Leases

12 Months Ended

Dec. 01, 2023

We lease certain facilities and data centers under non-cancellable operating lease arrangements that expire at various dates through 2032. We also have one land lease that expires in 2091. Our lease agreements do not contain any material residual value guarantees, material variable payment provisions or material restrictive covenants.

Operating lease expense was $117 million, $121 million and $119 million for fiscal 2023, 2022 and 2021, respectively. We recognized operating lease expense in cost of revenue and operating expenses in our Consolidated Statements of Income. Our operating lease expense includes variable lease costs and is net of sublease income, both of which are not material.

Supplemental cash flow information for fiscal 2023, 2022 and 2021 related to operating leases was as follows:


(in millions)	2023		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	97	$	107	$	116
Right-of-use assets obtained in exchange for operating lease liabilities	$	32	$	59	$	60

The weighted-average remaining lease term and weighted-average discount rate for our operating lease liabilities as of December 1, 2023 were 6 years and 2.50%, respectively.

As of December 1, 2023, the maturities of lease liabilities under operating leases were as follows:


(in millions)
Fiscal Year	Operating Leases (1)
2024	$	83
2025	80
2026	74
2027	74
2028	62
Thereafter	111
Total lease liabilities	$	484
Less: Imputed interest	38
Present value of lease liabilities	$	446

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(1) Legally binding minimum lease payments for leases signed but not yet commenced as of December 1, 2023 were not material.