Leases

9 Months Ended

Aug. 01, 2021

The Company’s material operating leases consist of branch locations, as well as corporate office space. Our leases have remaining terms of 1 - 9 years. The lease term is the minimum of the non-cancelable period of the lease or the lease term inclusive of reasonably certain renewal option periods. Volt determines if an arrangement meets the criteria of a lease at inception, at which time it also performs an analysis to determine whether the lease qualifies as operating or financing.

Operating leases are included in Right of use assets - operating leases and Operating lease liabilities, current and long-term, in the Condensed Consolidated Balance Sheets. Lease expense for operating leases is recognized on a straight-line basis over the lease term and is included in Selling, administrative and other operating costs in the Condensed Consolidated Statements of Operations. The Company’s finance lease arrangements are immaterial.


Components of Lease Expense (in thousands)	Three Months Ended				Nine Months Ended
	August 1, 2021		August 2, 2020		August 1, 2021		August 2, 2020
Operating lease expense	$	2,206	$	2,827	$	6,660	$	8,751
Sublease income	(461)		(394)		(1,338)		(1,183)
Variable lease expense	374		213		1,117		482
Total (1)(2)	$	2,119	$	2,646	$	6,439	$	8,050

(1) The Company’s short-term lease expense is immaterial.

(2) Lease expense included in restructuring is approximately $0.3 million and $1.2 million for the three and nine months ended August 1, 2021, respectively, and $0.1 million and $0.1 million for the three and nine months ended August 2, 2020, respectively.


	Nine Months Ended
Supplemental Cash Flows Information (in thousands)	August 1, 2021		August 2, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	8,255	$	8,784
Operating ROU assets obtained in exchange for operating lease liabilities	$	2,837	$	1,784


	Nine Months Ended
Weighted Average Remaining Lease Term and Discount Rate	August 1, 2021		August 2, 2020
Weighted average remaining lease term (years)	7.5		8.1
Weighted average discount rate	6.3	%	6.3	%


Maturities of Lease Liabilities (in thousands)	As of August 1, 2021
Fiscal Year:	Amount
Remainder of 2021	$	2,520
2022	8,944
2023	7,525
2024	5,981
2025	5,412
Thereafter	22,990
Total future lease payments	$	53,372
Less: Imputed interest	11,250
Total lease liabilities	$	42,122