Leases

6 Months Ended

Oct. 26, 2019

The Company leases real estate, automobiles and certain equipment under both operating and finance leases. The Company does not have any significant arrangements where it is the lessor. The majority of the Company's global lease portfolio represents leases of real estate, such as manufacturing facilities, warehouses and buildings. As of October 26, 2019, the Company's leases have remaining lease terms up to 11.8 years, some of which include optional renewals or terminations, which are considered in the Company’s assessments when such options are reasonably certain to be exercised. Any variable payments related to the lease will be recorded as lease expense when and as incurred. The Company’s lease payments are largely fixed. As of October 26, 2019, the operating leases that the Company has signed but have not yet commenced are immaterial.

In addition to the operating lease assets presented on the condensed consolidated balance sheets, assets under finance leases of $0.8 million are included in property, plant and equipment, net on the condensed consolidated balance sheets as of October 26, 2019. The finance lease obligation is split between other accrued expenses for the short-term portion and other long-term liabilities for the long-term portion on the condensed consolidated balance sheets. The Company had an immaterial amount of finance lease expense in the three and six months ended October 26, 2019.

The components of lease expense were as follows:



(Dollars in Millions)	Three Months Ended October 26, 2019		Six Months Ended October 26, 2019
Lease Cost:
Operating Lease Cost	$	2.3	$	4.8
Variable Lease Cost	0.2		0.4
Total Lease Cost	$	2.5	$	5.2

Supplemental cash flow and other information related to operating leases was as follows:



(Dollars in Millions)	Six Months Ended October 26, 2019
Operating Cash Flows:
Cash Paid Related to Operating Lease Obligations	$	4.3

Non-cash Activity:
Right-of-use Assets Obtained in Exchange for Lease Obligations	$	5.1

Weighted-average Remaining Lease Term	5.8 years
Weighted-average Discount Rate	4.67		%

Maturities of operating lease liabilities as of October 26, 2019, are shown below:



(Dollars in Millions)	Operating Leases
Fiscal Year:
Remainder of 2020	$	4.2
2021	6.4
2022	5.9
2023	5.2
2024	4.0
Thereafter	8.0
Total Lease Payments	33.7
Less: Imputed Interest	(4.4		)
Present Value of Lease Liabilities	$	29.3

Disclosures related to periods prior to the adoption of ASC 842

Total rent expense was $1.5 million and $3.1 million in the three and six months ended October 27, 2018, respectively. Future minimum lease payments for assets under operating leases as of April 27, 2019 were as follows:



(Dollars in Millions)	Operating Leases
Fiscal Years:
2020	$	7.8
2021	5.6
2022	4.9
2023	4.2
2024	3.3
Thereafter	8.4
Net Minimum Lease Payments	$	34.2

Leases

The components of lease expense were as follows:



(Dollars in Millions)	Three Months Ended October 26, 2019		Six Months Ended October 26, 2019
Lease Cost:
Operating Lease Cost	$	2.3	$	4.8
Variable Lease Cost	0.2		0.4
Total Lease Cost	$	2.5	$	5.2

Supplemental cash flow and other information related to operating leases was as follows:



(Dollars in Millions)	Six Months Ended October 26, 2019
Operating Cash Flows:
Cash Paid Related to Operating Lease Obligations	$	4.3

Non-cash Activity:
Right-of-use Assets Obtained in Exchange for Lease Obligations	$	5.1

Weighted-average Remaining Lease Term	5.8 years
Weighted-average Discount Rate	4.67		%

Maturities of operating lease liabilities as of October 26, 2019, are shown below:



(Dollars in Millions)	Operating Leases
Fiscal Year:
Remainder of 2020	$	4.2
2021	6.4
2022	5.9
2023	5.2
2024	4.0
Thereafter	8.0
Total Lease Payments	33.7
Less: Imputed Interest	(4.4		)
Present Value of Lease Liabilities	$	29.3

Disclosures related to periods prior to the adoption of ASC 842



(Dollars in Millions)	Operating Leases
Fiscal Years:
2020	$	7.8
2021	5.6
2022	4.9
2023	4.2
2024	3.3
Thereafter	8.4
Net Minimum Lease Payments	$	34.2