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Leases | 12 Months Ended
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Oct. 03, 2021
Leases [Abstract] |
Leases | Leases We adopted Leases (Topic 842), effective September 30, 2019 (the first day of our fiscal 2020) using the modified retrospective transition approach. Results for reporting periods beginning after the adoption date are presented under Topic 842, while prior period amounts are not adjusted and continue to be presented in accordance with our historical accounting under ASC 840. Our operating leases are primarily for corporate and project office spaces. To a much lesser extent, we have operating leases for vehicles and equipment. Our operating leases have remaining lease terms of one month to twelve years, some of which may include options to extend the leases for up to five years. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and current and long-term op erating lease liabilities in the consolidated balance sheets. Our finance leases are primarily for certain IT equipment. The related ROU assets and lease liabilities were immaterial, and are included in "Property and equipment, net", "Other current liabilities" and "Other long-term liabilities", accordingly, in the consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease te rms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The components of lease costs are as follows:
|  | Fiscal Year Ended
|  | October 3, 2021 |  | September 27, 2020
|  | (in thousands)
Operating lease cost |  | $ | 91,076 |  |  | $ | 87,348 |
Sublease income |  | (106) |  |  | (2,216) |
Other |  | — |  |  | 72 |
Total lease cost |  | $ | 90,970 |  |  | $ | 85,204 |
Supplemental cash flow information related to leases is as follows:
| Fiscal Year Ended
| October 3, 2021 |  | September 27, 2020
| (in thousands)
Operating cash flows for operating leases | $ | 81,943 |  |  | $ | 80,289 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 72,076 |  |  | $ | 317,587 |
Supplemental balance sheet and other information related to leases are as follows:
| Fiscal Year Ended
| October 3, 2021 |  | September 27, 2020
| (in thousands)
Operating leases: |  |  |
Right-of-use assets | $ | 215,422 |  |  | $ | 239,396 |
Lease liabilities: |  |  |
Current | $ | 67,452 |  |  | $ | 69,650 |
Long-term | 174,285 |  |  | 191,955 |
Total operating lease liabilities | $ | 241,737 |  |  | $ | 261,605 |
Weighted-average remaining lease term: |  |  |
Operating leases | 5 years |  | 5 years
Weighted-average discount rate: |  |  |
Operating leases | 2.2 | % |  | 2.5 | %
As of October 3, 2021, we do not have any material additional operating leases that have not yet commenced. A maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities as of October 3, 2021 is as follows:
| Amount |  |
| (in thousands)
2022 | $ | 71,913 |  |  |
2023 | 55,528 |  |  |
2024 | 40,512 |  |  |
2025 | 29,521 |  |  |
2026 | 19,643 |  |  |
Beyond | 40,119 |  |  |
Total lease payments | 257,236 |  |  |
Less: imputed interest | (15,499) |  |  |
Total present value of lease liabilities | $ | 241,737 |  |  |
Rental expense for operating leases classified under ASC 840 for fiscal 2019 was $79.3 million, and was predominantly recorded within selling, general and administrative expenses.
Leases | Leases We adopted Leases (Topic 842), effective September 30, 2019 (the first day of our fiscal 2020) using the modified retrospective transition approach. Results for reporting periods beginning after the adoption date are presented under Topic 842, while prior period amounts are not adjusted and continue to be presented in accordance with our historical accounting under ASC 840. Our operating leases are primarily for corporate and project office spaces. To a much lesser extent, we have operating leases for vehicles and equipment. Our operating leases have remaining lease terms of one month to twelve years, some of which may include options to extend the leases for up to five years. We determine if an arrangement is a lease at inception. Operating leases are included in operating lease ROU assets and current and long-term op erating lease liabilities in the consolidated balance sheets. Our finance leases are primarily for certain IT equipment. The related ROU assets and lease liabilities were immaterial, and are included in "Property and equipment, net", "Other current liabilities" and "Other long-term liabilities", accordingly, in the consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, incremental borrowing rates are used based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset at the commencement date also includes any lease payments made to the lessor at or before the commencement date and initial direct costs less lease incentives received. Lease te rms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. The components of lease costs are as follows:
|  | Fiscal Year Ended
|  | October 3, 2021 |  | September 27, 2020
|  | (in thousands)
Operating lease cost |  | $ | 91,076 |  |  | $ | 87,348 |
Sublease income |  | (106) |  |  | (2,216) |
Other |  | — |  |  | 72 |
Total lease cost |  | $ | 90,970 |  |  | $ | 85,204 |
Supplemental cash flow information related to leases is as follows:
| Fiscal Year Ended
| October 3, 2021 |  | September 27, 2020
| (in thousands)
Operating cash flows for operating leases | $ | 81,943 |  |  | $ | 80,289 |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 72,076 |  |  | $ | 317,587 |
Supplemental balance sheet and other information related to leases are as follows:
| Fiscal Year Ended
| October 3, 2021 |  | September 27, 2020
| (in thousands)
Operating leases: |  |  |
Right-of-use assets | $ | 215,422 |  |  | $ | 239,396 |
Lease liabilities: |  |  |
Current | $ | 67,452 |  |  | $ | 69,650 |
Long-term | 174,285 |  |  | 191,955 |
Total operating lease liabilities | $ | 241,737 |  |  | $ | 261,605 |
Weighted-average remaining lease term: |  |  |
Operating leases | 5 years |  | 5 years
Weighted-average discount rate: |  |  |
Operating leases | 2.2 | % |  | 2.5 | %
As of October 3, 2021, we do not have any material additional operating leases that have not yet commenced. A maturity analysis of the future undiscounted cash flows associated with our operating lease liabilities as of October 3, 2021 is as follows:
| Amount |  |
| (in thousands)
2022 | $ | 71,913 |  |  |
2023 | 55,528 |  |  |
2024 | 40,512 |  |  |
2025 | 29,521 |  |  |
2026 | 19,643 |  |  |
Beyond | 40,119 |  |  |
Total lease payments | 257,236 |  |  |
Less: imputed interest | (15,499) |  |  |
Total present value of lease liabilities | $ | 241,737 |  |  |
Rental expense for operating leases classified under ASC 840 for fiscal 2019 was $79.3 million, and was predominantly recorded within selling, general and administrative expenses.

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