Leases

9 Months Ended

Jul. 02, 2022

The components of lease expense for the three and nine months ended July 2, 2022 and July 3, 2021 were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
Finance lease expense:
Amortization of right-of-use assets	$	1,606	$	1,541	$	4,966	$	4,692
Interest on lease liabilities	1,262		1,229		3,713		3,669
Operating lease expense	2,912		2,697		8,607		8,146
Other lease expense	1,712		1,024		4,559		3,543
Total	$	7,492	$	6,491	$	21,845	$	20,050

Based on the nature of the right-of-use ("ROU") asset, amortization of finance lease ROU assets, operating lease expense and other lease expense are recorded within either cost of goods sold or selling and administrative expenses and interest on finance lease liabilities is recorded within interest expense on the Condensed Consolidated Statements of Comprehensive Income. Other lease expense includes lease expense for leases with an estimated total term of twelve months or less and variable lease expense related to variations in lease payments as a result of a change in factors or circumstances occurring after the lease possession date.

The following tables sets forth the amount of lease assets and lease liabilities included in the Company’s Condensed Consolidated Balance Sheets (in thousands):


	Financial Statement Line Item	July 2, 2022		October 2, 2021
ASSETS
Finance lease assets	Property, plant and equipment, net	$	36,099	$	38,657
Operating lease assets	Operating lease right-of-use assets	64,293		72,087
Total lease assets		$	100,392	$	110,744

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Finance lease liabilities	Current portion of long-term debt and finance lease obligations	$	3,705	$	4,616
Operating lease liabilities	Other accrued liabilities	8,640		9,877
Non-current
Finance lease liabilities	Long-term debt and finance lease obligations, net of current portion	36,173		36,919
Operating lease liabilities	Long-term operating lease liabilities	32,270		37,970
Total lease liabilities		$	80,788	$	89,382

As of July 2, 2022 we had $8.1 million of payments related to leases signed but not yet commenced. These leases will commence in the next twelve months, with lease terms between 3 and 25 years.