Leases

12 Months Ended

Sep. 30, 2022

Note 9—Leases

The Company entered into various operating lease agreements primarily for real estate. The Company's leases have original lease periods expiring between fiscal 2023 and 2033. Many leases include one or more options to renew. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. Payments under the Company’s lease arrangements are generally fixed. At September 30, 2022, the Company had no finance leases.

At September 30, 2022 and 2021, ROU assets included in other assets on the consolidated balance sheets was $480 million and $515 million, respectively. At September 30, 2022 and 2021, the current portion of lease liabilities included in accrued liabilities on the consolidated balance sheets was $98 million and $103 million, respectively, and the long-term portion included in other liabilities was $422 million and $471 million, respectively.

During fiscal 2022 and 2021, total operating lease cost was $117 million and $111 million, respectively. At September 30, 2022 and 2021, the weighted-average remaining lease term for operating leases was approximately 6 years and the weighted-average discount rate for operating leases was 2.15% and 2.23%, respectively.

At September 30, 2022, the present value of future minimum lease payments was as follows:


	September 30, 2022
	(in millions)
2023	$	102
2024	107
2025	91
2026	78
2027	58
Thereafter	121
Total undiscounted lease payments	557
Less: imputed interest	(37)
Present value of lease liabilities	$	520

During fiscal 2022 and 2021, ROU assets obtained in exchange for lease liabilities was $74 million and $96 million, respectively.

At September 30, 2022, the Company had additional operating leases that had not yet commenced with lease obligations of $531 million. These operating leases will commence between fiscal 2023 and 2024 with non-cancellable lease terms of 1 to 15 years.