XML 36 R27.htm IDEA: XBRL DOCUMENT
v3.22.2

LEASES | 9 Months Ended
--- | ---
Jul. 01, 2022
Leases [Abstract] |
LEASES | LEASES The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases. The Company determines if an arrangement is a lease at inception. As of July 1, 2022, the Company had approximately 200 leases, with remaining terms ranging from less than one year to 17 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 right-of-use ("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 applicable 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. The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended July 1, 2022 and July 2, 2021 were as follows:
| Three months ended | Nine months ended
| July 1, 2022 | July 2, 2021 | July 1, 2022 | July 2, 2021
Lease Cost |  |  |  |
Operating lease costs | $ | 2,212 |  | $ | 2,107 |  | $ | 6,430 |  | $ | 6,184 |
Short-term lease costs | 542 |  | 403 |  | 1,501 |  | 1,206 |
Variable lease costs | 43 |  | 46 |  | 131 |  | 138 |
Total lease cost | $ | 2,797 |  | $ | 2,556 |  | $ | 8,062 |  | $ | 7,528 |
Included in the amounts in the table above were rent expense to related parties of $314 and $895 for the three and nine months ended July 1, 2022, respectively, and $262 and $778 for the three and nine months ended July 2, 2021, respectively. As of July 1, 2022, the Company did not have any finance leases or sublease agreements. Additionally, the Company does not have any leases in which it is the lessor. While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended July 1, 2022. Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:
| Nine months ended |  |  |
| July 1, 2022 | July 2, 2021 |  |  |
Operating leases: |  |  |  |  |
Operating lease ROU assets | $ | 50,284 |  | $ | 43,741 |  |  |  |
Current operating lease liabilities | 6,348 |  | 5,281 |  |  |  |
Non-current operating lease liabilities | 45,111 |  | 39,382 |  |  |  |
Total operating lease liabilities | $ | 51,459 |  | $ | 44,663 |  |  |  |
Weighted average remaining lease term (in years) | 12.10 | 13.24 |  |  |
Weighted average discount rate | 3.11 | % | 3.15 | % |  |  |
Cash paid for amounts included in the measurement of lease liabilities | $ | 5,674 |  | $ | 5,680 |  |  |  |
Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at July 1, 2022 were as follows:
Year | Related parties included in total |  | Total
Remainder of 2022 | $ | 301 |  |  | $ | 2,145 |
2023 | 1,233 |  |  | 8,158 |
2024 | 1,270 |  |  | 7,255 |
2025 | 1,308 |  |  | 6,581 |
2026 | 1,348 |  |  | 4,942 |
Thereafter | 226 |  |  | 33,955 |
Total undiscounted lease payments | 5,686 |  |  | 63,036 |
Less: Imputed interest | (195) |  |  | (11,577) |
Total net lease liability | $ | 5,491 |  |  | $ | 51,459 |
During the second quarter of fiscal 2021, the Company amended its agreement with the landlord on an existing leased facility. During the third quarter of fiscal 2022, the Company took occupancy of part of the space, and began making pro-rated payments under the amended agreement, which are included in the amounts above. The Company expects to occupy the remaining space in the fourth quarter of fiscal 2022, and total estimated rental payments, not included in the amounts above, will be approximately $8 million over the course of the lease as amended, through June 2039. As of July 1, 2022, the Company did not have any other additional significant operating lease commitments that have not yet commenced.

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