The Partnership leases certain property, plant and equipment, including portions of its vehicle fleet, for various periods under noncancelable leases, all of which were determined to be operating leases. The Partnership determines if an agreement contains a lease at inception based on the Partnership’s right to the economic benefits of the leased assets and its right to direct the use of the leased asset. Right-of-use assets represent the Partnership’s right to use an underlying asset, and right-of-use liabilities represent the Partnership’s obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As most of the Partnership’s leases do not provide an implicit rate, the Partnership uses its estimated incremental borrowing rate based on the information available at the commencement date, adjusted for the lease term, to determine the present value of the lease payments. This rate is calculated based on a collateralized rate for the specific leasing activities of the Partnership.

Some leases include one or more options to renew at the Partnership’s discretion, with renewal terms that can extend the lease from one to fifteen additional years. The renewal options are included in the measurement of the right-of-use assets and lease liabilities if the Partnership is reasonably certain to exercise the renewal options. Short-term leases are leases having an initial term of twelve months or less. The Partnership recognizes expenses for short-term leases on a straight-line basis and does not record a lease asset or lease liability for such leases.

The Partnership has residual value guarantees associated with certain of its operating leases, related primarily to transportation equipment. See Note 15, “Guarantees” for more information.

The Partnership does not have any material lease obligations that were signed, but not yet commenced as of September 27, 2025.

Quantitative information on the Partnership’s lease population for fiscal 2025 is as follows:


	Year Ended
	September 27, 2025			September 28, 2024
Lease expense	$	44,571		$	44,264

Other information:
Cash payments for operating leases		44,880			44,456
Right-of-use assets obtained in exchange for new operating lease liabilities		12,899			28,786
Weighted-average remaining lease term	5.5 years			5.5 years
Weighted-average discount rate		6.3	%		6.2	%

The following table summarizes future minimum lease payments under non-cancelable operating leases as of September 27, 2025:


Fiscal Year	Operating Leases
2026	$	40,580
2027		29,883
2028		24,051
2029		17,415
2030		10,456
2031 and thereafter		18,746
Total future minimum lease payments	$	141,131
Less: interest		(23,118	)
Total lease obligations	$	118,013