Leases Leases

3 Months Ended

Sep. 27, 2019

Leases [Abstract]

Leases

Note Q — Leases

As discussed in Note A — Significant Accounting Policies and Recent Accounting Standards in these Notes, effective June 29, 2019, we adopted ASC 842. Our operating and finance leases at September 27, 2019 were for real estate such as office space, warehouses, manufacturing, research and development facilities, tower space and land, and for equipment. Finance leases were not material at September 27, 2019 and are therefore not included in the disclosures below.

Operating lease cost was $45 million and other lease expenses, including short-term and equipment lease cost, variable lease cost and sublease income, were not material for the quarter ended September 27, 2019.

Supplemental operating lease balance sheet information at September 27, 2019 is presented in the table below:

	(In millions)
Operating lease right-of-use assets	$	934
Other accrued items	$	129
Operating lease liabilities	831
Total operating lease liabilities	$	960

The table below presents other supplemental lease information for the quarter ended September 27, 2019:

	(In millions, except lease term and discount rate)
Cash paid for amounts included in the measurement of operating lease liabilities	$	43
Right-of-use assets obtained in exchange for new operating lease liabilities	$	14
Weighted average remaining lease term — operating leases (in years)	9.4
Weighted average discount rate — operating leases	3.3		%

The table below presents future lease payments under non-cancelable operating leases as of September 27, 2019:

	(In millions)
Quarter ended January 3, 2020	$	49
Year 1	162
Year 2	135
Year 3	124
Year 4	104
Thereafter	548
Total future lease payments required	1,122
Less: imputed interest	162
Total	$	960

As of September 27, 2019, we had $279 million of additional operating lease commitments for real estate facilities that have not yet commenced. These leases will commence in 2019 or 2020 with lease terms of 5 to 25 years.

As discussed in Note A — Significant Accounting Policies and Recent Accounting Standards in these Notes, we adopted ASC 842 using the optional transition method presenting prior period amounts and disclosures under ASC 840. The following represented future minimum lease payments for operating leases under ASC 840 at June 28, 2019:

	(In millions)
Year 1	$	68
Year 2	62
Year 3	47
Year 4	40
Year 5	32
Thereafter	64
Total minimum lease payments required	$	313

Rent expense was $73 million for the fiscal year ended June 28, 2019.