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Leases
 6 Months Ended
Jan. 28, 2023
Leases [Abstract]  
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJanuary 28, 2023July 30, 2022
Operating lease right-of-use assetsOther assets$978 $1,003 
Operating lease liabilitiesOther current liabilities$337 $322 
Operating lease liabilitiesOther long-term liabilities691 724 
Total operating lease liabilities$1,028 $1,046 
The components of our lease expenses were as follows (in millions):
Three Months EndedSix Months Ended
January 28, 2023January 29, 2022January 28, 2023January 29, 2022
Operating lease expense$98 $98 $194 $193 
Short-term lease expense17 15 34 32 
Variable lease expense63 41 121 90 
Total lease expense$178 $154 $349 $315 
Supplemental information related to our operating leases is as follows (in millions):
Six Months Ended
January 28, 2023January 29, 2022
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $192 $202 
Right-of-use assets obtained in exchange for operating leases liabilities$149 $178 
The weighted-average lease term was 4.6 years and 4.7 years as of January 28, 2023 and July 30, 2022, respectively. The weighted-average discount rate was 2.7% and 2.2% as of January 28, 2023 and July 30, 2022, respectively.
The maturities of our operating leases (undiscounted) as of January 28, 2023 are as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$185 
2024297 
2025215 
2026133 
202776 
Thereafter212 
Total lease payments1,118 
Less interest(90)
Total$1,028 
(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 $24 million for the second quarter and first six months of fiscal 2023, respectively, and $14 million and $29 million for the corresponding periods of fiscal 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 January 28, 2023 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$348 
2024365 
2025192 
2026114 
202751 
Thereafter16 
Total1,086 
Less: Present value of lease payments1,021 
Unearned income$65 
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):
January 28, 2023July 30, 2022
Operating lease assets$149 $185 
Accumulated depreciation(90)(111)
Operating lease assets, net$59 $74 
Our operating lease income was $18 million and $39 million for the second quarter and first six months of fiscal 2023, respectively, and $29 million and $61 million for the corresponding periods of fiscal 2022, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of January 28, 2023 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$15 
202418 
20256 
Total$39 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJanuary 28, 2023July 30, 2022
Operating lease right-of-use assetsOther assets$978 $1,003 
Operating lease liabilitiesOther current liabilities$337 $322 
Operating lease liabilitiesOther long-term liabilities691 724 
Total operating lease liabilities$1,028 $1,046 
The components of our lease expenses were as follows (in millions):
Three Months EndedSix Months Ended
January 28, 2023January 29, 2022January 28, 2023January 29, 2022
Operating lease expense$98 $98 $194 $193 
Short-term lease expense17 15 34 32 
Variable lease expense63 41 121 90 
Total lease expense$178 $154 $349 $315 
Supplemental information related to our operating leases is as follows (in millions):
Six Months Ended
January 28, 2023January 29, 2022
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $192 $202 
Right-of-use assets obtained in exchange for operating leases liabilities$149 $178 
The weighted-average lease term was 4.6 years and 4.7 years as of January 28, 2023 and July 30, 2022, respectively. The weighted-average discount rate was 2.7% and 2.2% as of January 28, 2023 and July 30, 2022, respectively.
The maturities of our operating leases (undiscounted) as of January 28, 2023 are as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$185 
2024297 
2025215 
2026133 
202776 
Thereafter212 
Total lease payments1,118 
Less interest(90)
Total$1,028 
(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 $24 million for the second quarter and first six months of fiscal 2023, respectively, and $14 million and $29 million for the corresponding periods of fiscal 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 January 28, 2023 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$348 
2024365 
2025192 
2026114 
202751 
Thereafter16 
Total1,086 
Less: Present value of lease payments1,021 
Unearned income$65 
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):
January 28, 2023July 30, 2022
Operating lease assets$149 $185 
Accumulated depreciation(90)(111)
Operating lease assets, net$59 $74 
Our operating lease income was $18 million and $39 million for the second quarter and first six months of fiscal 2023, respectively, and $29 million and $61 million for the corresponding periods of fiscal 2022, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of January 28, 2023 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$15 
202418 
20256 
Total$39 
Leases Leases
(a)Lessee Arrangements
The following table presents our operating lease balances (in millions):
Balance Sheet Line ItemJanuary 28, 2023July 30, 2022
Operating lease right-of-use assetsOther assets$978 $1,003 
Operating lease liabilitiesOther current liabilities$337 $322 
Operating lease liabilitiesOther long-term liabilities691 724 
Total operating lease liabilities$1,028 $1,046 
The components of our lease expenses were as follows (in millions):
Three Months EndedSix Months Ended
January 28, 2023January 29, 2022January 28, 2023January 29, 2022
Operating lease expense$98 $98 $194 $193 
Short-term lease expense17 15 34 32 
Variable lease expense63 41 121 90 
Total lease expense$178 $154 $349 $315 
Supplemental information related to our operating leases is as follows (in millions):
Six Months Ended
January 28, 2023January 29, 2022
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $192 $202 
Right-of-use assets obtained in exchange for operating leases liabilities$149 $178 
The weighted-average lease term was 4.6 years and 4.7 years as of January 28, 2023 and July 30, 2022, respectively. The weighted-average discount rate was 2.7% and 2.2% as of January 28, 2023 and July 30, 2022, respectively.
The maturities of our operating leases (undiscounted) as of January 28, 2023 are as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$185 
2024297 
2025215 
2026133 
202776 
Thereafter212 
Total lease payments1,118 
Less interest(90)
Total$1,028 
(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 $24 million for the second quarter and first six months of fiscal 2023, respectively, and $14 million and $29 million for the corresponding periods of fiscal 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 January 28, 2023 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$348 
2024365 
2025192 
2026114 
202751 
Thereafter16 
Total1,086 
Less: Present value of lease payments1,021 
Unearned income$65 
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):
January 28, 2023July 30, 2022
Operating lease assets$149 $185 
Accumulated depreciation(90)(111)
Operating lease assets, net$59 $74 
Our operating lease income was $18 million and $39 million for the second quarter and first six months of fiscal 2023, respectively, and $29 million and $61 million for the corresponding periods of fiscal 2022, respectively, and was included in product revenue in the Consolidated Statement of Operations.
Minimum future rentals on noncancelable operating leases as of January 28, 2023 are summarized as follows (in millions):
Fiscal YearAmount
2023 (remaining six months)$15 
202418 
20256 
Total$39