Leases

9 Months Ended

Dec. 31, 2021

We lease certain of our facilities, equipment, and data center co-locations under operating leases that expire on various dates through fiscal 2029. Our leases generally have terms that range from 1 year to 8 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, California for cash consideration of $355 million, net of selling costs. 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 recognized a gain of $175 million on the sale.

The following summarizes our lease costs:


	Three Months Ended				Nine Months Ended
(In millions)	December 31, 2021		January 1, 2021		December 31, 2021		January 1, 2021
Operating lease costs	$	4	$	4	$	12	$	13
Short-term lease costs	—		1		2		3
Variable lease costs	1		—		4		5
Total lease costs	$	5	$	5	$	18	$	21

Other information related to our operating leases was as follows:


	Three Months Ended
	December 31, 2021		January 1, 2021
Weighted-average remaining lease term	4.8 years		4.4 years
Weighted-average discount rate	4.04	%	4.13	%

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

As of December 31, 2021, the maturities of our lease liabilities by fiscal year are as follows:


(In millions)
Remainder of 2022	$	7
2023	22
2024	27
2025	21
2026	15
Thereafter	19
Total lease payments	111
Less: Imputed interest	(10)
Present value of lease liabilities	$	101