Leases

12 Months Ended

Jun. 29, 2024

Note 12. Leases

The Company is a lessee in several operating leases, primarily real estate facilities for office space. The Company's lease arrangements are composed of operating leases with various expiration dates through March 31, 2042. The Company's leases do not contain any material residual value guarantees.

Lease expense and cash flow information related to our operating leases is as follows (in millions):



	June 29, 2024			July 1, 2023

Operating lease costs(1)	$	12.9		$	13.1

Cash paid for amounts included in the measurement of operating lease liabilities	$	14.1		$	14.4
Operating ROU assets obtained in exchange for operating lease obligations	$	7.2		$	7.0










Weighted-average remaining lease term	6.3 years			6.8 years
Weighted-average discount rate	5.6		%	4.8		%

(1) Total variable lease costs were immaterial during the fiscal years ended June 29, 2024 and July 1, 2023. The total operating costs were included in Cost of revenues, R&D and SG&A in the Consolidated Statements of Operations.

Future minimum operating lease payments as of June 29, 2024 are as follows (in millions):


Fiscal Years
2025	$	10.2
2026	9.1
2027	6.9
2028	4.8
2029	3.3
Thereafter	8.5
Total lease payments	42.8
Less: Interest	(7.3)
Present value of lease liabilities	$	35.5

The Company’s ARO liability is primarily associated with leasehold improvements which the Company is contractually obligated to remove at the end of a lease to comply with the lease agreement. The Company derecognizes ARO liabilities when the related obligations are settled. As of June 29, 2024 and July 1, 2023, the Consolidated Balance Sheets included ARO balances of $1.2 million and $0.5 million, respectively, in Other current liabilities and $3.0 million and $3.8 million, respectively, in Other non-current liabilities.

A summary of the activity in the ARO accrual is outlined below (in millions):




	Balance at Beginning of Period		Liabilities Incurred		Liabilities Settled		Accretion Expense		Balance at End of Period
Year ended June 29, 2024	$	4.3	$	—	$	(0.2)	$	0.1	$	4.2
Year ended July 1, 2023	$	4.2	$	0.3	$	(0.3)	$	0.1	$	4.3