XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

Leases | 6 Months Ended
--- | ---
Mar. 30, 2024
Leases [Abstract] |
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 Condensed 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 Condensed Balance Sheets. Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Condensed Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Condensed 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:
| Three Months Ended | Six Months Ended
March 30, 2024 | April 1, 2023 | March 30, 2024 | April 1, 2023
Operating lease cost | $ | 8,245 |  | $ | 7,560 |  | $ | 15,215 |  | $ | 14,955 |
Finance lease cost: |  |  |  |
Amortization of right-of-use assets | $ | 2,072 |  | $ | 1,146 |  | $ | 3,898 |  | $ | 2,118 |
Interest on lease liabilities | 1,335 |  | 427 |  | 2,567 |  | 791 |
Total finance lease cost | $ | 3,407 |  | $ | 1,573 |  | $ | 6,465 |  | $ | 2,909 |
Supplemental cash flow information related to leases was as follows:
| Six Months Ended
March 30, 2024 | April 1, 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flow for operating leases | $ | 15,600 |  | $ | 15,094 |
Operating cash flow for finance leases | 2,567 |  | 791 |
Financing cash flow for finance leases | 2,741 |  | 1,899 |
Assets obtained in exchange for lease obligations: |  |
Operating leases | $ | 6,543 |  | $ | 1,393 |
Finance leases | 11,617 |  | 9,614 |
Supplemental balance sheet information related to leases was as follows:
| March 30, 2024 | September 30, 2023
Operating Leases: |  |
Operating lease right-of-use assets | $ | 57,074 |  | $ | 56,067 |
Accrued liabilities and other | $ | 11,395 |  | $ | 11,283 |
Other long-term liabilities | 56,807 |  | 56,398 |
Total operating lease liabilities | $ | 68,202 |  | $ | 67,681 |
Finance Leases: |  |
Property, plant, and equipment, at cost | $ | 98,707 |  | $ | 85,324 |
Accumulated depreciation | (15,224) |  | (10,913) |
Property, plant, and equipment, net | $ | 83,483 |  | $ | 74,411 |
Accrued liabilities and other | $ | 7,139 |  | $ | 5,621 |
Other long-term liabilities | 79,963 |  | 71,225 |
Total finance lease liabilities | $ | 87,102 |  | $ | 76,846 |
Weighted average remaining lease term in years: |  |
Operating leases | 6.5 | 6.9
Finance leases | 21.3 | 23.1
Weighted average discount rates: |  |
Operating leases | 5.2 | % | 5.0 | %
Finance leases | 6.5 | % | 6.5 | %
Maturities of lease liabilities were as follows:
|  | March 30, 2024
|  | Operating Leases |  | Finance Leases
2024 |  | $ | 7,545 |  |  | $ | 5,984 |
2025 |  | 13,858 |  |  | 11,790 |
2026 |  | 13,185 |  |  | 11,512 |
2027 |  | 11,904 |  |  | 10,761 |
2028 |  | 9,827 |  |  | 9,762 |
Thereafter |  | 24,152 |  |  | 140,790 |
Total lease payments |  | 80,471 |  |  | 190,599 |
Less: imputed interest |  | (12,269) |  |  | (103,497) |
Total |  | $ | 68,202 |  |  | $ | 87,102 |
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 Condensed 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 Condensed Balance Sheets. Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Condensed Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Condensed 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:
| Three Months Ended | Six Months Ended
March 30, 2024 | April 1, 2023 | March 30, 2024 | April 1, 2023
Operating lease cost | $ | 8,245 |  | $ | 7,560 |  | $ | 15,215 |  | $ | 14,955 |
Finance lease cost: |  |  |  |
Amortization of right-of-use assets | $ | 2,072 |  | $ | 1,146 |  | $ | 3,898 |  | $ | 2,118 |
Interest on lease liabilities | 1,335 |  | 427 |  | 2,567 |  | 791 |
Total finance lease cost | $ | 3,407 |  | $ | 1,573 |  | $ | 6,465 |  | $ | 2,909 |
Supplemental cash flow information related to leases was as follows:
| Six Months Ended
March 30, 2024 | April 1, 2023
Cash paid for amounts included in the measurement of lease liabilities: |  |
Operating cash flow for operating leases | $ | 15,600 |  | $ | 15,094 |
Operating cash flow for finance leases | 2,567 |  | 791 |
Financing cash flow for finance leases | 2,741 |  | 1,899 |
Assets obtained in exchange for lease obligations: |  |
Operating leases | $ | 6,543 |  | $ | 1,393 |
Finance leases | 11,617 |  | 9,614 |
Supplemental balance sheet information related to leases was as follows:
| March 30, 2024 | September 30, 2023
Operating Leases: |  |
Operating lease right-of-use assets | $ | 57,074 |  | $ | 56,067 |
Accrued liabilities and other | $ | 11,395 |  | $ | 11,283 |
Other long-term liabilities | 56,807 |  | 56,398 |
Total operating lease liabilities | $ | 68,202 |  | $ | 67,681 |
Finance Leases: |  |
Property, plant, and equipment, at cost | $ | 98,707 |  | $ | 85,324 |
Accumulated depreciation | (15,224) |  | (10,913) |
Property, plant, and equipment, net | $ | 83,483 |  | $ | 74,411 |
Accrued liabilities and other | $ | 7,139 |  | $ | 5,621 |
Other long-term liabilities | 79,963 |  | 71,225 |
Total finance lease liabilities | $ | 87,102 |  | $ | 76,846 |
Weighted average remaining lease term in years: |  |
Operating leases | 6.5 | 6.9
Finance leases | 21.3 | 23.1
Weighted average discount rates: |  |
Operating leases | 5.2 | % | 5.0 | %
Finance leases | 6.5 | % | 6.5 | %
Maturities of lease liabilities were as follows:
|  | March 30, 2024
|  | Operating Leases |  | Finance Leases
2024 |  | $ | 7,545 |  |  | $ | 5,984 |
2025 |  | 13,858 |  |  | 11,790 |
2026 |  | 13,185 |  |  | 11,512 |
2027 |  | 11,904 |  |  | 10,761 |
2028 |  | 9,827 |  |  | 9,762 |
Thereafter |  | 24,152 |  |  | 140,790 |
Total lease payments |  | 80,471 |  |  | 190,599 |
Less: imputed interest |  | (12,269) |  |  | (103,497) |
Total |  | $ | 68,202 |  |  | $ | 87,102 |

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