Leases

6 Months Ended

Jan. 25, 2025

Leases [Abstract]

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	January 25, 2025		July 27, 2024
Operating lease right-of-use assets	Other assets	$	1,134	1,066
Operating lease liabilities	Other current liabilities	$	362	$	364
Operating lease liabilities	Other long-term liabilities	1,015		906
Total operating lease liabilities		$	1,377	$	1,270

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

	Three Months Ended				Six Months Ended
	January 25, 2025		January 27, 2024		January 25, 2025		January 27, 2024
Operating lease expense	$	149	$	103	$	263	$	203
Short-term lease expense	16		25		34		36
Variable lease expense	47		50		93		106
Total lease expense	$	212	$	178	$	390	$	345

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

	Six Months Ended
	January 25, 2025		January 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	228	$	178
Right-of-use assets obtained in exchange for operating leases liabilities	$	326	$	182

The weighted-average lease term was 5.4 years and 4.9 years as of January 25, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.1% and 4.0% as of January 25, 2025 and July 27, 2024, respectively.

The maturities of our operating leases (undiscounted) as of January 25, 2025 are as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	213
2026	345
2027	257
2028	190
2029	152
Thereafter	402
Total lease payments	1,559
Less: interest	(182)
Total	$	1,377

(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 $16 million and $33 million for the second quarter and the first six months of fiscal 2025, respectively, and $16 million and $30 million for the corresponding periods of fiscal 2024, 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 25, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	229
2026	407
2027	144
2028	102
2029	101
Thereafter	5
Total	988
Less: Present value of lease payments	(886)
Unearned income	$	102

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 25, 2025		July 27, 2024
Operating lease assets	$	77	$	115
Accumulated depreciation	(49)		(61)
Operating lease assets, net	$	28	$	54

Our operating lease income was $9 million and $20 million for the second quarter and first six months of fiscal 2025, respectively, and $15 million and $31 million for the corresponding periods of fiscal 2024, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of January 25, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	8
2026	13
2027	5
Total	$	26

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	January 25, 2025		July 27, 2024
Operating lease right-of-use assets	Other assets	$	1,134	1,066
Operating lease liabilities	Other current liabilities	$	362	$	364
Operating lease liabilities	Other long-term liabilities	1,015		906
Total operating lease liabilities		$	1,377	$	1,270

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

	Three Months Ended				Six Months Ended
	January 25, 2025		January 27, 2024		January 25, 2025		January 27, 2024
Operating lease expense	$	149	$	103	$	263	$	203
Short-term lease expense	16		25		34		36
Variable lease expense	47		50		93		106
Total lease expense	$	212	$	178	$	390	$	345

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

	Six Months Ended
	January 25, 2025		January 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	228	$	178
Right-of-use assets obtained in exchange for operating leases liabilities	$	326	$	182

The weighted-average lease term was 5.4 years and 4.9 years as of January 25, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.1% and 4.0% as of January 25, 2025 and July 27, 2024, respectively.

The maturities of our operating leases (undiscounted) as of January 25, 2025 are as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	213
2026	345
2027	257
2028	190
2029	152
Thereafter	402
Total lease payments	1,559
Less: interest	(182)
Total	$	1,377

(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 $16 million and $33 million for the second quarter and the first six months of fiscal 2025, respectively, and $16 million and $30 million for the corresponding periods of fiscal 2024, 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 25, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	229
2026	407
2027	144
2028	102
2029	101
Thereafter	5
Total	988
Less: Present value of lease payments	(886)
Unearned income	$	102

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 25, 2025		July 27, 2024
Operating lease assets	$	77	$	115
Accumulated depreciation	(49)		(61)
Operating lease assets, net	$	28	$	54

Our operating lease income was $9 million and $20 million for the second quarter and first six months of fiscal 2025, respectively, and $15 million and $31 million for the corresponding periods of fiscal 2024, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of January 25, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	8
2026	13
2027	5
Total	$	26

Leases

Leases

(a)Lessee Arrangements

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

	Balance Sheet Line Item	January 25, 2025		July 27, 2024
Operating lease right-of-use assets	Other assets	$	1,134	1,066
Operating lease liabilities	Other current liabilities	$	362	$	364
Operating lease liabilities	Other long-term liabilities	1,015		906
Total operating lease liabilities		$	1,377	$	1,270

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

	Three Months Ended				Six Months Ended
	January 25, 2025		January 27, 2024		January 25, 2025		January 27, 2024
Operating lease expense	$	149	$	103	$	263	$	203
Short-term lease expense	16		25		34		36
Variable lease expense	47		50		93		106
Total lease expense	$	212	$	178	$	390	$	345

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

	Six Months Ended
	January 25, 2025		January 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	228	$	178
Right-of-use assets obtained in exchange for operating leases liabilities	$	326	$	182

The weighted-average lease term was 5.4 years and 4.9 years as of January 25, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.1% and 4.0% as of January 25, 2025 and July 27, 2024, respectively.

The maturities of our operating leases (undiscounted) as of January 25, 2025 are as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	213
2026	345
2027	257
2028	190
2029	152
Thereafter	402
Total lease payments	1,559
Less: interest	(182)
Total	$	1,377

(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 $16 million and $33 million for the second quarter and the first six months of fiscal 2025, respectively, and $16 million and $30 million for the corresponding periods of fiscal 2024, 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 25, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	229
2026	407
2027	144
2028	102
2029	101
Thereafter	5
Total	988
Less: Present value of lease payments	(886)
Unearned income	$	102

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 25, 2025		July 27, 2024
Operating lease assets	$	77	$	115
Accumulated depreciation	(49)		(61)
Operating lease assets, net	$	28	$	54

Our operating lease income was $9 million and $20 million for the second quarter and first six months of fiscal 2025, respectively, and $15 million and $31 million for the corresponding periods of fiscal 2024, respectively, and was included in product revenue in the Consolidated Statements of Operations.

Minimum future rentals on noncancelable operating leases as of January 25, 2025 are summarized as follows (in millions):

Fiscal Year	Amount
2025 (remaining six months)	$	8
2026	13
2027	5
Total	$	26