Note 5 Leases

3 Months Ended

Jan. 02, 2021

Leases of Lessee Disclosure [Text Block]

Leases

The Company's leases consist primarily of operating leases for buildings and land. These leases have initial lease terms of up to 44 years and, upon adoption of ASC 842, are recorded on the Company's balance sheet as lease liabilities and corresponding right-of-use ("ROU") assets. Certain of these leases contain an option to extend the lease term for additional periods or to terminate the lease after an initial non-cancelable term. Renewal options are considered in the measurement of the Company's initial lease liability and corresponding ROU asset only if it is reasonably certain that the Company will exercise such options. Leases with lease terms of twelve months or less are not recorded on the Company's balance sheet.

ROU assets and lease liabilities recorded in the condensed consolidated balance sheet are as follows:


	As of
	January 2, 2021			October 3, 2020
	(In thousands)
Other assets (1)	$	53,407		$	52,552

Accrued liabilities	17,334			16,659
Other long-term liabilities	38,263			37,015
Total lease liabilities	$	55,597		$	53,674

Weighted average remaining lease term (in years)	6.66			6.88
Weighted average discount rate	3.02		%	3.13		%

(1) Net of accumulated amortization of $19 million and $16 million as of January 2, 2021 and October 3, 2020, respectively.

Cash paid for operating lease liabilities was $5 million for the three months ended January 2, 2021 and December 28, 2019. Operating lease expense, which includes an immaterial amount for short-term leases, variable lease costs and sublease income, was $5 million for the three months ended January 2, 2021 and December 28, 2019.

Future lease payments under non-cancelable operating leases as of January 2, 2021, by fiscal year, are as follows:


	Operating Leases
	(In thousands)
Remainder of 2021	$	14,346
2022	15,573
2023	8,824
2024	5,299
2025	4,127
2026	2,397
Thereafter	11,179
Total lease payments	61,745
Less: imputed interest	6,148
Total	$	55,597