LEASES

12 Months Ended

Sep. 28, 2024

We have entered into various non-cancellable operating and finance lease agreements for certain of our offices, manufacturing, technology, sales support and service centers, equipment, and vehicles. We determine if an arrangement is a lease, or contains a lease, at inception and record the leases in our financial statements upon lease commencement, which is the date when the underlying asset is made available for use by the lessor. Our lease terms may include one or more options to extend the lease terms, for periods from one year to 20 years, when it is reasonably certain that we will exercise that option. As of September 28, 2024, no option to extend the lease was recognized as right-of-use (“ROU”) assets and lease liabilities. We have lease agreements with lease and non-lease components, and non-lease components are accounted for separately and not included in our ROU assets and corresponding liabilities. We have elected not to present short-term leases on the Consolidated Balance Sheets as these leases have a lease term of 12 months or less at lease inception.

Operating leases are included in operating ROU assets, current and non-current operating lease liabilities, and finance leases are included in property, plant and equipment, accrued expenses and other current liabilities, and other liabilities on the Consolidated Balance Sheets. As of September 28, 2024, our finance leases are not material.

The following table shows the components of lease expense:


(in thousands)	Fiscal
	2024		2023	2022
Operating lease expense (1)	$	10,015	10,746	8,625

(1) Operating lease expense includes short-term lease and variable lease expenses, which is immaterial for the fiscal year ended September 28, 2024.

The following table shows the cash flows arising from lease transactions. Cash payments related to short-term leases are not included in the measurement of operating and finance lease liabilities, and, as such, are excluded from the amounts below:


(in thousands)	Fiscal
	2024		2023		2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	9,612	$	9,314	$	7,908

The following table shows the weighted-average lease terms and discount rates for operating leases:


	Fiscal
	2024		2023
Operating leases:
Weighted-average remaining lease term (in years):	7.3		7.7
Weighted-average discount rate:	7.2	%	6.7	%

Future lease payments, excluding short-term leases, as of September 28, 2024, are detailed as follows:


(in thousands)	Operating leases
Fiscal 2025	$	10,371
Fiscal 2026	7,928
Fiscal 2027	5,585
Fiscal 2028	5,027
Fiscal 2029	5,078
Fiscal 2030 and thereafter	18,743
Total minimum lease payments	52,732
Less: Interest	11,769
Present value of lease obligations	40,963
Less: Current portion	7,718
Long-term portion of lease obligations	$	33,245