Leases (Notes)

12 Months Ended

Sep. 30, 2021

Leases [Abstract]

LEASES

LEASES

The Company adopted ASU 2016-02, "Leases (Topic 842)" and the related amendments using a modified-retrospective approach as of October 1, 2019.

Most leases contain options to renew or terminate the lease. Right-of-use assets and lease liabilities reflect only the options which the Company is reasonably certain to exercise. Lease expense is recognized on a straight-line basis over the lease term.

The Company has certain real estate leases that contain variable lease payments which are based on changes in the Consumer Price Index (CPI). Additionally, the Company’s leases generally require it to pay for fuel, maintenance, repair, insurance and taxes. These payments are not included in the right-of-use asset or lease liability and are expensed as incurred.

The following table presents the Company’s lease costs for the fiscal years ended September 30, 2021 and 2020 (in millions):

	Year Ended September 30,
	2021		2020
Operating lease cost	$	384	$	399
Variable lease cost	130		145
Total lease costs	$	514	$	544

Total rental expense for continuing operations for the fiscal year ended September 30, 2019 was $452 million.

The following table presents supplemental consolidated statement of financial position information as of September 30, 2021 and 2020 (in millions):

		September 30,
	Location of lease balances	2021			2020
Operating lease right-of-use assets	Other noncurrent assets	$	1,376		$	1,190
Operating lease liabilities - current	Other current liabilities	319			332
Operating lease liabilities - noncurrent	Other noncurrent liabilities	1,055			875
Weighted-average remaining lease term		7 years			6 years
Weighted-average discount rate		1.8		%	2.2		%

The following table presents supplemental cash flow information related to operating leases for the fiscal years ended September 30, 2021 and 2020 (in millions):

	Year Ended September 30,
	2021		2020
Cash paid for amounts included in the measurement of lease liability:
Operating cash outflows from operating leases	$	398	$	397
Noncash operating lease activity:
Right-of-use assets obtained in exchange for operating lease liabilities	515		467

The following table presents maturities of operating lease liabilities as of September 30, 2021 (in millions):

	September 30, 2021
2022	$	337
2023	275
2024	226
2025	164
2026	115
After 2026	353
Total operating lease payments	1,470
Less: Interest	(96)
Present value of lease payments	$	1,374