LEASES
The following table presents the Company’s lease costs (in millions):
| | | | | | | | | | | | | | | | | | | | | |
| | Year Ended September 30, | |
| | 2025 | | 2024 | | 2023 | |
| Operating lease cost | | $ | 381 | | | $ | 374 | | | $ | 365 | | |
| Variable lease cost | | 153 | | | 170 | | | 154 | | |
| Total lease costs | | $ | 534 | | | $ | 544 | | | $ | 519 | | |
| | | | | | | |
| | | | | | | |
The following table presents supplemental consolidated statement of financial position information (in millions):
| | | | | | | | | | | | | | | | | |
| | | September 30, |
| Location of lease balances | | 2025 | | 2024 |
| Operating lease right-of-use assets | Other noncurrent assets | | $ | 1,347 | | | $ | 1,170 | |
| Operating lease liabilities - current | Other current liabilities | | 226 | | | 289 | |
| Operating lease liabilities - noncurrent | Other noncurrent liabilities | | 1,084 | | | 921 | |
| | | | | |
| Weighted-average remaining lease term | | | 7 years | | 7 years |
| Weighted-average discount rate | | | 4.1 | % | | 3.8 | % |
The following table presents supplemental cash flow information related to operating leases (in millions):
| | | | | | | | | | | | | | | | | | | | |
| | Year Ended September 30, |
| | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liability: | | | | | | |
| Operating cash outflows from operating leases | | $ | 452 | | | $ | 377 | | | $ | 355 | |
| Noncash operating lease activity: | | | | | | |
| Right-of-use assets obtained in exchange for operating lease liabilities | | 555 | | | 354 | | | 389 | |
The following table presents future minimum rental payments for operating lease liabilities as of September 30, 2025 (in millions):
| | | | | | | | |
| 2026 | | $ | 274 | |
| 2027 | | 306 | |
| 2028 | | 245 | |
| 2029 | | 189 | |
| 2030 | | 132 | |
After 2030 | | 370 | |
| Total operating lease payments | | 1,516 | |
| Less: Interest | | (206) | |
| Present value of lease payments | | $ | 1,310 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.