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


	July 29, 2022		April 29, 2022
Cash and cash equivalents	$	3,288	$	4,112
Restricted cash		7		7
Cash, cash equivalents and restricted cash	$	3,295	$	4,119

Inventories (in millions):


	July 29, 2022		April 29, 2022
Purchased components	$	145	$	131
Finished goods		87		73
Inventories	$	232	$	204

Property and equipment, net (in millions):


	July 29, 2022			April 29, 2022
Land	$	46		$	46
Buildings and improvements		354			353
Leasehold improvements		93			92
Computer, production, engineering and other equipment		944			904
Computer software		321			316
Furniture and fixtures		77			76
Construction-in-progress		67			65
		1,902			1,852
Accumulated depreciation and amortization		(1,280	)		(1,250	)
Property and equipment, net	$	622		$	602

Other non-current assets (in millions):


	July 29, 2022		April 29, 2022
Deferred tax assets	$	377	$	362
Operating lease ROU assets		318		294
Other assets		306		335
Other non-current assets	$	1,001	$	991

Other non-current assets as of July 29, 2022 and April 29, 2022 include $75 million and $73 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):


	July 29, 2022		April 29, 2022
Accrued compensation and benefits	$	282	$	462
Product warranty liabilities		17		17
Operating lease liabilities		50		47
Other current liabilities		373		399
Accrued expenses	$	722	$	925

Other long-term liabilities (in millions):


	July 29, 2022		April 29, 2022
Liability for uncertain tax positions	$	137	$	131
Income taxes payable		303		303
Product warranty liabilities		9		9
Operating lease liabilities		278		257
Other liabilities		116		88
Other long-term liabilities	$	843	$	788

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


	July 29, 2022		April 29, 2022
Deferred product revenue	$	36	$	31
Deferred services revenue		4,079		4,140
Financed unearned services revenue		55		61
Total	$	4,170	$	4,232


Reported as:
Short-term	$	2,088	$	2,171
Long-term		2,082		2,061
Total	$	4,170	$	4,232

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 15 – Commitments and Contingencies for additional information related to these arrangements.

During the three months ended July 29, 2022 and July 30, 2021, we recognized revenue of $706 million and $617 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.

As of July 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 50% 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 condensed consolidated balance sheets (in millions):


	July 29, 2022		April 29, 2022
Other current assets	$	83	$	80
Other non-current assets		111		117
Total deferred commissions	$	194	$	197

Other income (expense), net (in millions):


	Three Months Ended
	July 29, 2022			July 30, 2021
Interest income	$	7		$	2
Interest expense		(18	)		(18	)
Other, net		26			4
Total other income (expense), net	$	15		$	(12	)

In the first quarter of fiscal 2023, Other, net includes a $32 million gain recognized on our sale of a minority equity interest in a privately held company for proceeds of approximately $59 million.

Supplemental cash flow information related to our operating leases is included in Note 8 ─ Leases. Non-cash investing and financing activities and other supplemental cash flow information are presented below:


	Three Months Ended
	July 29, 2022		July 30, 2021
Non-cash Investing and Financing Activities:
Capital expenditures incurred but not paid	$	20	$	15
Liabilities incurred to former owners of acquired business	$	3	$	—
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	12	$	17
Interest paid	$	27	$	27