Leases

9 Months Ended

Apr. 30, 2023

Leases

The components of lease costs were as follows:


	Three Months Ended				Nine Months Ended
(Millions)	April 30, 2023		May 1, 2022		April 30, 2023		May 1, 2022
Operating lease cost	$	23	$	19	$	63	$	58
Finance lease - amortization of right-of-use (ROU) assets	4		4		12		12

Short-term lease cost	14		15		48		42
Variable lease cost(1)	52		49		155		150

Total	$	93	$	87	$	278	$	262

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(1)Includes labor and other overhead in our service contracts with embedded leases.

The following tables summarize the lease amounts recorded in the Consolidated Balance Sheets:


	Operating Leases
(Millions)	Balance Sheet Classification	April 30, 2023		July 31, 2022
ROU assets, net	Other assets	$	284	$	239
Lease liabilities (current)	Accrued liabilities	$	69	$	62
Lease liabilities (noncurrent)	Other liabilities	$	216	$	177

	Finance Leases
(Millions)	Balance Sheet Classification	April 30, 2023		July 31, 2022
ROU assets, net	Plant assets, net of depreciation	$	26	$	28
Lease liabilities (current)	Short-term borrowings	$	14	$	14
Lease liabilities (noncurrent)	Long-term debt	$	14	$	16

The following table summarizes cash flow and other information related to leases:


	Nine Months Ended
(Millions)	April 30, 2023		May 1, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	62	$	58

Financing cash flows from finance leases	$	12	$	12

ROU assets obtained in exchange for lease obligations:
Operating leases	$	106	$	67
Finance leases	$	10	$	15