LEASES

6 Months Ended

Apr. 03, 2021

LEASESWe 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 April 3, 2021,

there were no option to extend the lease which was recognized as a right-of-use ("ROU") asset, or 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 included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Condensed Balance Sheet. As of April 3, 2021 and October 3, 2020, our finance leases are not material.

The following table shows the components of lease expense:


	Three months ended				Six months ended
(in thousands)	April 3, 2021		March 28, 2020		April 3, 2021		March 28, 2020
Operating lease expense (1)	$	1,932	$	1,668	$	3,799	$	3,384

(1)Operating lease expense includes short-term lease expense, which is immaterial for the three and six months ended April 3, 2021 and March 28, 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 lease liabilities, and, as such, are excluded from the amounts below:


	Six months ended
(in thousands)	April 3, 2021		March 28, 2020
Cash paid for amounts included in the measurement of lease liabilities:


Operating cash outflows from operating leases	$	3,558	$	3,131

The following table shows the weighted-average lease terms and discount rates for operating leases:


	As of
	April 3, 2021		October 3, 2020
Operating leases:
Weighted-average remaining lease term (in years):	4.1		4.5


Weighted-average discount rate:	4.9	%	4.8	%

Future lease payments, excluding short-term leases are detailed as follows:


	As of
(in thousands)	April 3, 2021
Remainder of 2021	$	4,706
2022	6,581
2023	6,408
2024	3,459
2025	2,332
Thereafter	1,832
Total minimum lease payments	$	25,318
Less: Interest	$	2,406
Present value of lease obligations	$	22,912
Less: Current portion	$	6,171
Long-term portion of lease obligations	$	16,741