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Leases
 9 Months Ended
Jun. 28, 2024
Leases [Abstract]  
Leases Leases
The components of lease expense (reflected in selling, general and administrative expenses) for the three and nine months ended June 28, 2024 and June 30, 2023 were as follows (in thousands):
Three Months EndedNine Months Ended
June 28, 2024June 30, 2023June 28, 2024June 30, 2023
Lease expense
Operating lease expense$33,556 $35,632 $101,748 $106,453 
Variable lease expense9,505 9,212 28,641 27,973 
Sublease income(4,919)(4,562)(14,387)(13,382)
Total lease expense$38,142 $40,282 $116,002 $121,044 
Supplemental information related to the Company's leases for the nine months ended June 28, 2024 and June 30, 2023 was as follows (in thousands):
Nine Months Ended
June 28, 2024June 30, 2023
Cash paid for amounts included in the measurements of lease liabilities$136,805$138,213
Right-of-use assets obtained in exchange for new operating lease liabilities$41,915$57,441
Weighted average remaining lease term - operating leases5.5 years6.0 years
Weighted average discount rate - operating leases3.5%3.1%
Total remaining lease payments under the Company's leases for the remainder of fiscal 2024 and for the succeeding years is as follows (in thousands):
Fiscal YearOperating Leases
2024$46,501 
2025155,373 
2026130,330 
2027106,258 
202886,583 
Thereafter168,477 
693,523 
Less Interest(63,603)
$629,921 

Right-of-Use and Other Long-Lived Asset Impairment
During fiscal 2023, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360.
As a result of the analysis, the Company recognized impairment losses during the nine months ended June 30, 2023 of $38.1 million which are included in selling, general, and administrative expenses in the accompanying statement of earnings. The impairment losses recorded include $33.1 million related to the right-of-use lease assets and $5.0 million related to the other long-lived assets, including property, equipment, and improvements and leasehold improvements for the fiscal 2023 period.
The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.
Leases Leases
The components of lease expense (reflected in selling, general and administrative expenses) for the three and nine months ended June 28, 2024 and June 30, 2023 were as follows (in thousands):
Three Months EndedNine Months Ended
June 28, 2024June 30, 2023June 28, 2024June 30, 2023
Lease expense
Operating lease expense$33,556 $35,632 $101,748 $106,453 
Variable lease expense9,505 9,212 28,641 27,973 
Sublease income(4,919)(4,562)(14,387)(13,382)
Total lease expense$38,142 $40,282 $116,002 $121,044 
Supplemental information related to the Company's leases for the nine months ended June 28, 2024 and June 30, 2023 was as follows (in thousands):
Nine Months Ended
June 28, 2024June 30, 2023
Cash paid for amounts included in the measurements of lease liabilities$136,805$138,213
Right-of-use assets obtained in exchange for new operating lease liabilities$41,915$57,441
Weighted average remaining lease term - operating leases5.5 years6.0 years
Weighted average discount rate - operating leases3.5%3.1%
Total remaining lease payments under the Company's leases for the remainder of fiscal 2024 and for the succeeding years is as follows (in thousands):
Fiscal YearOperating Leases
2024$46,501 
2025155,373 
2026130,330 
2027106,258 
202886,583 
Thereafter168,477 
693,523 
Less Interest(63,603)
$629,921 

Right-of-Use and Other Long-Lived Asset Impairment
During fiscal 2023, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360.
As a result of the analysis, the Company recognized impairment losses during the nine months ended June 30, 2023 of $38.1 million which are included in selling, general, and administrative expenses in the accompanying statement of earnings. The impairment losses recorded include $33.1 million related to the right-of-use lease assets and $5.0 million related to the other long-lived assets, including property, equipment, and improvements and leasehold improvements for the fiscal 2023 period.
The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.