Leases

3 Months Ended

Jul. 02, 2021

We lease certain of our facilities, equipment, and data center co-locations under operating leases that expire on various dates through fiscal 2028. Our leases generally have terms that range from 1 year to 10 years for our facilities, 1 year to 6 years for equipment, and 1 year to 6 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions and leasehold improvement incentives.

On July 14, 2021, we completed the sale of certain land and buildings in Mountain View for cash consideration of $358 million. In conjunction with the sale, we signed a 7-year leaseback agreement for a portion of the property, with an option to extend the lease for an additional 5 years. The leaseback agreement is effective as of the date of sale. The sale transaction and immediate leaseback qualified as a completed sale, and we will recognize a gain on sale of $176 million.

The following summarizes our lease costs:


	Three Months Ended
(In millions)	July 2, 2021		July 3, 2020
Operating lease costs	$	4	$	4
Short-term lease costs	1		1
Variable lease costs	1		3
Total lease costs	$	6	$	8

Other information related to our operating leases was as follows:


	Three Months Ended
	July 2, 2021		July 3, 2020
Weighted-average remaining lease term	4.2 years		4.1 years
Weighted-average discount rate	4.11	%	4.14	%

See Note 7 for cash flow information related to our operating leases.

As of July 2, 2021, the maturities of our lease liabilities by fiscal year are as follows:


(In millions)
Remainder of 2022	$	20
2023	22
2024	19
2025	14
2026	7
Thereafter	9
Total lease payments	91
Less: Imputed interest	(7)
Present value of lease liabilities	$	84