Leases

12 Months Ended

Jul. 27, 2024

Leases [Abstract]

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	July 27, 2024		July 29, 2023
Operating lease right-of-use assets	Other assets	$	1,066	$	971
Operating lease liabilities	Other current liabilities	$	364	$	313
Operating lease liabilities	Other long-term liabilities	906		707
Total operating lease liabilities		$	1,270	$	1,020

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

Years Ended	July 27, 2024		July 29, 2023		July 30, 2022
Operating lease expense	$	420	$	425	$	390
Short-term lease expense	75		65		66
Variable lease expense	194		242		173
Total lease expense	$	689	$	732	$	629

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

Years Ended	July 27, 2024		July 29, 2023
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	394	$	387
Right-of-use assets obtained in exchange for operating leases liabilities	$	459	$	326

The weighted-average lease term was 4.9 years and 4.6 years as of July 27, 2024 and July 29, 2023, respectively. The weighted-average discount rate was 4.0% and 3.1% as of July 27, 2024 and July 29, 2023, respectively.

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

Fiscal Year	Amount
2025	$	409
2026	295
2027	207
2028	144
2029	112
Thereafter	253
Total lease payments	1,420
Less interest	(150)
Total	$	1,270

(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 2024, 2023, and 2022 was $65 million, $51 million and $54 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 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2025	$	314
2026	246
2027	156
2028	146
2029	97
Thereafter	6
Total	965
Less: Present value of lease payments	854
Unearned income	$	111

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 27, 2024		July 29, 2023
Operating lease assets	$	115	$	135
Accumulated depreciation	(61)		(78)
Operating lease assets, net	$	54	$	57

Our operating lease income for fiscal 2024, 2023, and 2022 was $58 million, $73 million and $107 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.

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

Fiscal Year	Amount
2025	$	22
2026	14
2027	3
Total	$	39

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	July 27, 2024		July 29, 2023
Operating lease right-of-use assets	Other assets	$	1,066	$	971
Operating lease liabilities	Other current liabilities	$	364	$	313
Operating lease liabilities	Other long-term liabilities	906		707
Total operating lease liabilities		$	1,270	$	1,020

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

Years Ended	July 27, 2024		July 29, 2023		July 30, 2022
Operating lease expense	$	420	$	425	$	390
Short-term lease expense	75		65		66
Variable lease expense	194		242		173
Total lease expense	$	689	$	732	$	629

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

Years Ended	July 27, 2024		July 29, 2023
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	394	$	387
Right-of-use assets obtained in exchange for operating leases liabilities	$	459	$	326

The weighted-average lease term was 4.9 years and 4.6 years as of July 27, 2024 and July 29, 2023, respectively. The weighted-average discount rate was 4.0% and 3.1% as of July 27, 2024 and July 29, 2023, respectively.

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

Fiscal Year	Amount
2025	$	409
2026	295
2027	207
2028	144
2029	112
Thereafter	253
Total lease payments	1,420
Less interest	(150)
Total	$	1,270

(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 2024, 2023, and 2022 was $65 million, $51 million and $54 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 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2025	$	314
2026	246
2027	156
2028	146
2029	97
Thereafter	6
Total	965
Less: Present value of lease payments	854
Unearned income	$	111

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 27, 2024		July 29, 2023
Operating lease assets	$	115	$	135
Accumulated depreciation	(61)		(78)
Operating lease assets, net	$	54	$	57

Our operating lease income for fiscal 2024, 2023, and 2022 was $58 million, $73 million and $107 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.

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

Fiscal Year	Amount
2025	$	22
2026	14
2027	3
Total	$	39

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	July 27, 2024		July 29, 2023
Operating lease right-of-use assets	Other assets	$	1,066	$	971
Operating lease liabilities	Other current liabilities	$	364	$	313
Operating lease liabilities	Other long-term liabilities	906		707
Total operating lease liabilities		$	1,270	$	1,020

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

Years Ended	July 27, 2024		July 29, 2023		July 30, 2022
Operating lease expense	$	420	$	425	$	390
Short-term lease expense	75		65		66
Variable lease expense	194		242		173
Total lease expense	$	689	$	732	$	629

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

Years Ended	July 27, 2024		July 29, 2023
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	394	$	387
Right-of-use assets obtained in exchange for operating leases liabilities	$	459	$	326

The weighted-average lease term was 4.9 years and 4.6 years as of July 27, 2024 and July 29, 2023, respectively. The weighted-average discount rate was 4.0% and 3.1% as of July 27, 2024 and July 29, 2023, respectively.

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

Fiscal Year	Amount
2025	$	409
2026	295
2027	207
2028	144
2029	112
Thereafter	253
Total lease payments	1,420
Less interest	(150)
Total	$	1,270

(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 2024, 2023, and 2022 was $65 million, $51 million and $54 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 27, 2024 are summarized as follows (in millions):

Fiscal Year	Amount
2025	$	314
2026	246
2027	156
2028	146
2029	97
Thereafter	6
Total	965
Less: Present value of lease payments	854
Unearned income	$	111

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 27, 2024		July 29, 2023
Operating lease assets	$	115	$	135
Accumulated depreciation	(61)		(78)
Operating lease assets, net	$	54	$	57

Our operating lease income for fiscal 2024, 2023, and 2022 was $58 million, $73 million and $107 million, respectively, and was included in product revenue in the Consolidated Statement of Operations.

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

Fiscal Year	Amount
2025	$	22
2026	14
2027	3
Total	$	39