Annual report pursuant to Section 13 and 15(d)

Leases

v3.22.2.2
Leases
12 Months Ended
Oct. 01, 2022
Leases [Abstract]  
Leases

Note 11—Leases

Operating Leases

We lease certain locations, office, distribution, and manufacturing facilities under operating leases that expire at various dates through December 2033. We are obligated to make cash payments in connection with various lease obligations and purchase commitments. All of these obligations require cash payments to be made by us over varying periods of time. Certain leases are renewable at our option typically for periods of five or more years. Certain of these arrangements are cancelable on short notice and others require payments upon early termination. We do not have any finance leases.

The following table summarizes the components of lease expense (in thousands):

 

 

Year Ended

 

 

 

October 1, 2022

 

 

October 2, 2021

 

 

October 3, 2020

 

Operating lease expense

 

$

72,922

 

 

$

68,130

 

 

$

66,642

 

Variable lease expense

 

 

 

 

 

1,129

 

 

 

819

 

Total net lease expense

 

$

72,922

 

 

$

69,259

 

 

$

67,461

 

As of October 1, 2022 and October 2, 2021, operating lease right-of-use assets obtained in exchange for operating lease liabilities totaled $32.6 million and $9.7 million, respectively.

The following table presents the weighted-average remaining lease term and discount rate for operating leases:

 

 

October 1, 2022

 

 

October 2, 2021

 

Weighted-average remaining lease term

 

4.4 years

 

 

4.3 years

 

Weighted-average discount rate

 

 

5.5

%

 

 

5.1

%

 

The following table summarizes the future annual minimum lease payments as of October 1, 2022 (in thousands):

 

 

Amount

 

2023

 

$

71,851

 

2024

 

 

67,558

 

2025

 

 

51,216

 

2026

 

 

40,959

 

2027

 

 

22,844

 

Thereafter

 

 

17,863

 

Total

 

$

272,291

 

Less: amount of lease payments representing imputed interest

 

 

32,083

 

Present value of future minimum lease payments

 

 

240,208

 

Less: current operating lease liabilities

 

 

60,373

 

Operating lease liabilities, noncurrent

 

$

179,835