Leasing (Tables)

6 Months Ended

Mar. 31, 2020

Leases [Abstract]

Schedule of Lease Balances on the Balance Sheet

The following table presents the Company's lease balances:

(In millions)	Location in Condensed Consolidated Balance Sheet	March 31, 2020
Assets
Operating lease assets	Operating lease assets	$	254
Finance lease assets	Property, plant and equipment, net	47
Amortization of finance lease assets	Property, plant and equipment, net	(8)
Total leased assets		$	293
Liabilities
Current:
Operating lease liabilities	Accrued expenses and other liabilities	$	30
Finance lease liabilities	Accrued expenses and other liabilities	2
Noncurrent:
Operating lease liabilities	Operating lease liabilities	226
Finance lease liabilities	Other noncurrent liabilities	41
Total lease liabilities		$	299

Schedule of Lease Costs and Other Information

The following table presents the components of total lease costs:

(In millions)	Location in Condensed Consolidated Statements of Comprehensive Income	Three months ended March 31, 2020		Six months ended March 31, 2020
Operating lease cost	Cost of sales and Selling, general and administrative expenses (a)	$	11	$	22
Finance lease costs
Amortization of lease assets	Cost of sales (a)	1		1
Interest on lease liabilities	Net interest and other financing expenses	1		2
Variable lease cost	Cost of sales and Selling, general and administrative expenses (a)	1		2
Sublease income	Equity and other income, net	(2)		(3)
Total lease cost		$	12	$	24

(a) Supply chain and retail-related amounts are included in Cost of sales.

Other information related to the Company's leases follows:

(In millions)	Three months ended March 31, 2020		Six months ended March 31, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases (a)	$	11	$	21
Operating cash flows from finance leases	$	1	$	2
Financing cash flow from finance leases	$	—	$	—
Lease assets obtained in exchange for lease obligations:
Operating leases	$	13	$	28
Finance leases	$	18	$	18

(a) Included within the change in Other assets and liabilities within the Condensed Consolidated Statement of Cash Flows offset by noncash operating lease asset amortization and liability accretion.

The following table presents the weighted average remaining lease term and interest rate as of March 31, 2020:

Weighted average remaining lease term (in years):
Operating leases	9.8
Finance leases	12.6
Weighted average discount rate:
Operating leases	4.14	%
Finance leases	9.03	%

Schedule of Future Lease Payments under Finance Leases After Adoption

The following table reconciles the undiscounted cash flows for the next five fiscal years ended September 30 and thereafter to the operating and finance lease liabilities recorded on the Condensed Consolidated Balance Sheet as of March 31, 2020:

(In millions)	Operating leases		Finance leases
Remainder of 2020	$	21	$	3
2021	39		6
2022	36		5
2023	33		5
2024	30		6
Thereafter	157		45
Total future lease payments	316		70
Imputed interest	60		27
Present value of lease liabilities	$	256	$	43

Schedule of Future Lease Payments under Operating Leases After Adoption

The following table reconciles the undiscounted cash flows for the next five fiscal years ended September 30 and thereafter to the operating and finance lease liabilities recorded on the Condensed Consolidated Balance Sheet as of March 31, 2020:

(In millions)	Operating leases		Finance leases
Remainder of 2020	$	21	$	3
2021	39		6
2022	36		5
2023	33		5
2024	30		6
Thereafter	157		45
Total future lease payments	316		70
Imputed interest	60		27
Present value of lease liabilities	$	256	$	43

Schedule of Future Minimum Rental Payments for Operating Leases

The future minimum lease payments by fiscal year as determined prior to the adoption of the new lease accounting guidance under the previously designated capital, financing and operating leases as of the fiscal year ended September 30, 2019, were as follows:

(In millions)	Operating leases		Capital leases and financing obligations
2020	$	36	$	6
2021	32		7
2022	29		7
2023	27		7
2024	23		7
Thereafter	120		50
Total future lease payments (a)	$	267	84
Imputed interest			29
Present value of lease liabilities			$	55

(a) Future lease payments do not include fixed payments for executory costs, such as taxes, insurance, maintenance and operating expenses.

Schedule of Future Minimum Lease Payments for Operating, Capital and Other Financing Obligations

The future minimum lease payments by fiscal year as determined prior to the adoption of the new lease accounting guidance under the previously designated capital, financing and operating leases as of the fiscal year ended September 30, 2019, were as follows:

(In millions)	Operating leases		Capital leases and financing obligations
2020	$	36	$	6
2021	32		7
2022	29		7
2023	27		7
2024	23		7
Thereafter	120		50
Total future lease payments (a)	$	267	84
Imputed interest			29
Present value of lease liabilities			$	55

(a) Future lease payments do not include fixed payments for executory costs, such as taxes, insurance, maintenance and operating expenses.