Balance Sheet and Income Statement Details

12 Months Ended

Oct. 01, 2022

Balance Sheet and Income Statement Details

Balance Sheet and Income Statement Details

Note 4. Balance Sheet and Income Statement Details

Property, Plant and Equipment, net

Property, plant and equipment consisted of the following:

	As of
	October 1,		October 2,
	2022		2021
	(In thousands)
Machinery and equipment	$	1,523,598	$	1,491,156
Land and buildings		656,839		645,639
Leasehold improvements		42,793		44,899
Furniture and fixtures		24,805		25,394
Construction in progress		91,928		40,524
		2,339,963		2,247,612
Less: Accumulated depreciation and amortization		(1,764,793)		(1,714,627)
Property, plant and equipment, net	$	575,170	$	532,985

Depreciation expense was $108 million, $109 million and $113 million for 2022, 2021 and 2020, respectively.

Other Income (Expense), net

The Company terminated its frozen U.S. defined benefit plan (the “Plan”) effective July 3, 2022 and recorded a pension settlement charge of $2 million during the fourth quarter of 2022 which includes the reclassification of unrecognized pension losses from accumulated other comprehensive income to other income (expense), net on the consolidated statements of income. Refer to Note 17 for discussion.

The Company recorded a loss on extinguishment of debt of $1 million during the fourth quarter of 2022, consisting of a write-off of unamortized debt issuance costs arising from the amendment and restatement of the Fourth Amended and Restated Loan Agreement, dated as of November 30, 2018. Refer to Note 7 for discussion.

In 2021, the Company sold intellectual property for $15 million, of which $8 million has been received in cash. The sale of intellectual property was included in other income (expense), net on the consolidated statements of income. During the fourth quarter of 2022, the Company concluded it expected to incur credit losses with the counterparty for the remaining $7 million due under the arrangement. Accordingly, the Company recorded a charge of $7 million in other income (expense), net on the consolidated statements of income to establish an allowance for the expected credit loss.

A foreign entity of the Company was substantially liquidated in 2021 and the Company reclassified $8 million of cumulative translation adjustments associated with this entity from accumulated other comprehensive income to other income (expense), net on the consolidated statements of income in 2021.

The Company received $16 million of cash in 2021 in connection with settlements of certain anti-trust class action matters.