XML 31 R18.htm IDEA: XBRL DOCUMENT
v3.24.1.1.u2

Leases | 6 Months Ended
--- | ---
Apr. 28, 2024
Leases [Abstract] |
Leases | Leases A contract contains a lease when we have the right to control the use of an identified asset for a period of time in exchange for consideration. A majority of our lease arrangements are operating leases. We also have certain leases that qualify as finance leases. We lease certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Our finance leases are those that contain a purchase option which we are reasonably certain to exercise at the end of the lease term. Our leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, we use the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease expense is generally recognized on a straight-line basis over the life of the underlying leased asset. We elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, we elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due. The components of lease expense and supplemental information were as follows:
| Three Months Ended |  | Six Months Ended
| April 28, 2024 |  | April 30, 2023 |  | April 28, 2024 |  | April 30, 2023
| (In millions, except percentages)
Operating lease cost | $ | 27 |  |  | $ | 39 |  |  | $ | 54 |  |  | $ | 65 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | — |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |
Interest on lease liabilities | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 1 |
Weighted-average remaining lease term (in years) - operating leases |  |  |  |  | 5.8 |  | 6.1
Weighted-average remaining lease term (in years) - finance leases |  |  |  |  | 0.4 |  | 1.4
Weighted-average discount rate - operating leases |  |  |  |  | 3.2% |  | 2.7%
Weighted-average discount rate - finance leases |  |  |  |  | 4.6% |  | 4.6%
Supplemental cash flow information related to leases are as follows:
|  |  | Six Months Ended
|  |  |  |  | April 28, 2024 |  | April 30, 2023
|  |  |  |  | (In millions)
Operating cash flows paid for operating leases |  |  |  |  | $ | 53 |  |  | $ | 65 |
Operating cash flows paid for finance leases |  |  |  |  | $ | 2 |  |  | $ | 1 |
Financing cash flows paid for finance leases |  |  |  |  | $ | 13 |  |  | $ | 9 |
Right-of-use assets obtained in exchange for operating lease liabilities |  |  |  |  | $ | 58 |  |  | $ | 50 |
Right-of-use assets obtained in exchange for finance lease liabilities |  |  |  |  | $ | — |  |  | $ | 109 |
As of April 28, 2024, the maturities of lease liabilities are as follows:
| Operating Leases |  | Finance Leases
Fiscal | (In millions)
2024 (remaining 6 months) | $ | 47 |  |  | $ | 91 |
2025 | 93 |  |  | — |
2026 | 58 |  |  | — |
2027 | 46 |  |  | — |
2028 | 38 |  |  | — |
Thereafter | 101 |  |  | — |
Total lease payments | $ | 383 |  |  | $ | 91 |
Less imputed interest | (36) |  |  | (2) |
Total | $ | 347 |  |  | $ | 89 |
Leases | Leases A contract contains a lease when we have the right to control the use of an identified asset for a period of time in exchange for consideration. A majority of our lease arrangements are operating leases. We also have certain leases that qualify as finance leases. We lease certain facilities, vehicles and equipment under non-cancelable operating leases, many of which include options to renew. Options that are reasonably certain to be exercised are included in the calculation of the right-of-use asset and lease liability. Our finance leases are those that contain a purchase option which we are reasonably certain to exercise at the end of the lease term. Our leases do not contain residual value guarantees or significant restrictions that impact the accounting for leases. As implicit rates are not available for the leases, we use the incremental borrowing rate as of the lease commencement date in order to measure the right-of-use asset and liability. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease expense is generally recognized on a straight-line basis over the life of the underlying leased asset. We elected the practical expedient to account for lease and non-lease components as a single lease component for all leases. For leases with a term of one year or less, we elected not to record a right-of-use asset or lease liability and to account for the associated lease payments as they become due. The components of lease expense and supplemental information were as follows:
| Three Months Ended |  | Six Months Ended
| April 28, 2024 |  | April 30, 2023 |  | April 28, 2024 |  | April 30, 2023
| (In millions, except percentages)
Operating lease cost | $ | 27 |  |  | $ | 39 |  |  | $ | 54 |  |  | $ | 65 |
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | — |  |  | $ | 1 |  |  | $ | 1 |  |  | $ | 1 |
Interest on lease liabilities | $ | 1 |  |  | $ | 1 |  |  | $ | 2 |  |  | $ | 1 |
Weighted-average remaining lease term (in years) - operating leases |  |  |  |  | 5.8 |  | 6.1
Weighted-average remaining lease term (in years) - finance leases |  |  |  |  | 0.4 |  | 1.4
Weighted-average discount rate - operating leases |  |  |  |  | 3.2% |  | 2.7%
Weighted-average discount rate - finance leases |  |  |  |  | 4.6% |  | 4.6%
Supplemental cash flow information related to leases are as follows:
|  |  | Six Months Ended
|  |  |  |  | April 28, 2024 |  | April 30, 2023
|  |  |  |  | (In millions)
Operating cash flows paid for operating leases |  |  |  |  | $ | 53 |  |  | $ | 65 |
Operating cash flows paid for finance leases |  |  |  |  | $ | 2 |  |  | $ | 1 |
Financing cash flows paid for finance leases |  |  |  |  | $ | 13 |  |  | $ | 9 |
Right-of-use assets obtained in exchange for operating lease liabilities |  |  |  |  | $ | 58 |  |  | $ | 50 |
Right-of-use assets obtained in exchange for finance lease liabilities |  |  |  |  | $ | — |  |  | $ | 109 |
As of April 28, 2024, the maturities of lease liabilities are as follows:
| Operating Leases |  | Finance Leases
Fiscal | (In millions)
2024 (remaining 6 months) | $ | 47 |  |  | $ | 91 |
2025 | 93 |  |  | — |
2026 | 58 |  |  | — |
2027 | 46 |  |  | — |
2028 | 38 |  |  | — |
Thereafter | 101 |  |  | — |
Total lease payments | $ | 383 |  |  | $ | 91 |
Less imputed interest | (36) |  |  | (2) |
Total | $ | 347 |  |  | $ | 89 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration