Leases

12 Months Ended

Apr. 28, 2023

9. Leases

We lease real estate, equipment and automobiles in the U.S. and internationally. Our real estate leases, which are responsible for the majority of our aggregate ROU asset and liability balances, include leases for office space, data centers and other facilities, and as of April 28, 2023, have remaining lease terms not exceeding 19 years. Some of these leases contain options that allow us to extend or terminate the lease agreement. Our equipment leases are primarily for servers and networking equipment and as of April 28, 2023, have remaining lease terms not exceeding 4 years. As of April 28, 2023, our automobile leases have remaining lease terms not exceeding 4 years. All our leases are classified as operating leases except for certain immaterial equipment finance leases.

In April 2021, we entered into a lease for our new corporate headquarters located in San Jose, California, which is comprised of approximately three hundred thousand square feet of office space and requires future minimum undiscounted payments of approximately $180 million over the initial 11-year lease term. The lease agreement also provides us two successive renewal options, each for five years. The lease commenced during the first quarter of fiscal 2022.

The components of lease cost related to our operating leases were as follows (in millions):


	Year Ended
	April 28, 2023		April 29, 2022
Operating lease cost	$	61	$	61
Variable lease cost		16		15
Total lease cost	$	77	$	76

Variable lease cost is primarily attributable to amounts paid to lessors for common area maintenance and utility charges under our real estate leases.

The supplemental cash flow information related to our operating leases is as follows (in millions):


	Year Ended
	April 28, 2023		April 29, 2022
Cash paid for amounts included in the measurement of operating lease liabilities	$	55	$	56
Right-of-use assets obtained in exchange for new operating lease obligations	$	38	$	236

The supplemental balance sheet information related to our operating leases is as follows (in millions, except lease term and discount rate):


	April 28, 2023			April 29, 2022
Other non-current assets	$	281		$	294
Total operating lease ROU assets	$	281		$	294

Accrued expenses	$	47		$	47
Other long-term liabilities		248			257
Total operating lease liabilities	$	295		$	304

Weighted Average Remaining Lease Term	9.4 years			9.6 years

Weighted Average Discount Rate		3.0	%		2.8	%

Future minimum operating lease payments as of April 28, 2023 are as follows (in millions):


Fiscal Year	Amount
2024	$	53
2025		44
2026		38
2027		32
2028		27
Thereafter		149
Total lease payments		343
Less: Interest		(48	)
Total	$	295