Leases

9 Months Ended

Apr. 03, 2020

Leases [Abstract]

Leases

The Company is a lessee in several operating leases related to real estate facilities for warehouse and office space.

The Company’s lease arrangements comprise operating leases with various expiration dates through 2082. The lease term includes the non-cancelable period of the lease, adjusted for options to extend or terminate the lease when it is reasonably certain that an option will be exercised.

Operating lease costs include short-term lease costs and are shown net of immaterial sublease income. The components of lease costs and other information related to leases were as follows:

(Dollars in millions)	For the Three Months Ended April 3, 2020		For the Nine Months Ended April 3, 2020
Operating lease cost	$	6	$	17
Variable lease cost	1		3
Total lease cost	$	7	$	20
Operating cash outflows from operating leases	$	4	$	13

	April 3, 2020
Weighted-average remaining lease term	13.0 years
Weighted-average discount rate	6.53	%

ROU assets and lease liabilities are included on the Company’s Condensed Consolidated Balance Sheet as follows:

(Dollars in millions)	Balance Sheet Location	April 3, 2020
ROU assets	Other assets, net	$	107
Current lease liabilities	Accrued expenses	$	14
Non-current lease liabilities	Other non-current liabilities	$	51

At April 3, 2020, future lease payments included in the measurement of lease liabilities were as follows (in millions):

Fiscal Year	Amount
Remainder of 2020	$	3
2021	16
2022	14
2023	10
2024	5
Thereafter	103
Total lease payments	151
Less: imputed interest	(86)
Present value of lease liabilities	$	65