Leases

3 Months Ended

Jan. 01, 2022

5. Leases

The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles.

We recognize right-of-use assets and lease liabilities for leases with original lease terms greater than one year based on the present value of lease payments over the lease term using our incremental borrowing rate on a collateralized basis. Short-term leases, with original lease terms of less than one year, are not recognized on the balance sheet. We are party to certain leases, namely for manufacturing facilities, which offer renewal options to extend the original lease term. Renewal options are included in the right-of-use asset and lease liability based on our assessment of the probability that the options will be exercised.

Supplemental lease information is as follows:

Leases	Classification	January 1, 2022		October 2, 2021
Operating leases:
Operating lease right-of-use assets	Right-of-use asset	$	543	$	562
Current operating lease liabilities	Other current liabilities		111		113
Noncurrent operating lease liabilities	Operating lease liability		448		466
Finance leases:
Finance lease right-of-use assets	Property, plant, and equipment, net	$	53	$	57
Current finance lease liabilities	Current portion of long-term debt		14		14
Noncurrent finance lease liabilities	Long-term debt, less current portion		35		38

			Quarterly Period Ended
Lease Type	Cash Flow Classification	Lease Expense Category	January 1, 2022		January 2, 2021
Operating	Operating	Lease cost	$	34	$	31
Finance	Operating	Interest expense		1		1
Finance	Financing			2		11
Finance	_	Amortization of right-of-use assets		3		4

Right-of-use assets obtained in exchange for new operating lease liabilities were $12 million for the quarterly period ended January 1, 2022.