Leases (Tables)

6 Months Ended

Apr. 03, 2020

Included in our condensed consolidated balance sheets were the following amounts related to operating and finance lease assets and liabilities (in thousands):



	April 3, 2020		September 27, 2019		Consolidated Balance Sheet Classification
Assets:
Operating lease ROU assets	$	33,807	$	—	Other long-term assets
Finance lease assets	34,667		—		Property and equipment, net
Capital lease and financed assets	—		40,442		Property and equipment, net
Total lease assets	$	68,474	$	40,442
Liabilities:
Current:
Operating lease liabilities	$	7,613	$	—	Accrued liabilities
Finance lease liabilities	1,596		—		Current portion of finance lease obligations and other
Capital lease and financing obligations	—		1,084		Current portion of finance lease obligations and other
Long-term:
Operating lease liabilities	32,052		—		Other long-term liabilities
Finance lease liabilities	29,697		—		Finance lease obligations and other, less current portion
Capital lease and financing obligations	—		29,506		Finance lease obligations and other, less current portion
Total lease liabilities	$	70,958	$	30,590

The weighted-average remaining lease terms and weighted-average discount rates for operating and finance leases as of April 3, 2020 were as follows:



	April 3, 2020
Weighted-average remaining lease term (in years):
Operating leases	6.69
Finance leases	17.17
Weighted-average discount rate:
Operating leases	6.36	%
Finance leases	6.72	%

Lease, Cost

As of April 3, 2020, maturities of lease liabilities by fiscal year were as follows (in thousands):



Fiscal year ending:	Operating Leases		Finance Leases
2020 (remainder of fiscal year)	$	5,028	$	1,923
2021	9,183		3,394
2022	7,427		2,836
2023	5,989		2,820
2024	5,571		2,856
2025	3,636		2,783
Thereafter	12,276		37,150
Total lease payments	49,110		53,762
Less: interest	9,445		22,469
Present value of lease liabilities	$	39,665	$	31,293

The components of lease expense were as follows (in thousands):



	Three Months Ended			Six Months Ended
	April 3, 2020
Finance lease cost:
Amortization of lease assets	$	796		$	1,573
Interest on lease liabilities	532			1,116
Total finance lease cost	$	1,328		$	2,689

Operating lease cost	$	2,448		$	4,931
Variable lease cost	811			1,188
Short-term lease cost	185			270
Sublease income	(83		)	(325		)

Cash paid for amounts included in the measurement of lease liabilities were as follows (in thousands):



	Six Months Ended
	April 3, 2020
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows from operating leases	$	4,486
Operating cash flows from finance leases	1,116
Financing cash flows from finance leases	871

Non-cash activities:
Operating lease right-of-use assets obtained in exchange for new lease liabilities	$	157
Financing lease assets obtained in exchange for new lease liabilities	586

Schedule of Future Minimum Lease Payments for Operating and Capital Leases

As of September 27, 2019, future minimum lease payments under our operating and capital leases were as follows as determined in accordance with the previous guidance under ASC 840 and as previously disclosed in our 2019 Annual Report on Form 10-K (in thousands):



Fiscal year ending:	Operating Leases		Capital Leases
2020	$	9,987	$	3,299
2021	9,233		3,343
2022	7,447		2,884
2023	6,061		2,816
2024	5,564		2,853
Thereafter	16,437		39,927
Total future minimum lease payments	$	54,729	55,122
Less amount representing interest			(26,241		)
Present value of net minimum capital lease payments			$	28,881