Commitments, Leases and Contingencies

12 Months Ended

Sep. 27, 2025

Commitments, Leases and Contingencies [Abstract]

Commitments, Leases and Contingencies

5. Commitments, Leases and Contingencies

The Company has various purchase commitments for raw materials, supplies and property and equipment incidental to the ordinary conduct of business.

Leases

The Company leases certain manufacturing facilities, warehouses, office space, manufacturing equipment, office equipment, and automobiles. Finance leases are not material for all periods presented.

Supplemental lease information is as follows:

Leases	Classification		2025		2024
Operating leases:
Operating lease right-of-use assets	Right-of-use asset	$	62	$	49
Current operating lease liabilities	Other current liabilities		18		11
Noncurrent operating lease liabilities	Operating lease liabilities		45		39

Lease Type	Cash Flow Classification	Lease Expense Category		2025		2024
Operating leases	Operating cash flows	Lease cost	$	25	$	15

	2025		2024
Weighted-average remaining lease term - operating leases	5.6 years		6.5 years
Weighted-average discount rate - operating leases	4.5	%	3.5	%

Right-of-use assets obtained in exchange for new operating lease liabilities were $24 million for fiscal 2025.

Litigation

The Company is party to various legal proceedings involving routine claims which are incidental to its business.  Although the Company’s legal and financial liability with respect to such proceedings cannot be estimated with certainty, the Company believes that any ultimate liability would not be material to its Consolidated and Combined Balance Sheet, Statements of Operations, or Cash Flows.

Environmental Claims

Over the next 30 years, we are primarily responsible for the reimbursement of government oversight costs associated with certain environmental claims regarding the Fox River located in Wisconsin. At September 27, 2025, the outstanding balance of the environmental liability and corresponding escrow asset was $18 million and $9 million, respectively.

Tax Claims

As part of a previous acquisition, the Company acquired a liability related to certain tax claims. Depending on the resolution of the tax claim, the final settlement calculated as of September 27, 2025 will range between $40 million and $59 million with an eventual payment to the Brazilian government and/or the selling stockholders of the previous acquisition.  The Company has recorded an estimated tax liability on the Consolidated and Combined Balance Sheets in Other long-term liabilities as the settlement of existing and potential claims is expected to be greater than one year.