Leases

9 Months Ended

Apr. 02, 2022

Leases [Abstract]

Leases

Note 7. Leases

We lease certain real and personal property from unrelated third parties under non-cancellable operating leases that expire at various dates through fiscal 2033. These operating leases are mainly for administrative offices, research-and-development and manufacturing facilities, as well as sales offices in various countries around the world. Certain leases require us to pay property taxes, insurance and routine maintenance, and include escalation clauses. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement.

As of April 2, 2022, we sublease certain floors of our offices in the United Kingdom, the United States, Canada and Japan. These subleases will expire at various dates through fiscal year 2023. We anticipate receiving approximately $1.5 million in sublease income over the next year.

The components of lease costs, lease term and discount rate are as follows:

	Three Months Ended				Nine Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022			April 3, 2021
(in millions, except for weighted average data)
Finance lease cost	$	—	$	0.1	$	—		$	0.4
Operating lease cost	3.3		3.4		10.0			10.6
Variable lease cost	0.3		0.5		1.1			1.5
Short-term lease cost	0.2		0.6		0.4			1.9
Sublease income	(0.8)		(0.7)		(2.4)			(2.1)
Total lease cost	$	3.0	$	3.9	$	9.1		$	12.3
					April 2, 2022			July 3, 2021
Weighted average remaining lease term (in years):
Operating leases					7.1			7.5
Weighted average discount rate (in percentages):
Operating leases					3.0		%	3.5		%

As of April 2, 2022, finance lease assets are fully amortized and there are no outstanding finance lease liabilities.

As of April 2, 2022, maturities of our operating lease liabilities, which do not include short-term leases and variable lease payments, were as follows (in millions):

Fiscal Years	Operating Leases (1)
Remainder of 2022	$	3.5
2023	13.4
2024	12.8
2025	9.4
2026	7.9
Thereafter	25.2
Total minimum lease payments	$	72.2
Less: amount representing interest	(7.4)
Present value of total lease liabilities	$	64.8

(1) Non-cancellable sublease proceeds for the remainder of fiscal 2022 and 2023 of $0.8 million and $0.7 million, respectively, are not included in the table above.

Leases

Note 7. Leases

We lease certain real and personal property from unrelated third parties under non-cancellable operating leases that expire at various dates through fiscal 2033. These operating leases are mainly for administrative offices, research-and-development and manufacturing facilities, as well as sales offices in various countries around the world. Certain leases require us to pay property taxes, insurance and routine maintenance, and include escalation clauses. Many leases include one or more options to renew. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain at lease commencement.

As of April 2, 2022, we sublease certain floors of our offices in the United Kingdom, the United States, Canada and Japan. These subleases will expire at various dates through fiscal year 2023. We anticipate receiving approximately $1.5 million in sublease income over the next year.

The components of lease costs, lease term and discount rate are as follows:

	Three Months Ended				Nine Months Ended
	April 2, 2022		April 3, 2021		April 2, 2022			April 3, 2021
(in millions, except for weighted average data)
Finance lease cost	$	—	$	0.1	$	—		$	0.4
Operating lease cost	3.3		3.4		10.0			10.6
Variable lease cost	0.3		0.5		1.1			1.5
Short-term lease cost	0.2		0.6		0.4			1.9
Sublease income	(0.8)		(0.7)		(2.4)			(2.1)
Total lease cost	$	3.0	$	3.9	$	9.1		$	12.3
					April 2, 2022			July 3, 2021
Weighted average remaining lease term (in years):
Operating leases					7.1			7.5
Weighted average discount rate (in percentages):
Operating leases					3.0		%	3.5		%

As of April 2, 2022, finance lease assets are fully amortized and there are no outstanding finance lease liabilities.

As of April 2, 2022, maturities of our operating lease liabilities, which do not include short-term leases and variable lease payments, were as follows (in millions):

Fiscal Years	Operating Leases (1)
Remainder of 2022	$	3.5
2023	13.4
2024	12.8
2025	9.4
2026	7.9
Thereafter	25.2
Total minimum lease payments	$	72.2
Less: amount representing interest	(7.4)
Present value of total lease liabilities	$	64.8

(1) Non-cancellable sublease proceeds for the remainder of fiscal 2022 and 2023 of $0.8 million and $0.7 million, respectively, are not included in the table above.