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LEASES | 12 Months Ended
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Oct. 02, 2020
Leases [Abstract] |
LEASES | LEASES Adoption of Topic 842 At the beginning of fiscal 2020, the Company adopted ASU 2016-02 and all subsequent ASUs that modified accounting standards Topic 842 using a modified retrospective adoption method, in which right-of-use ("ROU") assets and lease liabilities are recognized in the condensed consolidated balance sheets. Under the effective date transition method, financial results reported in periods prior to fiscal year 2020 are unchanged. The Company also elected the package of practical expedients permitted under the standard, which does not require reassessment of prior conclusions related to contracts containing a lease, lease classification and initial direct lease costs. As an ongoing accounting policy election, the Company will exclude short-term leases (terms of 12 months or less) from the balance sheet presentation and will account for non-lease and lease components in a contract as a single lease component for most asset classes. All leases in which the Company is the lessee are classified as operating leases, and the Company does not have any finance leases or sublease agreements. Additionally, the Company does not have any leases in which it is the lessor. The adoption of this new standard had a significant impact on the Company's condensed consolidated balance sheet due to the recognition of approximately $41 million of lease liabilities with corresponding ROU assets for operating leases. The adoption of this new standard did not have a significant impact on the condensed consolidated statements of operations or cash flows, and did not impact our debt covenant compliance under our current credit agreements. The Company determines if an arrangement is a lease at inception. The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases. As of October 2, 2020, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 15 years. Some of the leases contain variable payment terms, such as payments based on fluctuations in the Consumer Price Index (CPI). Some leases also contain options to extend or terminate the lease. To the extent the Company is reasonably certain to exercise these options, they have been considered in the calculation of the ROU assets and lease liabilities. Under current lease agreements, there are no residual value guarantees or restrictive lease covenants. In calculating the ROU assets and lease liabilities, several assumptions and judgments were made by the Company, including whether a contract is or contains a lease under the new definition, and the determination of the discount rate, which is assumed to be the incremental borrowing rate. The incremental borrowing rate is derived from information available to the Company at the lease commencement date based on lease length and location. As of October 2, 2020, the components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations were as follows:
| Year ended
| October 2, 2020
Lease Cost |
Operating lease costs | $ | 7,483 |
Short-term lease costs | 1,828 |
Variable leases costs | 173 |
Total lease cost | $ | 9,484 |
Included in the amounts in the table above was rent expense to related parties of $1,028 for the year ended October 2, 2020. As of October 2, 2020, the Company did not have any finance leases. There were no significant new leases entered into during the year ended October 2, 2020. Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:
|  | Year ended |  |
|  | October 2, 2020 |  |
Operating leases: |  |  |  |
Operating lease ROU assets |  | $ | 40,666 |  |  |
Current operating leases liabilities |  | 6,587 |  |  |
Non-current operating lease liabilities |  | 34,931 |  |  |
Total operating lease liabilities |  | $ | 41,518 |  |  |
Weighted average remaining lease term (in years) |  | 10.05 |  |
Weighted average discount rate |  | 2.85 | % |  |
Cash paid for amounts included in the measurement of lease liabilities |  | $ | 6,716 |  |  |
Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at October 2, 2020 were as follows:
Year | Related parties included in total |  | Total
2021 | $ | 1,152 |  |  | $ | 8,025 |
2022 | 193 |  |  | 5,025 |
2023 | — |  |  | 4,531 |
2024 | — |  |  | 4,550 |
2025 | — |  |  | 3,643 |
Thereafter | — |  |  | 22,222 |
Total undiscounted lease payments | 1,345 |  |  | 47,996 |
Less: Imputed interest | (15) |  |  | (6,478) |
Total net lease liability | $ | 1,330 |  |  | $ | 41,518 |
As of October 2, 2020, the Company did not have any additional significant operating lease commitments that have not yet commenced. Disclosures related to periods prior to adoption of Topic 842 (Fiscal 2019 and 2018) Rental expense under all leases was $9,352 and $8,316 for the years ended September 27, 2019 and September 28, 2018, respectively. Rent expense to related parties was $998 and $992 for the years ended September 27, 2019 and September 28, 2018, respectively. Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at September 27, 2019 were as follows:
Year | Related parties included in total |  | Total
2020 | $ | 1,039 |  |  | $ | 7,865 |
2021 | 1,070 |  |  | 6,155 |
2022 | 179 |  |  | 3,794 |
2023 | — |  |  | 3,406 |
2024 | — |  |  | 3,423 |
Thereafter | — |  |  | 23,180 |

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- References No definition available. + 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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