Note 6 Leases

6 Months Ended

Mar. 28, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

Leases

The Company's leases consist primarily of operating leases for buildings and land. These leases have initial lease terms of up to 44 years and, upon adoption of ASC 842, are recorded on the Company's balance sheet as lease liabilities and corresponding right-of-use ("ROU") assets. Certain of these leases contain an option to extend the lease term for additional periods or to terminate the lease after an initial non-cancelable term. Renewal options are considered in the measurement of the Company's initial lease liability and corresponding ROU asset only if it is reasonably certain that the Company will exercise such options. Leases with lease terms of twelve months or less are not recorded on the Company's balance sheet.

ROU assets and lease liabilities recorded in the condensed consolidated balance sheet as of March 28, 2020 are as follows:

	As of
	March 28, 2020
	(In thousands)
Other assets (1)	$	56,827
Accrued liabilities	17,138
Other long-term liabilities	38,783
Total lease liabilities	$	55,921
Weighted average remaining lease term (in years)	6.98
Weighted average discount rate	3.13		%

(1)    Net of accumulated amortization of $8 million.

The Company’s lease liability and ROU assets represent the present value of future lease payments which, pursuant to the Company's accounting election, are a combination of lease components and non-lease components such as maintenance and utilities. Since the Company's leases generally do not provide an implicit rate, the Company uses an incremental borrowing rate based on information available at the lease commencement date for purposes of determining the present value of lease payments. The Company's incremental borrowing rate is based on the term of the lease, the economic environment of the lease and the effect of collateralization, if any. Upon adoption of ASC 842, the Company used the incremental borrowing rate as of that date for all leases that commenced prior to that date.

Operating lease expense, which is recognized on a straight-line basis over the term of a lease, was $4 million and $8 million for the three and six months ended March 28, 2020, respectively. Cash payments for operating leases were $9 million for the six months ended March 28, 2020. Certain of the Company’s lease payments are variable because such payments adjust periodically based on changes in consumer price and other indexes.

Future lease payments under non-cancelable operating leases as of March 28, 2020, by fiscal year, are as follows:

	Operating Leases
	(In thousands)
Remainder of 2020	$	10,328
2021	15,684
2022	10,977
2023	5,057
2024	3,936
Thereafter	16,519
Total lease payments	62,501
Less: imputed interest	6,580
Total	$	55,921