Less interest

  
8.Leases(a)Lessee ArrangementsThe following table presents our operating lease balances (in millions):

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Balance Sheet Line Item |  | July 30, 2022 |  | July 31, 2021 |
| Operating lease right-of-use assets | Other assets |  | $ | 1,003  |  |  | $ | 1,095  |  |
|  |  |  |  |  |  |
| Operating lease liabilities | Other current liabilities |  | $ | 322  |  |  | $ | 337  |  |
| Operating lease liabilities | Other long-term liabilities |  | 724  |  |  | 831  |  |
| Total operating lease liabilities |  |  | $ | 1,046  |  |  | $ | 1,168  |  |

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Years Ended |  | July 30, 2022 |  | July 31, 2021 |
| Operating lease expense |  | $ | 390  |  |  | $ | 399  |  |
| Short-term lease expense |  | 66  |  |  | 65  |  |
| Variable lease expense |  | 173  |  |  | 173  |  |
| Total lease expense |  | $ | 629  |  |  | $ | 637  |  |

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

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Years Ended |  | July 30, 2022 |  | July 31, 2021 |
| Cash paid for amounts included in the measurement of lease liabilities — operating cash flows  |  | $ | 408  |  |  | $ | 407  |  |
| Right-of-use assets obtained in exchange for operating leases liabilities |  | $ | 331  |  |  | $ | 536  |  |

The weighted-average lease term was 4.7 years and 5.2 years as of July 30, 2022 and July 31, 2021, respectively. The weighted-average discount rate was 2.2% and 1.7% as of July 30, 2022 and July 31, 2021, respectively.The maturities of our operating leases (undiscounted) as of July 30, 2022 are as follows (in millions): 

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| Fiscal Year | Amount |
| 2023 | $ | 343  |  |
| 2024 | 255  |  |
| 2025 | 176  |  |
| 2026 | 104  |  |
| 2027 | 64  |  |
| Thereafter | 185  |  |
| Total lease payments | 1,127  |  |
| Less interest | (81) |  |
| Total | $ | 1,046  |  |

(b)Lessor ArrangementsOur 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 2022 and 2021 was $54 million and $75 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. 77
