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Leases
12 Months Ended
Sep. 29, 2013
Leases  
Leases

10.         Leases

              We lease office and field equipment, vehicles and buildings under various operating leases. In fiscal 2013, 2012 and 2011, we recognized $80.8 million, $76.6 million and $71.9 million of expense associated with operating leases, respectively. Amounts payable under non-cancelable operating and capital lease commitments are as follows during the following fiscal years:

 
  Operating   Capital  
 
  (in thousands)

 
2014   $ 71,293   $ 874  
2015     54,169     648  
2016     35,265     384  
2017     23,898     5  
2018     14,771      
Beyond     24,628      
           

Total

  $ 224,024     1,911  
             

Less: Amounts representing interest

         
(132

)
             

Net present value

        $ 1,779  
             

              We vacated certain facilities under long-term non-cancelable leases and recorded contract termination costs of $4.5 million in fiscal 2013, $1.3 million in fiscal 2012 and $1.3 million in fiscal 2011. These amounts were initially measured at the fair value of the portion of the lease payments associated with the vacated facilities, reduced by estimated sublease rentals, less the write off of a prorated portion of existing deferred items previously recognized on these leases. We expect the remaining lease payments to be paid through the various lease expiration dates that continue until 2019.

              We initially measured the lease contract termination liability at the fair value of the prorated portion of the lease payments associated with the vacated facilities, reduced by estimated sublease rentals and other costs. If the actual timing and potential termination costs or realization of sublease income differ from our estimates, the resulting liabilities could vary from recorded amounts. These liabilities are reviewed periodically and adjusted when necessary. We expect the remaining lease payments to be paid through the various lease expiration dates that continue until 2021. The following is a reconciliation of the beginning and ending balances of these liabilities related to lease contract termination costs:

 
  ECS   TSS   Total  
 
  (in thousands)

 
Balance at September 30, 2012   $  –   $ 2,940   $ 2,940  

Costs incurred and charged to expense

    3,744     1,055     4,799  

Adjustments (1)

    (34 )   (1,432 )   (1,466 )
               
Balance at September 29, 2013   $ 3,710   $ 2,563   $ 6,273  
               

 

 

 

 

 

 

 

 

 

 

 
(1)
Adjustments of the actual timing and potential termination costs or realization of sublease income.