XML 47 R21.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Leases | 3 Months Ended
--- | ---
Dec. 29, 2023
Leases [Abstract] |
Leases | Leases The components of lease expense (reflected in selling, general and administrative expenses) for th e three months ended December 29, 2023 and December 30, 2022 were as follows (in thousands):
|  | Three Months Ended |  |
|  | December 29, 2023 |  | December 30, 2022 |  |  |  |
Lease expense |  |  |  |  |  |  |  |
Operating lease expense |  | $ | 34,200 |  |  | $ | 35,282 |  |  |  |  |
Variable lease expense |  | 9,337 |  |  | 9,346 |  |  |  |  |
Sublease income |  | (4,711) |  |  | (4,406) |  |  |  |  |
Total lease expense |  | $ | 38,826 |  |  | $ | 40,222 |  |  |  |  |
Supplemental information related to the Company's leases for the three months ended December 29, 2023 and December 30, 2022 was as follows (in thousands):
|  | Three Months Ended
|  | December 29, 2023 |  | December 30, 2022
Cash paid for amounts included in the measurements of lease liabilities |  | $ | 47,413 |  | $ | 45,770
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 8,384 |  | $ | 29,801
Weighted average remaining lease term - operating leases |  | 5.8 years |  | 6.2 years
Weighted average discount rate - operating leases |  | 3.4% |  | 3.0%
Total remaining lease payments under the Company's leases for the remainder of fiscal 2024 and for the succeeding years is as follows (in thousands):
Fiscal Year |  | Operating Leases
2024 |  | $ | 131,023 |
2025 |  | 146,078 |
2026 |  | 122,727 |
2027 |  | 100,231 |
2028 |  | 82,567 |
Thereafter |  | 160,807 |
|  | 743,433 |
Less Interest |  | (68,291) |
|  | $ | 675,142 |
Right-of-Use and Other Long-Lived Asset Impairment During fiscal 2023, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360. As a result of this analysis, the Company recognized impairment losses during the first quarter of fiscal 2023 of $27.1 million, which is included in selling, general and administrative expenses in the accompanying statement of earnings. The impairment losses include $24.3 million related to right-of-use lease assets and $2.8 million related to other long-lived assets, including property, equipment and improvements and leasehold improvements for the fiscal 2023 period. The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.
Leases | Leases The components of lease expense (reflected in selling, general and administrative expenses) for th e three months ended December 29, 2023 and December 30, 2022 were as follows (in thousands):
|  | Three Months Ended |  |
|  | December 29, 2023 |  | December 30, 2022 |  |  |  |
Lease expense |  |  |  |  |  |  |  |
Operating lease expense |  | $ | 34,200 |  |  | $ | 35,282 |  |  |  |  |
Variable lease expense |  | 9,337 |  |  | 9,346 |  |  |  |  |
Sublease income |  | (4,711) |  |  | (4,406) |  |  |  |  |
Total lease expense |  | $ | 38,826 |  |  | $ | 40,222 |  |  |  |  |
Supplemental information related to the Company's leases for the three months ended December 29, 2023 and December 30, 2022 was as follows (in thousands):
|  | Three Months Ended
|  | December 29, 2023 |  | December 30, 2022
Cash paid for amounts included in the measurements of lease liabilities |  | $ | 47,413 |  | $ | 45,770
Right-of-use assets obtained in exchange for new operating lease liabilities |  | $ | 8,384 |  | $ | 29,801
Weighted average remaining lease term - operating leases |  | 5.8 years |  | 6.2 years
Weighted average discount rate - operating leases |  | 3.4% |  | 3.0%
Total remaining lease payments under the Company's leases for the remainder of fiscal 2024 and for the succeeding years is as follows (in thousands):
Fiscal Year |  | Operating Leases
2024 |  | $ | 131,023 |
2025 |  | 146,078 |
2026 |  | 122,727 |
2027 |  | 100,231 |
2028 |  | 82,567 |
Thereafter |  | 160,807 |
|  | 743,433 |
Less Interest |  | (68,291) |
|  | $ | 675,142 |
Right-of-Use and Other Long-Lived Asset Impairment During fiscal 2023, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360. As a result of this analysis, the Company recognized impairment losses during the first quarter of fiscal 2023 of $27.1 million, which is included in selling, general and administrative expenses in the accompanying statement of earnings. The impairment losses include $24.3 million related to right-of-use lease assets and $2.8 million related to other long-lived assets, including property, equipment and improvements and leasehold improvements for the fiscal 2023 period. The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration