Leases (Tables)

3 Months Ended

Oct. 31, 2023

Leases [Abstract]

Components of lease expense

The components of lease expense were as follows:

	Three Months Ended
(In millions)	October 31, 2023		October 31, 2022
Operating lease cost (1)	$	26	$	28
Variable lease cost	6		4
Sublease income	(3)		(3)
Total net lease cost	$	29	$	29

(1)    Includes short-term leases, which were not material for each of the three months ended October 31, 2023 and 2022.

Supplemental cash flow information related to operating leases was as follows:

	Three Months Ended
(In millions)	October 31, 2023		October 31, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	25	$	23
Right-of-use assets obtained in exchange for operating lease liabilities	$	14	$	16

Other information related to operating leases was as follows at the dates indicated:

	October 31, 2023		July 31, 2023
Weighted-average remaining lease term for operating leases	7.9 years		7.9 years
Weighted-average discount rate for operating leases	3.1	%	3	%

Supplemental balance sheet information related to operating leases was as follows at the dates indicated:

(In millions)	October 31, 2023		July 31, 2023
Operating lease right-of-use assets	$	457	$	469
Other current liabilities	$	84	$	89
Operating lease liabilities	474		480
Total operating lease liabilities	$	558	$	569

Future minimum lease payments

Future minimum lease payments under non-cancellable operating leases as of October 31, 2023 were as follows:

(In millions)	Operating Leases (1)
Fiscal year ending July 31,
2024 (excluding the three months ended October 31, 2023)	$	50
2025	97
2026	80
2027	72
2028	63
Thereafter	285
Total future minimum lease payments	647
Less imputed interest	(89)
Present value of lease liabilities	$	558

(1)    Non-cancellable sublease proceeds for the remainder of the fiscal year ending July 31, 2024 and the fiscal years ending July 31, 2025, 2026, 2027, 2028, and thereafter of $7 million, $6 million, $1 million, $1 million, $1 million, and $2 million, respectively, are not included in the table above.