Leases

12 Months Ended

Aug. 28, 2025

Leases

We have finance and operating leases through which we obtain the right to use facilities, land, and equipment that support our business operations. Our finance leases consist primarily of (1) equipment leases and (2) gas and other supply agreements that are deemed to contain embedded leases. Our operating leases consist primarily of offices, laboratories, other facilities, and land. Certain of our operating leases include one or more options to extend the lease term for periods from one year to 10 years for real estate and one year to 99 years for land. In determining the lease term, we assess whether we are reasonably certain to exercise any options to renew or terminate a lease or to purchase the right-of-use asset.

Certain supply or service agreements require us to exercise significant judgment to determine whether the agreement contains a lease. Our assessment includes determining whether we or the supplier control the assets used to fulfill the agreements by identifying whether we or the supplier have the right to change the type, quantity, timing, or location of the output of the assets. Our gas supply arrangements generally are deemed to contain a lease because we have the right to substantially all of the output of the assets used to produce the supply and we have the right to change the quantity and timing of the output of those assets.

The components of lease cost are presented below:


For the year ended	2025		2024		2023

Finance lease cost
Amortization of right-of-use asset	$	335	$	176	$	105
Interest on lease liability	127		70		24
Operating lease cost(1)	153		140		137
	$	615	$	386	$	266

(1)Includes short-term and variable lease costs.

Supplemental cash flow information related to leases was as follows:


For the year ended	2025		2024		2023

Cash flows used for operating activities
Finance leases	$	120	$	61	$	24
Operating leases	149		132		139
Cash flows used for financing activities – Finance leases	323		155		109
Non-cash acquisitions of right-of-use assets
Finance leases	1,298		905		508
Operating leases	166		54		57

Supplemental balance sheet information related to leases was as follows:


As of	August 28, 2025			August 29, 2024

Finance lease right-of-use assets (included in property, plant, and equipment)	$	3,004		$	2,038
Current operating lease liabilities (included in accounts payable and accrued expenses)	74			71

Weighted-average remaining lease term (in years)
Finance leases	7			8
Operating leases	12			10
Weighted-average discount rate
Finance leases	5.19		%	4.91		%
Operating leases	4.26		%	3.42		%

As of August 28, 2025, maturities of lease liabilities by fiscal year were as follows:


	Finance Leases		Operating Leases

2026	$	675	$	92
2027	660		97
2028	640		89
2029	548		83
2030	336		85
2031 and thereafter	647		628
Less imputed interest	(462)		(299)
	$	3,044	$	775

The table above excludes obligations for leases that have been executed but have not yet commenced. As of August 28, 2025, excluded obligations consisted of $1.16 billion of finance lease obligations over a weighted-average period of 15 years for gas supply arrangements deemed to contain embedded leases and equipment leases. We will recognize right-of-use assets and associated lease liabilities at the time such assets become available for our use.

Operating Leases