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Leases
 12 Months Ended
Sep. 30, 2023
Leases [Abstract]  
Lessee, Finance Leases Leases
We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component.

Our lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheets. Finance lease ROU assets are included in Property, plant and equipment and finance lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheets. Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Statements of Earnings.

The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term.

The discount rate used to calculate the present value of our leases is the rate implicit in the lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date.

The components of lease expense were as follows:
202320222021
Operating lease cost$30,031 $28,670 $30,353 
Finance lease cost:
Amortization of right-of-use assets$5,310 $2,884 $2,282 
Interest on lease liabilities2,964 1,057 736 
Total finance lease cost$8,274 $3,941 $3,018 

Supplemental cash flow information related to leases was as follows:
202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases$30,281 $28,914 $29,926 
Operating cash flow for finance leases2,964 1,057 736 
Financing cash flow for finance leases4,620 2,524 2,156 
Assets obtained in exchange for lease obligations:
Operating leases6,014 24,659 9,426 
Finance leases55,791 12,238 5,558 
Supplemental balance sheet information related to leases was as follows:
September 30, 2023October 1, 2022
Operating Leases:
Operating lease right-of-use assets$56,067 $69,072 
Accrued liabilities and other$11,283 $13,002 
Other long-term liabilities56,398 66,167 
Total operating lease liabilities$67,681 $79,169 
Finance Leases:
Property, plant, and equipment, at cost$85,324 $30,614 
Accumulated depreciation(10,913)(5,606)
Property, plant, and equipment, net$74,411 $25,008 
Accrued liabilities and other$5,621 $3,244 
Other long-term liabilities71,225 23,529 
Total finance lease liabilities$76,846 $26,773 
Weighted average remaining lease term in years:
Operating leases6.97.7
Finance leases23.116.7
Weighted average discount rates:
Operating leases5.0 %5.0 %
Finance leases6.5 %4.8 %

Maturities of lease liabilities were as follows:
 September 30, 2023
Operating LeasesFinance Leases
2024$14,213 $9,809 
202512,336 9,630 
202611,595 9,353 
202710,303 8,603 
20288,190 7,602 
Thereafter23,791 133,642 
Total lease payments80,428 178,639 
Less: imputed interest(12,747)(101,793)
Total$67,681 $76,846 

The operating lease ROU and finance lease disclosures above reflect write downs of $2,086 for the year ended September 30, 2023 as a result of simplifying our business operations and $4,808 for the year ended October 2, 2021, based on expected cash flows over the remaining life of the assets in relation to impairment charges associated with the COVID-19 pandemic.
On September 30, 2022, we sold a building located in Murray, Utah and concurrently entered into a lease agreement for the building with an initial term of two years, which also includes the option to extend the terms of the lease for up to two consecutive terms of six months each. The transaction resulted in a net gain of $9,075 which is included in the Consolidated Statements of Earnings.
Lessee, Operating Leases Leases
We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component.

Our lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheets. Finance lease ROU assets are included in Property, plant and equipment and finance lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Balance Sheets. Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Statements of Earnings.

The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term.

The discount rate used to calculate the present value of our leases is the rate implicit in the lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date.

The components of lease expense were as follows:
202320222021
Operating lease cost$30,031 $28,670 $30,353 
Finance lease cost:
Amortization of right-of-use assets$5,310 $2,884 $2,282 
Interest on lease liabilities2,964 1,057 736 
Total finance lease cost$8,274 $3,941 $3,018 

Supplemental cash flow information related to leases was as follows:
202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases$30,281 $28,914 $29,926 
Operating cash flow for finance leases2,964 1,057 736 
Financing cash flow for finance leases4,620 2,524 2,156 
Assets obtained in exchange for lease obligations:
Operating leases6,014 24,659 9,426 
Finance leases55,791 12,238 5,558 
Supplemental balance sheet information related to leases was as follows:
September 30, 2023October 1, 2022
Operating Leases:
Operating lease right-of-use assets$56,067 $69,072 
Accrued liabilities and other$11,283 $13,002 
Other long-term liabilities56,398 66,167 
Total operating lease liabilities$67,681 $79,169 
Finance Leases:
Property, plant, and equipment, at cost$85,324 $30,614 
Accumulated depreciation(10,913)(5,606)
Property, plant, and equipment, net$74,411 $25,008 
Accrued liabilities and other$5,621 $3,244 
Other long-term liabilities71,225 23,529 
Total finance lease liabilities$76,846 $26,773 
Weighted average remaining lease term in years:
Operating leases6.97.7
Finance leases23.116.7
Weighted average discount rates:
Operating leases5.0 %5.0 %
Finance leases6.5 %4.8 %

Maturities of lease liabilities were as follows:
 September 30, 2023
Operating LeasesFinance Leases
2024$14,213 $9,809 
202512,336 9,630 
202611,595 9,353 
202710,303 8,603 
20288,190 7,602 
Thereafter23,791 133,642 
Total lease payments80,428 178,639 
Less: imputed interest(12,747)(101,793)
Total$67,681 $76,846 

The operating lease ROU and finance lease disclosures above reflect write downs of $2,086 for the year ended September 30, 2023 as a result of simplifying our business operations and $4,808 for the year ended October 2, 2021, based on expected cash flows over the remaining life of the assets in relation to impairment charges associated with the COVID-19 pandemic.
On September 30, 2022, we sold a building located in Murray, Utah and concurrently entered into a lease agreement for the building with an initial term of two years, which also includes the option to extend the terms of the lease for up to two consecutive terms of six months each. The transaction resulted in a net gain of $9,075 which is included in the Consolidated Statements of Earnings.