Leases

12 Months Ended

Apr. 26, 2024

The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation, data processing, and other equipment. The Company determines whether a contract is a lease or contains a lease at inception date. Upon commencement, the Company recognizes a right-of-use asset and lease liability. Right-of-use assets represent the Company's right to use the underlying asset for the lease term. Lease liabilities are the Company's obligation to make the lease payments arising from a lease. As the Company’s leases typically do not provide an implicit rate, the Company’s lease liabilities are measured on a discounted basis using the Company's incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. Additionally, lease terms underlying the right-of-use assets and lease liabilities consider terminations that are reasonably certain to be executed.

The Company's lease agreements include leases that have both lease and associated nonlease components. The Company has elected to account for lease components and the associated nonlease components as a single lease component. The consolidated balance sheets do not include recognized assets or liabilities for leases that, at the commencement date, have a term of twelve months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised. The Company recognizes such leases in the consolidated statements of income on a straight-line basis over the lease term. Additionally, the Company recognizes variable lease payments not included in its lease liabilities in the period in which the obligation for those payments is incurred. Variable lease payments for fiscal year 2024, 2023, and 2022 were not material.

The Company's lease agreements include leases accounted for as operating leases and those accounted for as finance leases. The right-of-use assets, lease liabilities, lease costs, cash flows, and lease maturities associated with the Company's finance leases were not material to the consolidated financial statements at April 26, 2024 or April 28, 2023 or for fiscal year 2024, 2023 and 2022. Finance lease right-of-use assets are included in property, plant, and equipment, net, and finance lease liabilities are included in current debt obligations and long-term debt on the consolidated balance sheets.

The following table summarizes the balance sheet classification of the Company's operating leases and amounts of the right-of-use assets and lease liabilities at April 26, 2024 and April 28, 2023:


(in millions)	Balance Sheet Classification	April 26, 2024		April 28, 2023
Right-of-use assets	Other assets	$	1,012	$	1,041
Current liability	Other accrued expenses	183		180
Non-current liability	Other liabilities	840		869

The following table summarizes the weighted-average remaining lease term and weighted-average discount rate for the Company's operating leases at April 26, 2024 and April 28, 2023:

April 26, 2024

April 28, 2023

Weighted-average remaining lease term

8.8 Years

9.1 Years

Weighted-average discount rate

3.4%

2.4%

The following table summarizes the components of total operating lease cost for fiscal year 2024, 2023, and 2022:


	Fiscal Year
(in millions)	2024		2023		2022
Operating lease cost	$	232	$	211	$	195
Short-term lease cost	41		62		65
Total operating lease cost	$	273	$	273	$	260

The following table summarizes the cash paid for amounts included in the measurement of operating lease liabilities and right-of-use assets obtained in exchange for operating lease liabilities for fiscal year 2024, 2023, and 2022:


	Fiscal Year
(in millions)	2024		2023		2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	232	$	210	$	174
Right-of-use assets obtained in exchange for operating lease liabilities	220		417		78

The following table summarizes the maturities of the Company's operating leases at April 26, 2024:


(in millions) Fiscal Year	Operating Leases
2025	$	203
2026	178
2027	151
2028	113
2029	88
Thereafter	444
Total expected lease payments	1,177
Less: Imputed interest	(154)
Total lease liability	$	1,024

The Company makes certain products available to customers under lease arrangements, including arrangements whereby equipment is placed with customers who then purchase consumable products to accompany the use of the equipment. Income arising from arrangements where the Company is the lessor is recognized within net sales in the consolidated statements of income and the Company's net investments in sales-type leases are included in other current assets and other assets in the consolidated balance sheets. Lessor income and the related assets and lease maturities were not material to the consolidated financial statements at or for the fiscal year ended April 26, 2024 and April 28, 2023.