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Leases
 12 Months Ended
Sep. 26, 2020
Leases [Abstract]  
Leases Leases
The Company has lease arrangements for certain equipment and facilities, including retail, corporate, manufacturing and data center space. These leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options, some of which are reasonably certain of exercise. The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities.
Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. Lease costs associated with fixed payments on the Company’s operating leases were $1.5 billion for 2020. Lease costs associated with variable payments on the Company’s leases were $9.3 billion for 2020. Rent expense for operating leases, as previously reported under former lease accounting standards, was $1.3 billion and $1.2 billion in 2019 and 2018, respectively.
For 2020, the Company made $1.5 billion of fixed cash payments related to operating leases. Non-cash activities involving ROU assets obtained in exchange for lease liabilities were $10.5 billion for 2020, including the impact of adopting the new leases standard in the first quarter of 2020.
The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 26, 2020 (in millions):
Lease-Related Assets and LiabilitiesFinancial Statement Line Items2020
Right-of-use assets:
Operating leasesOther non-current assets$8,570 
Finance leasesProperty, plant and equipment, net629 
Total right-of-use assets$9,199 
Lease liabilities:
Operating leasesOther current liabilities$1,436 
Other non-current liabilities7,745 
Finance leasesOther current liabilities24 
Other non-current liabilities637 
Total lease liabilities$9,842 
Lease liability maturities as of September 26, 2020, are as follows (in millions):
Operating
Leases		Finance
Leases		Total
2021$1,493 $43 $1,536 
20221,461 43 1,504 
20231,317 54 1,371 
20241,068 30 1,098 
2025960 25 985 
Thereafter3,845 895 4,740 
Total undiscounted liabilities10,144 1,090 11,234 
Less: Imputed interest(963)(429)(1,392)
Total lease liabilities$9,181 $661 $9,842 
The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of September 26, 2020 were 10.3 years and 2.0%, respectively. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.
As of September 26, 2020, the Company had $1.7 billion of future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2021 and 2022, with lease terms ranging from 1 year to 20 years.
Leases Leases
The Company has lease arrangements for certain equipment and facilities, including retail, corporate, manufacturing and data center space. These leases typically have original terms not exceeding 10 years and generally contain multi-year renewal options, some of which are reasonably certain of exercise. The Company’s lease arrangements may contain both lease and non-lease components. The Company has elected to combine and account for lease and non-lease components as a single lease component for leases of retail, corporate, and data center facilities.
Payments under the Company’s lease arrangements may be fixed or variable, and variable lease payments are primarily based on purchases of output of the underlying leased assets. Lease costs associated with fixed payments on the Company’s operating leases were $1.5 billion for 2020. Lease costs associated with variable payments on the Company’s leases were $9.3 billion for 2020. Rent expense for operating leases, as previously reported under former lease accounting standards, was $1.3 billion and $1.2 billion in 2019 and 2018, respectively.
For 2020, the Company made $1.5 billion of fixed cash payments related to operating leases. Non-cash activities involving ROU assets obtained in exchange for lease liabilities were $10.5 billion for 2020, including the impact of adopting the new leases standard in the first quarter of 2020.
The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 26, 2020 (in millions):
Lease-Related Assets and LiabilitiesFinancial Statement Line Items2020
Right-of-use assets:
Operating leasesOther non-current assets$8,570 
Finance leasesProperty, plant and equipment, net629 
Total right-of-use assets$9,199 
Lease liabilities:
Operating leasesOther current liabilities$1,436 
Other non-current liabilities7,745 
Finance leasesOther current liabilities24 
Other non-current liabilities637 
Total lease liabilities$9,842 
Lease liability maturities as of September 26, 2020, are as follows (in millions):
Operating
Leases		Finance
Leases		Total
2021$1,493 $43 $1,536 
20221,461 43 1,504 
20231,317 54 1,371 
20241,068 30 1,098 
2025960 25 985 
Thereafter3,845 895 4,740 
Total undiscounted liabilities10,144 1,090 11,234 
Less: Imputed interest(963)(429)(1,392)
Total lease liabilities$9,181 $661 $9,842 
The weighted-average remaining lease term and discount rate related to the Company’s lease liabilities as of September 26, 2020 were 10.3 years and 2.0%, respectively. The discount rates are generally based on estimates of the Company’s incremental borrowing rate, as the discount rates implicit in the Company’s leases cannot be readily determined.
As of September 26, 2020, the Company had $1.7 billion of future payments under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2021 and 2022, with lease terms ranging from 1 year to 20 years.