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LEASES | 12 Months Ended
--- | ---
Jul. 31, 2021
Leases [Abstract] |
LEASES | NOTE 11—LEASES The Company leases certain of its distribution centers, retail stores, office facilities, transportation equipment, and other operating equipment from third parties. Many of these leases include renewal options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease assets and liabilities, net, are as follows (in millions):
Lease Type |  | Consolidated Balance Sheets Location |  | July 31, 2021 |  | August 1, 2020
Operating lease assets |  | Operating lease assets |  | $ | 1,064 |  |  | $ | 983 |
Finance lease assets |  | Property and equipment, net |  | 112 |  |  | 129 |
Total lease assets |  |  |  | $ | 1,176 |  |  | $ | 1,112 |
Operating liabilities |  | Current portion of operating lease liabilities |  | $ | 135 |  |  | $ | 131 |
Finance liabilities |  | Current portion of long-term debt and finance lease liabilities |  | 107 |  |  | 12 |
Operating liabilities |  | Long-term operating lease liabilities |  | 962 |  |  | 874 |
Finance liabilities |  | Long-term finance lease liabilities |  | 35 |  |  | 143 |
Total lease liabilities |  |  |  | $ | 1,239 |  |  | $ | 1,160 |
Lease assets and liabilities presented in the table above include lease contracts related to our discontinued operations, as the Company expects to remain primarily obligated under these leases. The Company’s lease cost under ASC 842 is as follows (in millions):
Lease Expense Type |  | Consolidated Statements of Operations Location |  | 2021 |  | 2020
Operating lease cost |  | Operating expenses |  | $ | 229 |  |  | $ | 223 |
Short-term lease cost |  | Operating expenses |  | 29 |  |  | 31 |
Variable lease cost |  | Operating expenses |  | 64 |  |  | 151 |
Sublease income |  | Operating expenses |  | (8) |  |  | (3) |
Sublease income |  | Net sales |  | (20) |  |  | (23) |
Other sublease income, net |  | Restructuring, acquisition and integration related expenses(2) |  | (3) |  |  | (5) |
Net operating lease cost(1) |  |  |  | 291 |  |  | 374 |
Amortization of leased assets |  | Operating expenses |  | 13 |  |  | 16 |
Interest on lease liabilities |  | Interest expense, net |  | 19 |  |  | 12 |
Finance lease cost |  |  |  | 32 |  |  | 28 |
Total net lease cost |  |  |  | $ | 323 |  |  | $ | 402 |
(1)Rent expense as presented here includes $2 million and $6 million in fiscal 2021 and 2020 of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as the Company expects to remain primarily obligated under these leases. Rent expense as presented here also includes immaterial amounts of variable lease expense of discontinued operations. (2)Includes $31 million and $36 million of lease expense in fiscal 2021 and 2020 and $(33) million and $(41) million of lease income in fiscal 2021 and 2020 that is recorded within Restructuring, acquisition and integration related expenses for assigned leases related to previously sold locations and surplus, non-operating properties for which the Company is restructuring its obligations. The Company leases certain of its distribution centers and leases most of its retail stores, and leases certain office facilities and equipment from third parties. Many of these leases include renewal options and, in certain instances, also include options to purchase. Rent expense, other operating lease expense and subtenant rentals all under operating leases included within Operating expenses, and subtenant rentals under operating leases with customers included within Net sales, consisted of the following. Rent expense as presented below under ASC 840 excludes variable lease rent that is included in total net lease cost under ASC 842 in the table above.
(in millions) | 2019
Rent expense(1) | $ | 212 |
Less subtenant rentals recorded in Net sales | (17) |
Less subtenant rentals recorded in Operating expenses | (14) |
Total net rent expense | $ | 181 |
(1)Rent expense as presented in fiscal 2019 includes $10 million of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as we expect to remain primarily obligated under these leases. On October 23, 2018, the Company received $101 million in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of its final distribution center of eight distribution center sale-leaseback transactions entered into by Supervalu in April 2018. On October 26, 2018, the Company received $49 million in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of a separate distribution center under an agreement entered into by Supervalu in March 2018, as amended. Both distribution center sale-leasebacks qualified for sale accounting, with the lease-backs being classified as operating leases. No gain or loss was recognized or deferred on the sale of these facilities, as the fair value of these facilities as of the Supervalu acquisition date was determined to be equal to their contractual sale–leaseback amounts. In fiscal 2019, the Company entered into a lease for a new distribution facility in California for approximately 1.2 million square feet. The Company had identified two buildings on the same distribution center campus: one in which it was deemed the accounting owner due to construction activity and another for which it was a lessee. Upon the adoption of ASC 842, the Company continued to account for the building as if it was the accounting owner of due to ongoing construction activity. On February 24, 2020, the Company executed a purchase option to acquire the entire distribution center campus which is expected to close in fiscal 2022. Upon execution of the purchase option, the previously constructed facility accounted for as an operating lease has been re-classified as a finance lease. Upon completion of the construction in fiscal 2020, the Company did not qualify for sale accounting on the other building due to the outstanding purchase option. The Company leases certain property to third parties and receives lease and subtenant rental payments under operating leases, including assigned leases for which the Company has future minimum lease payment obligations. Future minimum lease payments (“Lease Liabilities”) include payments to be made by the Company or certain third parties in the case of assigned noncancellable operating leases and finance leases. Future minimum lease and subtenant rentals (“Lease Receipts”) include expected cash receipts from operating subleases, and in the case of assigned noncancellable leases receipts for stores sold to third parties, which they operate. As of July 31, 2021, these Lease Liabilities and Lease Receipts consisted of the following (in millions):
|  | Lease Liabilities |  | Lease Receipts |  | Net Lease Obligations
Fiscal Year |  | Operating Leases(1) |  | Finance Leases(2) |  | Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
2022 |  | $ | 221 |  |  | $ | 118 |  |  | $ | (53) |  |  | $ | — |  |  | $ | 168 |  |  | $ | 118 |
2023 |  | 214 |  |  | 14 |  |  | (44) |  |  | — |  |  | 170 |  |  | 14 |
2024 |  | 195 |  |  | 13 |  |  | (35) |  |  | — |  |  | 160 |  |  | 13 |
2025 |  | 154 |  |  | 8 |  |  | (24) |  |  | — |  |  | 130 |  |  | 8 |
2026 |  | 118 |  |  | 4 |  |  | (14) |  |  | — |  |  | 104 |  |  | 4 |
Thereafter |  | 962 |  |  | 2 |  |  | (34) |  |  | — |  |  | 928 |  |  | 2 |
Total undiscounted lease liabilities and receipts |  | $ | 1,864 |  |  | $ | 159 |  |  | $ | (204) |  |  | $ | — |  |  | $ | 1,660 |  |  | $ | 159 |
Less interest(3) |  | (767) |  |  | (17) |  |  |  |  |  |  |  |  |
Present value of lease liabilities |  | 1,097 |  |  | 142 |  |  |  |  |  |  |  |  |
Less current lease liabilities |  | (135) |  |  | (107) |  |  |  |  |  |  |  |  |
Long-term lease liabilities |  | $ | 962 |  |  | $ | 35 |  |  |  |  |  |  |  |  |
(1)Operating lease payments include $4 million related to extension options that are reasonably certain of being exercised and exclude $52 million of legally binding minimum lease payments for leases signed but not yet commenced. (2)This table excludes a $55 million payment related to a facility the Company is deemed the accounting owner, which is recognized as a residual obligation, and is subject to an underlying lease. (3)Calculated using the interest rate for each lease. The following tables provide other information required by ASC 842:
Lease Term and Discount Rate |  | July 31, 2021 |  | August 1, 2020
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 10.7 years |  | 10.4 years
Finance leases |  | 2.0 years |  | 3.1 years
Weighted-average discount rate |  |  |  |
Operating leases |  | 9.7 | % |  | 10.6 | %
Finance leases |  | 8.7 | % |  | 8.8 | %
Other Information |  |  |  |  |  |
(in millions) |  |  |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  | $ | 220 |  |  | $ | 231 |
Operating cash flows from finance leases |  |  |  | 12 |  |  | 9 |
Financing cash flows from finance leases |  |  |  | 9 |  |  | 20 |
Leased assets obtained in exchange for new finance lease liabilities |  |  |  | — |  |  | 93 |
Leased assets obtained in exchange for new operating lease liabilities |  |  |  | 263 |  |  | 195 |
LEASES | NOTE 11—LEASES The Company leases certain of its distribution centers, retail stores, office facilities, transportation equipment, and other operating equipment from third parties. Many of these leases include renewal options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease assets and liabilities, net, are as follows (in millions):
Lease Type |  | Consolidated Balance Sheets Location |  | July 31, 2021 |  | August 1, 2020
Operating lease assets |  | Operating lease assets |  | $ | 1,064 |  |  | $ | 983 |
Finance lease assets |  | Property and equipment, net |  | 112 |  |  | 129 |
Total lease assets |  |  |  | $ | 1,176 |  |  | $ | 1,112 |
Operating liabilities |  | Current portion of operating lease liabilities |  | $ | 135 |  |  | $ | 131 |
Finance liabilities |  | Current portion of long-term debt and finance lease liabilities |  | 107 |  |  | 12 |
Operating liabilities |  | Long-term operating lease liabilities |  | 962 |  |  | 874 |
Finance liabilities |  | Long-term finance lease liabilities |  | 35 |  |  | 143 |
Total lease liabilities |  |  |  | $ | 1,239 |  |  | $ | 1,160 |
Lease assets and liabilities presented in the table above include lease contracts related to our discontinued operations, as the Company expects to remain primarily obligated under these leases. The Company’s lease cost under ASC 842 is as follows (in millions):
Lease Expense Type |  | Consolidated Statements of Operations Location |  | 2021 |  | 2020
Operating lease cost |  | Operating expenses |  | $ | 229 |  |  | $ | 223 |
Short-term lease cost |  | Operating expenses |  | 29 |  |  | 31 |
Variable lease cost |  | Operating expenses |  | 64 |  |  | 151 |
Sublease income |  | Operating expenses |  | (8) |  |  | (3) |
Sublease income |  | Net sales |  | (20) |  |  | (23) |
Other sublease income, net |  | Restructuring, acquisition and integration related expenses(2) |  | (3) |  |  | (5) |
Net operating lease cost(1) |  |  |  | 291 |  |  | 374 |
Amortization of leased assets |  | Operating expenses |  | 13 |  |  | 16 |
Interest on lease liabilities |  | Interest expense, net |  | 19 |  |  | 12 |
Finance lease cost |  |  |  | 32 |  |  | 28 |
Total net lease cost |  |  |  | $ | 323 |  |  | $ | 402 |
(1)Rent expense as presented here includes $2 million and $6 million in fiscal 2021 and 2020 of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as the Company expects to remain primarily obligated under these leases. Rent expense as presented here also includes immaterial amounts of variable lease expense of discontinued operations. (2)Includes $31 million and $36 million of lease expense in fiscal 2021 and 2020 and $(33) million and $(41) million of lease income in fiscal 2021 and 2020 that is recorded within Restructuring, acquisition and integration related expenses for assigned leases related to previously sold locations and surplus, non-operating properties for which the Company is restructuring its obligations. The Company leases certain of its distribution centers and leases most of its retail stores, and leases certain office facilities and equipment from third parties. Many of these leases include renewal options and, in certain instances, also include options to purchase. Rent expense, other operating lease expense and subtenant rentals all under operating leases included within Operating expenses, and subtenant rentals under operating leases with customers included within Net sales, consisted of the following. Rent expense as presented below under ASC 840 excludes variable lease rent that is included in total net lease cost under ASC 842 in the table above.
(in millions) | 2019
Rent expense(1) | $ | 212 |
Less subtenant rentals recorded in Net sales | (17) |
Less subtenant rentals recorded in Operating expenses | (14) |
Total net rent expense | $ | 181 |
(1)Rent expense as presented in fiscal 2019 includes $10 million of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as we expect to remain primarily obligated under these leases. On October 23, 2018, the Company received $101 million in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of its final distribution center of eight distribution center sale-leaseback transactions entered into by Supervalu in April 2018. On October 26, 2018, the Company received $49 million in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of a separate distribution center under an agreement entered into by Supervalu in March 2018, as amended. Both distribution center sale-leasebacks qualified for sale accounting, with the lease-backs being classified as operating leases. No gain or loss was recognized or deferred on the sale of these facilities, as the fair value of these facilities as of the Supervalu acquisition date was determined to be equal to their contractual sale–leaseback amounts. In fiscal 2019, the Company entered into a lease for a new distribution facility in California for approximately 1.2 million square feet. The Company had identified two buildings on the same distribution center campus: one in which it was deemed the accounting owner due to construction activity and another for which it was a lessee. Upon the adoption of ASC 842, the Company continued to account for the building as if it was the accounting owner of due to ongoing construction activity. On February 24, 2020, the Company executed a purchase option to acquire the entire distribution center campus which is expected to close in fiscal 2022. Upon execution of the purchase option, the previously constructed facility accounted for as an operating lease has been re-classified as a finance lease. Upon completion of the construction in fiscal 2020, the Company did not qualify for sale accounting on the other building due to the outstanding purchase option. The Company leases certain property to third parties and receives lease and subtenant rental payments under operating leases, including assigned leases for which the Company has future minimum lease payment obligations. Future minimum lease payments (“Lease Liabilities”) include payments to be made by the Company or certain third parties in the case of assigned noncancellable operating leases and finance leases. Future minimum lease and subtenant rentals (“Lease Receipts”) include expected cash receipts from operating subleases, and in the case of assigned noncancellable leases receipts for stores sold to third parties, which they operate. As of July 31, 2021, these Lease Liabilities and Lease Receipts consisted of the following (in millions):
|  | Lease Liabilities |  | Lease Receipts |  | Net Lease Obligations
Fiscal Year |  | Operating Leases(1) |  | Finance Leases(2) |  | Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
2022 |  | $ | 221 |  |  | $ | 118 |  |  | $ | (53) |  |  | $ | — |  |  | $ | 168 |  |  | $ | 118 |
2023 |  | 214 |  |  | 14 |  |  | (44) |  |  | — |  |  | 170 |  |  | 14 |
2024 |  | 195 |  |  | 13 |  |  | (35) |  |  | — |  |  | 160 |  |  | 13 |
2025 |  | 154 |  |  | 8 |  |  | (24) |  |  | — |  |  | 130 |  |  | 8 |
2026 |  | 118 |  |  | 4 |  |  | (14) |  |  | — |  |  | 104 |  |  | 4 |
Thereafter |  | 962 |  |  | 2 |  |  | (34) |  |  | — |  |  | 928 |  |  | 2 |
Total undiscounted lease liabilities and receipts |  | $ | 1,864 |  |  | $ | 159 |  |  | $ | (204) |  |  | $ | — |  |  | $ | 1,660 |  |  | $ | 159 |
Less interest(3) |  | (767) |  |  | (17) |  |  |  |  |  |  |  |  |
Present value of lease liabilities |  | 1,097 |  |  | 142 |  |  |  |  |  |  |  |  |
Less current lease liabilities |  | (135) |  |  | (107) |  |  |  |  |  |  |  |  |
Long-term lease liabilities |  | $ | 962 |  |  | $ | 35 |  |  |  |  |  |  |  |  |
(1)Operating lease payments include $4 million related to extension options that are reasonably certain of being exercised and exclude $52 million of legally binding minimum lease payments for leases signed but not yet commenced. (2)This table excludes a $55 million payment related to a facility the Company is deemed the accounting owner, which is recognized as a residual obligation, and is subject to an underlying lease. (3)Calculated using the interest rate for each lease. The following tables provide other information required by ASC 842:
Lease Term and Discount Rate |  | July 31, 2021 |  | August 1, 2020
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 10.7 years |  | 10.4 years
Finance leases |  | 2.0 years |  | 3.1 years
Weighted-average discount rate |  |  |  |
Operating leases |  | 9.7 | % |  | 10.6 | %
Finance leases |  | 8.7 | % |  | 8.8 | %
Other Information |  |  |  |  |  |
(in millions) |  |  |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  | $ | 220 |  |  | $ | 231 |
Operating cash flows from finance leases |  |  |  | 12 |  |  | 9 |
Financing cash flows from finance leases |  |  |  | 9 |  |  | 20 |
Leased assets obtained in exchange for new finance lease liabilities |  |  |  | — |  |  | 93 |
Leased assets obtained in exchange for new operating lease liabilities |  |  |  | 263 |  |  | 195 |
LEASES | NOTE 11—LEASES The Company leases certain of its distribution centers, retail stores, office facilities, transportation equipment, and other operating equipment from third parties. Many of these leases include renewal options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Lease assets and liabilities, net, are as follows (in millions):
Lease Type |  | Consolidated Balance Sheets Location |  | July 31, 2021 |  | August 1, 2020
Operating lease assets |  | Operating lease assets |  | $ | 1,064 |  |  | $ | 983 |
Finance lease assets |  | Property and equipment, net |  | 112 |  |  | 129 |
Total lease assets |  |  |  | $ | 1,176 |  |  | $ | 1,112 |
Operating liabilities |  | Current portion of operating lease liabilities |  | $ | 135 |  |  | $ | 131 |
Finance liabilities |  | Current portion of long-term debt and finance lease liabilities |  | 107 |  |  | 12 |
Operating liabilities |  | Long-term operating lease liabilities |  | 962 |  |  | 874 |
Finance liabilities |  | Long-term finance lease liabilities |  | 35 |  |  | 143 |
Total lease liabilities |  |  |  | $ | 1,239 |  |  | $ | 1,160 |
Lease assets and liabilities presented in the table above include lease contracts related to our discontinued operations, as the Company expects to remain primarily obligated under these leases. The Company’s lease cost under ASC 842 is as follows (in millions):
Lease Expense Type |  | Consolidated Statements of Operations Location |  | 2021 |  | 2020
Operating lease cost |  | Operating expenses |  | $ | 229 |  |  | $ | 223 |
Short-term lease cost |  | Operating expenses |  | 29 |  |  | 31 |
Variable lease cost |  | Operating expenses |  | 64 |  |  | 151 |
Sublease income |  | Operating expenses |  | (8) |  |  | (3) |
Sublease income |  | Net sales |  | (20) |  |  | (23) |
Other sublease income, net |  | Restructuring, acquisition and integration related expenses(2) |  | (3) |  |  | (5) |
Net operating lease cost(1) |  |  |  | 291 |  |  | 374 |
Amortization of leased assets |  | Operating expenses |  | 13 |  |  | 16 |
Interest on lease liabilities |  | Interest expense, net |  | 19 |  |  | 12 |
Finance lease cost |  |  |  | 32 |  |  | 28 |
Total net lease cost |  |  |  | $ | 323 |  |  | $ | 402 |
(1)Rent expense as presented here includes $2 million and $6 million in fiscal 2021 and 2020 of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as the Company expects to remain primarily obligated under these leases. Rent expense as presented here also includes immaterial amounts of variable lease expense of discontinued operations. (2)Includes $31 million and $36 million of lease expense in fiscal 2021 and 2020 and $(33) million and $(41) million of lease income in fiscal 2021 and 2020 that is recorded within Restructuring, acquisition and integration related expenses for assigned leases related to previously sold locations and surplus, non-operating properties for which the Company is restructuring its obligations. The Company leases certain of its distribution centers and leases most of its retail stores, and leases certain office facilities and equipment from third parties. Many of these leases include renewal options and, in certain instances, also include options to purchase. Rent expense, other operating lease expense and subtenant rentals all under operating leases included within Operating expenses, and subtenant rentals under operating leases with customers included within Net sales, consisted of the following. Rent expense as presented below under ASC 840 excludes variable lease rent that is included in total net lease cost under ASC 842 in the table above.
(in millions) | 2019
Rent expense(1) | $ | 212 |
Less subtenant rentals recorded in Net sales | (17) |
Less subtenant rentals recorded in Operating expenses | (14) |
Total net rent expense | $ | 181 |
(1)Rent expense as presented in fiscal 2019 includes $10 million of operating lease rent expense related to stores within discontinued operations, but for which GAAP requires the expense to be included within continuing operations, as we expect to remain primarily obligated under these leases. On October 23, 2018, the Company received $101 million in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of its final distribution center of eight distribution center sale-leaseback transactions entered into by Supervalu in April 2018. On October 26, 2018, the Company received $49 million in aggregate proceeds, excluding taxes and closing costs, for the sale and leaseback of a separate distribution center under an agreement entered into by Supervalu in March 2018, as amended. Both distribution center sale-leasebacks qualified for sale accounting, with the lease-backs being classified as operating leases. No gain or loss was recognized or deferred on the sale of these facilities, as the fair value of these facilities as of the Supervalu acquisition date was determined to be equal to their contractual sale–leaseback amounts. In fiscal 2019, the Company entered into a lease for a new distribution facility in California for approximately 1.2 million square feet. The Company had identified two buildings on the same distribution center campus: one in which it was deemed the accounting owner due to construction activity and another for which it was a lessee. Upon the adoption of ASC 842, the Company continued to account for the building as if it was the accounting owner of due to ongoing construction activity. On February 24, 2020, the Company executed a purchase option to acquire the entire distribution center campus which is expected to close in fiscal 2022. Upon execution of the purchase option, the previously constructed facility accounted for as an operating lease has been re-classified as a finance lease. Upon completion of the construction in fiscal 2020, the Company did not qualify for sale accounting on the other building due to the outstanding purchase option. The Company leases certain property to third parties and receives lease and subtenant rental payments under operating leases, including assigned leases for which the Company has future minimum lease payment obligations. Future minimum lease payments (“Lease Liabilities”) include payments to be made by the Company or certain third parties in the case of assigned noncancellable operating leases and finance leases. Future minimum lease and subtenant rentals (“Lease Receipts”) include expected cash receipts from operating subleases, and in the case of assigned noncancellable leases receipts for stores sold to third parties, which they operate. As of July 31, 2021, these Lease Liabilities and Lease Receipts consisted of the following (in millions):
|  | Lease Liabilities |  | Lease Receipts |  | Net Lease Obligations
Fiscal Year |  | Operating Leases(1) |  | Finance Leases(2) |  | Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
2022 |  | $ | 221 |  |  | $ | 118 |  |  | $ | (53) |  |  | $ | — |  |  | $ | 168 |  |  | $ | 118 |
2023 |  | 214 |  |  | 14 |  |  | (44) |  |  | — |  |  | 170 |  |  | 14 |
2024 |  | 195 |  |  | 13 |  |  | (35) |  |  | — |  |  | 160 |  |  | 13 |
2025 |  | 154 |  |  | 8 |  |  | (24) |  |  | — |  |  | 130 |  |  | 8 |
2026 |  | 118 |  |  | 4 |  |  | (14) |  |  | — |  |  | 104 |  |  | 4 |
Thereafter |  | 962 |  |  | 2 |  |  | (34) |  |  | — |  |  | 928 |  |  | 2 |
Total undiscounted lease liabilities and receipts |  | $ | 1,864 |  |  | $ | 159 |  |  | $ | (204) |  |  | $ | — |  |  | $ | 1,660 |  |  | $ | 159 |
Less interest(3) |  | (767) |  |  | (17) |  |  |  |  |  |  |  |  |
Present value of lease liabilities |  | 1,097 |  |  | 142 |  |  |  |  |  |  |  |  |
Less current lease liabilities |  | (135) |  |  | (107) |  |  |  |  |  |  |  |  |
Long-term lease liabilities |  | $ | 962 |  |  | $ | 35 |  |  |  |  |  |  |  |  |
(1)Operating lease payments include $4 million related to extension options that are reasonably certain of being exercised and exclude $52 million of legally binding minimum lease payments for leases signed but not yet commenced. (2)This table excludes a $55 million payment related to a facility the Company is deemed the accounting owner, which is recognized as a residual obligation, and is subject to an underlying lease. (3)Calculated using the interest rate for each lease. The following tables provide other information required by ASC 842:
Lease Term and Discount Rate |  | July 31, 2021 |  | August 1, 2020
Weighted-average remaining lease term (years) |  |  |  |
Operating leases |  | 10.7 years |  | 10.4 years
Finance leases |  | 2.0 years |  | 3.1 years
Weighted-average discount rate |  |  |  |
Operating leases |  | 9.7 | % |  | 10.6 | %
Finance leases |  | 8.7 | % |  | 8.8 | %
Other Information |  |  |  |  |  |
(in millions) |  |  |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  | $ | 220 |  |  | $ | 231 |
Operating cash flows from finance leases |  |  |  | 12 |  |  | 9 |
Financing cash flows from finance leases |  |  |  | 9 |  |  | 20 |
Leased assets obtained in exchange for new finance lease liabilities |  |  |  | — |  |  | 93 |
Leased assets obtained in exchange for new operating lease liabilities |  |  |  | 263 |  |  | 195 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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