Leases, Codification Topic 842

12 Months Ended

Oct. 02, 2020

Leases [Abstract]

Lessee, Operating Leases

10.     LEASES

The Company’s lease arrangements consist primarily of corporate, manufacturing, and other facility agreements as well as various machinery and office equipment agreements. The leases expire at various dates through 2033, some of which include options to extend the lease term. The options with the longest potential total lease term consist of options for extension of up to three five-year periods following expiration of the original lease term.

During the fiscal year ended October 2, 2020, the Company recorded $28.1 million of operating lease expense and $7.6 million of variable lease expense. During the fiscal years ended September 27, 2019, and September 28, 2018, the Company recorded $18.7 million and $20.5 million of rent expense, respectively. The Company’s finance leases and short-term leases are immaterial.

Supplemental cash information and non-cash activities related to operating leases are as follows (in millions):

	Fiscal Year Ended
	October 2, 2020
Operating cash outflows from operating leases	$	25.4
Operating lease assets obtained in exchange for new lease liabilities	$	31.0

Maturities of lease liabilities under operating leases by fiscal year are as follows (in millions):

	As of
	October 2, 2020
2021	$	25.7
2022	28.7
2023	25.1
2024	21.7
2025	20.6
Thereafter	81.6
Total lease payments	203.4
Less: imputed interest	(24.5)
Present value of lease liabilities	178.9
Less: current portion (included in other current liabilities)	(28.2)
Total	$	150.7

Future minimum lease liabilities under non-cancelable operating leases are as follows (in millions):

	As of
	September 27, 2019
2020	$	26.7
2021	25.9
2022	24.8
2023	23.3
2024	21.5
Thereafter	97.7
Total	$	219.9

Weighted-average remaining lease term and discount rate related to operating leases are as follows:

	As of
	October 2, 2020
Weighted-average remaining lease term (years)	8.2
Weighted-average discount rate	3.3	%