Sales of Receivables

12 Months Ended

Oct. 03, 2025

Transfers and Servicing of Financial Assets [Abstract]

Sales of Receivables

Sales of Receivables

In March 2024, we entered into a Master Accounts Receivable Purchase Agreement (“MARPA”) with MUFG Bank, Ltd., (the “Purchaser”) for the sale of certain designated eligible U.S. Government receivables. In December 2024, we amended the MARPA with the Purchaser to increase the maximum amount of eligible receivables that can be sold up to a maximum amount of $400 million. Under the MARPA, the Company can sell certain eligible receivables without recourse for any U.S. Government credit risk.

The Company does not retain an ongoing financial interest in the transferred receivables other than cash collection and administrative services. The Company estimated that its servicing fee was at fair value and therefore no servicing asset or liability related to these receivables was recognized as of October 3, 2025. Proceeds from the sold receivables are reflected in operating cash flows on the statement of cash flows.

The Company's MARPA activity consisted of the following:

	As of and for the Year Ended
(Amounts in millions)	October 3, 2025		September 27, 2024
Beginning balance:	$	177	$	—
Sales of receivables	3,807		1,574
Cash collections	(3,804)		(1,397)
Outstanding balance sold to Purchaser (1)	180		177
Cash collected, not remitted to Purchaser (2)	(49)		(39)
Remaining sold receivables	$	131	$	138

(1)    For the years ended October 3, 2025 and September 27, 2024, the Company recorded a net cash inflow of $3 million and $177 million in its cash flows from operating activities, respectively, from sold receivables. MARPA cash flows are calculated as the change in the outstanding balance during the fiscal year.

(2)    Includes the cash collected on behalf of but not yet remitted to the Purchaser as of October 3, 2025 and September 27, 2024. This balance is included in Other current liabilities as of the balance sheet date.