Leases

3 Months Ended

Jul. 26, 2024

7. 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 July 26, 2024, have remaining lease terms not exceeding 18 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 July 26, 2024, have remaining lease terms not exceeding 4 years. As of July 26, 2024, 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.

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


	Three Months Ended
	July 26, 2024		July 28, 2023
Operating lease cost	$	13	$	14
Variable lease cost		4		4
Total lease cost	$	17	$	18

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):


	Three Months Ended
	July 26, 2024		July 28, 2023
Cash paid for amounts included in the measurement of operating lease liabilities	$	12	$	14
Right-of-use assets obtained in exchange for new operating lease obligations	$	3	$	9

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


	July 26, 2024			April 26, 2024
Other non-current assets	$	241		$	247
Total operating lease ROU assets	$	241		$	247

Accrued expenses	$	39		$	40
Other long-term liabilities		216			220
Total operating lease liabilities	$	255		$	260

Weighted Average Remaining Lease Term	9.0 years			9.2 years

Weighted Average Discount Rate		3.2	%		3.1	%

Future minimum operating lease payments as of July 26, 2024, are as follows (in millions):


Fiscal Year	Amount
2025 (remainder)	$	34
2026		41
2027		35
2028		31
2029		27
Thereafter		128
Total lease payments		296
Less: Interest		(41	)
Total	$	255