 
2026106 
202763 
Thereafter181 
Total lease payments1,049 
Less interest(74)
Total$975 
(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 $12 million and $15 million for the first quarter of fiscal 2023 and 2022, 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 29, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$461 
2024329 
2025182 
202690 
202763 
Thereafter4 
Total1,129 
Less: Present value of lease payments1,074 
Unearned income$55 
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):
October 29, 2022July 30, 2022
Operating lease assets$161 $185 
Accumulated depreciation(97)(111)
Operating lease assets, net$64 $74 
Our operating lease income was $21 million and $32 million for the first quarter of fiscal 2023 and 2022, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of October 29, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$23 
202417 
20255 
Total$45 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemOctober 29, 2022July 30, 2022
Operating lease right-of-use assetsOther assets$929 $1,003 
Operating lease liabilitiesOther current liabilities$308 $322 
Operating lease liabilitiesOther long-term liabilities667 724 
Total operating lease liabilities$975 $1,046 
The components of our lease expenses were as follows (in millions):
Three Months Ended
October 29, 2022October 30, 2021
Operating lease expense$96 $95 
Short-term lease expense17 17 
Variable lease expense58 49 
Total lease expense$171 $161 
Supplemental information related to our operating leases is as follows (in millions):
Three Months Ended
October 29, 2022October 30, 2021
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $96 $98 
Right-of-use assets obtained in exchange for operating leases liabilities$35 $120 
The weighted-average lease term was 4.6 years and 4.7 years as of October 29, 2022 and July 30, 2022, respectively. The weighted-average discount rate was 2.3% and 2.2% as of October 29, 2022 and July 30, 2022, respectively.
The maturities of our operating leases (undiscounted) as of October 29, 2022 are as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$254 
2024262 
2025183 
2026106 
202763 
Thereafter181 
Total lease payments1,049 
Less interest(74)
Total$975 
(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 $12 million and $15 million for the first quarter of fiscal 2023 and 2022, 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 29, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$461 
2024329 
2025182 
202690 
202763 
Thereafter4 
Total1,129 
Less: Present value of lease payments1,074 
Unearned income$55 
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):
October 29, 2022July 30, 2022
Operating lease assets$161 $185 
Accumulated depreciation(97)(111)
Operating lease assets, net$64 $74 
Our operating lease income was $21 million and $32 million for the first quarter of fiscal 2023 and 2022, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of October 29, 2022 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining nine months)$23 
202417 
20255 
Total$45