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LEASES

9 Months Ended

Jul. 02, 2022

Leases [Abstract]

LEASES

LEASES

The Company leases certain property and equipment from third parties under various non-cancelable lease agreements, including industrial, commercial and office properties and equipment that support the management, manufacturing, distribution and research and development of products marketed and sold by the Company. The lease agreements generally require that the Company pay taxes, insurance and maintenance expenses related to the leased assets. At July 2, 2022, the Company had entered into operating leases that were yet to commence with a combined total expected lease liability of $54.6. From time to time, the Company will sublease portions of its facilities, resulting in sublease income. Sublease income and the related cash flows were not material to the condensed consolidated financial statements for the three and nine months ended July 2, 2022 and July 3, 2021.

The Company leases certain vehicles (primarily cars and light trucks) under agreements that are cancellable after the first year, but typically continue on a month-to-month basis until canceled by the Company. The vehicle leases and certain other non-cancelable operating leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the

conclusion of the lease term. If all such vehicle leases had been canceled as of July 2, 2022, the Company’s residual value guarantee would have approximated $5.0.

Supplemental balance sheet information related to the Company’s leases was as follows:

			Balance Sheet Location						July 2, 2022						July 3, 2021						September 30, 2021
Operating leases:
Right-of-use assets			Other assets						$	280.1					$	212.7					$	293.0
Current lease liabilities			Other current liabilities						71.8						62.3						66.4
Non-current lease liabilities			Other liabilities						217.7						157.7						234.4
Total operating lease liabilities									$	289.5					$	220.0					$	300.8
Finance leases:
Right-of-use assets			Property, plant and equipment, net						$	26.9					$	32.6					$	31.3
Current lease liabilities			Current portion of debt						6.1						5.8						5.9
Non-current lease liabilities			Long-term debt						23.2						28.7						27.5
Total finance lease liabilities									$	29.3					$	34.5					$	33.4

Components of lease cost were as follows:

			Three Months Ended												Nine Months Ended
			July 2, 2022						July 3, 2021						July 2, 2022						July 3, 2021
Operating lease cost (a)			$	21.4					$	18.8					$	63.8					$	50.3
Variable lease cost			9.5						8.8						30.4						24.0
Finance lease cost
Amortization of right-of-use assets			1.6						1.5						4.8						4.5
Interest on lease liabilities			0.3						0.3						0.9						1.0
Total finance lease cost			$	1.9					$	1.8					$	5.7					$	5.5

(a)Operating lease cost includes amortization of right-of-use assets of $18.5 and $55.4 for the three and nine months ended July 2, 2022, respectively, and $16.7 and $44.6 for the three and nine months ended July 3, 2021, respectively. Short-term lease expense is excluded from operating lease cost and is not material.

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:

									Nine Months Ended
															July 2, 2022						July 3, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net															$	62.3					$	47.6
Operating cash flows from finance leases															0.9						1.0
Financing cash flows from finance leases															4.4						3.9
Right-of-use assets obtained in exchange for lease obligations:
Operating leases															$	45.0					$	100.1
Finance leases															0.4						2.3

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:

			July 2, 2022
Weighted-average remaining lease term (in years):
Operating leases			5.1
Finance leases			7.5
Weighted-average discount rate:
Operating leases			3.3		%
Finance leases			4.3		%

Maturities of lease liabilities by fiscal year for the Company’s leases as of July 2, 2022 were as follows:

Year						Operating Leases						Finance Leases
2022 (remainder of the year)						$	21.1					$	1.8
2023						77.2						7.2
2024						69.0						7.2
2025						53.9						3.0
2026						36.9						1.9
Thereafter						56.2						13.6
Total lease payments						314.3						34.7
Less: Imputed interest						(24.8)						(5.4)
Total lease liabilities						$	289.5					$	29.3

LEASES

LEASES

The Company leases certain property and equipment from third parties under various non-cancelable lease agreements, including industrial, commercial and office properties and equipment that support the management, manufacturing, distribution and research and development of products marketed and sold by the Company. The lease agreements generally require that the Company pay taxes, insurance and maintenance expenses related to the leased assets. At July 2, 2022, the Company had entered into operating leases that were yet to commence with a combined total expected lease liability of $54.6. From time to time, the Company will sublease portions of its facilities, resulting in sublease income. Sublease income and the related cash flows were not material to the condensed consolidated financial statements for the three and nine months ended July 2, 2022 and July 3, 2021.

The Company leases certain vehicles (primarily cars and light trucks) under agreements that are cancellable after the first year, but typically continue on a month-to-month basis until canceled by the Company. The vehicle leases and certain other non-cancelable operating leases contain residual value guarantees that create a contingent obligation on the part of the Company to compensate the lessor if the leased asset cannot be sold for an amount in excess of a specified minimum value at the

conclusion of the lease term. If all such vehicle leases had been canceled as of July 2, 2022, the Company’s residual value guarantee would have approximated $5.0.

Supplemental balance sheet information related to the Company’s leases was as follows:

			Balance Sheet Location						July 2, 2022						July 3, 2021						September 30, 2021
Operating leases:
Right-of-use assets			Other assets						$	280.1					$	212.7					$	293.0
Current lease liabilities			Other current liabilities						71.8						62.3						66.4
Non-current lease liabilities			Other liabilities						217.7						157.7						234.4
Total operating lease liabilities									$	289.5					$	220.0					$	300.8
Finance leases:
Right-of-use assets			Property, plant and equipment, net						$	26.9					$	32.6					$	31.3
Current lease liabilities			Current portion of debt						6.1						5.8						5.9
Non-current lease liabilities			Long-term debt						23.2						28.7						27.5
Total finance lease liabilities									$	29.3					$	34.5					$	33.4

Components of lease cost were as follows:

			Three Months Ended												Nine Months Ended
			July 2, 2022						July 3, 2021						July 2, 2022						July 3, 2021
Operating lease cost (a)			$	21.4					$	18.8					$	63.8					$	50.3
Variable lease cost			9.5						8.8						30.4						24.0
Finance lease cost
Amortization of right-of-use assets			1.6						1.5						4.8						4.5
Interest on lease liabilities			0.3						0.3						0.9						1.0
Total finance lease cost			$	1.9					$	1.8					$	5.7					$	5.5

(a)Operating lease cost includes amortization of right-of-use assets of $18.5 and $55.4 for the three and nine months ended July 2, 2022, respectively, and $16.7 and $44.6 for the three and nine months ended July 3, 2021, respectively. Short-term lease expense is excluded from operating lease cost and is not material.

Supplemental cash flow information and non-cash activity related to the Company’s leases were as follows:

									Nine Months Ended
															July 2, 2022						July 3, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases, net															$	62.3					$	47.6
Operating cash flows from finance leases															0.9						1.0
Financing cash flows from finance leases															4.4						3.9
Right-of-use assets obtained in exchange for lease obligations:
Operating leases															$	45.0					$	100.1
Finance leases															0.4						2.3

Weighted-average remaining lease term and discount rate for the Company’s leases were as follows:

			July 2, 2022
Weighted-average remaining lease term (in years):
Operating leases			5.1
Finance leases			7.5
Weighted-average discount rate:
Operating leases			3.3		%
Finance leases			4.3		%

Maturities of lease liabilities by fiscal year for the Company’s leases as of July 2, 2022 were as follows:

Year						Operating Leases						Finance Leases
2022 (remainder of the year)						$	21.1					$	1.8
2023						77.2						7.2
2024						69.0						7.2
2025						53.9						3.0
2026						36.9						1.9
Thereafter						56.2						13.6
Total lease payments						314.3						34.7
Less: Imputed interest						(24.8)						(5.4)
Total lease liabilities						$	289.5					$	29.3

X

- References

No definition available.

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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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI https://asc.fasb.org/subtopic&trid=77888251

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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
-Publisher FASB
-Name Accounting Standards Codification
-Topic 842
-SubTopic 20
-URI https://asc.fasb.org/subtopic&trid=77888251

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