Leases

12 Months Ended

Sep. 27, 2025

Leases [Abstract]

Lessee, Finance Leases

Leases

We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component.

Our lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease including expected buyouts, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term.

Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Statements of Earnings.

The discount rate used to calculate the present value of our leases is the rate implicit in the lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date.

The components of lease expense were as follows:

	2025		2024		2023
Operating lease cost	$	32,428	$	31,065	$	29,982
Finance lease cost:
Amortization of right-of-use assets	$	10,909	$	7,443	$	4,380
Interest on lease liabilities	7,623		5,963		3,247
Total finance lease cost	$	18,532	$	13,406	$	7,627

Supplemental cash flow information related to leases was as follows:

	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases	$	33,495	$	31,346	$	30,281
Operating cash flow for finance leases	7,623		5,963		3,247
Financing cash flow for finance leases	10,159		6,037		4,313
Assets obtained in exchange for lease obligations:
Operating leases	13,462		10,162		6,014
Finance leases	33,552		29,221		58,020

Supplemental balance sheet information related to leases was as follows:

	September 27, 2025			September 28, 2024
Operating Leases:
Operating lease right-of-use assets	$	52,799		$	52,591
Accrued liabilities and other	$	11,697		$	11,124
Other long-term liabilities	52,549			53,228
Total operating lease liabilities	$	64,246		$	64,352
Finance Leases:
Property, plant, and equipment, at cost	$	157,533		$	124,770
Accumulated depreciation	(27,186)			(17,101)
Property, plant, and equipment, net	$	130,347		$	107,669
Accrued liabilities and other	$	14,920		$	8,713
Other long-term liabilities	119,155			101,683
Total finance lease liabilities	$	134,075		$	110,396
Weighted average remaining lease term in years:
Operating leases	6.2			6.2
Finance leases	17.6			20.1
Weighted average discount rates:
Operating leases	5.3		%	5.2		%
Finance leases	6.4		%	6.4		%

Maturities of lease liabilities were as follows:

	September 27, 2025
	Operating Leases		Finance Leases
2026	$	14,566	$	22,296
2027	13,698		19,885
2028	11,571		20,801
2029	10,098		21,824
2030	7,467		18,678
Thereafter	18,132		143,900
Total lease payments	75,532		247,384
Less: imputed interest	(11,286)		(113,309)
Total	$	64,246	$	134,075

The operating lease ROU and finance lease disclosures above reflect a write down of $2,849 in 2024, as a result of restructuring actions taken to simplify our business operations through facility closures.

Lessee, Operating Leases

Leases

We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component.

Our lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease including expected buyouts, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term.

Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Statements of Earnings.

The discount rate used to calculate the present value of our leases is the rate implicit in the lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date.

The components of lease expense were as follows:

	2025		2024		2023
Operating lease cost	$	32,428	$	31,065	$	29,982
Finance lease cost:
Amortization of right-of-use assets	$	10,909	$	7,443	$	4,380
Interest on lease liabilities	7,623		5,963		3,247
Total finance lease cost	$	18,532	$	13,406	$	7,627

Supplemental cash flow information related to leases was as follows:

	2025		2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases	$	33,495	$	31,346	$	30,281
Operating cash flow for finance leases	7,623		5,963		3,247
Financing cash flow for finance leases	10,159		6,037		4,313
Assets obtained in exchange for lease obligations:
Operating leases	13,462		10,162		6,014
Finance leases	33,552		29,221		58,020

Supplemental balance sheet information related to leases was as follows:

	September 27, 2025			September 28, 2024
Operating Leases:
Operating lease right-of-use assets	$	52,799		$	52,591
Accrued liabilities and other	$	11,697		$	11,124
Other long-term liabilities	52,549			53,228
Total operating lease liabilities	$	64,246		$	64,352
Finance Leases:
Property, plant, and equipment, at cost	$	157,533		$	124,770
Accumulated depreciation	(27,186)			(17,101)
Property, plant, and equipment, net	$	130,347		$	107,669
Accrued liabilities and other	$	14,920		$	8,713
Other long-term liabilities	119,155			101,683
Total finance lease liabilities	$	134,075		$	110,396
Weighted average remaining lease term in years:
Operating leases	6.2			6.2
Finance leases	17.6			20.1
Weighted average discount rates:
Operating leases	5.3		%	5.2		%
Finance leases	6.4		%	6.4		%

Maturities of lease liabilities were as follows:

	September 27, 2025
	Operating Leases		Finance Leases
2026	$	14,566	$	22,296
2027	13,698		19,885
2028	11,571		20,801
2029	10,098		21,824
2030	7,467		18,678
Thereafter	18,132		143,900
Total lease payments	75,532		247,384
Less: imputed interest	(11,286)		(113,309)
Total	$	64,246	$	134,075

The operating lease ROU and finance lease disclosures above reflect a write down of $2,849 in 2024, as a result of restructuring actions taken to simplify our business operations through facility closures.