Commitments and Contingencies and Derivative Financial Instruments

12 Months Ended

Sep. 27, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies and Derivative Financial Instruments

Commitments Under Operating Leases

We lease certain of our facilities and equipment under operating leases with net aggregate future lease payments at September 27, 2019, payable as follows (in thousands):



In fiscal years,
2020	$	190,287
2021	172,017
2022	151,452
2023	131,250
2024	116,381
Thereafter	352,194
	1,113,581
Amounts representing sublease income	(31,884		)
	$	1,081,697

We recognize rent expense, inclusive of landlord concessions and tenant allowances, over the lease term on a straight-line basis. We also recognize rent expense on a straight-line basis for leases containing fixed escalation clauses and rent holidays. Contingent rentals are included in rent expense as incurred. Operating leases relating to many of our major offices generally contain renewal options and provide for additional rental based on escalation in operating expenses and real estate taxes.

The following table presents rent expense and sublease income offsetting the Company’s rent expense for the years ended September 27, 2019, September 28, 2018 and September 29, 2017 (in thousands):



	For the Years Ended
	September 27, 2019			September 28, 2018			September 29, 2017
Rent expense	$	167,365		$	169,931		$	96,875
Sublease income	(11,514		)	(5,087		)	(3,160		)
Net rent expense	$	155,851		$	164,844		$	93,715

Derivative Financial Instruments

In situations where our operations incur contract costs in currencies other than their functional currency, we attempt to have a portion of the related contract revenues denominated in the same currencies as the costs. In those situations where revenues and costs are transacted in different currencies, we sometimes enter into foreign exchange contracts in order to limit our exposure to fluctuating foreign currencies. The Company does not currently have outstanding foreign currency derivatives that would have a material effect on our consolidated financial statements or results of operations.

Letters of Credit

At September 27, 2019, the Company had issued and outstanding approximately $262.2 million in LOCs and $2.0 billion in surety bonds. Of the outstanding LOC amount, $2.3 million has been issued under the New Credit Agreement and $259.9 million are issued under separate, committed and uncommitted letter-of-credit facilities.