Leases

3 Months Ended

Dec. 03, 2020

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 in the first quarters of 2021 or 2020. The components of lease expense are presented below:

Three months ended	December 3, 2020		November 28, 2019
Finance lease cost
Amortization of right-of-use assets	$	16	$	40
Interest on lease liabilities	5		6
Operating lease cost	27		24
	$	48	$	70

Other information related to our leases was as follows:

Three months ended	December 3, 2020		November 28, 2019
Cash flows used for operating activities
Finance leases	$	6	$	6
Operating leases	27		17
Cash flows used for financing activities from financing leases	21		64
Noncash acquisitions of right-of-use assets
Finance leases	61		—
Operating leases	7		13

As of	December 3, 2020			September 3, 2020
Finance lease right-of-use assets (included in property, plant, and equipment)	$	471		$	426
Weighted-average remaining lease term (in years)
Finance leases	5			5
Operating leases	7			7
Weighted-average discount rate
Finance leases	4.13		%	4.51		%
Operating leases	2.66		%	2.67		%

Maturities of lease liabilities existing as of December 3, 2020 were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2021	$	71	$	53
2022	97		71
2023	85		67
2024	59		59
2025	44		48
2026 and thereafter	282		402
Less imputed interest	(107)		(116)
	$	531	$	584

The table above excludes any lease liabilities for leases that have been executed but have not yet commenced. As of December 3, 2020, we had such lease liabilities relating to 1) operating lease payment obligations of $152 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 $812 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 in the first quarters of 2021 or 2020. The components of lease expense are presented below:

Three months ended	December 3, 2020		November 28, 2019
Finance lease cost
Amortization of right-of-use assets	$	16	$	40
Interest on lease liabilities	5		6
Operating lease cost	27		24
	$	48	$	70

Other information related to our leases was as follows:

Three months ended	December 3, 2020		November 28, 2019
Cash flows used for operating activities
Finance leases	$	6	$	6
Operating leases	27		17
Cash flows used for financing activities from financing leases	21		64
Noncash acquisitions of right-of-use assets
Finance leases	61		—
Operating leases	7		13

As of	December 3, 2020			September 3, 2020
Finance lease right-of-use assets (included in property, plant, and equipment)	$	471		$	426
Weighted-average remaining lease term (in years)
Finance leases	5			5
Operating leases	7			7
Weighted-average discount rate
Finance leases	4.13		%	4.51		%
Operating leases	2.66		%	2.67		%

Maturities of lease liabilities existing as of December 3, 2020 were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2021	$	71	$	53
2022	97		71
2023	85		67
2024	59		59
2025	44		48
2026 and thereafter	282		402
Less imputed interest	(107)		(116)
	$	531	$	584

The table above excludes any lease liabilities for leases that have been executed but have not yet commenced. As of December 3, 2020, we had such lease liabilities relating to 1) operating lease payment obligations of $152 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 $812 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.