Leases

6 Months Ended

Apr. 03, 2022

Leases [Abstract]

Leases

Leases

Our operating leases are primarily for corporate and project office spaces. To a much lesser extent, we have operating leases for vehicles and equipment. Our operating leases have remaining lease terms of one month to twelve years, some of which may include options to extend the leases for up to five years.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets and current and long-term operating lease liabilities in the consolidated balance sheets. Our finance leases are primarily for certain information technology equipment. The related ROU assets and lease liabilities were immaterial, and are included in "Property and equipment, net", "Other current liabilities" and "Other long-term liabilities", accordingly, in the consolidated balance sheets at April 3, 2022 and October 3, 2021.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease terms may

include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

The components of lease costs are as follows:

	Three Months Ended				Six Months Ended
	April 3, 2022		March 28, 2021		April 3, 2022		March 28, 2021
	(in thousands)
Operating lease cost	$	21,260	$	22,640	$	43,011	$	44,709
Sublease income	(131)		(30)		(257)		(59)
Total lease cost	$	21,129	$	22,610	$	42,754	$	44,650

Supplemental cash flow information related to leases is as follows:

		Six Months Ended
		April 3, 2022		March 28, 2021
	(in thousands
Operating cash flows for operating leases		$	34,531	$	36,399
Right-of-use assets obtained in exchange for new operating lease liabilities		$	24,875	$	33,722

Supplemental balance sheet and other information related to leases are as follows:

	Balance at
	April 3, 2022			October 3, 2021
	(in thousands)
Operating leases:
Right-of-use assets	$	205,087		$	215,422
Lease liabilities:
Current	64,789			67,452
Long-term	165,630			174,285
Total operating lease liabilities	$	230,419		$	241,737
Weighted-average remaining lease term:
Operating leases	5 years			5 years
Weighted-average discount rate:
Operating leases	2.1		%	2.2		%

As of April 3, 2022, we do not have any material additional operating leases that have not yet commenced.

A maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities at April 3, 2022 is as follows:

	Amount
	(in thousands)
2022	$	37,021
2023	60,022
2024	44,794
2025	32,918
2026	22,117
Beyond	47,644
Total lease payments	244,516
Less: imputed interest	(14,097)
Total present value of lease liabilities	$	230,419

Leases

Leases

Our operating leases are primarily for corporate and project office spaces. To a much lesser extent, we have operating leases for vehicles and equipment. Our operating leases have remaining lease terms of one month to twelve years, some of which may include options to extend the leases for up to five years.

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets and current and long-term operating lease liabilities in the consolidated balance sheets. Our finance leases are primarily for certain information technology equipment. The related ROU assets and lease liabilities were immaterial, and are included in "Property and equipment, net", "Other current liabilities" and "Other long-term liabilities", accordingly, in the consolidated balance sheets at April 3, 2022 and October 3, 2021.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease terms may

include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

The components of lease costs are as follows:

	Three Months Ended				Six Months Ended
	April 3, 2022		March 28, 2021		April 3, 2022		March 28, 2021
	(in thousands)
Operating lease cost	$	21,260	$	22,640	$	43,011	$	44,709
Sublease income	(131)		(30)		(257)		(59)
Total lease cost	$	21,129	$	22,610	$	42,754	$	44,650

Supplemental cash flow information related to leases is as follows:

		Six Months Ended
		April 3, 2022		March 28, 2021
	(in thousands
Operating cash flows for operating leases		$	34,531	$	36,399
Right-of-use assets obtained in exchange for new operating lease liabilities		$	24,875	$	33,722

Supplemental balance sheet and other information related to leases are as follows:

	Balance at
	April 3, 2022			October 3, 2021
	(in thousands)
Operating leases:
Right-of-use assets	$	205,087		$	215,422
Lease liabilities:
Current	64,789			67,452
Long-term	165,630			174,285
Total operating lease liabilities	$	230,419		$	241,737
Weighted-average remaining lease term:
Operating leases	5 years			5 years
Weighted-average discount rate:
Operating leases	2.1		%	2.2		%

As of April 3, 2022, we do not have any material additional operating leases that have not yet commenced.

A maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities at April 3, 2022 is as follows:

	Amount
	(in thousands)
2022	$	37,021
2023	60,022
2024	44,794
2025	32,918
2026	22,117
Beyond	47,644
Total lease payments	244,516
Less: imputed interest	(14,097)
Total present value of lease liabilities	$	230,419