Leases

9 Months Ended

Jun. 27, 2021

For the quarter and three quarters ended June 27, 2021, we recognized accelerated amortization of ROU lease assets and other lease costs of $12.2 million and $56.2 million, respectively, which were recognized within restructuring and impairments on the consolidated statements of earnings. For the quarter and three quarters ended June 28, 2020, we recognized accelerated amortization of ROU lease assets and other lease costs of $13.4 million and $17.0 million, respectively, and an immaterial ROU asset impairment charge, which were recorded within restructuring and impairments on the consolidated statements of earnings.

The components of lease costs (in millions):


	Quarter Ended				Three Quarters Ended
	Jun 27, 2021		Jun 28, 2020		Jun 27, 2021		Jun 28, 2020
Operating lease costs(1)	$	386.9	$	363.3	$	1,185.6	$	1,113.9
Variable lease costs	224.6		184.3		671.3		610.2
Short-term lease costs	7.4		8.1		23.7		24.7
Total lease costs	$	618.9	$	555.7	$	1,880.6	$	1,748.8

(1)Operating lease costs were net of immaterial amounts of sublease income. For the quarter and three quarters ended June 27, 2021, operating lease costs were also net of immaterial amounts of rent concessions. For the quarter and three quarters ended June 28, 2020, we received $21.7 million in rent concessions, which was recorded as a reduction to store operating expenses on our consolidated statement of earnings.

The following table includes supplemental information (in millions):


	Three Quarters Ended
	Jun 27, 2021			Jun 28, 2020
Cash paid related to operating lease liabilities	$	1,200.6		$	1,089.4
Operating lease liabilities arising from obtaining ROU assets	1,030.7			770.4

	Jun 27, 2021			Jun 28, 2020
Weighted-average remaining operating lease term	8.6 years			8.9 years
Weighted-average operating lease discount rate	2.5		%	2.5		%

Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued liabilities and other long-term liabilities on the consolidated balance sheet. There were no material finance leases as of June 27, 2021.

Minimum future maturities of operating lease liabilities (in millions):


Fiscal Year	Total
2021 (excluding the three quarters ended June 27, 2021)	$	392.7
2022	1,533.3
2023	1,388.0
2024	1,251.2
2025	1,101.4
Thereafter	4,366.0
Total lease payments	10,032.6
Less imputed interest	(1,126.4)
Total	$	8,906.2

As of June 27, 2021, we have entered into operating leases that have not yet commenced of $846.7 million, primarily related to real estate leases. These leases will commence between fiscal year 2021 and fiscal year 2027 with lease terms ranging from 3 years to 20 years.