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Leases | 6 Months Ended
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Jan. 23, 2021
Leases [Abstract] |
Leases | Leases (a)Lessee Arrangements The following table presents our operating lease balances (in millions):
| Balance Sheet Line Item |  | January 23, 2021 |  | July 25, 2020
Operating lease right-of-use assets | Other assets |  | $ | 974 |  |  | $ | 921 |
Operating lease liabilities | Other current liabilities |  | $ | 366 |  |  | $ | 341 |
Operating lease liabilities | Other long-term liabilities |  | 688 |  |  | 661 |
Total operating lease liabilities |  |  | $ | 1,054 |  |  | $ | 1,002 |
The components of our lease expenses were as follows (in millions):
| Three Months Ended |  | Six Months Ended
| January 23, 2021 |  | January 25, 2020 |  | January 23, 2021 |  | January 25, 2020
Operating lease expense | $ | 103 |  |  | $ | 101 |  |  | $ | 201 |  |  | $ | 214 |
Short-term lease expense | 17 |  |  | 16 |  |  | 35 |  |  | 33 |
Variable lease expense | 43 |  |  | 39 |  |  | 89 |  |  | 79 |
Total lease expense | $ | 163 |  |  | $ | 156 |  |  | $ | 325 |  |  | $ | 326 |
Supplemental information related to our operating leases is as follows (in millions):
| Six Months Ended
| January 23, 2021 |  | January 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows | $ | 201 |  |  | $ | 206 |
Right-of-use assets obtained in exchange for operating leases liabilities | $ | 218 |  |  | $ | 77 |
The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively. The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 193 |
2022 | 304 |
2023 | 232 |
2024 | 151 |
2025 | 92 |
Thereafter | 104 |
Total lease payments | 1,076 |
Less interest | (22) |
Total | $ | 1,054 |
(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 the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 2020, 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 23, 2021 are summarized as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 330 |
2022 | 685 |
2023 | 455 |
2024 | 237 |
2025 | 130 |
Thereafter | 28 |
Total | 1,865 |
Less: Present value of lease payments | 1,768 |
Unearned income | $ | 97 |
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 Cisco and the associated accumulated depreciation are summarized as follows (in millions):
| January 23, 2021 |  | July 25, 2020
Operating lease assets | $ | 343 |  |  | $ | 337 |
Accumulated depreciation | (201) |  |  | (198) |
Operating lease assets, net | $ | 142 |  |  | $ | 139 |
Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 38 |
2022 | 44 |
2023 | 20 |
2024 | 4 |
Total | $ | 106 |
Leases | Leases (a)Lessee Arrangements The following table presents our operating lease balances (in millions):
| Balance Sheet Line Item |  | January 23, 2021 |  | July 25, 2020
Operating lease right-of-use assets | Other assets |  | $ | 974 |  |  | $ | 921 |
Operating lease liabilities | Other current liabilities |  | $ | 366 |  |  | $ | 341 |
Operating lease liabilities | Other long-term liabilities |  | 688 |  |  | 661 |
Total operating lease liabilities |  |  | $ | 1,054 |  |  | $ | 1,002 |
The components of our lease expenses were as follows (in millions):
| Three Months Ended |  | Six Months Ended
| January 23, 2021 |  | January 25, 2020 |  | January 23, 2021 |  | January 25, 2020
Operating lease expense | $ | 103 |  |  | $ | 101 |  |  | $ | 201 |  |  | $ | 214 |
Short-term lease expense | 17 |  |  | 16 |  |  | 35 |  |  | 33 |
Variable lease expense | 43 |  |  | 39 |  |  | 89 |  |  | 79 |
Total lease expense | $ | 163 |  |  | $ | 156 |  |  | $ | 325 |  |  | $ | 326 |
Supplemental information related to our operating leases is as follows (in millions):
| Six Months Ended
| January 23, 2021 |  | January 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows | $ | 201 |  |  | $ | 206 |
Right-of-use assets obtained in exchange for operating leases liabilities | $ | 218 |  |  | $ | 77 |
The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively. The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 193 |
2022 | 304 |
2023 | 232 |
2024 | 151 |
2025 | 92 |
Thereafter | 104 |
Total lease payments | 1,076 |
Less interest | (22) |
Total | $ | 1,054 |
(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 the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 2020, 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 23, 2021 are summarized as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 330 |
2022 | 685 |
2023 | 455 |
2024 | 237 |
2025 | 130 |
Thereafter | 28 |
Total | 1,865 |
Less: Present value of lease payments | 1,768 |
Unearned income | $ | 97 |
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 Cisco and the associated accumulated depreciation are summarized as follows (in millions):
| January 23, 2021 |  | July 25, 2020
Operating lease assets | $ | 343 |  |  | $ | 337 |
Accumulated depreciation | (201) |  |  | (198) |
Operating lease assets, net | $ | 142 |  |  | $ | 139 |
Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 38 |
2022 | 44 |
2023 | 20 |
2024 | 4 |
Total | $ | 106 |
Leases | Leases (a)Lessee Arrangements The following table presents our operating lease balances (in millions):
| Balance Sheet Line Item |  | January 23, 2021 |  | July 25, 2020
Operating lease right-of-use assets | Other assets |  | $ | 974 |  |  | $ | 921 |
Operating lease liabilities | Other current liabilities |  | $ | 366 |  |  | $ | 341 |
Operating lease liabilities | Other long-term liabilities |  | 688 |  |  | 661 |
Total operating lease liabilities |  |  | $ | 1,054 |  |  | $ | 1,002 |
The components of our lease expenses were as follows (in millions):
| Three Months Ended |  | Six Months Ended
| January 23, 2021 |  | January 25, 2020 |  | January 23, 2021 |  | January 25, 2020
Operating lease expense | $ | 103 |  |  | $ | 101 |  |  | $ | 201 |  |  | $ | 214 |
Short-term lease expense | 17 |  |  | 16 |  |  | 35 |  |  | 33 |
Variable lease expense | 43 |  |  | 39 |  |  | 89 |  |  | 79 |
Total lease expense | $ | 163 |  |  | $ | 156 |  |  | $ | 325 |  |  | $ | 326 |
Supplemental information related to our operating leases is as follows (in millions):
| Six Months Ended
| January 23, 2021 |  | January 25, 2020
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows | $ | 201 |  |  | $ | 206 |
Right-of-use assets obtained in exchange for operating leases liabilities | $ | 218 |  |  | $ | 77 |
The weighted-average lease term was 4.2 years and 4.0 years as of January 23, 2021 and July 25, 2020, respectively. The weighted-average discount rate was 1.0% and 1.5% as of January 23, 2021 and July 25, 2020, respectively. The maturities of our operating leases (undiscounted) as of January 23, 2021 are as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 193 |
2022 | 304 |
2023 | 232 |
2024 | 151 |
2025 | 92 |
Thereafter | 104 |
Total lease payments | 1,076 |
Less interest | (22) |
Total | $ | 1,054 |
(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 the second quarter and first six months of fiscal 2021 was $19 million and $40 million, respectively, and $23 million and $49 million for the corresponding periods of fiscal 2020, 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 23, 2021 are summarized as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 330 |
2022 | 685 |
2023 | 455 |
2024 | 237 |
2025 | 130 |
Thereafter | 28 |
Total | 1,865 |
Less: Present value of lease payments | 1,768 |
Unearned income | $ | 97 |
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 Cisco and the associated accumulated depreciation are summarized as follows (in millions):
| January 23, 2021 |  | July 25, 2020
Operating lease assets | $ | 343 |  |  | $ | 337 |
Accumulated depreciation | (201) |  |  | (198) |
Operating lease assets, net | $ | 142 |  |  | $ | 139 |
Our operating lease income for the second quarter and first six months of fiscal 2021 was $40 million and $83 million, respectively, and $50 million and $94 million for the corresponding periods of fiscal 2020, respectively, and was included in product revenue in the Consolidated Statement of Operations. Minimum future rentals on noncancelable operating leases as of January 23, 2021 are summarized as follows (in millions):
Fiscal Year | Amount
2021 (remaining six months) | $ | 38 |
2022 | 44 |
2023 | 20 |
2024 | 4 |
Total | $ | 106 |

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