10. LEASES
We have operating leases for items including office space, manufacturing and production locations, sales and service centers, research and development facilities, and certain equipment, primarily automobiles. Our leases have remaining terms of up to 13 years, which represent the non-cancellable periods of the leases and include extension options that are reasonably certain to be exercised. The weighted average lease term of our operating leases was 6.5 years, 7.0 years, and 7.8 years as of October 31, 2025, 2024, and 2023, respectively. The weighted average discount rate of our operating leases was 4 percent as of October 31, 2025 and 3 percent in 2024 and 2023.
The following table summarizes the components of our lease cost:
| | | | | | | | | | | | | | | | | |
| Year Ended October 31, |
| 2025 | | 2024 | | 2023 |
| (in millions) |
| Operating lease cost, including short-term lease cost | $ | 60 | | | $ | 59 | | | $ | 52 | |
| Variable lease cost | $ | 21 | | | $ | 22 | | | $ | 22 | |
Sublease income and finance lease costs were immaterial for the years ended October 31, 2025, 2024, and 2023.
Supplemental information related to our operating leases was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended October 31, |
| 2025 | | 2024 | | 2023 |
| (in millions) |
| Cash payments for operating leases | $ | 58 | | | $ | 56 | | | $ | 53 | |
| ROU assets obtained in exchange for operating lease obligations | $ | 36 | | | $ | 46 | | | $ | 51 | |
The maturities of our operating leases as of October 31, 2025 with initial terms exceeding one year were as follows:
| | | | | |
| Operating Leases |
| (in millions) |
| 2026 | $ | 60 | |
| 2027 | 49 | |
| 2028 | 39 | |
| 2029 | 32 | |
| 2030 | 27 | |
| Thereafter | 67 | |
| Total undiscounted lease liability | 274 | |
| Imputed interest | 30 | |
| Total discounted lease liability | $ | 244 | |
As of October 31, 2025, we did not have material leases that have not yet commenced.
Rental income from the lease of excess facilities was $10 million for the years ended October 31, 2025, 2024, and 2023. It is included in “other operating expense (income), net.” Other lessor arrangements were immaterial.