Leases

6 Months Ended

Mar. 04, 2021

Leases [Abstract]

Leases

Leases

Short-term and variable lease expenses were not significant and are presented within operating lease costs in the table below. Sublease income was not significant for any period presented. The components of lease expense are presented below:

	Quarter ended				Six months ended
	March 4, 2021		February 27, 2020		March 4, 2021		February 27, 2020
Finance lease cost
Amortization of right-of-use assets	$	17	$	39	$	33	$	79
Interest on lease liabilities	5		5		10		11
Operating lease cost	27		24		54		48
	$	49	$	68	$	97	$	138

Other information related to our leases was as follows:

Six months ended	March 4, 2021		February 27, 2020
Cash flows used for operating activities
Finance leases	$	11	$	12
Operating leases(1)	53		(10)
Cash flows used for financing activities from financing leases	41		129
Noncash acquisitions of right-of-use assets
Finance leases	68		5
Operating leases	21		24

(1) Included $48 million of reimbursements received for tenant improvements for the six months ended February 27, 2020.

As of	March 4, 2021			September 3, 2020
Finance lease right-of-use assets (included in property, plant, and equipment and assets held for sale)	$	461		$	426
Weighted-average remaining lease term (in years)
Finance leases	5			5
Operating leases	7			7
Weighted-average discount rate
Finance leases	4.09		%	4.51		%
Operating leases	2.63		%	2.67		%

Maturities of lease liabilities existing as of March 4, 2021 were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2021	$	48	$	33
2022	98		73
2023	86		68
2024	61		60
2025	45		49
2026 and thereafter	286		415
Less imputed interest	(102)		(114)
	$	522	$	584

The table above excludes any lease liabilities for leases that have been executed but have not yet commenced. As of March 4, 2021, we had such lease liabilities relating to 1) operating lease payment obligations of $147 million for the initial 10-year lease term for a building, which may, at our election, be terminated after 3 years or extended for an additional 10 years, and 2) finance lease obligations of $807 million over a weighted-average period of 15 years for leases embedded in gas supply arrangements. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.

Leases

Leases

Short-term and variable lease expenses were not significant and are presented within operating lease costs in the table below. Sublease income was not significant for any period presented. The components of lease expense are presented below:

	Quarter ended				Six months ended
	March 4, 2021		February 27, 2020		March 4, 2021		February 27, 2020
Finance lease cost
Amortization of right-of-use assets	$	17	$	39	$	33	$	79
Interest on lease liabilities	5		5		10		11
Operating lease cost	27		24		54		48
	$	49	$	68	$	97	$	138

Other information related to our leases was as follows:

Six months ended	March 4, 2021		February 27, 2020
Cash flows used for operating activities
Finance leases	$	11	$	12
Operating leases(1)	53		(10)
Cash flows used for financing activities from financing leases	41		129
Noncash acquisitions of right-of-use assets
Finance leases	68		5
Operating leases	21		24

(1) Included $48 million of reimbursements received for tenant improvements for the six months ended February 27, 2020.

As of	March 4, 2021			September 3, 2020
Finance lease right-of-use assets (included in property, plant, and equipment and assets held for sale)	$	461		$	426
Weighted-average remaining lease term (in years)
Finance leases	5			5
Operating leases	7			7
Weighted-average discount rate
Finance leases	4.09		%	4.51		%
Operating leases	2.63		%	2.67		%

Maturities of lease liabilities existing as of March 4, 2021 were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2021	$	48	$	33
2022	98		73
2023	86		68
2024	61		60
2025	45		49
2026 and thereafter	286		415
Less imputed interest	(102)		(114)
	$	522	$	584

The table above excludes any lease liabilities for leases that have been executed but have not yet commenced. As of March 4, 2021, we had such lease liabilities relating to 1) operating lease payment obligations of $147 million for the initial 10-year lease term for a building, which may, at our election, be terminated after 3 years or extended for an additional 10 years, and 2) finance lease obligations of $807 million over a weighted-average period of 15 years for leases embedded in gas supply arrangements. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.