Leases

12 Months Ended

Oct. 01, 2023

Leases [Abstract]

Lessee, Operating Leases

Leases

In fiscal 2021, we substantially completed our plan to optimize our North America store portfolio, primarily in dense metropolitan markets by developing new store formats to better cater to changing customer tastes and preferences. During the fiscal year ended October 3, 2021, we recognized accelerated amortization of ROU lease assets and other lease costs of $89.5 million, which were recognized within restructuring and impairments on the consolidated statements of earnings. We did not recognize any material restructuring and impairment amounts related to this plan during the fiscal years ended October 1, 2023 and October 2, 2022.

The components of lease costs (in millions):

	Year Ended
	Oct 1, 2023		Oct 2, 2022		Oct 3, 2021
Operating lease costs(1)	$	1,601.0	$	1,554.8	$	1,579.2
Variable lease costs	1,050.3		939.1		949.6
Short-term lease costs	28.0		28.1		30.9
Total lease costs	$	2,679.3	$	2,522.0	$	2,559.7

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

The following table includes supplemental information (in millions):

	Year Ended
	Oct 1, 2023		Oct 2, 2022		Oct 3, 2021
Cash paid related to operating lease liabilities	$	1,657.2	$	1,647.3	$	1,707.1
Operating lease liabilities arising from obtaining ROU assets	1,893.4		1,639.4		1,590.3

	Oct 1, 2023		Oct 2, 2022		Oct 3, 2021
Weighted-average remaining operating lease term	8.5 years		8.5 years		8.7 years
Weighted-average operating lease discount rate	3.1	%	2.6	%	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. Finance leases were not material as of October 1, 2023, October 2, 2022 and October 3, 2021.

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

Fiscal Year	Total
2024	$	1,577.6
2025	1,532.0
2026	1,399.1
2027	1,206.7
2028	1,000.2
Thereafter	3,878.5
Total lease payments	10,594.1
Less imputed interest	(1,394.0)
Total	$	9,200.1

As of October 1, 2023, we have entered into operating leases that have not yet commenced of $1.4 billion, primarily related to real estate leases. These leases will commence between fiscal year 2024 and fiscal year 2027 with lease terms of 2 years to 20 years.