XML 47 R16.htm IDEA: XBRL DOCUMENT
v3.24.3

Leases | 12 Months Ended
--- | ---
Aug. 29, 2024
Leases [Abstract] |
[Finance] Leases | Leases We have finance and operating leases through which we obtain the right to use facilities, land, and equipment that support our business operations. Our finance leas es consist primarily of (i) gas and other supply agreements that are deemed to contain embedded leases and (ii) equipment leases. Ou r operating leases consist primarily of offices, laboratories, other facilities, and land. 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 99 years for land. Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease. Our assessment includes determining whether we or the supplier control the assets used to fulfill the agreements by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. Our gas supply arrangements generally are deemed to contain a lease because we have the right to substantially all of the output of the assets used to produce the supply and we have the right to change the quantity and timing of the output of those assets. In determining the lease term, we assess whether we are reasonably certain to exercise any options to renew or terminate a lease or to purchase the right-of-use asset. Measuring the present value of the initial lease liability requires judgment to determine the discount rate, which we base on interest rates for borrowings with similar terms and collateral issued by entities with credit ratings similar to ours. The components of lease cost are presented below:
For the year ended | 2024 | 2023 | 2022
Finance lease cost |  |  |
Amortization of right-of-use asset | $ | 176 |  | $ | 105 |  | $ | 99 |
Interest on lease liability | 70 |  | 24 |  | 24 |
Operating lease cost(1) | 140 |  | 137 |  | 125 |
| $ | 386 |  | $ | 266 |  | $ | 248 |
(1)Operating lease cost includes short-term and variable lease expenses, which were not material for the periods presented. Supplemental cash flow information related to leases was as follows:
For the year ended | 2024 | 2023 | 2022
Cash flows used for operating activities |  |  |
Finance leases | $ | 61 |  | $ | 24 |  | $ | 23 |
Operating leases | 132 |  | 139 |  | 110 |
Cash flows used for financing activities – Finance leases | 155 |  | 109 |  | 103 |
Noncash acquisitions of right-of-use assets |  |  |
Finance leases | 905 |  | 508 |  | 309 |
Operating leases | 54 |  | 57 |  | 197 |
Supplemental balance sheet information related to leases was as follows:
As of | August 29, 2024 | August 31, 2023
Finance lease right-of-use assets (included in property, plant, and equipment) | $ | 2,038 |  | $ | 1,311 |
Current operating lease liabilities (included in accounts payable and accrued expenses) | 71 |  | 66 |
Weighted-average remaining lease term (in years) |  |
Finance leases | 8 | 9
Operating leases | 10 | 11
Weighted-average discount rate |  |
Finance leases | 4.91 | % | 3.86 | %
Operating leases | 3.42 | % | 3.21 | %
As of August 29, 2024, maturities of lease liabilities by fiscal year were as follows:
| Finance Leases | Operating Leases
2025 | $ | 400 |  | $ | 93 |
2026 | 380 |  | 82 |
2027 | 373 |  | 87 |
2028 | 362 |  | 82 |
2029 | 279 |  | 76 |
2030 and thereafter | 568 |  | 398 |
Less imputed interest | (308) |  | (137) |
| $ | 2,054 |  | $ | 681 |
The table above excludes obligations for leases that have been executed but have not yet commenced. As of August 29, 2024, excluded obligations consisted of $835 million of finance lease obligations over a weighted-average period of 13 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.
[Operating] Leases | Leases We have finance and operating leases through which we obtain the right to use facilities, land, and equipment that support our business operations. Our finance leas es consist primarily of (i) gas and other supply agreements that are deemed to contain embedded leases and (ii) equipment leases. Ou r operating leases consist primarily of offices, laboratories, other facilities, and land. 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 99 years for land. Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease. Our assessment includes determining whether we or the supplier control the assets used to fulfill the agreements by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. Our gas supply arrangements generally are deemed to contain a lease because we have the right to substantially all of the output of the assets used to produce the supply and we have the right to change the quantity and timing of the output of those assets. In determining the lease term, we assess whether we are reasonably certain to exercise any options to renew or terminate a lease or to purchase the right-of-use asset. Measuring the present value of the initial lease liability requires judgment to determine the discount rate, which we base on interest rates for borrowings with similar terms and collateral issued by entities with credit ratings similar to ours. The components of lease cost are presented below:
For the year ended | 2024 | 2023 | 2022
Finance lease cost |  |  |
Amortization of right-of-use asset | $ | 176 |  | $ | 105 |  | $ | 99 |
Interest on lease liability | 70 |  | 24 |  | 24 |
Operating lease cost(1) | 140 |  | 137 |  | 125 |
| $ | 386 |  | $ | 266 |  | $ | 248 |
(1)Operating lease cost includes short-term and variable lease expenses, which were not material for the periods presented. Supplemental cash flow information related to leases was as follows:
For the year ended | 2024 | 2023 | 2022
Cash flows used for operating activities |  |  |
Finance leases | $ | 61 |  | $ | 24 |  | $ | 23 |
Operating leases | 132 |  | 139 |  | 110 |
Cash flows used for financing activities – Finance leases | 155 |  | 109 |  | 103 |
Noncash acquisitions of right-of-use assets |  |  |
Finance leases | 905 |  | 508 |  | 309 |
Operating leases | 54 |  | 57 |  | 197 |
Supplemental balance sheet information related to leases was as follows:
As of | August 29, 2024 | August 31, 2023
Finance lease right-of-use assets (included in property, plant, and equipment) | $ | 2,038 |  | $ | 1,311 |
Current operating lease liabilities (included in accounts payable and accrued expenses) | 71 |  | 66 |
Weighted-average remaining lease term (in years) |  |
Finance leases | 8 | 9
Operating leases | 10 | 11
Weighted-average discount rate |  |
Finance leases | 4.91 | % | 3.86 | %
Operating leases | 3.42 | % | 3.21 | %
As of August 29, 2024, maturities of lease liabilities by fiscal year were as follows:
| Finance Leases | Operating Leases
2025 | $ | 400 |  | $ | 93 |
2026 | 380 |  | 82 |
2027 | 373 |  | 87 |
2028 | 362 |  | 82 |
2029 | 279 |  | 76 |
2030 and thereafter | 568 |  | 398 |
Less imputed interest | (308) |  | (137) |
| $ | 2,054 |  | $ | 681 |
The table above excludes obligations for leases that have been executed but have not yet commenced. As of August 29, 2024, excluded obligations consisted of $835 million of finance lease obligations over a weighted-average period of 13 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration