XML 32 R19.htm IDEA: XBRL DOCUMENT v3.22.2.2
Leases
 12 Months Ended
Oct. 29, 2022
Leases [Abstract]  
Leases LeasesThe Company enters into operating leases which primarily relate to certain facilities and, to a lesser extent, finance leases. Finance leases were not a material component of the Company's lease portfolio in the periods presented. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. Lease assets represent the Company's right to use underlying assets for the lease term, and lease liabilities represent the obligation to make lease payments over the lease term. At lease commencement, leases are evaluated for classification, and assets and liabilities are recognized based on the present value of lease payments over the lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. The Company has agreements with lease and non-lease
components, which are accounted for as a single lease component. Non-lease components may include real estate taxes, insurance, maintenance, parking and other operating costs. If these costs are variable costs they are not included in the measurement of the right-of-use assets and lease liabilities, but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s leases have remaining lease terms of less than one year to approximately twenty-three years, some of which may include options to extend the initial term of the lease. These options are included in determining the initial lease term at lease commencement only if the Company is reasonably certain to exercise the option. Lease costs are recognized on a straight-line basis as lease expense over the lease term. For leases with terms of twelve months or less the Company recognizes the related lease payments as expense either on a straight-line basis over the lease term or as incurred depending on whether the lease payments are fixed or variable. The Company subleases certain properties that are not used in its core business operations (See Note 5, Special Charges, Net, of the Notes to Consolidated Financial Statements). Sublease income was not significant for the periods presented.
The following table presents supplemental balance sheet information related to the Company's operating leases:
October 29, 2022October 30, 2021
Assets
Operating lease right-of-use assets in Other assets$262,997 $279,542 
Liabilities
Operating lease liabilities in Accrued liabilities$53,628 $52,576 
Operating lease liabilities in Other non-current liabilities$337,279 $295,782 
Details of the Company's operating leases are as follows:
October 29, 2022
October 30, 2021
Lease expense$60,660 $50,799 
Cash paid for amounts included in the measurement of operating lease liabilities
Operating cash flows from operating leases$61,915 $53,724 
Lease assets obtained in exchange for new lease liabilities$107,631 $25,946 
Weighted average remaining lease term7.6 years7.9 years
Weighted average discount rate3.3%2.9%
The following table presents the maturities of the Company's operating lease liabilities as of October 29, 2022:
Fiscal year
2023
$31,199 
202468,433 
202563,065 
202659,156 
202754,027 
Thereafter178,663 
Total future minimum operating lease payments454,543 
Less: imputed interest(63,636)
Present value of operating lease liabilities$390,907 
The following table presents the future minimum cash receipts as a result of subleases as of October 29, 2022:
Fiscal year
2023
$1,928 
202412,664 
202513,843 
202614,259 
202714,687 
Thereafter42,734 
Total future minimum cash receipts$100,115 
Leases LeasesThe Company enters into operating leases which primarily relate to certain facilities and, to a lesser extent, finance leases. Finance leases were not a material component of the Company's lease portfolio in the periods presented. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. Lease assets represent the Company's right to use underlying assets for the lease term, and lease liabilities represent the obligation to make lease payments over the lease term. At lease commencement, leases are evaluated for classification, and assets and liabilities are recognized based on the present value of lease payments over the lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. The Company has agreements with lease and non-lease
components, which are accounted for as a single lease component. Non-lease components may include real estate taxes, insurance, maintenance, parking and other operating costs. If these costs are variable costs they are not included in the measurement of the right-of-use assets and lease liabilities, but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s leases have remaining lease terms of less than one year to approximately twenty-three years, some of which may include options to extend the initial term of the lease. These options are included in determining the initial lease term at lease commencement only if the Company is reasonably certain to exercise the option. Lease costs are recognized on a straight-line basis as lease expense over the lease term. For leases with terms of twelve months or less the Company recognizes the related lease payments as expense either on a straight-line basis over the lease term or as incurred depending on whether the lease payments are fixed or variable. The Company subleases certain properties that are not used in its core business operations (See Note 5, Special Charges, Net, of the Notes to Consolidated Financial Statements). Sublease income was not significant for the periods presented.
The following table presents supplemental balance sheet information related to the Company's operating leases:
October 29, 2022October 30, 2021
Assets
Operating lease right-of-use assets in Other assets$262,997 $279,542 
Liabilities
Operating lease liabilities in Accrued liabilities$53,628 $52,576 
Operating lease liabilities in Other non-current liabilities$337,279 $295,782 
Details of the Company's operating leases are as follows:
October 29, 2022
October 30, 2021
Lease expense$60,660 $50,799 
Cash paid for amounts included in the measurement of operating lease liabilities
Operating cash flows from operating leases$61,915 $53,724 
Lease assets obtained in exchange for new lease liabilities$107,631 $25,946 
Weighted average remaining lease term7.6 years7.9 years
Weighted average discount rate3.3%2.9%
The following table presents the maturities of the Company's operating lease liabilities as of October 29, 2022:
Fiscal year
2023
$31,199 
202468,433 
202563,065 
202659,156 
202754,027 
Thereafter178,663 
Total future minimum operating lease payments454,543 
Less: imputed interest(63,636)
Present value of operating lease liabilities$390,907 
The following table presents the future minimum cash receipts as a result of subleases as of October 29, 2022:
Fiscal year
2023
$1,928 
202412,664 
202513,843 
202614,259 
202714,687 
Thereafter42,734 
Total future minimum cash receipts$100,115