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Leases
 12 Months Ended
Oct. 02, 2021
Leases [Abstract]  
Leases Leases
The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, land, retail outlets and distribution centers for consumer products and content broadcast equipment. The Company also has finance leases, primarily for land and broadcast equipment.
Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of October 2, 2021, our operating leases have a weighted-average remaining lease term of approximately 10 years, and our finance leases have a weighted-average remaining lease term of approximately 27 years. The weighted-average incremental borrowing rate is 2.4% and 6.3%, for our operating leases and finance leases, respectively. At October 2, 2021 total estimated future lease payments for signed non-cancelable leases agreements that have not commenced are not material.
The Company’s operating and finance right-of-use assets and lease liabilities are as follows:
October 2, 2021October 3, 2020
Right-of-use assets(1)
Operating leases$3,895  $3,687  
Finance leases336  361  
Total right-of-use assets4,231  4,048  
Short-term lease liabilities(2)
Operating leases637  747  
Finance leases41  37  
678  784  
Long-term lease liabilities(3)
Operating leases2,983  2,640  
Finance leases246  271  
3,229  2,911  
Total lease liabilities$3,907  $3,695  
(1)Included in “Other assets” in the Consolidated Balance Sheet.
(2)Included in “Accounts payable and other accrued liabilities” in the Consolidated Balance Sheet.
(3)Included in “Other long-term liabilities” in the Consolidated Balance Sheet.
The components of lease costs are as follows:
October 2, 2021October 3, 2020
Finance lease cost
Amortization of right-of-use assets$42  $37 
Interest on lease liabilities20  16 
Operating lease cost 853  899 
Variable fees and other(1)
414  491 
Total lease cost$1,329  $1,443  
(1)Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income.
Rental expense for operating leases during fiscal 2019, including common-area maintenance and contingent rentals, was $1.1 billion.
Cash paid during the year for amounts included in the measurement of lease liabilities is as follows:
October 2, 2021October 3, 2020
Operating cash flows for operating leases $925  $879  
Operating cash flows for finance leases 20  16  
Financing cash flows for finance leases 25  37  
Total$970  $932  
Future minimum lease payments, as of October 2, 2021, are as follows:
OperatingFinancing
Fiscal Year:
2022$707  $59  
2023601  52  
2024467  42  
2025415  38  
2026298  32  
Thereafter2,057  443  
Total undiscounted future lease payments4,545  666  
Less: Imputed interest(925) (379) 
Total reported lease liability$3,620  $287  
Leases Leases
The Company’s operating leases primarily consist of real estate and equipment, including office space for general and administrative purposes, production facilities, land, retail outlets and distribution centers for consumer products and content broadcast equipment. The Company also has finance leases, primarily for land and broadcast equipment.
Some of our leases include renewal and/or termination options. If it is reasonably certain that a renewal or termination option will be exercised, the exercise of the option is considered in calculating the term of the lease. As of October 2, 2021, our operating leases have a weighted-average remaining lease term of approximately 10 years, and our finance leases have a weighted-average remaining lease term of approximately 27 years. The weighted-average incremental borrowing rate is 2.4% and 6.3%, for our operating leases and finance leases, respectively. At October 2, 2021 total estimated future lease payments for signed non-cancelable leases agreements that have not commenced are not material.
The Company’s operating and finance right-of-use assets and lease liabilities are as follows:
October 2, 2021October 3, 2020
Right-of-use assets(1)
Operating leases$3,895  $3,687  
Finance leases336  361  
Total right-of-use assets4,231  4,048  
Short-term lease liabilities(2)
Operating leases637  747  
Finance leases41  37  
678  784  
Long-term lease liabilities(3)
Operating leases2,983  2,640  
Finance leases246  271  
3,229  2,911  
Total lease liabilities$3,907  $3,695  
(1)Included in “Other assets” in the Consolidated Balance Sheet.
(2)Included in “Accounts payable and other accrued liabilities” in the Consolidated Balance Sheet.
(3)Included in “Other long-term liabilities” in the Consolidated Balance Sheet.
The components of lease costs are as follows:
October 2, 2021October 3, 2020
Finance lease cost
Amortization of right-of-use assets$42  $37 
Interest on lease liabilities20  16 
Operating lease cost 853  899 
Variable fees and other(1)
414  491 
Total lease cost$1,329  $1,443  
(1)Includes variable lease payments related to our operating and finance leases and costs of Short-term leases, net of sublease income.
Rental expense for operating leases during fiscal 2019, including common-area maintenance and contingent rentals, was $1.1 billion.
Cash paid during the year for amounts included in the measurement of lease liabilities is as follows:
October 2, 2021October 3, 2020
Operating cash flows for operating leases $925  $879  
Operating cash flows for finance leases 20  16  
Financing cash flows for finance leases 25  37  
Total$970  $932  
Future minimum lease payments, as of October 2, 2021, are as follows:
OperatingFinancing
Fiscal Year:
2022$707  $59  
2023601  52  
2024467  42  
2025415  38  
2026298  32  
Thereafter2,057  443  
Total undiscounted future lease payments4,545  666  
Less: Imputed interest(925) (379) 
Total reported lease liability$3,620  $287