Leases
The Company enters into operating leases which primarily relate to certain facilities and, to a lesser extent, finance leases. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. Lease assets represent the Company’s right to use underlying assets for the lease term, and lease liabilities represent the obligation to make lease payments over the lease term. At lease commencement, leases are evaluated for classification, and assets and liabilities are recognized based on the present value of lease payments over the lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received, such as construction allowances from landlords and/or rent abatements subsequent to taking possession of the leased property. The Company has agreements with lease and non-lease components, which are accounted for as a single lease component. Non-lease components may include real estate taxes, insurance, maintenance, parking and other operating costs. If these costs are variable costs they are not included in the measurement of the right-of-use assets and lease liabilities, but are expensed when the event determining the amount of variable consideration to be paid occurs. The Company’s leases have remaining lease terms of less than one year to approximately twenty years, some of which may include options to extend the initial term of the lease. These options are included in determining the initial lease term at lease commencement only if the Company is reasonably certain to exercise the option. Lease costs are recognized on a straight-line basis as lease expense over the lease term. For leases with terms of twelve months or less the Company recognizes the related lease payments as expense either on a straight-line basis over the lease term or as incurred depending on whether the lease payments are fixed or variable. The Company subleases certain properties that are not used in its core business operations. Sublease income was $15.0 million and $12.8 million in fiscal 2025 and fiscal 2024, respectively.
The following table presents supplemental balance sheet information related to the Company’s operating leases: | | | | | | | | | | | |
| November 1, 2025 | | November 2, 2024 |
| Assets | | | |
| Operating lease right-of-use assets in Other assets | $ | 229,520 | | | $ | 242,548 | |
| Liabilities | | | |
| Operating lease liabilities in Accrued liabilities | $ | 72,905 | | | $ | 68,130 | |
| Operating lease liabilities in Other non-current liabilities | $ | 283,904 | | | $ | 318,570 | |
Details of the Company’s operating leases are as follows: | | | | | | | | | | | | | | | |
| | | November 1, 2025 | | November 2, 2024 |
| Lease expense | | | $ | 67,340 | | | $ | 68,331 | |
| | | | | |
| Cash paid for amounts included in the measurement of operating lease liabilities | | |
| Cash flows from operating leases | | | $ | 83,556 | | | $ | 82,070 | |
| Lease assets obtained in exchange for new lease liabilities | | | $ | 39,604 | | | $ | 15,801 | |
| Weighted average remaining lease term | | | 5.7 years | | 6.4 years |
| Weighted average discount rate | | | 3.9% | | 3.8% |
The following table presents the maturities of the Company’s operating lease liabilities as of November 1, 2025: | | | | | |
| Fiscal year | |
2026 | $ | 85,606 | |
| 2027 | 78,456 | |
| 2028 | 64,504 | |
| 2029 | 58,970 | |
| 2030 | 50,531 | |
| Thereafter | 56,894 | |
| Total future minimum operating lease payments | 394,961 | |
| Less: imputed interest | (38,152) | |
| Present value of operating lease liabilities | $ | 356,809 | |
The following table presents the future minimum cash receipts as a result of subleases as of November 1, 2025: | | | | | |
| Fiscal year | |
2026 | $ | 15,683 | |
| 2027 | 16,153 | |
| 2028 | 16,635 | |
| 2029 | 16,886 | |
| 2030 | 12,480 | |
| Thereafter | — | |
| Total future minimum cash receipts | $ | 77,837 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.