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Accounting for Leases as a Lessee
 12 Months Ended
Oct. 31, 2021
Leases [Abstract]  
Accounting for Leases as a Lessee Accounting for Leases as a Lessee
Components of lease cost included in the Consolidated Statement of Earnings were as follows:
For the fiscal years ended October 31,
20212020
In millions
Operating lease cost$207 $236 
Finance lease cost5 8 
Sublease rental income(35)(61)
Total lease cost$177 $183 
In fiscal 2021 and 2020, the Company recorded $3 million and $41 million, respectively, of net gain from sale and leaseback transactions.
The ROU assets and lease liabilities for operating and finance leases included on the Hewlett Packard Enterprise Consolidated Balance Sheet were as follows:
As of October 31,
Balance Sheet Classification20212020
In millions
Operating Leases
ROU AssetsLong-term financing receivables and other assets$884 $930 
Lease Liabilities:
Operating lease liabilities – currentOther accrued liabilities$192 188 
Operating lease liabilities – non-currentOther non-current liabilities938 898 
Total operating lease liabilities$1,130 $1,086 
Finance Leases
Finance lease ROU Assets:Property, plant and equipment
Gross finance lease ROU assets$36 $52 
Less: Accumulated depreciation(8)(11)
Net finance lease ROU assets$28 $41 
Lease Liabilities:
Finance lease liabilities – currentNotes payable and short-term borrowings$5 $5 
Finance lease liabilities – non-currentLong-term debt48 53 
Total finance lease liabilities$53 $58 
Total ROU assets$912 $971 
Total lease liabilities$1,183 $1,144 
The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows:
As of October 31,
20212020
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term (in years)7.78.56.89.5
Weighted-average discount rate2.7 %3.5 %2.6 %3.5 %
Supplemental cash flow information related to leases was as follows:
For the fiscal years ended October 31,
Cash Flow Statement Activity20212020
In millions
Cash outflows from operating leasesNet cash used in operating activities$220 $239 
ROU assets obtained in exchange for new operating lease liabilitiesNon-cash activities$248 $298 
The following tables shows the future payments on the Company's operating and finance leases:
As of October 31, 2021
Operating LeasesFinance Leases
Fiscal yearIn millions
2022$219 $6 
2023198 7 
2024170 7 
2025146 7 
2026123 7 
Thereafter412 27 
Total future lease payments$1,268 $61 
Less: imputed interest(138)(8)
Total lease liabilities$1,130 $53 
As of October 31, 2021, the Company entered into $16 million of operating leases that have not yet commenced and are not yet recorded on the Consolidated Balance Sheet. These operating leases are scheduled to commence during fiscal 2022 and contain lease terms of 1 to 10 years.
Accounting for Leases as a Lessee Accounting for Leases as a Lessee
Components of lease cost included in the Consolidated Statement of Earnings were as follows:
For the fiscal years ended October 31,
20212020
In millions
Operating lease cost$207 $236 
Finance lease cost5 8 
Sublease rental income(35)(61)
Total lease cost$177 $183 
In fiscal 2021 and 2020, the Company recorded $3 million and $41 million, respectively, of net gain from sale and leaseback transactions.
The ROU assets and lease liabilities for operating and finance leases included on the Hewlett Packard Enterprise Consolidated Balance Sheet were as follows:
As of October 31,
Balance Sheet Classification20212020
In millions
Operating Leases
ROU AssetsLong-term financing receivables and other assets$884 $930 
Lease Liabilities:
Operating lease liabilities – currentOther accrued liabilities$192 188 
Operating lease liabilities – non-currentOther non-current liabilities938 898 
Total operating lease liabilities$1,130 $1,086 
Finance Leases
Finance lease ROU Assets:Property, plant and equipment
Gross finance lease ROU assets$36 $52 
Less: Accumulated depreciation(8)(11)
Net finance lease ROU assets$28 $41 
Lease Liabilities:
Finance lease liabilities – currentNotes payable and short-term borrowings$5 $5 
Finance lease liabilities – non-currentLong-term debt48 53 
Total finance lease liabilities$53 $58 
Total ROU assets$912 $971 
Total lease liabilities$1,183 $1,144 
The weighted-average remaining lease term and the weighted-average discount rate for the operating and finance leases were as follows:
As of October 31,
20212020
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term (in years)7.78.56.89.5
Weighted-average discount rate2.7 %3.5 %2.6 %3.5 %
Supplemental cash flow information related to leases was as follows:
For the fiscal years ended October 31,
Cash Flow Statement Activity20212020
In millions
Cash outflows from operating leasesNet cash used in operating activities$220 $239 
ROU assets obtained in exchange for new operating lease liabilitiesNon-cash activities$248 $298 
The following tables shows the future payments on the Company's operating and finance leases:
As of October 31, 2021
Operating LeasesFinance Leases
Fiscal yearIn millions
2022$219 $6 
2023198 7 
2024170 7 
2025146 7 
2026123 7 
Thereafter412 27 
Total future lease payments$1,268 $61 
Less: imputed interest(138)(8)
Total lease liabilities$1,130 $53 
As of October 31, 2021, the Company entered into $16 million of operating leases that have not yet commenced and are not yet recorded on the Consolidated Balance Sheet. These operating leases are scheduled to commence during fiscal 2022 and contain lease terms of 1 to 10 years.