XML 38 R22.htm IDEA: XBRL DOCUMENT v3.25.0.1
LEASES
 3 Months Ended
Dec. 28, 2024
Leases [Abstract]  
Leases LEASES
The Company leases certain manufacturing facilities, offices, land, equipment and vehicles. Such leases, some of which are noncancellable and, in many cases, include renewals, expire at various dates. Such options to renew are included in the lease term when it is reasonably certain that the option will be exercised. The Company’s lease agreements typically do not contain any significant residual value guarantees or restrictive covenants, and payments within certain lease agreements are adjusted periodically for changes in an index or rate.
The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on the lease term and the currency in which lease payments are made. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of twelve months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.
The components of lease expense are as follows (in millions):
Thirteen Week Periods Ended
ClassificationDecember 28, 2024December 30, 2023
Operating lease costCost of sales or selling and administrative expenses$6 $5 
Finance lease cost:
Amortization of leased assetsCost of sales3 3 
Interest on lease liabilitiesInterest expense-net5 2 
Total lease cost$14 $10 
Supplemental cash flow information related to leases is as follows (in millions):
Thirteen Week Periods Ended
December 28, 2024December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$6 $5 
Operating cash outflows from finance leases4 3 
Financing cash outflows from finance leases2 1 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$1 $1 
Financing leases1 59 
Supplemental balance sheet information related to leases is as follows (in millions):
ClassificationDecember 28, 2024September 30, 2024
Operating Leases
Operating lease right-of-use assetsOther non-current assets$56 $61 
Current operating lease liabilitiesAccrued and other current liabilities18 19 
Long-term operating lease liabilitiesOther non-current liabilities40 43 
Total operating lease liabilities$58 $62 
Finance Leases
Finance lease right-of-use assets, netProperty, plant and equipment-net$248 $252 
Current finance lease liabilitiesCurrent portion of long-term debt6 6 
Long-term finance lease liabilitiesLong-term debt254 256 
Total finance lease liabilities$260 $262 
As of December 28, 2024, the Company has the following remaining lease term and weighted average discount rates:
Weighted-average remaining lease term
Operating leases5.3 years
Finance leases20.7 years
Weighted-average discount rate
Operating leases6.0%
Finance leases7.0%
Maturities of lease liabilities at December 28, 2024 are as follows (in millions):
Operating LeasesFinance Leases
2025$21 $19 
202615 22 
202711 22 
20287 23 
20294 23 
Thereafter11 423 
Total future minimum lease payments69 532 
Less: imputed interest11 272 
Present value of lease liabilities reported$58 $260 
Leases LEASES
The Company leases certain manufacturing facilities, offices, land, equipment and vehicles. Such leases, some of which are noncancellable and, in many cases, include renewals, expire at various dates. Such options to renew are included in the lease term when it is reasonably certain that the option will be exercised. The Company’s lease agreements typically do not contain any significant residual value guarantees or restrictive covenants, and payments within certain lease agreements are adjusted periodically for changes in an index or rate.
The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on the lease term and the currency in which lease payments are made. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of twelve months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease.
The components of lease expense are as follows (in millions):
Thirteen Week Periods Ended
ClassificationDecember 28, 2024December 30, 2023
Operating lease costCost of sales or selling and administrative expenses$6 $5 
Finance lease cost:
Amortization of leased assetsCost of sales3 3 
Interest on lease liabilitiesInterest expense-net5 2 
Total lease cost$14 $10 
Supplemental cash flow information related to leases is as follows (in millions):
Thirteen Week Periods Ended
December 28, 2024December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases$6 $5 
Operating cash outflows from finance leases4 3 
Financing cash outflows from finance leases2 1 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$1 $1 
Financing leases1 59 
Supplemental balance sheet information related to leases is as follows (in millions):
ClassificationDecember 28, 2024September 30, 2024
Operating Leases
Operating lease right-of-use assetsOther non-current assets$56 $61 
Current operating lease liabilitiesAccrued and other current liabilities18 19 
Long-term operating lease liabilitiesOther non-current liabilities40 43 
Total operating lease liabilities$58 $62 
Finance Leases
Finance lease right-of-use assets, netProperty, plant and equipment-net$248 $252 
Current finance lease liabilitiesCurrent portion of long-term debt6 6 
Long-term finance lease liabilitiesLong-term debt254 256 
Total finance lease liabilities$260 $262 
As of December 28, 2024, the Company has the following remaining lease term and weighted average discount rates:
Weighted-average remaining lease term
Operating leases5.3 years
Finance leases20.7 years
Weighted-average discount rate
Operating leases6.0%
Finance leases7.0%
Maturities of lease liabilities at December 28, 2024 are as follows (in millions):
Operating LeasesFinance Leases
2025$21 $19 
202615 22 
202711 22 
20287 23 
20294 23 
Thereafter11 423 
Total future minimum lease payments69 532 
Less: imputed interest11 272 
Present value of lease liabilities reported$58 $260