LEASES (Notes)

12 Months Ended

Oct. 31, 2020

16.

LEASES

We have operating leases for items including office space, order fulfillment, sales and service centers, R&D and certain equipment, primarily automobiles. Our leases have remaining terms of up to 14 years, some of which may include options to extend the leases for 3 to 5 years. We consider options to renew in our lease terms and measurement of ROU assets and lease liabilities if we determine they are reasonably certain to be exercised.

As of October 31, 2020, the weighted average lease term of our operating leases was 7.3 years and the weighted average discount rate of our operating leases was 3 percent.

Operating lease cost for the year ended October 31, 2020 was $49 million and variable lease cost was $16 million. Costs associated with our short-term leases were immaterial for the year ended October 31, 2020. Sublease income was immaterial for the year ended October 31, 2020.

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



	Year Ended
	October 31, 2020
	(in millions)
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows	$	48
ROU assets obtained in exchange for operating lease obligations	$	67

Amounts related to finance lease activities for the year ended October 31, 2020 were not material.

Maturity Analysis of Liabilities

Future minimum rents payable as of October 31, 2020 under non-cancellable operating leases with initial terms exceeding one year reconcile to lease liabilities included in the consolidated balance sheet as follows (in millions):



2021	$	49
2022	40
2023	28
2024	18
Thereafter	82
Total undiscounted lease liability	217
Imputed interest	25
Total discounted lease liability	$	192

As of October 31, 2020, we did not have material leases that had not yet commenced.

ASC 840 Comparative Disclosures

Total rent expense for operating leases was $70 million in 2019 and $60 million in 2018. We had capital lease obligations of $4 million as of October 31, 2019 and $4 million as of October 31, 2018.

Prior to the adoption of the new lease accounting standard, future minimum lease payments as of October 31, 2019 as reported in our Annual Report on Form 10-K for the fiscal year ended October 31, 2019 under non-cancellable operating leases with initial terms exceeding twelve months were as follows (in millions):



2020	$	48
2021	40
2022	31
2023	19
2024	12
Thereafter	46
Total future minimum lease payments	$	196

Lessor Disclosure

Rental income from leasing out excess facilities was $11 million for the year ended October 31, 2020, and is included in other operating expense (income), net. Other lessor arrangements were immaterial.