Leases

9 Months Ended

Jun. 01, 2023

Leases [Abstract]

Leases, Finance

Leases

The components of lease cost are presented below:

	Quarter ended				Nine months ended
	June 1, 2023		June 2, 2022		June 1, 2023		June 2, 2022
Finance lease cost
Amortization of right-of-use assets	$	28	$	23	$	77	$	75
Interest on lease liabilities	6		6		18		18
Operating lease cost(1)	34		32		101		91
	$	68	$	61	$	196	$	184

(1)Operating lease cost includes short-term and variable lease expenses, which were not material for the periods presented.

Supplemental cash flow information related to leases was as follows:

Nine months ended	June 1, 2023		June 2, 2022
Cash flows used for operating activities
Finance leases	$	17	$	18
Operating leases	91		81
Cash flows used for financing activities – Finance leases	79		79
Noncash acquisitions of right-of-use assets
Finance leases	354		304
Operating leases	35		190

Supplemental balance sheet information related to leases was as follows:

As of	June 1, 2023			September 1, 2022
Finance lease right-of-use assets (included in property, plant, and equipment)	$	1,187		$	904
Current operating lease liabilities (included in accounts payable and accrued expenses)	62			60
Weighted-average remaining lease term (in years)
Finance leases	10			12
Operating leases	11			12
Weighted-average discount rate
Finance leases	3.48		%	2.65		%
Operating leases	3.11		%	2.90		%

As of June 1, 2023, maturities of lease liabilities by fiscal year were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2023	$	49	$	3
2024	184		73
2025	169		73
2026	159		72
2027	154		72
2028 and thereafter	641		524
Less imputed interest	(185)		(152)
	$	1,171	$	665

The table above excludes obligations for leases that have been executed but have not yet commenced. As of June 1, 2023, excluded obligations consisted of $175 million of estimated finance lease payments over a weighted-average period of 11 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.

Leases, Operating

Leases

The components of lease cost are presented below:

	Quarter ended				Nine months ended
	June 1, 2023		June 2, 2022		June 1, 2023		June 2, 2022
Finance lease cost
Amortization of right-of-use assets	$	28	$	23	$	77	$	75
Interest on lease liabilities	6		6		18		18
Operating lease cost(1)	34		32		101		91
	$	68	$	61	$	196	$	184

(1)Operating lease cost includes short-term and variable lease expenses, which were not material for the periods presented.

Supplemental cash flow information related to leases was as follows:

Nine months ended	June 1, 2023		June 2, 2022
Cash flows used for operating activities
Finance leases	$	17	$	18
Operating leases	91		81
Cash flows used for financing activities – Finance leases	79		79
Noncash acquisitions of right-of-use assets
Finance leases	354		304
Operating leases	35		190

Supplemental balance sheet information related to leases was as follows:

As of	June 1, 2023			September 1, 2022
Finance lease right-of-use assets (included in property, plant, and equipment)	$	1,187		$	904
Current operating lease liabilities (included in accounts payable and accrued expenses)	62			60
Weighted-average remaining lease term (in years)
Finance leases	10			12
Operating leases	11			12
Weighted-average discount rate
Finance leases	3.48		%	2.65		%
Operating leases	3.11		%	2.90		%

As of June 1, 2023, maturities of lease liabilities by fiscal year were as follows:

For the year ending	Finance Leases		Operating Leases
Remainder of 2023	$	49	$	3
2024	184		73
2025	169		73
2026	159		72
2027	154		72
2028 and thereafter	641		524
Less imputed interest	(185)		(152)
	$	1,171	$	665

The table above excludes obligations for leases that have been executed but have not yet commenced. As of June 1, 2023, excluded obligations consisted of $175 million of estimated finance lease payments over a weighted-average period of 11 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.