Leases

9 Months Ended

Jun. 30, 2024

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 ten 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 "Right-of-use assets, operating leases", "Short-term lease liabilities, operating leases" and "Long-term lease liabilities, operating leases" in the consolidated balance sheets. Our finance leases are primarily for certain IT equipment and are immaterial.

Right-of-use ("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 (in thousands):


	Three Months Ended				Nine Months Ended
	June 30, 2024		July 2, 2023		June 30, 2024		July 2, 2023

Operating lease cost	$	24,562	$	24,775	$	73,580	$	70,155
Sublease income	(184)		(46)		(347)		(125)

Total lease cost	$	24,378	$	24,729	$	73,233	$	70,030

Supplemental cash flow information related to leases is as follows (in thousands):


	Nine Months Ended
	June 30, 2024		July 2, 2023

Operating cash flows for operating leases	$	56,379	$	57,871
Right-of-use assets obtained in exchange for new operating lease liabilities	38,160		72,294

Supplemental balance sheet and other information related to leases are as follows (in thousands):


	Balance at
	June 30, 2024			October 1, 2023

Operating leases:
Right-of-use assets	$	167,317		$	175,932

Lease liabilities:
Current	65,932			65,005
Non-current	128,892			144,685
Total operating lease liabilities	$	194,824		$	209,690

Weighted-average remaining lease term:
Operating leases	4 years			5 years
Weighted-average discount rate:
Operating leases	3.4		%	3.0		%

At June 30, 2024, we had $13.9 million of operating leases that have not yet commenced.

A maturity analysis of the future undiscounted cash flows associated with our lease liabilities at June 30, 2024 is as follows (in thousands):


	Operating Leases

2024 (remaining)	$	20,124
2025	65,068
2026	44,638
2027	31,231
2028	20,176
Beyond	28,412
Total lease payments	209,649
Less: imputed interest	(14,825)
Total present value of lease liabilities	$	194,824