LEASES

6 Months Ended

Mar. 29, 2024

Leases [Abstract]

LEASES

LEASES:

The Company has lease arrangements primarily related to real estate, vehicles and equipment. Finance leases primarily relate to vehicles. The Company assesses whether an arrangement is a lease, or contains a lease, upon inception of the related contract. A right-of-use asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (“short-term leases”).

Variable lease payments, which primarily consist of real estate taxes, common area maintenance charges, insurance costs and other operating expenses, are not included in the operating lease right-of-use asset or operating lease liability balances and are recognized in the period in which the expenses are incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain they will be exercised or not, respectively. Options to extend lease terms that are reasonably certain of exercise are recognized as part of the operating lease right-of-use asset and operating lease liability balances.

The Company is required to discount its future minimum lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The Company uses a portfolio approach to determine the incremental borrowing rate based on the geographic location of the lease and the remaining lease term. The incremental borrowing rate is calculated using a base line rate plus an applicable margin.

The following table summarizes operating lease costs, consisting of fixed lease costs, variable lease costs and short-term lease costs. Additionally, the table summarizes finance lease costs, consisting of amortization of right-of-use asset and interest on lease liabilities (in thousands):

	Three months ended				Six months ended
	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Lease costs:
Operating lease costs	$	10,358	$	10,450	$	20,729	$	20,883
Finance lease costs	$	9,824	$	8,249	$	18,113	$	17,021

Supplemental cash flow information related to leases for the period reported is as follows (in thousands):

	Six months ended
	March 29, 2024		March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12,064	$	12,179
Operating cash flows from finance leases	2,779		1,995
Financing cash flows from finance leases	15,148		13,852
Lease assets obtained in exchange for lease obligations:
Operating leases	$	7,207	$	8,589
Finance leases	22,643		17,930

Other information related to the operating lease right-of-use assets, net and operating lease liabilities was as follows (in thousands):

	March 29, 2024		September 29, 2023
Weighted average remaining lease term (in years)
Operating leases	4.6		4.7
Finance leases	5.7		5.7
Weighted average discount rate
Operating leases	4.7	%	4.4	%
Finance leases	4.5	%	4.3	%

Future minimum lease payments under non-cancelable leases as of March 29, 2024 are as follows (in thousands):

	Operating leases		Finance leases		Total
2024 (remaining six months)	$	11,691	$	17,444	$	29,135
2025	19,356		32,912		52,268
2026	13,732		27,984		41,716
2027	9,741		23,661		33,402
2028	6,785		19,425		26,210
Thereafter	9,918		32,456		42,374
Total future minimum lease payments	$	71,223	$	153,882	$	225,105
Less: Interest	(8,476)		(15,405)		(23,881)
Present value of lease liabilities	$	62,747	$	138,477	$	201,224

LEASES

LEASES:

The Company has lease arrangements primarily related to real estate, vehicles and equipment. Finance leases primarily relate to vehicles. The Company assesses whether an arrangement is a lease, or contains a lease, upon inception of the related contract. A right-of-use asset and corresponding lease liability are not recorded for leases with an initial term of 12 months or less (“short-term leases”).

Variable lease payments, which primarily consist of real estate taxes, common area maintenance charges, insurance costs and other operating expenses, are not included in the operating lease right-of-use asset or operating lease liability balances and are recognized in the period in which the expenses are incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain they will be exercised or not, respectively. Options to extend lease terms that are reasonably certain of exercise are recognized as part of the operating lease right-of-use asset and operating lease liability balances.

The Company is required to discount its future minimum lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, the incremental borrowing rate. The Company uses a portfolio approach to determine the incremental borrowing rate based on the geographic location of the lease and the remaining lease term. The incremental borrowing rate is calculated using a base line rate plus an applicable margin.

The following table summarizes operating lease costs, consisting of fixed lease costs, variable lease costs and short-term lease costs. Additionally, the table summarizes finance lease costs, consisting of amortization of right-of-use asset and interest on lease liabilities (in thousands):

	Three months ended				Six months ended
	March 29, 2024		March 31, 2023		March 29, 2024		March 31, 2023
Lease costs:
Operating lease costs	$	10,358	$	10,450	$	20,729	$	20,883
Finance lease costs	$	9,824	$	8,249	$	18,113	$	17,021

Supplemental cash flow information related to leases for the period reported is as follows (in thousands):

	Six months ended
	March 29, 2024		March 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	12,064	$	12,179
Operating cash flows from finance leases	2,779		1,995
Financing cash flows from finance leases	15,148		13,852
Lease assets obtained in exchange for lease obligations:
Operating leases	$	7,207	$	8,589
Finance leases	22,643		17,930

Other information related to the operating lease right-of-use assets, net and operating lease liabilities was as follows (in thousands):

	March 29, 2024		September 29, 2023
Weighted average remaining lease term (in years)
Operating leases	4.6		4.7
Finance leases	5.7		5.7
Weighted average discount rate
Operating leases	4.7	%	4.4	%
Finance leases	4.5	%	4.3	%

Future minimum lease payments under non-cancelable leases as of March 29, 2024 are as follows (in thousands):

	Operating leases		Finance leases		Total
2024 (remaining six months)	$	11,691	$	17,444	$	29,135
2025	19,356		32,912		52,268
2026	13,732		27,984		41,716
2027	9,741		23,661		33,402
2028	6,785		19,425		26,210
Thereafter	9,918		32,456		42,374
Total future minimum lease payments	$	71,223	$	153,882	$	225,105
Less: Interest	(8,476)		(15,405)		(23,881)
Present value of lease liabilities	$	62,747	$	138,477	$	201,224