Leases

12 Months Ended

Nov. 27, 2020

LEASES

We lease certain facilities and data centers under non-cancellable operating lease arrangements that expire at various dates through 2031. We also have one land lease that expires in 2091. We account for lease and non-lease components as a single lease component for our facilities and data center leases. We apply the accounting requirements of ASC 842 to short-term leases. Therefore, leases with an initial term of 12 months or less are recorded on the balance sheet, with lease expense for these leases recognized on a straight-line basis over the lease term. Our lease agreements do not contain any material residual value guarantees, material variable payment provisions or material restrictive covenants.

After our adoption of ASC 842, operating lease expense was $119 million for fiscal 2020. Operating lease expense was $170 million and $137 million for fiscal 2019 and 2018, respectively. We recognized operating lease expense in cost of revenue and operating expenses in our Consolidated Statements of Income. Our operating lease expense is net of sublease income and includes variable lease costs, both of which are not material.

Supplemental cash flow information for fiscal 2020 related to operating leases was as follows:


(in millions)

Cash paid for amounts included in the measurement of operating lease liabilities	$	99
Right-of-use assets obtained in exchange for operating lease liabilities	$	52

The weighted-average remaining lease term and weighted-average discount rate for our operating lease liabilities as of November 27, 2020 were 9 years and 2.32%, respectively.

As of November 27, 2020, the maturities of lease liabilities under operating leases are as follows:


(in millions)
Fiscal Year	Operating Leases (1)
2021	$	104
2022	90
2023	72
2024	59
2025	60
Thereafter	272
Total lease liabilities	$	657
Less: Imputed interest	66
Present value of lease liabilities	$	591

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(1) Operating lease payments exclude $17 million of legally binding minimum lease payments for leases signed but not yet commenced.

Future minimum rental payments and future minimum sublease income for our operating leases as of November 29, 2019, prior to our adoption of the new leases standard, were as follows:


(in millions)	Operating Leases
Fiscal Year	Future Minimum Rental Payments		Future Minimum Sublease Income
2020	$	98	$	10
2021	92		9
2022	81		6
2023	69		2
2024	61		—
Thereafter	338		—
Total	$	739	$	27