LEASES (Tables)

12 Months Ended

Sep. 27, 2024

Schedule of Other Information Related to the Operating Leases

The following table summarizes the location of the operating and finance leases in the Company’s Consolidated and Combined Balance Sheets (in thousands), as well as the weighted average remaining lease term and weighted average discount rate:


Leases	Balance Sheet Location	September 27, 2024			September 29, 2023
Assets:
Operating	Operating Lease Right-of-use Assets	$	73,530		$	57,890
Finance	Property and Equipment, net	131,041			121,930
Total lease assets		$	204,571		$	179,820
Liabilities:
Current
Operating	Current operating lease liabilities	$	19,886		$	19,935
Finance	Current maturities of financing lease obligations	31,347			27,659
Noncurrent
Operating	Noncurrent Operating Lease Liabilities	66,111			46,084
Finance	Noncurrent Financing Lease Obligations	115,325			105,217
Total lease liabilities		$	232,669		$	198,895

Weighted average remaining lease term (in years)
Operating leases		6.1			4.7
Finance leases		5.7			5.7
Weighted average discount rate
Operating leases		6.1		%	4.4		%
Finance leases		4.6		%	4.3		%

Schedule of Location of Lease Related Costs

The following table summarizes the location of lease related costs in the Consolidated and Combined Statements of Income (in thousands):


		Fiscal Year Ended
Lease Cost	Income Statement Location	September 27, 2024		September 29, 2023		September 30, 2022
Operating lease cost:
Fixed lease costs	Cost of services provided (exclusive of depreciation and amortization) / Selling, general and administrative expenses	$	23,359	$	23,119	$	25,376
Variable lease costs	Cost of services provided (exclusive of depreciation and amortization) / Selling, general and administrative expenses	10,447		9,888		9,114
Short-term lease costs	Cost of services provided (exclusive of depreciation and amortization) / Selling, general and administrative expenses	8,698		8,175		6,371
Finance lease cost(1):
Amortization of right-of-use-assets	Depreciation and amortization	31,647		30,360		29,135
Interest on lease liabilities	Interest Expense, net	5,784		4,174		3,205
Net lease cost		$	79,935	$	75,716	$	73,201

__________________

(1)Excludes variable lease costs, which are immaterial.

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


	Fiscal Year Ended
	September 27, 2024		September 29, 2023		September 30, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases(1)	$	19,871	$	24,208	$	25,189
Operating cash flows from finance leases	5,784		4,174		3,205
Financing cash flows from finance leases	30,608		27,601		28,041
Lease assets obtained in exchange for lease obligations:
Operating leases	35,997		12,640		20,416
Finance leases	$	44,916	$	42,581	$	28,895

__________________

(1)For fiscal 2024, excludes cash paid for variable and short-term lease costs of $10.4 million and $8.7 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2023, excludes cash paid for variable and short-term lease costs of $9.9 million and $8.2 million, respectively, that are not included within the measurement of lease liabilities. For fiscal 2022, excludes cash paid for variable and short-term lease costs of $9.1 million and $6.4 million, respectively, that are not included within the measurement of lease liabilities. Additionally, for fiscal 2024, includes $4.5 million of cash received for reimbursements of tenant improvement allowances.

Schedule of Minimum Operating Lease Payments

Future minimum lease payments under non-cancelable leases as of September 27, 2024 are as follows (in thousands):


	Operating leases		Finance leases		Total
2025	$	23,755	$	37,246	$	61,001
2026	19,774		32,814		52,588
2027	16,210		28,298		44,508
2028	12,492		23,756		36,248
2029	8,128		19,065		27,193
Thereafter	27,702		26,407		54,109
Total future minimum lease payments	$	108,061	$	167,586	$	275,647
Less: Interest	(22,064)		(20,914)		(42,978)
Present value of lease liabilities	$	85,997	$	146,672	$	232,669

Schedule of Minimum Finance Lease Payments

Future minimum lease payments under non-cancelable leases as of September 27, 2024 are as follows (in thousands):


	Operating leases		Finance leases		Total
2025	$	23,755	$	37,246	$	61,001
2026	19,774		32,814		52,588
2027	16,210		28,298		44,508
2028	12,492		23,756		36,248
2029	8,128		19,065		27,193
Thereafter	27,702		26,407		54,109
Total future minimum lease payments	$	108,061	$	167,586	$	275,647
Less: Interest	(22,064)		(20,914)		(42,978)
Present value of lease liabilities	$	85,997	$	146,672	$	232,669