Leases
We lease certain facilities, equipment, and data center co-locations under operating leases that expire on various dates through fiscal 2033. Our leases generally have terms that range from 1 year to 9 years for our facilities, 1 year to 4 years for equipment and 1 year to 5 years for data center co-locations. Some of our leases contain renewal options, escalation clauses, rent concessions and leasehold improvement incentives.
The following summarizes our lease costs for fiscal 2026, 2025 and 2024:
| | | | | | | | | | | | | | | | | |
| Year Ended |
| (In millions) | April 3, 2026 | | March 28, 2025 | | March 29, 2024 |
| Operating lease costs | $ | 18 | | | $ | 14 | | | $ | 12 | |
| Short-term lease costs | 2 | | | 3 | | | 3 | |
| Variable lease costs | 4 | | | 4 | | | 6 | |
| Total lease costs | $ | 24 | | | $ | 21 | | | $ | 21 | |
Other information related to our operating leases for fiscal 2026, 2025 and 2024 was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended |
| April 3, 2026 | | March 28, 2025 | | March 29, 2024 |
| Weighted-average remaining lease term | 4.2 years | | 4.7 years | | 4.6 years |
| Weighted-average discount rate | 6.13 | % | | 5.71 | % | | 5.35 | % |
See Note 7 for cash flow information related to our operating leases.
As of April 3, 2026, the maturities of our lease liabilities by fiscal year are as follows:
| | | | | |
| (In millions) | |
| 2027 | $ | 22 | |
| 2028 | 16 | |
| 2029 | 14 | |
| 2030 | 12 | |
| 2031 | 4 | |
| Thereafter | 5 | |
| Total lease payments | 73 | |
| Less: Imputed interest | (9) | |
| Present value of lease liabilities | $ | 64 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.