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:


	January 24, 2025		April 26, 2024
Cash and cash equivalents	$	1,511	$	1,903
Restricted cash		7		6
Cash, cash equivalents and restricted cash	$	1,518	$	1,909

Inventories (in millions):


	January 24, 2025		April 26, 2024
Purchased components	$	210	$	116
Finished goods		58		70
Inventories	$	268	$	186

Property and equipment, net (in millions):


	January 24, 2025			April 26, 2024
Land	$	46		$	46
Buildings and improvements		371			367
Leasehold improvements		101			81
Computer, production, engineering and other equipment		1,160			1,101
Computer software		326			340
Furniture and fixtures		67			77
Construction-in-progress		48			70
		2,119			2,082
Accumulated depreciation and amortization		(1,552	)		(1,478	)
Property and equipment, net	$	567		$	604

During the third quarter of fiscal year 2025, we reclassified certain property and equipment as held for sale. See section entitled “Assets and liabilities held for sale” contained in Note 4 – Supplemental Financial Information, for additional information related to this reclassification.

Other non-current assets (in millions):


	January 24, 2025		April 26, 2024
Deferred tax assets	$	1,005	$	896
Operating lease right-of-use (ROU) assets		242		247
Other assets		411		360
Other assets held for sale		84		—
Other non-current assets	$	1,742	$	1,503

Other non-current assets as of January 24, 2025 and April 26, 2024 include $89 million and $85 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.

Accrued expenses (in millions):


	January 24, 2025		April 26, 2024
Accrued compensation and benefits	$	366	$	538
Product warranty liabilities		19		18
Operating lease liabilities		41		40
Other current liabilities		505		417
Other current liabilities held for sale		10		—
Accrued expenses	$	941	$	1,013

Other long-term liabilities (in millions):


	January 24, 2025		April 26, 2024
Liability for uncertain tax positions	$	169	$	153
Income taxes payable		—		100
Product warranty liabilities		9		9
Operating lease liabilities		215		220
Other liabilities		110		103
Other long-term liabilities	$	503	$	585

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):


	January 24, 2025		April 26, 2024
Deferred product revenue	$	54	$	59
Deferred services revenue		4,028		4,123
Financed unearned services revenue		40		52
Total	$	4,122	$	4,234


Reported as:
Short-term	$	2,070	$	2,176
Long-term		2,052		2,058
Total	$	4,122	$	4,234

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

During the nine months ended January 24, 2025 and January 26, 2024, we recognized revenue of $1,737 million and $1,725 million, respectively, that was included in the deferred revenue and financed unearned services revenue balance at the beginning of the respective periods.

As of January 24, 2025, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $4.5 billion. 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 49% of our remaining performance obligations in the next 12 months and the remainder thereafter.

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


	January 24, 2025		April 26, 2024
Other current assets	$	66	$	69
Other non-current assets		102		100
Total deferred commissions	$	168	$	169

Other income, net (in millions):


	Three Months Ended						Nine Months Ended
	January 24, 2025			January 26, 2024			January 24, 2025			January 26, 2024
Interest income	$	20		$	27		$	83		$	80
Interest expense		(12	)		(17	)		(43	)		(48	)
Other, net		—			6			—			3
Total other income, net	$	8		$	16		$	40		$	35

Supplemental cash flow information related to our operating leases is included in Note 7 ─ Leases. Non-cash investing activities and other supplemental cash flow information are presented below:


	Nine Months Ended
	January 24, 2025		January 26, 2024
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	10	$	14
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	287	$	294
Interest paid	$	53	$	53

In January 2025, we and Flexera Software LLC (“Flexera”), entered a definitive agreement for the sale of our cloud optimization and management software business known as Spot by NetApp, which forms part of our Public Cloud reportable segment. Total sale consideration consists of (i) $70 million in up-front cash consideration; and (ii) up to $49 million in cash consideration contingent upon the achievement of certain financial performance metrics during the period from January 1, 2025 through December 31, 2025. We expect to close on the sale in the fourth quarter of fiscal 2025, subject to customary regulatory approvals and other closing conditions being met. Accordingly, as of January 24, 2025, the assets and liabilities to be conveyed to Flexera as part of the sale of the business have been classified as held for sale, presented within other non-current assets and accrued expenses, respectively, on the condensed consolidated balance sheets. We expect that any gain or loss recorded upon the closing of the transaction will be immaterial to the consolidated financial statements. The major classes of assets and liabilities included as part of the disposal group classified as held for sale as of January 24, 2025 are (in millions):


	Amount
Assets:
Property and equipment, net	$	14
Goodwill		36
Purchased intangible assets, net		34
Total Assets		84
Liabilities:
Accrued compensation and benefits		8
Short-term deferred revenue and financed unearned service revenue		2
Total Liabilities	$	10