Leases

6 Months Ended

Apr. 01, 2023

Leases

Leases

Note 6. Leases

The Company’s leases consist primarily of operating leases for buildings and land and have initial lease terms of up to 44 years. 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 right-of-use (“ROU”) assets 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 unaudited condensed consolidated balance sheet are as follows:

	As of
	April 1,			October 1,
	2023			2022
	(In thousands)
Other assets	$	98,541		$	79,495
Accrued liabilities	$	20,960		$	16,695
Other long-term liabilities		65,602			48,566
Total lease liabilities	$	86,562		$	65,261
Weighted average remaining lease term (in years)		11.02			15.74
Weighted average discount rate		3.68	%		2.40	%

Lease expense and supplemental cash flow information related to operating leases are as follows:

	Three Months Ended				Six Months Ended
	April 1,		April 2,		April 1,		April 2,
	2023		2022		2023		2022
	(In thousands)
Operating lease expense (1)	$	8,198	$	5,860	$	17,565	$	11,770

	Six Months Ended
	April 1,		April 2,
	2023		2022
	(In thousands)
Cash paid for operating lease liabilities	$	11,629	$	9,752

(1) Includes immaterial amounts of short term leases, variable lease costs and sublease income.

Future lease payments under non-cancelable operating leases as of April 1, 2023, by fiscal year, are as follows:

	Operating
	Leases
	(In thousands)
Remainder of 2023	$	12,268
2024		22,789
2025		19,976
2026		15,759
2027		12,502
2028		3,498
Thereafter		9,030
Total lease payments		95,822
Less: imputed interest		9,260
Total	$	86,562