Leases

12 Months Ended

Sep. 30, 2023

Note 9—Leases

The Company entered into various operating lease agreements primarily for real estate. The Company's leases have original lease periods expiring between fiscal 2024 and 2035. For certain leases the Company has options to extend the lease term for up to five years. Payments under the Company’s lease arrangements are generally fixed.

As of September 30, 2023 and 2022, ROU assets included in other assets on the consolidated balance sheets was $488 million and $480 million, respectively. As of September 30, 2023 and 2022, the current portion of lease

liabilities included in accrued liabilities on the consolidated balance sheets was $106 million and $98 million, respectively, and the long-term portion included in other liabilities was $412 million and $422 million, respectively.

During fiscal 2023, 2022 and 2021, total operating lease cost was $129 million, $117 million and $111 million respectively. As of September 30, 2023 and 2022, the weighted-average remaining lease term for operating leases was approximately six years and the weighted-average discount rate for operating leases was 2.43% and 2.15%, respectively.

As of September 30, 2023, the present value of future minimum lease payments was as follows:


	Operating Leases
	(in millions)
Fiscal:
2024	$	123
2025	111
2026	98
2027	76
2028	60
Thereafter	100
Total undiscounted lease payments	568
Less: imputed interest	(50)
Present value of lease liabilities	$	518

During fiscal 2023, 2022 and 2021, ROU assets obtained in exchange for lease liabilities was $82 million, $74 million and $96 million, respectively.

As of September 30, 2023, the Company had additional operating leases that had not yet commenced with lease obligations of $433 million. These operating leases will commence in fiscal 2024 with non-cancellable lease terms of 1 to 14 years.