LEASES (Tables)

3 Months Ended

Dec. 28, 2019

Lease expense and components of lease expense

The following table shows the various components of lease expense:



	Three months ended
(in thousands)	December 28, 2019
Operating lease expense ⁽¹⁾	$	1,757

(1) Operating lease expense includes short-term lease expense, which is immaterial for the three month ended December 28, 2019.

The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating and finance lease liabilities, and, as such, are excluded from the amounts below:



	As of
(in thousands)	December 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	1,757

Weighted-average lease terms and discount rates

The following table shows the weighted-average lease terms and discount rates for operating leases:



	As of
	December 28, 2019
Operating leases:
Weighted-average remaining lease term:	5.0		years
Weighted-average discount rate:	4.8	%

Future lease payments after ASC 842 adoption

Future lease payments, excluding short-term leases, as of December 28, 2019, are detailed as follows:



(in thousands)	Operating leases
Remainder of 2020	$	5,048
2021	5,265
2022	4,750
2023	4,639
2024	2,278
Thereafter	3,662
Total minimum lease payments	25,642
Less: Interest	3,010
Present value of lease obligations	22,632
Less: Current portion	5,427
Long-term portion of lease obligations	$	17,205

Future lease payments before ASC 842 adoption

Future lease payments under operating leases prior to adoption ASC 842 were as follows:



			Payments due by fiscal year
(in thousands)	Total		2020		2021		2022		2023		2024		Thereafter
Operating lease obligations ⁽¹⁾	$	16,273	$	4,089	$	2,576	$	2,182	$	1,967	$	1,822	$	3,637

(1) Pursuant to ASC No. 840, Leases ("ASC 840"), for lessee's involvement in asset construction, the Company was considered to be the owner of the Building (as defined in Note 9 below) during the construction phase due to its involvement in the asset construction. As a result of the Company's continued involvement during the lease term, the Company did not fulfill the criteria to apply sale-leaseback accounting under ASC 840. Therefore, at completion of construction, the Building remained on the Consolidated Condensed Balance Sheet, and the corresponding financing obligation was reclassified to long-term liability. As of September 28, 2019, we recorded a financing obligation related to the Building of $15.0 million (see Note 9 below). The financing obligation is not reflected in the table above.