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Leases
 12 Months Ended
Oct. 03, 2020
Leases [Abstract]  
Leases LEASES
We determine if an arrangement contains a lease at inception based on whether or not we have the right to control the asset during the contract period and other facts and circumstances. We are the lessee in a lease contract when we obtain the right to control the asset. Operating leases are included in other long-term assets, other accrued liabilities and other long-term liabilities in our Consolidated Balance Sheet. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on our Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term in our Consolidated Statement of Income. We determine the lease term by assuming the exercise of renewal options that are reasonably certain. Most leases have remaining lease terms of one to ten years, some of which include options to extend the lease terms one to five years or more.
As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The incremental borrowing rate is used in determining the present value of lease payments, unless an implicit rate is specified. When our contracts contain lease and non-lease components, we account for both components as a single lease component.
We have operating leases for facilities, vehicles and equipment. We also have financing leases for certain vehicles. Our lease agreements do not contain any material residual value guarantees, material bargain purchase options or material restrictive covenants. We have no material sublease arrangements with third parties or lease transactions with related parties.
Total rent expense was $9,786 for fiscal year 2020, primarily related to operating lease costs. Costs associated with short-term leases, variable rent and subleases were immaterial. Total rent expense was $9,055 and $7,924 for fiscal years 2019 and 2018, respectively.
Supplemental balance sheet information related to leases is as follows:
ClassificationOctober 3, 2020September 29, 2019
Assets 
Operating leasesOther long-term assets$18,522 $20,356 
Finance leases
Other long-term assets 1
956 1,436 
Total leased assets $19,478 $21,792 
Liabilities 
Current
   Operating leasesOther accrued liabilities$7,014 $7,447 
   Finance leases
Other accrued liabilities 2
445 570 
Non-current
   Operating leasesOther long-term liabilities11,508 12,909 
   Finance leases
Other long-term liabilities 2
511 866 
Total lease liabilities $19,478 $21,792 
1    Assets held under capital leases were reclassified from property and equipment, net to other long-term assets as part of the adoption of the new lease standard.
2    Finance lease obligations were reclassified from long-term debt, less current maturities, net to other accrued liabilities and other long-term liabilities as part of the adoption of the new lease standard.
Supplemental cash flow information related to leases is as follows:
2020
Cash paid for amounts included in the measurement of lease liabilities
    Operating cash flows from operating leases$9,664 
    Operating cash flows from finance leases49 
    Financing cash flows from finance leases547 
    Operating leased assets obtained in exchange for new lease liabilities$3,425 
The weighted average remaining lease terms and weighted average discount rates are as follows:
 2020
Weighted average remaining lease term
   Operating leases4.7 years
   Finance leases2.4 years
Weighted average discount rate
   Operating leases3.2 %
   Finance leases3.7 %
Future lease payments under non-cancelable leases for the next five years and thereafter are as follows:
2020
Operating LeasesFinance Leases
20227,490 484 
20234,392 311 
20243,131 119 
20252,182 57 
2026892 — 
Thereafter1,987 — 
Total lease payments20,074 971 
Less imputed interest(1,552)(15)
Total reported lease liability$18,522 $956 
As of October 3, 2020, we have no material additional operating or finance leases that have not yet commenced.
Future minimum lease commitments under non-cancelable leases for the next five fiscal years and thereafter were as follows:
2019
Fiscal YearOperating LeasesCapital Leases
2020$7,149 $570 
20215,291 588 
20223,124 278 
20231,602 — 
20241,085 — 
Thereafter1,789 — 
Total$20,040 $1,436 
Leases LEASES
We determine if an arrangement contains a lease at inception based on whether or not we have the right to control the asset during the contract period and other facts and circumstances. We are the lessee in a lease contract when we obtain the right to control the asset. Operating leases are included in other long-term assets, other accrued liabilities and other long-term liabilities in our Consolidated Balance Sheet. Right-of-use assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. Leases with a lease term of 12 months or less at inception are not recorded on our Consolidated Balance Sheet and are expensed on a straight-line basis over the lease term in our Consolidated Statement of Income. We determine the lease term by assuming the exercise of renewal options that are reasonably certain. Most leases have remaining lease terms of one to ten years, some of which include options to extend the lease terms one to five years or more.
As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of future payments. The incremental borrowing rate is used in determining the present value of lease payments, unless an implicit rate is specified. When our contracts contain lease and non-lease components, we account for both components as a single lease component.
We have operating leases for facilities, vehicles and equipment. We also have financing leases for certain vehicles. Our lease agreements do not contain any material residual value guarantees, material bargain purchase options or material restrictive covenants. We have no material sublease arrangements with third parties or lease transactions with related parties.
Total rent expense was $9,786 for fiscal year 2020, primarily related to operating lease costs. Costs associated with short-term leases, variable rent and subleases were immaterial. Total rent expense was $9,055 and $7,924 for fiscal years 2019 and 2018, respectively.
Supplemental balance sheet information related to leases is as follows:
ClassificationOctober 3, 2020September 29, 2019
Assets 
Operating leasesOther long-term assets$18,522 $20,356 
Finance leases
Other long-term assets 1
956 1,436 
Total leased assets $19,478 $21,792 
Liabilities 
Current
   Operating leasesOther accrued liabilities$7,014 $7,447 
   Finance leases
Other accrued liabilities 2
445 570 
Non-current
   Operating leasesOther long-term liabilities11,508 12,909 
   Finance leases
Other long-term liabilities 2
511 866 
Total lease liabilities $19,478 $21,792 
1    Assets held under capital leases were reclassified from property and equipment, net to other long-term assets as part of the adoption of the new lease standard.
2    Finance lease obligations were reclassified from long-term debt, less current maturities, net to other accrued liabilities and other long-term liabilities as part of the adoption of the new lease standard.
Supplemental cash flow information related to leases is as follows:
2020
Cash paid for amounts included in the measurement of lease liabilities
    Operating cash flows from operating leases$9,664 
    Operating cash flows from finance leases49 
    Financing cash flows from finance leases547 
    Operating leased assets obtained in exchange for new lease liabilities$3,425 
The weighted average remaining lease terms and weighted average discount rates are as follows:
 2020
Weighted average remaining lease term
   Operating leases4.7 years
   Finance leases2.4 years
Weighted average discount rate
   Operating leases3.2 %
   Finance leases3.7 %
Future lease payments under non-cancelable leases for the next five years and thereafter are as follows:
2020
Operating LeasesFinance Leases
20227,490 484 
20234,392 311 
20243,131 119 
20252,182 57 
2026892 — 
Thereafter1,987 — 
Total lease payments20,074 971 
Less imputed interest(1,552)(15)
Total reported lease liability$18,522 $956 
As of October 3, 2020, we have no material additional operating or finance leases that have not yet commenced.
Future minimum lease commitments under non-cancelable leases for the next five fiscal years and thereafter were as follows:
2019
Fiscal YearOperating LeasesCapital Leases
2020$7,149 $570 
20215,291 588 
20223,124 278 
20231,602 — 
20241,085 — 
Thereafter1,789 — 
Total$20,040 $1,436