Leases

9 Months Ended

Jun. 29, 2024

The components of lease expense for the three and nine months ended June 29, 2024 and July 1, 2023 indicated were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Finance lease expense:
Amortization of right-of-use assets	$	1,535	$	1,668	$	4,559	$	5,234
Interest on lease liabilities	1,287		1,302		3,984		3,834
Operating lease expense	2,550		2,696		7,820		8,038
Other lease expense	1,945		2,345		5,172		5,941
Total	$	7,317	$	8,011	$	21,535	$	23,047

Based on the nature of the right-of-use ("ROU") asset, amortization of finance lease ROU assets, operating lease expense and other lease expense are recorded within either cost of goods sold or selling and administrative expenses and interest on finance lease liabilities is recorded within interest expense on the Condensed Consolidated Statements of Comprehensive Income. Other lease expense includes lease expense for leases with an estimated total term of twelve months or less and variable lease expense related to variations in lease payments as a result of a change in factors or circumstances occurring after the lease possession date.

The following tables sets forth the amount of lease assets and lease liabilities included in the Company’s Condensed Consolidated Balance Sheets (in thousands):


	Financial Statement Line Item	June 29, 2024		September 30, 2023
ASSETS
Finance lease assets	Property, plant and equipment, net	$	37,472	$	37,391
Operating lease assets	Operating lease right-of-use assets	58,867		69,363
Total lease assets		$	96,339	$	106,754

LIABILITIES AND SHAREHOLDERS' EQUITY
Current
Finance lease liabilities	Current portion of long-term debt and finance lease obligations	$	5,742	$	4,034
Operating lease liabilities	Other accrued liabilities	7,990		8,363
Non-current
Finance lease liabilities	Long-term debt and finance lease obligations, net of current portion	39,354		39,271
Operating lease liabilities	Long-term operating lease liabilities	31,923		38,552
Total lease liabilities		$	85,009	$	90,220

As of June 29, 2024, we had a lease signed but not yet commenced totaling payments of $14.6 million. This lease commenced in July 2024, with a lease term of 60 years, and an operating lease right-of-use asset was recorded at that time.