XML 29 R14.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Leases | 12 Months Ended
--- | ---
Oct. 01, 2022
Leases [Abstract] |
Leases | Leases The Company’s lease portfolio includes both real estate and non-real estate type leases which are accounted for as either finance or operating leases. Real estate leases generally include office, warehouse and manufacturing facilities and non-real estate leases generally include office equipment and vehicles. The Company determines if a contract is or contains a lease at inception. The Company’s leases have remaining lease terms of less than 1 year to 38 years. Renewal options that are deemed reasonably certain are included as part of the lease term for purposes of calculating the right-of-use (“ROU”) asset and lease liability. Variable lease payments are generally expensed as incurred and include certain index-based changes in rent, certain nonlease components, such as maintenance and other services provided by the lessor, and other charges included in the lease. The Company elected the practical expedient to not separate lease and nonlease components, as such nonlease components are included in the calculation of the ROU asset and lease liability and included in the lease expense over the term of the lease. The Company uses a discount rate to calculate the ROU asset and lease liability. When the implicit rate is known or provided in the lease documents, the Company is required to use this rate. In cases in which the implicit rate is not known, the Company uses an estimated incremental borrowing rate. Operating lease ROU assets and lease liabilities are recorded on the date the Company takes possession of the leased assets with expense recognized on a straight-line basis over the lease term. Leases with an estimated total term of 12 months or less are not recorded on the balance sheet and the lease expense is recognized on a straight-line basis over the lease term. Generally, the Company's lease agreements do not contain material residual value guarantees or material restrictive covenants. The components of lease expense for fiscal years indicated were as follows (in thousands):
|  | 2022 |  | 2021 |  | 2020
Finance lease expense: |  |  |  |  |  |
Amortization of right-of-use assets |  | $ | 6,478 |  |  | $ | 6,290 |  |  | $ | 4,380 |
Interest on lease liabilities |  | 4,927 |  |  | 4,888 |  |  | 4,956 |
Operating lease expense |  | 11,278 |  |  | 11,034 |  |  | 11,707 |
Other lease expense |  | 6,185 |  |  | 4,794 |  |  | 3,401 |
Total |  | $ | 28,868 |  |  | $ | 27,006 |  |  | $ | 24,444 |
Based on the nature of the ROU asset, amortization of finance right-of-use assets, operating lease expense and other lease expense are recorded within either cost of goods sold or selling and administrative expenses and interest on finance lease liabilities is recorded within interest expense on the Consolidated Statements of Comprehensive Income. Other lease expense includes lease expense for leases with an estimated total term of twelve months or less and variable lease expense related to variations in lease payments as a result of a change in factors or circumstances occurring after the lease possession date. The following tables sets forth the amount of lease assets and lease liabilities included in the Company’s Consolidated Balance Sheets (in thousands):
| Financial Statement Line Item | 2022 |  | 2021
ASSETS |  |  |  |
Finance lease assets | Property, plant and equipment, net | $ | 40,063 |  |  | $ | 38,657 |
Operating lease assets | Operating lease right-of-use assets | 65,134 |  |  | 72,087 |
Total lease assets |  | $ | 105,197 |  |  | $ | 110,744 |
LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |
Current |  |  |  |
Finance lease liabilities | Current portion of long-term debt and finance lease obligations | $ | 5,087 |  |  | $ | 4,616 |
Operating lease liabilities | Other accrued liabilities | 7,948 |  |  | 9,877 |
Non-current |  |  |  |
Finance lease liabilities | Long-term debt and finance lease obligations, net of current portion | 39,257 |  |  | 36,919 |
Operating lease liabilities | Long-term operating lease liabilities | 33,628 |  |  | 37,970 |
Total lease liabilities |  | $ | 85,920 |  |  | $ | 89,382 |
Other information related to the Company’s leases was as follows:
|  | 2022 |  | 2021
Weighted-average remaining lease term (in years) |  |  |  |
Finance leases |  | 11.1 |  | 11.6
Operating leases |  | 17.6 |  | 17.4
Weighted-average discount rate |  |  |  |
Finance leases |  | 17.1 | % |  | 17.4 | %
Operating leases |  | 2.6 | % |  | 2.5 | %
|  | 2022 |  | 2021 |  | 2020
Cash paid for amounts included in the measurement of lease liabilities (in thousands) |  |  |  |  |  |
Operating cash flows used in finance leases |  | $ | 4,630 |  |  | $ | 4,571 |  |  | $ | 4,539 |
Operating cash flows used in operating leases |  | 10,278 |  |  | 10,667 |  |  | 10,907 |
Finance cash flows used in finance leases |  | 6,148 |  |  | 5,734 |  |  | 3,321 |
ROU assets obtained in exchange for lease liabilities (in thousands) |  |  |  |  |  |
Operating leases |  | $ | 4,710 |  |  | $ | 11,897 |  |  | $ | 7,692 |
Finance leases |  | 7,851 |  |  | 4,253 |  |  | 2,835 |
Future minimum lease payments required under finance and operating leases as of October 1, 2022, were as follows (in thousands):
|  | Operating leases |  | Finance leases
2023 |  | $ | 9,502 |  |  | $ | 10,246 |
2024 |  | 7,810 |  |  | 7,531 |
2025 |  | 6,209 |  |  | 6,967 |
2026 |  | 5,594 |  |  | 5,137 |
2027 |  | 4,461 |  |  | 5,216 |
Thereafter |  | 14,526 |  |  | 84,389 |
Total minimum lease payments |  | 48,102 |  |  | 119,486 |
Less: imputed interest |  | (6,526) |  |  | (75,142) |
Present value of lease liabilities |  | $ | 41,576 |  |  | $ | 44,344 |
As of October 1, 2022, the Company’s future operating leases that have not yet commenced are immaterial.

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 Disclosure of accounting policy for leasing arrangement entered into by lessee. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=128292326&loc=SL77918666-209980 + Details
Name: | us-gaap_LesseeLeasesPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration