
	Nine Months Ended
(In millions)	July 3, 2020		June 28, 2019
Accrued product warranty, at beginning of period	$	43.1	$	44.8
Charged to cost of revenues	46.0		41.7
Actual product warranty expenditures	(49.9)		(36.9)
Accrued product warranty, at end of period	$	39.2	$	49.6

The Company leases its facilities and certain equipment under operating leases. The Company's operating leases have remaining lease terms ranging from less than one year to 21 years. Facilities primarily include general and administrative office space, and space for manufacturing, research and development, and other services. Equipment primarily includes vehicles and various office equipment. The Company's finance leases primarily relate to its sale and leaseback-subleases arrangements for certain equipment and have remaining lease terms ranging from one year to seven years.

Lease cost for operating leases is recognized on a straight-line basis over the lease term. Lease cost for finance leases is recognized as amortization of the finance lease ROU asset and interest expense on the finance lease liability over the lease term. The Company also has variable lease cost that primarily relate to its operating leases and include common area maintenance, utilities, maintenance charges, property taxes, insurance, and contingent rent.


	Three Months Ended		Nine Months Ended
(In millions)	July 3, 2020		July 3, 2020

Operating lease cost	$	8.6	$	24.0
Finance lease cost:
Amortization of right-of-use assets	0.2		0.5
Interest on lease liabilities	0.1		0.4

Variable lease cost	3.7		12.4
Total lease cost	$	12.6	$	37.3


(In millions)	July 3, 2020
Operating leases:
Operating right-of-use assets	$	123.6

Accrued liabilities	$	26.2
Long-term lease liabilities	102.6
Total lease liabilities	$	128.8

Finance leases:
Property, plant, and equipment, net	$	12.0

Accrued liabilities	$	3.2
Other long-term liabilities	8.9
Total lease liabilities	$	12.1


	July 3, 2020
Weighted average remaining lease term in years
Operating leases	7.3
Finance leases	4.4

Weighted average discount rate
Operating leases	4.9	%
Finance leases	4.0	%


(In millions)	Operating Leases		Finance leases
Remainder of 2020	$	7.9	$	0.9
2021	29.9		3.5
2022	24.3		2.9
2023	19.2		2.9
2024	14.7		1.1
Thereafter	67.2		1.9
Total minimum lease payments	$	163.2	$	13.2
Less: imputed interest	34.4		1.1
Total lease liability	$	128.8	$	12.1

At September 27, 2019, the Company was committed to minimum rentals under non-cancellable operating leases (including rent escalation clauses) for fiscal years 2020 through 2024 and thereafter, as determined under the prior accounting guidance of Accounting Standard Codification 840, as follows: $32.5 million, $26.3 million, $20.2 million, $14.5 million, $10.9 million and $49.9 million, respectively.

The Company leases some of its equipment to certain customers on operating leases are generally over a period of 13 to 16 years. As of July 3, 2020, the Company had $26.5 million and $8.3 million included in property, plant and equipment and accumulated depreciation, respectively, related to equipment leased to customers. As of September 27, 2019, the Company had $22.5 million and $5.5 million included in property, plant and equipment and accumulated depreciation, respectively, related to equipment leased to customers. The Company recorded income of $2.4 million and $7.0 million during the three months and nine months ended July 3, 2020, respectively, on these equipment leases. The Company recorded income of $2.3 million and $6.5 million during the three and nine months ended June 28, 2019, respectively, on these equipment leases.

The Company’s operations and facilities, past and present, are subject to environmental laws, including laws that regulate the handling, storage, transport and disposal of hazardous substances. Certain of those laws impose cleanup liabilities on the Company in connection with its past and present operations. Those include facilities sold as part of the Company’s electron devices business in 1995 and thin film systems business in 1997. As a result, the Company oversees various environmental cleanup projects and receives reimbursements from third parties for a portion of the costs of its cleanup activities.

As of July 3, 2020, and September 27, 2019, the Company had accrued $4.5 million and $4.8 million, respectively, net of third parties' indemnification obligations, for environmental remediation liabilities. The Company believes its reserve is adequate; however, as the scope of the Company’s obligations becomes more clearly defined, the Company may modify the reserve, and charge or credit future earnings accordingly. Based on information currently known to management, management believes the costs of these environmental-related matters are not reasonably likely to have a material adverse effect on the consolidated financial statements of the Company in any one fiscal year.

The Company also reimburses certain third parties for cleanup activities. The amount the Company spent on environmental cleanup costs, third-party claim costs, project management costs and legal costs in the three and nine months ended July 3, 2020, and June 28, 2019, was not material.

On October 16, 2018, Best Medical International, Inc. sued the Company in U.S. District Court in the District of Delaware, alleging infringement of four patents related to treatment planning. The Company intends to defend the suit vigorously. This lawsuit is in the initial stages, and at this time, the Company is unable to predict the ultimate outcome of this matter or estimate a range of possible exposure. Therefore, no amounts have been accrued as of July 3, 2020.

From time to time, the Company is a party to or otherwise involved in legal proceedings, claims and government inspections or investigations and other legal matters, both inside and outside the United States, arising in the ordinary course of its business or

otherwise. The Company accrues amounts, to the extent they can be reasonably estimated, that it believes are adequate to address any liabilities related to legal proceedings and other loss contingencies that the Company believes will result in a probable loss (including, among other things, probable settlement value). A loss or a range of loss is disclosed when it is reasonably possible that a material loss will be incurred and can be estimated, or when it is reasonably possible that the amount of a loss, when material, will exceed the recorded provision.

In addition to the above, the Company is involved in other legal matters. However, such matters are subject to many uncertainties, and outcomes are not predictable with assurance. The Company is unable to estimate a loss or a range of reasonably possible losses with respect to such matters. There can be no assurances as to whether the Company will become subject to significant additional claims and liabilities with respect to ongoing or future proceedings. If actual liabilities significantly exceed the estimates made, the Company’s consolidated financial position, results of operations or cash flows could be materially adversely affected. Legal expenses relating to legal matters are expensed as incurred.

In the third quarter of fiscal year 2020, the Company implemented a global workforce reduction, as part of the Company's plan to enhance operational performance through productivity initiatives in response to the impact of the COVID-19 pandemic. The Company incurred $13.9 million in restructuring charges in the third quarter of fiscal year 2020, which primarily consisted of employee-related expenses. The Company expects to incur additional restructuring charges under this plan; however, these costs are not expected to be material. The Company expects to substantially complete this restructuring program by the end of fiscal year 2020. The restructuring charges are included in impairment and restructuring charges in the Condensed Consolidated Statements of Earnings.