Leases

12 Months Ended

Oct. 03, 2021

During the years ended October 3, 2021 and September 27, 2020, we recognized accelerated amortization of ROU lease assets and other lease costs of $89.5 million and $87.7 million, respectively, which were recognized within restructuring and impairments on the consolidated statements of earnings.

The components of lease costs (in millions):


	Year Ended
	Oct 3, 2021		Sep 27, 2020
Operating lease costs(1)	$	1,579.2	$	1,573.6
Variable lease costs	949.6		833.4
Short-term lease costs	30.9		34.1
Total lease costs	$	2,559.7	$	2,441.1

(1)Includes immaterial amounts of sublease income and rent concessions.

The following table includes supplemental information (in millions):


	Year Ended
	Oct 3, 2021		Sep 27, 2020
Cash paid related to operating lease liabilities	$	1,707.1	$	1,463.3
Operating lease liabilities arising from obtaining ROU assets(1)	1,590.3		1,093.0

(1)Excludes the initial impact of adoption during the year ended September 27, 2020.


	Oct 3, 2021		Sep 27, 2020
Weighted-average remaining operating lease term	8.7 years		8.8 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 on the consolidated balance sheet. Finance leases were immaterial as of October 3, 2021 and September 27, 2020.

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


Fiscal Year	Total
2022	$	1,504.6
2023	1,441.3
2024	1,310.2
2025	1,156.6
2026	1,012.5
Thereafter	3,704.7
Total lease payments	10,129.9
Less imputed interest	(1,140.6)
Total	$	8,989.3

As of October 3, 2021, we have entered into operating leases that have not yet commenced of $830.9 million, primarily related to real estate leases. These leases will commence between fiscal year 2022 and fiscal year 2028 with lease terms of 10 years to 20 years.

Previous Lease Guidance Disclosures

Rent expense under operating lease agreements under the previous lease guidance, which excludes certain amounts required under the new guidance (in millions):


	Year Ended
	Sep 29, 2019
Minimum rent	$	1,441.7
Contingent rent	224.3
Total	1,666.0

We have subleases related to certain of our operating leases. We recognized $10.9 million of sublease income during the fiscal year ended September 29, 2019. Additionally, as of September 29, 2019, the gross carrying value of assets related to build-to-suit lease arrangements accounted for as financing leases was $122.3 million, with associated accumulated depreciation of $17.2 million. Lease exit costs associated with our restructuring efforts primarily relate to the closure of Teavana retail stores and certain Starbucks company-operated stores, and are recognized concurrently with actual store closures. Total lease exit costs of $55.3 million was recorded in restructuring and impairments on the consolidated statement of earnings in fiscal 2019.