Cash and cash equivalents (in millions):

The following table presents cash and cash equivalents as reported in our consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our consolidated statements of cash flows:


	April 29, 2022		April 30, 2021
Cash and cash equivalents	$	4,112	$	4,529
Restricted cash		7		6
Cash, cash equivalents and restricted cash	$	4,119	$	4,535

Inventories (in millions):


	April 29, 2022		April 30, 2021
Purchased components	$	131	$	22
Finished goods		73		92
Inventories	$	204	$	114

Property and equipment, net (in millions):


	April 29, 2022			April 30, 2021
Land	$	46		$	46
Buildings and improvements		353			356
Leasehold improvements		92			83
Computer, production, engineering and other equipment		904			869
Computer software		316			305
Furniture and fixtures		76			93
Construction-in-progress		65			46
		1,852			1,798
Accumulated depreciation and amortization		(1,250	)		(1,273	)
Property and equipment, net	$	602		$	525

In April 2021, we sold our corporate headquarters located in Sunnyvale, California, consisting primarily of land, buildings and improvements, for cash proceeds of $365 million. The assets sold had a net book value totaling $210 million. To facilitate an orderly transition to a new location, we executed short-term lease agreements with the buyer to lease back these properties. The agreed lease payments were below market rates and as a result we recognized an asset of $7 million for the difference between the fair value of the leases and the agreed lease payments. The cash proceeds, less direct selling costs, plus the fair value of the below-market leases, resulted in a net gain on the sale of these properties of $156 million.

Depreciation and amortization expense related to property and equipment, net is summarized below (in millions):


	Year Ended
	April 29, 2022		April 30, 2021		April 24, 2020
Depreciation and amortization expense	$	148	$	158	$	154

Other non-current assets (in millions):


	April 29, 2022		April 30, 2021
Deferred tax assets	$	362	$	219
Operating lease ROU assets		294		114
Other assets		335		361
Other non-current assets	$	991	$	694

Other non-current assets as of April 29, 2022 and April 30, 2021 include $73 million and $71 million, respectively, for our 49% non-controlling equity interest in Lenovo NetApp Technology Limited (LNTL), a China-based entity that we formed with Lenovo (Beijing) Information Technology Ltd. in fiscal 2019. LNTL is integral to our sales channel strategy in China, acting as a distributor of our offerings to customers headquartered there, and involved in certain OEM sales to Lenovo. LNTL is also focused on localizing our products and services, and developing new joint offerings for the China market by leveraging NetApp and Lenovo technologies. Our sales to LNTL are conducted on terms equivalent to those prevailing in an arm’s length transaction.

Accrued expenses (in millions):


	April 29, 2022		April 30, 2021
Accrued compensation and benefits	$	462	$	505
Product warranty liabilities		17		21
Operating lease liabilities		47		49
Other current liabilities		399		395
Accrued expenses	$	925	$	970

Equipment and software systems sales include a standard product warranty. Estimated future hardware and software warranty costs are recorded as a cost of product revenues at the time of product shipment, based on historical and projected warranty claim rates, historical and projected cost-per-claim and knowledge of specific product failures that are outside our typical experience.

The following tables summarize the activity related to product warranty liabilities and their balances as reported in our consolidated balance sheets (in millions):


	Year Ended
	April 29, 2022			April 30, 2021			April 24, 2020
Balance at beginning of period	$	32		$	41		$	40
Expense accrued during the period		13			13			26
Warranty costs incurred		(19	)		(22	)		(25	)
Balance at end of period	$	26		$	32		$	41


	April 29, 2022		April 30, 2021
Accrued expenses	$	17	$	21
Other long-term liabilities		9		11
Total warranty liabilities	$	26	$	32

Warranty expense recognized during the period includes amounts accrued for systems at the time of shipment, adjustments for changes in estimated costs for warranties on systems shipped in the period and changes in estimated costs for warranties on systems shipped in prior periods.

Other long-term liabilities (in millions):


	April 29, 2022		April 30, 2021
Liability for uncertain tax positions	$	131	$	127
Income taxes payable		303		351
Product warranty liabilities		9		11
Operating lease liabilities		257		71
Other liabilities		88		90
Other long-term liabilities	$	788	$	650

The following table summarizes the components of our deferred revenue and financed unearned services balance as reported in our consolidated balance sheets (in millions):


	April 29, 2022		April 30, 2021
Deferred product revenue	$	31	$	59
Deferred services revenue		4,140		3,873
Financed unearned services revenue		61		71
Total	$	4,232	$	4,003

Reported as:
Short-term	$	2,171	$	2,062
Long-term		2,061		1,941
Total	$	4,232	$	4,003

Deferred product revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria. Deferred services revenue represents customer payments made in advance for services, which include software and hardware support contracts, certain public cloud services and other services. Financed unearned services revenue represents undelivered services for which cash has been received under certain third-party financing arrangements. See Note 17 – Commitments and Contingencies for additional information related to these arrangements.

During the years ended April 29, 2022 and April 30, 2021, we recognized revenue of $2,062 million and $1,894 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.

As of April 29, 2022, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied approximated our deferred revenue and unearned services revenue balance. Because customer orders are typically placed on an as-needed basis, and cancellable without penalty prior to shipment, orders in backlog may not be a meaningful indicator of future revenue and have not been included in this amount. We expect to recognize as revenue approximately 51% of our deferred revenue and financed unearned services revenue balance in the next 12 months, approximately 23% in the next 13 to 24 months, and the remainder thereafter.

The following table summarizes deferred commissions balances as reported in our consolidated balance sheets (in millions):


	April 29, 2022		April 30, 2021
Other current assets	$	80	$	86
Other non-current assets		117		111
Total deferred commissions	$	197	$	197

During the years ended April 29, 2022 and April 30, 2021, we recognized amortization expense from deferred commissions of $146 million and $101 million, respectively, and there were no impairment charges recognized.

Other expense, net (in millions):


	Year Ended
	April 29, 2022			April 30, 2021			April 24, 2020
Interest income	$	7		$	9		$	48
Interest expense		(73	)		(74	)		(55	)
Other, net		4			(4	)		6
Other expense, net	$	(62	)	$	(69	)	$	(1	)

Supplemental cash flow information related to our operating leases is included in Note 9 – Leases. Non-cash investing and other supplemental cash flow information are presented below:


	Year Ended
	April 29, 2022		April 30, 2021		April 24, 2020
Non-cash Investing and Financing Activities:
Capital expenditures incurred but not paid	$	22	$	15	$	15
Indemnity holdback related to business combination	$	5	$	—	$	—
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	398	$	338	$	276
Interest paid	$	67	$	57	$	50