Cash and cash equivalents (in millions):

The following table presents cash and cash equivalents as reported in our consolidated balance sheets, as well as the sum of cash, cash equivalents and restricted cash as reported on our consolidated statements of cash flows:


	April 24, 2026		April 25, 2025
Cash and cash equivalents	$	2,070	$	2,742
Restricted cash		5		7
Cash, cash equivalents and restricted cash	$	2,075	$	2,749

Inventories (in millions):


	April 24, 2026		April 25, 2025
Purchased components	$	14	$	81
Finished goods		184		105
Inventories	$	198	$	186

Property and equipment, net (in millions):


	April 24, 2026			April 25, 2025
Land	$	46		$	46
Buildings and improvements		377			374
Leasehold improvements		114			103
Computer, production, engineering and other equipment		1,264			1,172
Computer software		66			329
Furniture and fixtures		61			62
Construction-in-progress		58			49
		1,986			2,135
Accumulated depreciation and amortization		(1,394	)		(1,572	)
Property and equipment, net	$	592		$	563

Depreciation and amortization expense related to property and equipment, net is summarized below (in millions):


	Year Ended
	April 24, 2026		April 25, 2025		April 26, 2024
Depreciation and amortization expense	$	179	$	196	$	198

Other non-current assets (in millions):


	April 24, 2026		April 25, 2025
Deferred tax assets	$	859	$	994
Operating lease right-of-use (ROU) assets		228		241
Other assets		495		408
Other non-current assets	$	1,582	$	1,643

Other non-current assets as of April 24, 2026 and April 25, 2025 include $98 million and $92 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):


	April 24, 2026		April 25, 2025
Accrued compensation and benefits	$	543	$	513
Income tax payable		29		146
Operating lease liabilities		42		40
Other current liabilities		537		423
Accrued expenses	$	1,151	$	1,122

Other long-term liabilities (in millions):


	April 24, 2026		April 25, 2025
Liability for uncertain tax positions	$	38	$	45
Operating lease liabilities		204		216
Other liabilities		118		118
Other long-term liabilities	$	360	$	379

Deferred revenue represents unrecognized revenue related to undelivered product commitments and other product deliveries that have not met all revenue recognition criteria, as well as customer payments made in advance for services, which include software and hardware support contracts, certain public cloud services and other services.

During the years ended April 24, 2026 and April 25, 2025, we recognized revenue of $2,279 million and $2,176 million, respectively, that was included in the deferred revenue balance at the beginning of the respective periods.

As of April 24, 2026, the aggregate amount of the transaction price allocated to the remaining performance obligations related to customer contracts that are unsatisfied or partially unsatisfied was $5.7 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 45% 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 consolidated balance sheets (in millions):


	April 24, 2026		April 25, 2025
Other current assets	$	117	$	64
Other non-current assets		152		104
Total deferred commissions	$	269	$	168

During the years ended April 24, 2026 and April 25, 2025, we recognized amortization expense from deferred commissions of $106 million and $123 million, respectively, and there were no impairment charges recognized.

Other (expense) income, net (in millions):


	Year Ended
	April 24, 2026			April 25, 2025			April 26, 2024
Interest income	$	113		$	112		$	112
Interest expense		(109	)		(64	)		(64	)
Other, net		(30	)		(2	)		1
Total other (expense) income, net	$	(26	)	$	46		$	49

Supplemental cash flow information related to our operating leases is included in Note 8 – Leases. Non-cash investing activities and other supplemental cash flow information are presented below:


	Year Ended
	April 24, 2026		April 25, 2025		April 26, 2024
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	20	$	14	$	16
Supplemental Cash Flow Information:
Income taxes paid, net of refunds	$	435	$	412	$	357
Interest paid	$	109	$	53	$	59

During fiscal 2025, we completed the sale of our cloud optimization and management software business known as Spot by NetApp to Flexera Software LLC. Total sale consideration consisted 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 received the up-front cash consideration, recognized $20 million for contingent consideration in other current assets, derecognized the assets and liabilities conveyed to Flexera, and recorded certain transaction costs. No material gain or loss was recorded to our consolidated statements of income.

The major classes of assets and liabilities derecognized were (in millions):


	Amount
Assets:
Property and equipment, net	$	13
Goodwill		36
Purchased intangible assets, net		34
Total Assets		83
Liabilities:
Short-term deferred revenue		1

During fiscal 2026, based on achievement of certain financial performance metrics, we recognized an additional $11 million of contingent consideration in other current assets and a corresponding gain to our consolidated statements of income. We expect to receive the cash from the contingent consideration during fiscal 2027.

While most of our arrangements for sales include short-term payment terms, from time to time we provide long-term financing to creditworthy customers. We have generally sold receivables financed through these arrangements on a non-recourse basis to third-party financing institutions within 10 days of the contracts’ dates of execution, and we classify the proceeds from these sales as cash flows from operating activities in our consolidated statements of cash flows. We account for the sales of these receivables as “true sales” as defined in the accounting standards on transfers of financial assets, as we are considered to have surrendered control of these financing receivables. Provided all other revenue recognition criteria have been met, we recognize product revenues for these arrangements, net of any payment discounts from financing transactions, upon product acceptance. We sold $28 million, $65 million and $67 million of receivables during fiscal 2026, 2025 and 2024, respectively.