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Leases
 12 Months Ended
Aug. 31, 2024
Leases [Abstract]  
Leases LEASES
The Company’s lease portfolio includes certain real estate (CFCs, regional inventory centers, warehouses and manufacturing locations), automobiles and other equipment. The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Operating leases are recorded on the balance sheet with operating lease assets representing the right to use the underlying asset for the lease term and operating lease liabilities representing the obligation to make lease payments arising from the lease. For real estate leases, the Company has elected the practical expedient which allows lease components and non-lease components, such as common area maintenance, to be grouped as a single lease component. The Company has also elected the practical expedient which allows leases with an initial term of 12 months or less to be excluded from the balance sheet.
The Company does not guarantee any residual value in its lease agreements, there are no material restrictions or covenants imposed by lease arrangements, and there are no lease transactions with related parties. Real estate leases typically include one or more options to extend the lease. The Company regularly evaluates the renewal options, and when it is reasonably certain of exercise, the Company includes the renewal period in its lease term. The automobile leases contain variable lease payments based on inception and subsequent interest rate fluctuations. When readily determinable, the Company uses the interest rate implicit in its leases to discount lease payments. When the implicit rate is not readily determinable, as is the case with substantially all of the real estate leases, the Company utilizes the incremental borrowing rate. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The rate for each lease was determined using primarily the Company’s credit spread, the lease term and currency.
The components of lease cost for fiscal years 2024 and 2023 were as follows:
For the Fiscal Years Ended
August 31, 2024September 2, 2023September 3, 2022
Operating lease cost$25,807 $22,935 $19,995 
Variable lease cost (benefit)(67)339 (355)
Short-term lease cost3,871 3,236 4,496 
Finance lease cost:
Amortization of leased assets286 957 1,265 
Interest on leased liabilities25 18 48 
Total Lease Cost $29,922 $27,485 $25,449 
Supplemental balance sheet information relating to operating and finance leases is as follows:
ClassificationAugust 31,
2024		September 2,
2023
Assets
Operating lease assets Operating lease assets $58,649 $65,909 
Finance lease assets (1)
Property, plant and equipment, net 643 473 
Total leased assets $59,292 $66,382 
Liabilities
Current
OperatingCurrent portion of operating lease liabilities $21,941 $21,168 
Finance Current portion of debt including obligations under finance leases 199 249 
Noncurrent
Operating Noncurrent operating lease liabilities 37,468 45,924 
FinanceLong-term debt including obligations under finance leases 455 226 
Total lease liabilities $60,063 $67,567 
(1)Finance lease assets are net of accumulated amortization of $298 and $2,952 as of August 31, 2024 and September 2, 2023, respectively.
August 31, 2024September 2, 2023
Weighted-average remaining lease term (in years)
Operating Leases3.44.0
Finance Leases 3.52.1
Weighted-average discount rate
Operating Leases5.0 %3.8 %
Finance Leases 6.2 %4.5 %
The following table sets forth supplemental cash flow information related to operating and finance leases:
For the Fiscal Years Ended
August 31, 2024September 2, 2023
Operating Cash Outflows from Operating Leases $25,556 $22,779 
Operating Cash Outflows from Finance Leases 20 18 
Financing Cash Outflows from Finance Leases 273 1,019 
Leased assets obtained in exchange for new lease liabilities:
Operating Leases$16,393 $21,060 
Finance Leases 454 317 
As of August 31, 2024, future lease payments were as follows:
Fiscal Year (1)
Operating LeasesFinance LeasesTotal
2025$24,293 $237 $24,530 
202617,918 222 18,140 
202711,401 111 11,512 
20284,922 111 5,033 
20292,622 47 2,669 
Thereafter 3,315 — 3,315 
Total Lease Payments 64,471 728 65,199 
Less: Imputed Interest 5,062 74 5,136 
Present Value of Lease Liabilities (2)
$59,409 $654 $60,063 
(1)Future lease payments by fiscal year are based on contractual lease obligations.
(2)Includes the current portion of $21,941 for operating leases and $199 for finance leases.
As of August 31, 2024, the Company’s future lease obligations which had not yet commenced were immaterial. The Company has various arrangements for certain property it owns under which it is the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is immaterial.
Leases LEASES
The Company’s lease portfolio includes certain real estate (CFCs, regional inventory centers, warehouses and manufacturing locations), automobiles and other equipment. The determination of whether an arrangement is, or contains, a lease is performed at the inception of the arrangement. Operating leases are recorded on the balance sheet with operating lease assets representing the right to use the underlying asset for the lease term and operating lease liabilities representing the obligation to make lease payments arising from the lease. For real estate leases, the Company has elected the practical expedient which allows lease components and non-lease components, such as common area maintenance, to be grouped as a single lease component. The Company has also elected the practical expedient which allows leases with an initial term of 12 months or less to be excluded from the balance sheet.
The Company does not guarantee any residual value in its lease agreements, there are no material restrictions or covenants imposed by lease arrangements, and there are no lease transactions with related parties. Real estate leases typically include one or more options to extend the lease. The Company regularly evaluates the renewal options, and when it is reasonably certain of exercise, the Company includes the renewal period in its lease term. The automobile leases contain variable lease payments based on inception and subsequent interest rate fluctuations. When readily determinable, the Company uses the interest rate implicit in its leases to discount lease payments. When the implicit rate is not readily determinable, as is the case with substantially all of the real estate leases, the Company utilizes the incremental borrowing rate. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The rate for each lease was determined using primarily the Company’s credit spread, the lease term and currency.
The components of lease cost for fiscal years 2024 and 2023 were as follows:
For the Fiscal Years Ended
August 31, 2024September 2, 2023September 3, 2022
Operating lease cost$25,807 $22,935 $19,995 
Variable lease cost (benefit)(67)339 (355)
Short-term lease cost3,871 3,236 4,496 
Finance lease cost:
Amortization of leased assets286 957 1,265 
Interest on leased liabilities25 18 48 
Total Lease Cost $29,922 $27,485 $25,449 
Supplemental balance sheet information relating to operating and finance leases is as follows:
ClassificationAugust 31,
2024		September 2,
2023
Assets
Operating lease assets Operating lease assets $58,649 $65,909 
Finance lease assets (1)
Property, plant and equipment, net 643 473 
Total leased assets $59,292 $66,382 
Liabilities
Current
OperatingCurrent portion of operating lease liabilities $21,941 $21,168 
Finance Current portion of debt including obligations under finance leases 199 249 
Noncurrent
Operating Noncurrent operating lease liabilities 37,468 45,924 
FinanceLong-term debt including obligations under finance leases 455 226 
Total lease liabilities $60,063 $67,567 
(1)Finance lease assets are net of accumulated amortization of $298 and $2,952 as of August 31, 2024 and September 2, 2023, respectively.
August 31, 2024September 2, 2023
Weighted-average remaining lease term (in years)
Operating Leases3.44.0
Finance Leases 3.52.1
Weighted-average discount rate
Operating Leases5.0 %3.8 %
Finance Leases 6.2 %4.5 %
The following table sets forth supplemental cash flow information related to operating and finance leases:
For the Fiscal Years Ended
August 31, 2024September 2, 2023
Operating Cash Outflows from Operating Leases $25,556 $22,779 
Operating Cash Outflows from Finance Leases 20 18 
Financing Cash Outflows from Finance Leases 273 1,019 
Leased assets obtained in exchange for new lease liabilities:
Operating Leases$16,393 $21,060 
Finance Leases 454 317 
As of August 31, 2024, future lease payments were as follows:
Fiscal Year (1)
Operating LeasesFinance LeasesTotal
2025$24,293 $237 $24,530 
202617,918 222 18,140 
202711,401 111 11,512 
20284,922 111 5,033 
20292,622 47 2,669 
Thereafter 3,315 — 3,315 
Total Lease Payments 64,471 728 65,199 
Less: Imputed Interest 5,062 74 5,136 
Present Value of Lease Liabilities (2)
$59,409 $654 $60,063 
(1)Future lease payments by fiscal year are based on contractual lease obligations.
(2)Includes the current portion of $21,941 for operating leases and $199 for finance leases.
As of August 31, 2024, the Company’s future lease obligations which had not yet commenced were immaterial. The Company has various arrangements for certain property it owns under which it is the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is immaterial.