Leases

12 Months Ended

Sep. 28, 2024

Leases [Abstract]

Leases

Leases

The Company has lease arrangements for certain equipment and facilities, including corporate, data center, manufacturing and retail space. These leases typically have original terms not exceeding 10 years and generally contain multiyear renewal options, some of which are reasonably certain of exercise.

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 $2.0 billion for both 2024 and 2023 and $1.9 billion for 2022. Lease costs associated with variable payments on the Company’s leases were $13.8 billion, $13.9 billion and $14.9 billion for 2024, 2023 and 2022, respectively.

The Company made fixed cash payments related to operating leases of $1.9 billion in both 2024 and 2023 and $1.8 billion in 2022. Noncash activities involving right-of-use (“ROU”) assets obtained in exchange for lease liabilities were $1.0 billion, $2.1 billion and $2.8 billion for 2024, 2023 and 2022, respectively.

The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 28, 2024 and September 30, 2023 (in millions):

Lease-Related Assets and Liabilities	Financial Statement Line Items	2024		2023
Right-of-use assets:
Operating leases	Other non-current assets	$	10,234	$	10,661
Finance leases	Property, plant and equipment, net	1,069		1,015
Total right-of-use assets		$	11,303	$	11,676
Lease liabilities:
Operating leases	Other current liabilities	$	1,488	$	1,410
	Other non-current liabilities	10,046		10,408
Finance leases	Other current liabilities	144		165
	Other non-current liabilities	752		859
Total lease liabilities		$	12,430	$	12,842

Lease liability maturities as of September 28, 2024, are as follows (in millions):

	Operating Leases		Finance Leases		Total
2025	$	1,820	$	171	$	1,991
2026	1,914		131		2,045
2027	1,674		59		1,733
2028	1,360		38		1,398
2029	1,187		36		1,223
Thereafter	5,563		837		6,400
Total undiscounted liabilities	13,518		1,272		14,790
Less: Imputed interest	(1,984)		(376)		(2,360)
Total lease liabilities	$	11,534	$	896	$	12,430

The weighted-average remaining lease term related to the Company’s lease liabilities as of September 28, 2024 and September 30, 2023 was 10.3 years and 10.6 years, respectively. The discount rate related to the Company’s lease liabilities as of September 28, 2024 and September 30, 2023 was 3.1% and 3.0%, respectively. The discount rates related to the Company’s lease liabilities 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 28, 2024, the Company had $849 million of fixed payment obligations under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2025 and 2026, with lease terms ranging from less than 1 year to 21 years.

Leases

Leases

The Company has lease arrangements for certain equipment and facilities, including corporate, data center, manufacturing and retail space. These leases typically have original terms not exceeding 10 years and generally contain multiyear renewal options, some of which are reasonably certain of exercise.

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 $2.0 billion for both 2024 and 2023 and $1.9 billion for 2022. Lease costs associated with variable payments on the Company’s leases were $13.8 billion, $13.9 billion and $14.9 billion for 2024, 2023 and 2022, respectively.

The Company made fixed cash payments related to operating leases of $1.9 billion in both 2024 and 2023 and $1.8 billion in 2022. Noncash activities involving right-of-use (“ROU”) assets obtained in exchange for lease liabilities were $1.0 billion, $2.1 billion and $2.8 billion for 2024, 2023 and 2022, respectively.

The following table shows ROU assets and lease liabilities, and the associated financial statement line items, as of September 28, 2024 and September 30, 2023 (in millions):

Lease-Related Assets and Liabilities	Financial Statement Line Items	2024		2023
Right-of-use assets:
Operating leases	Other non-current assets	$	10,234	$	10,661
Finance leases	Property, plant and equipment, net	1,069		1,015
Total right-of-use assets		$	11,303	$	11,676
Lease liabilities:
Operating leases	Other current liabilities	$	1,488	$	1,410
	Other non-current liabilities	10,046		10,408
Finance leases	Other current liabilities	144		165
	Other non-current liabilities	752		859
Total lease liabilities		$	12,430	$	12,842

Lease liability maturities as of September 28, 2024, are as follows (in millions):

	Operating Leases		Finance Leases		Total
2025	$	1,820	$	171	$	1,991
2026	1,914		131		2,045
2027	1,674		59		1,733
2028	1,360		38		1,398
2029	1,187		36		1,223
Thereafter	5,563		837		6,400
Total undiscounted liabilities	13,518		1,272		14,790
Less: Imputed interest	(1,984)		(376)		(2,360)
Total lease liabilities	$	11,534	$	896	$	12,430

The weighted-average remaining lease term related to the Company’s lease liabilities as of September 28, 2024 and September 30, 2023 was 10.3 years and 10.6 years, respectively. The discount rate related to the Company’s lease liabilities as of September 28, 2024 and September 30, 2023 was 3.1% and 3.0%, respectively. The discount rates related to the Company’s lease liabilities 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 28, 2024, the Company had $849 million of fixed payment obligations under additional leases, primarily for corporate facilities and retail space, that had not yet commenced. These leases will commence between 2025 and 2026, with lease terms ranging from less than 1 year to 21 years.