XML 26 R15.htm IDEA: XBRL DOCUMENT
v3.20.2

LEASES | 9 Months Ended
--- | ---
Jun. 27, 2020
Leases [Abstract] |
Leases | LEASES We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing, technology, sales support and service centers, equipment, and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option. As of June 27, 2020, one option to extend the lease was recognized as a right-of-use ("ROU") asset, and a lease liability. We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our leased assets and corresponding liabilities. We have elected not to present short-term leases on the Consolidated Condensed Balance Sheet as these leases have a lease term of 12 months or less at lease inception. Operating leases are included in operating ROU assets, current operating lease liabilities and non current operating lease liabilities, and finance leases are in included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Condensed Balance Sheet. As of June 27, 2020, our finance leases are not material. The following table shows the components of lease expense:
| Three months ended |  | Nine months ended
(in thousands) | June 27, 2020 |  | June 27, 2020
Operating lease expense (1) | $ | (1,646 | ) |  | $ | (5,030 | )
(1) | Operating lease expense includes short-term lease expense, which is immaterial for the three and nine months ended June 27, 2020.
The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating and finance lease liabilities, and, as such, are excluded from the amounts below:
| Nine months ended
(in thousands) | June 27, 2020
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash outflows from operating leases | $ | 4,677 |
The following table shows the weighted-average lease terms and discount rates for operating leases:
| As of
| June 27, 2020
Operating leases: |
Weighted-average remaining lease term (in years): | 4.7 |
Weighted-average discount rate: | 4.6 | %
Future lease payments, excluding short-term leases, as of June 27, 2020, are detailed as follows:
(in thousands) | Operating leases
Remainder of 2020 | $ | 1,658 |
2021 | 6,288 |
2022 | 5,635 |
2023 | 5,420 |
2024 | 2,985 |
Thereafter | 4,385 |
Total minimum lease payments | 26,371 |
Less: Interest | 2,776 |
Present value of lease obligations | 23,595 |
Less: Current portion | 5,471 |
Long-term portion of lease obligations | $ | 18,124 |
Future lease payments under operating leases prior to adoption ASC 842 were as follows:
|  |  |  | Payments due by fiscal year
(in thousands) | Total |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | Thereafter
Operating lease obligations (1) | $ | 16,273 |  |  | $ | 4,089 |  |  | $ | 2,576 |  |  | $ | 2,182 |  |  | $ | 1,967 |  |  | $ | 1,822 |  |  | $ | 3,637 |
(1) Pursuant to ASC No. 840, Leases ("ASC 840"), for lessee's involvement in asset construction, the Company was considered to be the owner of the Building (as defined in Note 9 below) during the construction phase due to its involvement in the asset construction. As a result of the Company's continued involvement during the lease term, the Company did not fulfill the criteria to apply sale-leaseback accounting under ASC 840. Therefore, at completion of construction, the Building remained on the Consolidated Condensed Balance Sheet, and the corresponding financing obligation was reclassified to long-term liability. As of September 28, 2019, we recorded a financing obligation related to the Building of $15.0 million (see Note 9 below). The financing obligation is not reflected in the table above.

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 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 http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration