Commitment and Contingencies

12 Months Ended

Oct. 02, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure

COMMITMENTS AND CONTINGENCIES

Asset Retirement Obligations—We are obligated under certain facility leases to restore those facilities to the condition in which we or our predecessors first occupied the facilities. We are required to remove leasehold improvements and equipment installed in these facilities prior to termination of the leases. As of the end of fiscal years 2020 and 2019, the estimated costs for the removal of these assets are recorded as asset retirement obligations in other long-term liabilities were $1.9 million and $1.8 million, respectively.

Purchase Commitments—As of October 2, 2020, we had outstanding non-cancelable purchase commitments of $33.8 million primarily for purchases of services and inventory supply arrangements. In addition, we have $27.0 million in fixed payments associated with a power purchase agreement that is expected to commence in fiscal 2022 and has a 15-year term.

Litigation—From time to time we may be subject to commercial disputes, employment issues, claims by other companies in the industry that we have infringed their intellectual property rights and other similar claims and litigation. Any such claims may lead to future litigation and material damages and defense costs. We were not involved in any material pending legal proceedings during the year ended October 2, 2020.