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v3.23.3

Leases | 12 Months Ended
--- | ---
Sep. 30, 2023
Leases [Abstract] |
Leases | Leases The Company has operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. The Company's leases have remaining lease terms of one to 11 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company does not include significant restrictions or covenants in its lease agreements, and residual value guarantees are not included within its operating leases. Some of the Company's leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as product costs, insurance and tax payments. These variable payments are not included in the Company's recorded lease assets and liabilities and are expensed as incurred. Certain leases are tied to a variable index or rate and are included in lease assets and liabilities based on the indices or rates as of lease commencement. See Note 1 – Organization and Significant Accounting Policies, for more information about the Company's lease accounting policies. Supplemental balance sheet information related to the Company's leases was as follows:
|  | Balance Sheet Classification |  | September 30, 2023 | September 24, 2022
|  |  |  | (in millions)
Operating leases |  |  |  |  |
Right-of-use assets |  | Operating lease right-of-use assets |  | $ | 173.5 |  | $ | 186.3 |
Current lease liabilities |  | Current operating lease liabilities |  | $ | 50.6 |  | $ | 48.1 |
Non-current lease liabilities |  | Long-term operating lease liabilities |  | 135.6 |  | 147.7 |
Total operating lease liabilities |  |  |  | $ | 186.2 |  | $ | 195.8 |
Finance leases |  |  |  |  |
Right-of-use assets |  | Property, plant and equipment, net |  | $ | 0.1 |  | $ | 0.1 |
Current lease liabilities |  | Current portion of long-term debt |  | $ | — |  | $ | — |
Non-current lease liabilities |  | Long-term debt |  | — |  | — |
Total finance lease liabilities |  |  |  | $ | — |  | $ | — |
Components of lease cost were as follows:
|  | Fiscal Year Ended |  |
|  | September 30, 2023 | September 24, 2022 |  |
|  | (in millions) |  |
Operating lease cost |  | $ | 58.0 |  | $ | 53.8 |  |  |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets |  | 0.1 | 0.1 |  |
Interest on lease liabilities |  | — |  | — |  |  |
Total finance lease cost |  | $ | 0.1 |  | $ | 0.1 |  |  |
Short-term lease cost |  | 12.6 | 9.3 |  |
Variable lease cost |  | 10.6 | 8.8 |  |
Total lease cost |  | $ | 81.3 |  | $ | 72.0 |  |  |
Supplemental cash flow information and non-cash activity related to the Company's leases was as follows:
|  |  |  | Fiscal Year Ended |  |
|  |  |  | September 30, 2023 |  | September 24, 2022 |  |
|  |  |  | (in millions) |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  | $ | 50.1 |  |  | $ | 45.1 |  |  |
Financing cash flows from finance leases |  |  |  | $ | — |  |  | $ | 0.1 |  |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Operating leases |  |  |  | $ | 42.8 |  |  | $ | 70.8 |  |  |
Finance leases |  |  |  | $ | — |  |  | $ | — |  |  |
Weighted-average remaining lease term and discount rate for the Company's leases were as follows:
|  | September 30, 2023 |  | September 24, 2022 |  |
Weighted-average remaining lease term (in years): |  |  |  |  |  |
Operating leases |  | 5.3 |  | 5.6 |  |
Finance leases |  | 4.4 |  | 1.0 |  |
Weighted-average discount rate: |  |  |  |  |  |
Operating leases |  | 3.85 | % |  | 2.97 | % |  |
Finance leases |  | 6.89 | % |  | 5.13 | % |  |
Lease liability maturities as of September 30, 2023 are as follows:
|  | September 30, 2023
|  | Operating Leases |  | Finance Leases
Fiscal Year |  | (in millions)
2024 |  | $ | 54.9 |  |  | $ | — |
2025 |  | 47.1 |  |  | — |
2026 |  | 33.0 |  |  | — |
2027 |  | 22.8 |  |  | — |
2028 |  | 14.7 |  |  | — |
Thereafter |  | 34.8 |  |  | — |
Total future undiscounted lease payments |  | $ | 207.3 |  |  | $ | — |
Less imputed interest |  | (21.1) |  |  | — |
Total reported lease liability |  | $ | 186.2 |  |  | $ | — |
Leases | Leases The Company has operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. The Company's leases have remaining lease terms of one to 11 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company does not include significant restrictions or covenants in its lease agreements, and residual value guarantees are not included within its operating leases. Some of the Company's leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as product costs, insurance and tax payments. These variable payments are not included in the Company's recorded lease assets and liabilities and are expensed as incurred. Certain leases are tied to a variable index or rate and are included in lease assets and liabilities based on the indices or rates as of lease commencement. See Note 1 – Organization and Significant Accounting Policies, for more information about the Company's lease accounting policies. Supplemental balance sheet information related to the Company's leases was as follows:
|  | Balance Sheet Classification |  | September 30, 2023 | September 24, 2022
|  |  |  | (in millions)
Operating leases |  |  |  |  |
Right-of-use assets |  | Operating lease right-of-use assets |  | $ | 173.5 |  | $ | 186.3 |
Current lease liabilities |  | Current operating lease liabilities |  | $ | 50.6 |  | $ | 48.1 |
Non-current lease liabilities |  | Long-term operating lease liabilities |  | 135.6 |  | 147.7 |
Total operating lease liabilities |  |  |  | $ | 186.2 |  | $ | 195.8 |
Finance leases |  |  |  |  |
Right-of-use assets |  | Property, plant and equipment, net |  | $ | 0.1 |  | $ | 0.1 |
Current lease liabilities |  | Current portion of long-term debt |  | $ | — |  | $ | — |
Non-current lease liabilities |  | Long-term debt |  | — |  | — |
Total finance lease liabilities |  |  |  | $ | — |  | $ | — |
Components of lease cost were as follows:
|  | Fiscal Year Ended |  |
|  | September 30, 2023 | September 24, 2022 |  |
|  | (in millions) |  |
Operating lease cost |  | $ | 58.0 |  | $ | 53.8 |  |  |
Finance lease cost: |  |  |  |  |
Amortization of right-of-use assets |  | 0.1 | 0.1 |  |
Interest on lease liabilities |  | — |  | — |  |  |
Total finance lease cost |  | $ | 0.1 |  | $ | 0.1 |  |  |
Short-term lease cost |  | 12.6 | 9.3 |  |
Variable lease cost |  | 10.6 | 8.8 |  |
Total lease cost |  | $ | 81.3 |  | $ | 72.0 |  |  |
Supplemental cash flow information and non-cash activity related to the Company's leases was as follows:
|  |  |  | Fiscal Year Ended |  |
|  |  |  | September 30, 2023 |  | September 24, 2022 |  |
|  |  |  | (in millions) |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  |  |  | $ | 50.1 |  |  | $ | 45.1 |  |  |
Financing cash flows from finance leases |  |  |  | $ | — |  |  | $ | 0.1 |  |  |
Right-of-use assets obtained in exchange for lease obligations: |  |  |  |  |  |  |  |
Operating leases |  |  |  | $ | 42.8 |  |  | $ | 70.8 |  |  |
Finance leases |  |  |  | $ | — |  |  | $ | — |  |  |
Weighted-average remaining lease term and discount rate for the Company's leases were as follows:
|  | September 30, 2023 |  | September 24, 2022 |  |
Weighted-average remaining lease term (in years): |  |  |  |  |  |
Operating leases |  | 5.3 |  | 5.6 |  |
Finance leases |  | 4.4 |  | 1.0 |  |
Weighted-average discount rate: |  |  |  |  |  |
Operating leases |  | 3.85 | % |  | 2.97 | % |  |
Finance leases |  | 6.89 | % |  | 5.13 | % |  |
Lease liability maturities as of September 30, 2023 are as follows:
|  | September 30, 2023
|  | Operating Leases |  | Finance Leases
Fiscal Year |  | (in millions)
2024 |  | $ | 54.9 |  |  | $ | — |
2025 |  | 47.1 |  |  | — |
2026 |  | 33.0 |  |  | — |
2027 |  | 22.8 |  |  | — |
2028 |  | 14.7 |  |  | — |
Thereafter |  | 34.8 |  |  | — |
Total future undiscounted lease payments |  | $ | 207.3 |  |  | $ | — |
Less imputed interest |  | (21.1) |  |  | — |
Total reported lease liability |  | $ | 186.2 |  |  | $ | — |

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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//842-20/tableOfContent + Details
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