Leases (Notes)

12 Months Ended

Sep. 30, 2023

LEASES

We lease certain equipment, buildings and land related to transportation, distribution, storage, production, livestock grower assets and office activities. These lease arrangements can be structured as a standard lease agreement or embedded in a service or supply agreement and are primarily classified as operating leases. For further description of our lease accounting policy, refer to Note 1: Business and Summary of Significant Accounting Policies. Operating lease ROU assets and liabilities presented in our Consolidated Balance Sheets were as follows as of September 30, 2023 and October 1, 2022 (in millions):



	2023		2022
Other Assets	$	544	$	507
Other current liabilities	153		145
Other Liabilities	376		350

The components of lease costs for fiscal years 2023, 2022 and 2021 were as follows (in millions):



	2023		2022		2021
Operating lease cost (a)	$	181	$	175	$	183
Variable lease cost (b)	531		508		473
Short-term lease cost	39		30		33
Total	$	751	$	713	$	689

(a) Sublease income is immaterial and not deducted from operating lease cost.

(b) Variable lease costs are determined based on volume of output received, flocks placed or other performance metrics.

Other operating lease information includes the following for fiscal years 2023, 2022 and 2021:


	2023			2022			2021
Operating cash outflows from operating leases (in millions)	$	191		$	194		$	204
ROU assets obtained in exchange for new operating lease liabilities (in millions)	$	288		$	159		$	197
Weighted-average remaining lease term	5 years			5 years
Weighted-average discount rate	4		%	3		%

At September 30, 2023, future maturities of operating leases were as follows (in millions):



Operating Lease Commitments
2024	$	171
2025	132
2026	89
2027	57
2028	43
2029 and beyond	99
Total undiscounted operating lease payments	$	591
Less: Imputed interest	62
Present value of total operating lease liabilities	$	529

At September 30, 2023, our leases that had not yet commenced were not significant.