LEASES

9 Months Ended

Jun. 27, 2025

The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases. The Company determines if an arrangement is a lease at inception.

As of June 27, 2025, the Company had approximately 150 leases, with remaining terms ranging from less than one year to 14 years. Some of the leases contain variable payment terms, such as payments based on fluctuations in the Consumer Price Index (CPI). Some leases also contain options to extend or terminate the lease. To the extent the Company is reasonably certain to exercise these options, they have been considered in the calculation of the right-of-use ("ROU") assets and lease liabilities. Under current lease agreements, there are no residual value guarantees or restrictive lease covenants. In calculating the ROU assets and lease liabilities, several assumptions and judgments were made by the Company, including whether a contract is or contains a lease under the applicable definition, and the determination of the discount rate, which is assumed to be the incremental borrowing rate. The incremental borrowing rate is derived from information available to the Company at the lease commencement date based on lease length and location.

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 27, 2025 and June 28, 2024 were as follows:


	Three months ended				Nine months ended
	June 27, 2025		June 28, 2024		June 27, 2025		June 28, 2024
Lease Cost
Operating lease costs	$	2,680	$	2,470	$	7,951	$	7,411
Short-term lease costs	559		602		1,687		1,828
Variable lease costs	53		43		152		129
Total lease cost	$	3,292	$	3,115	$	9,790	$	9,368

Included in the amounts in the table above was rent expense to related parties of $314 and $941 for the three and nine months ended June 27, 2025, respectively, and $314 and $941 for the three and nine months ended June 28, 2024, respectively.

As of June 27, 2025, the Company did not have any finance leases or sublease agreements. Additionally, the Company does not have any leases in which it is the lessor. While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended June 27, 2025. As of June 27, 2025, the Company did not have any significant operating lease commitments that have not yet commenced. Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:


	Nine months ended
	June 27, 2025			June 28, 2024
Operating leases:

Operating lease ROU assets	$	45,038		$	49,017

Current operating lease liabilities	7,793			7,648
Non-current operating lease liabilities	39,137			43,124
Total operating lease liabilities	$	46,930		$	50,772

Weighted average remaining lease term (in years)	10.58			11.21

Weighted average discount rate	3.41		%	3.22		%

Cash paid for amounts included in the measurement of lease liabilities	$	7,565		$	6,884

ROU assets obtained in exchange for lease liabilities	$	4,147		$	3,497

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at June 27, 2025 were as follows:


Year	Related parties included in total		Total
Remainder of 2025	$	329	$	2,580
2026	1,348		9,308
2027	226		7,473
2028	—		4,882
2029	—		3,534
Thereafter	—		29,768
Total undiscounted lease payments	1,903		57,545
Less: Imputed interest	(21)		(10,615)
Total net lease liability	$	1,882	$	46,930