Leases

12 Months Ended

Oct. 28, 2023

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-two 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 for fiscal 2023 was $12.9 million.

The following table presents supplemental balance sheet information related to the Company's operating leases:

	October 28, 2023		October 29, 2022
Assets
Operating lease right-of-use assets in Other assets	$	277,220	$	262,997
Liabilities
Operating lease liabilities in Accrued liabilities	$	64,745	$	53,628
Operating lease liabilities in Other non-current liabilities	$	360,460	$	337,279

Details of the Company's operating leases are as follows:

	October 28, 2023		October 29, 2022
Lease expense	$	66,818	$	60,660
Cash paid for amounts included in the measurement of operating lease liabilities
Cash flows from operating leases	$	68,759	$	61,915
Lease assets obtained in exchange for new lease liabilities	$	66,760	$	107,631
Weighted average remaining lease term	7.1 years		7.6 years
Weighted average discount rate	3.6%		3.3%

The following table presents the maturities of the Company's operating lease liabilities as of October 28, 2023:

Fiscal year
2024	$	80,998
2025	76,815
2026	71,750
2027	65,278
2028	52,925
Thereafter	146,896
Total future minimum operating lease payments	494,662
Less: imputed interest	(69,457)
Present value of operating lease liabilities	$	425,205

The following table presents the future minimum cash receipts as a result of subleases as of October 28, 2023:

Fiscal year
2024	$	13,287
2025	15,231
2026	15,683
2027	16,153
2028	16,635
Thereafter	29,365
Total future minimum cash receipts	$	106,354

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-two 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 for fiscal 2023 was $12.9 million.

The following table presents supplemental balance sheet information related to the Company's operating leases:

	October 28, 2023		October 29, 2022
Assets
Operating lease right-of-use assets in Other assets	$	277,220	$	262,997
Liabilities
Operating lease liabilities in Accrued liabilities	$	64,745	$	53,628
Operating lease liabilities in Other non-current liabilities	$	360,460	$	337,279

Details of the Company's operating leases are as follows:

	October 28, 2023		October 29, 2022
Lease expense	$	66,818	$	60,660
Cash paid for amounts included in the measurement of operating lease liabilities
Cash flows from operating leases	$	68,759	$	61,915
Lease assets obtained in exchange for new lease liabilities	$	66,760	$	107,631
Weighted average remaining lease term	7.1 years		7.6 years
Weighted average discount rate	3.6%		3.3%

The following table presents the maturities of the Company's operating lease liabilities as of October 28, 2023:

Fiscal year
2024	$	80,998
2025	76,815
2026	71,750
2027	65,278
2028	52,925
Thereafter	146,896
Total future minimum operating lease payments	494,662
Less: imputed interest	(69,457)
Present value of operating lease liabilities	$	425,205

The following table presents the future minimum cash receipts as a result of subleases as of October 28, 2023:

Fiscal year
2024	$	13,287
2025	15,231
2026	15,683
2027	16,153
2028	16,635
Thereafter	29,365
Total future minimum cash receipts	$	106,354