Leases

9 Months Ended

Apr. 30, 2025


8. Leases

We lease office facilities under non-cancellable operating lease arrangements. Our facility leases generally provide for periodic rent increases and may contain escalation clauses and renewal options. Our leases have remaining lease terms of up to 17 years, which include options to extend that are reasonably certain of being exercised. Some of our leases include one or more options to extend the lease for up to 10 years per option, which we are not reasonably certain to exercise. The options to extend are generally at rates to be determined in accordance with the agreements. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised.

We sublease certain office facilities to third parties. These subleases have remaining lease terms of up to 6 years, one of which includes an option to extend the sublease for up to 5 years.

The components of lease expense were as follows:


	Three Months Ended				Nine Months Ended
(In millions)	April 30, 2025		April 30, 2024		April 30, 2025		April 30, 2024
Operating lease cost (1)	$	28	$	25	$	82	$	77

Variable lease cost	5		6		15		18
Sublease income	(2)		(3)		(8)		(9)
Total net lease cost	$	31	$	28	$	89	$	86

(1)Includes short-term leases, which were not material for each of the three and nine months ended April 30, 2025 and 2024.

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


	Nine Months Ended
(In millions)	April 30, 2025		April 30, 2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	78	$	58
Right-of-use assets obtained in exchange for operating lease liabilities	$	210	$	28

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


	April 30, 2025		July 31, 2024
Weighted-average remaining lease term for operating leases	8.3 years		7.7 years
Weighted-average discount rate for operating leases	3.8	%	3.3	%

Future minimum lease payments under non-cancellable operating leases as of April 30, 2025 were as follows:


(In millions)	Operating Leases (1)
Fiscal year ending July 31,
2025 (excluding the nine months ended April 30, 2025)	$	16
2026	85
2027	105
2028	96
2029	100
Thereafter	411
Total future minimum lease payments	813
Less imputed interest	(132)
Present value of lease liabilities	$	681

(1)Non-cancellable future sublease proceeds as of April 30, 2025 totaled $19 million through July 31, 2029 and $3 million thereafter, and are not included in the table above.

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


(In millions)	April 30, 2025		July 31, 2024

Operating lease right-of-use assets	$	560	$	411

Other current liabilities	$	67	$	71
Operating lease liabilities	614		458
Total operating lease liabilities	$	681	$	529

As of April 30, 2025, we have additional operating leases with total minimum lease payments of $138 million for office facilities that have not yet commenced and therefore are not reflected on the condensed consolidated balance sheets nor in the tables above. These leases are expected to commence in fiscal years 2025 and 2027 and have lease terms ranging from six to 10 years.