Leases

9 Months Ended

Apr. 27, 2024

Leases [Abstract]

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	April 27, 2024		July 29, 2023
Operating lease right-of-use assets	Other assets	$	1,008	$	971
Operating lease liabilities	Other current liabilities	$	344	$	313
Operating lease liabilities	Other long-term liabilities	861		707
Total operating lease liabilities		$	1,205	$	1,020

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

	Three Months Ended				Nine Months Ended
	April 27, 2024		April 29, 2023		April 27, 2024		April 29, 2023
Operating lease expense	$	101	$	106	$	304	$	300
Short-term lease expense	19		16		55		50
Variable lease expense	43		61		149		182
Total lease expense	$	163	$	183	$	508	$	532

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

	Nine Months Ended
	April 27, 2024		April 29, 2023
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	279	$	290
Right-of-use assets obtained in exchange for operating leases liabilities	$	307	$	278

The weighted-average lease term was 4.9 years and 4.6 years as of April 27, 2024 and July 29, 2023, respectively. The weighted-average discount rate was 3.8% and 3.1% as of April 27, 2024 and July 29, 2023, respectively.

The maturities of our operating leases (undiscounted) as of April 27, 2024 are as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	105
2025	359
2026	259
2027	179
2028	126
Thereafter	315
Total lease payments	1,343
Less interest	(138)
Total	$	1,205

(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 $18 million and $48 million for the third quarter and the first nine months of fiscal 2024, respectively, and $13 million and $36 million for the corresponding periods of fiscal 2023, 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 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	192
2025	360
2026	251
2027	154
2028	126
Thereafter	82
Total	1,165
Less: Present value of lease payments	(1,051)
Unearned income	$	114

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 27, 2024		July 29, 2023
Operating lease assets	$	120	$	135
Accumulated depreciation	(63)		(78)
Operating lease assets, net	$	57	$	57

Our operating lease income was $14 million and $45 million for the third quarter and first nine months of fiscal 2024, respectively, and $18 million and $56 million for the corresponding periods of fiscal 2023, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of April 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	8
2025	21
2026	13
2027	2
Total	$	44

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	April 27, 2024		July 29, 2023
Operating lease right-of-use assets	Other assets	$	1,008	$	971
Operating lease liabilities	Other current liabilities	$	344	$	313
Operating lease liabilities	Other long-term liabilities	861		707
Total operating lease liabilities		$	1,205	$	1,020

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

	Three Months Ended				Nine Months Ended
	April 27, 2024		April 29, 2023		April 27, 2024		April 29, 2023
Operating lease expense	$	101	$	106	$	304	$	300
Short-term lease expense	19		16		55		50
Variable lease expense	43		61		149		182
Total lease expense	$	163	$	183	$	508	$	532

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

	Nine Months Ended
	April 27, 2024		April 29, 2023
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	279	$	290
Right-of-use assets obtained in exchange for operating leases liabilities	$	307	$	278

The weighted-average lease term was 4.9 years and 4.6 years as of April 27, 2024 and July 29, 2023, respectively. The weighted-average discount rate was 3.8% and 3.1% as of April 27, 2024 and July 29, 2023, respectively.

The maturities of our operating leases (undiscounted) as of April 27, 2024 are as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	105
2025	359
2026	259
2027	179
2028	126
Thereafter	315
Total lease payments	1,343
Less interest	(138)
Total	$	1,205

(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 $18 million and $48 million for the third quarter and the first nine months of fiscal 2024, respectively, and $13 million and $36 million for the corresponding periods of fiscal 2023, 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 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	192
2025	360
2026	251
2027	154
2028	126
Thereafter	82
Total	1,165
Less: Present value of lease payments	(1,051)
Unearned income	$	114

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 27, 2024		July 29, 2023
Operating lease assets	$	120	$	135
Accumulated depreciation	(63)		(78)
Operating lease assets, net	$	57	$	57

Our operating lease income was $14 million and $45 million for the third quarter and first nine months of fiscal 2024, respectively, and $18 million and $56 million for the corresponding periods of fiscal 2023, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of April 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	8
2025	21
2026	13
2027	2
Total	$	44

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	April 27, 2024		July 29, 2023
Operating lease right-of-use assets	Other assets	$	1,008	$	971
Operating lease liabilities	Other current liabilities	$	344	$	313
Operating lease liabilities	Other long-term liabilities	861		707
Total operating lease liabilities		$	1,205	$	1,020

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

	Three Months Ended				Nine Months Ended
	April 27, 2024		April 29, 2023		April 27, 2024		April 29, 2023
Operating lease expense	$	101	$	106	$	304	$	300
Short-term lease expense	19		16		55		50
Variable lease expense	43		61		149		182
Total lease expense	$	163	$	183	$	508	$	532

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

	Nine Months Ended
	April 27, 2024		April 29, 2023
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	279	$	290
Right-of-use assets obtained in exchange for operating leases liabilities	$	307	$	278

The weighted-average lease term was 4.9 years and 4.6 years as of April 27, 2024 and July 29, 2023, respectively. The weighted-average discount rate was 3.8% and 3.1% as of April 27, 2024 and July 29, 2023, respectively.

The maturities of our operating leases (undiscounted) as of April 27, 2024 are as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	105
2025	359
2026	259
2027	179
2028	126
Thereafter	315
Total lease payments	1,343
Less interest	(138)
Total	$	1,205

(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 $18 million and $48 million for the third quarter and the first nine months of fiscal 2024, respectively, and $13 million and $36 million for the corresponding periods of fiscal 2023, 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 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	192
2025	360
2026	251
2027	154
2028	126
Thereafter	82
Total	1,165
Less: Present value of lease payments	(1,051)
Unearned income	$	114

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 27, 2024		July 29, 2023
Operating lease assets	$	120	$	135
Accumulated depreciation	(63)		(78)
Operating lease assets, net	$	57	$	57

Our operating lease income was $14 million and $45 million for the third quarter and first nine months of fiscal 2024, respectively, and $18 million and $56 million for the corresponding periods of fiscal 2023, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of April 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2024 (remaining three months)	$	8
2025	21
2026	13
2027	2
Total	$	44