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Leases | 3 Months Ended
--- | ---
Nov. 28, 2019
Leases [Abstract] |
Leases | Leases We have finance and operating leases through which we acquire or utilize equipment and facilities in our manufacturing operations and R&D activities as well as office space and other facilities used in our selling, general, and administrative ("SG&A") functions. Our finance leases consist primarily of equipment used in our manufacturing operations and gas or other supply agreements that are deemed to be embedded leases in which we effectively control the underlying gas plants or other assets used to fulfill the supply agreements. Our operating leases consist primarily of offices, other facilities, and land used in SG&A, R&D, and certain of our manufacturing operations. Certain of our operating leases include one or more options to extend the lease term for periods from one year to 10 years for real estate and one year to 30 years for land. Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease of a right-of-use asset. Our assessment includes determining whether we or the supplier control the assets used to fulfill the supply or service agreement by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. In determining the lease term, we assess whether we are reasonably certain to exercise options to renew or terminate a lease, and when or whether we would exercise an option to purchase the right-of-use asset. Measuring the present value of the initial lease liability requires exercising judgment to determine the discount rate, which we base on interest rates for similar borrowings issued by entities with credit ratings similar to ours at the time of issuance. Measuring the initial lease liability and corresponding right-of-use asset also requires us to exercise judgment to estimate the present value of lease payments. Short-term and variable lease expenses were not significant and are presented within operating lease costs in the table below. Sublease income was not significant in the period presented below. The components of lease expenses are presented below:
Three months ended | November 28, 2019
Finance lease cost |  |
Amortization of right-of-use asset | $ | 40 |
Interest on lease liability | 6 |
Operating lease cost | 24 |
| $ | 70 |
Other information related to our leases were as follows:
Three months ended | November 28, 2019
Cash flows used for operating activities |
Finance leases | $ | 6 |
Operating leases | 17 |
Cash flows used for financing activities |
Finance leases (1) | 64 |
Noncash acquisitions of right of use assets |
Operating leases | 13 |
(1)Included in repayments of debt in the accompanying statement of cash flows.
As of | November 28, 2019
Weighted-average remaining lease term (in years) |
Finance leases | 3.6
Operating leases | 7.8
Weighted-average discount rate |
Finance leases | 4.84 | %
Operating leases | 2.66 | %
Maturities of lease liabilities were as follows:
For the year ending | Operating Leases | Finance Leases
Remainder of 2020 |  | $ | 49 |  | $ | 174 |
2021 |  | 66 |  | 107 |
2022 |  | 64 |  | 75 |
2023 |  | 61 |  | 48 |
2024 |  | 52 |  | 37 |
2025 and thereafter | 436 |  | 191 |
Less imputed interest and reimbursement of tenant improvements (1) | (178) |  | (103) |
| $ | 550 |  | $ | 529 |
(1)Includes $50 million under operating leases for the reimbursement due in 2020 of tenant improvements. Prior to adopting ASC 842, future minimum operating lease commitments under all noncancelable operating leases with an initial term in excess of one year as of August 29, 2019 were as follows:
For the year ending | Operating Leases
2020 |  | $ | 54 |
2021 |  | 64 |
2022 |  | 63 |
2023 |  | 59 |
2024 |  | 53 |
2025 and thereafter | 459 |
| $ | 752 |
Leases | Leases We have finance and operating leases through which we acquire or utilize equipment and facilities in our manufacturing operations and R&D activities as well as office space and other facilities used in our selling, general, and administrative ("SG&A") functions. Our finance leases consist primarily of equipment used in our manufacturing operations and gas or other supply agreements that are deemed to be embedded leases in which we effectively control the underlying gas plants or other assets used to fulfill the supply agreements. Our operating leases consist primarily of offices, other facilities, and land used in SG&A, R&D, and certain of our manufacturing operations. Certain of our operating leases include one or more options to extend the lease term for periods from one year to 10 years for real estate and one year to 30 years for land. Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease of a right-of-use asset. Our assessment includes determining whether we or the supplier control the assets used to fulfill the supply or service agreement by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. In determining the lease term, we assess whether we are reasonably certain to exercise options to renew or terminate a lease, and when or whether we would exercise an option to purchase the right-of-use asset. Measuring the present value of the initial lease liability requires exercising judgment to determine the discount rate, which we base on interest rates for similar borrowings issued by entities with credit ratings similar to ours at the time of issuance. Measuring the initial lease liability and corresponding right-of-use asset also requires us to exercise judgment to estimate the present value of lease payments. Short-term and variable lease expenses were not significant and are presented within operating lease costs in the table below. Sublease income was not significant in the period presented below. The components of lease expenses are presented below:
Three months ended | November 28, 2019
Finance lease cost |  |
Amortization of right-of-use asset | $ | 40 |
Interest on lease liability | 6 |
Operating lease cost | 24 |
| $ | 70 |
Other information related to our leases were as follows:
Three months ended | November 28, 2019
Cash flows used for operating activities |
Finance leases | $ | 6 |
Operating leases | 17 |
Cash flows used for financing activities |
Finance leases (1) | 64 |
Noncash acquisitions of right of use assets |
Operating leases | 13 |
(1)Included in repayments of debt in the accompanying statement of cash flows.
As of | November 28, 2019
Weighted-average remaining lease term (in years) |
Finance leases | 3.6
Operating leases | 7.8
Weighted-average discount rate |
Finance leases | 4.84 | %
Operating leases | 2.66 | %
Maturities of lease liabilities were as follows:
For the year ending | Operating Leases | Finance Leases
Remainder of 2020 |  | $ | 49 |  | $ | 174 |
2021 |  | 66 |  | 107 |
2022 |  | 64 |  | 75 |
2023 |  | 61 |  | 48 |
2024 |  | 52 |  | 37 |
2025 and thereafter | 436 |  | 191 |
Less imputed interest and reimbursement of tenant improvements (1) | (178) |  | (103) |
| $ | 550 |  | $ | 529 |
(1)Includes $50 million under operating leases for the reimbursement due in 2020 of tenant improvements. Prior to adopting ASC 842, future minimum operating lease commitments under all noncancelable operating leases with an initial term in excess of one year as of August 29, 2019 were as follows:
For the year ending | Operating Leases
2020 |  | $ | 54 |
2021 |  | 64 |
2022 |  | 63 |
2023 |  | 59 |
2024 |  | 53 |
2025 and thereafter | 459 |
| $ | 752 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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