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Leases
 12 Months Ended
Aug. 30, 2025
Leases [Abstract]  
Leases Leases
Our leases primarily include operating leases for equipment and real estate, including office space and manufacturing space. Financing leases are primarily for real estate and solar energy producing equipment. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement when it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. When the terms of multiple lease agreements are materially consistent, we have elected the portfolio approach for our asset and liability calculations.

Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We generally use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The assumed lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised.

Some of our real estate operating leases require payment of real estate taxes, common area maintenance, and insurance. In addition, some of the leases are subject to annual changes in the consumer price index ("CPI"). These components comprise the majority of our variable lease cost and are excluded from the present value of the lease obligations. Fixed payments may contain predetermined fixed rent escalations. For operating leases, we recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The supplemental balance sheet information related to our leases is as follows:
(in millions)ClassificationAugust 30, 2025August 31, 2024
Assets
Operating leasesOperating lease assets$41.6 $46.6 
Finance leasesOther long-term assets7.9 8.9 
Total lease assets$49.5 $55.5 
Liabilities
Current: Operating leasesOther current liabilities$7.5 $6.4 
Current: Finance leasesOther current liabilities1.8 1.6 
Non-Current: Operating leasesLong-term operating lease liabilities39.3 45.6 
Non-Current: Finance leasesOther long-term liabilities6.3 7.8 
Total lease liabilities$54.9 $61.4 
Operating lease costs incurred are as follows:
(in millions)Classification202520242023
Operating lease expense(1)
Costs of goods sold and SG&A$12.5 $11.8 $10.3 
Finance lease cost:
Depreciation of lease assetsCosts of goods sold and SG&A1.2 1.1 1.0 
Interest on lease liabilitiesInterest expense, net0.6 0.6 0.5 
Total lease cost$14.3 $13.5 $11.8 
(1) Operating lease expense includes short-term leases and variable lease payments, which are immaterial.

Our future lease commitments as of August 30, 2025 included the following related party and non-related party leases:
Operating LeasesFinancing Leases
(in millions)
Related Party Amount(1,2)
Non-Related Party AmountTotalNon-Related Party Amount
Fiscal 2026$2.3 $7.9 $10.2 $2.2 
Fiscal 20272.3 7.2 9.5 2.2 
Fiscal 20282.3 6.9 9.2 2.5 
Fiscal 20292.3 6.5 8.8 1.0 
Fiscal 20302.3 5.2 7.5 0.8 
Thereafter3.3 7.8 11.1 0.6 
Total future undiscounted lease payments14.8 41.5 56.3 9.3 
Less: Interest2.7 6.8 9.5 1.2 
Total reported lease liabilities$12.1 $34.7 $46.8 $8.1 
(1)    Future lease commitments do not include annual escalators based on the CPI. In the event there are changes to CPI, lease liabilities are not remeasured and instead are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.
(2)    Related to a lease agreement between one of our operating segments and a third party, of which one of our Executive Officers holds a 20% ownership interest.
Additional information related to our leases is as follows:
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$7.9 $5.9 $5.0 
Operating cash flows from financing leases0.6 0.6 0.5 
Financing cash flows from financing leases1.6 1.4 1.1 
Weighted average remaining lease term:
Operating leases6.07.07.3
Finance leases3.84.75.2
Weighted average discount rate:
Operating leases6.4 %6.4 %6.2 %
Finance leases6.5 %6.5 %6.4 %
Leases Leases
Our leases primarily include operating leases for equipment and real estate, including office space and manufacturing space. Financing leases are primarily for real estate and solar energy producing equipment. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement when it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. When the terms of multiple lease agreements are materially consistent, we have elected the portfolio approach for our asset and liability calculations.

Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We generally use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The assumed lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised.

Some of our real estate operating leases require payment of real estate taxes, common area maintenance, and insurance. In addition, some of the leases are subject to annual changes in the consumer price index ("CPI"). These components comprise the majority of our variable lease cost and are excluded from the present value of the lease obligations. Fixed payments may contain predetermined fixed rent escalations. For operating leases, we recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The supplemental balance sheet information related to our leases is as follows:
(in millions)ClassificationAugust 30, 2025August 31, 2024
Assets
Operating leasesOperating lease assets$41.6 $46.6 
Finance leasesOther long-term assets7.9 8.9 
Total lease assets$49.5 $55.5 
Liabilities
Current: Operating leasesOther current liabilities$7.5 $6.4 
Current: Finance leasesOther current liabilities1.8 1.6 
Non-Current: Operating leasesLong-term operating lease liabilities39.3 45.6 
Non-Current: Finance leasesOther long-term liabilities6.3 7.8 
Total lease liabilities$54.9 $61.4 
Operating lease costs incurred are as follows:
(in millions)Classification202520242023
Operating lease expense(1)
Costs of goods sold and SG&A$12.5 $11.8 $10.3 
Finance lease cost:
Depreciation of lease assetsCosts of goods sold and SG&A1.2 1.1 1.0 
Interest on lease liabilitiesInterest expense, net0.6 0.6 0.5 
Total lease cost$14.3 $13.5 $11.8 
(1) Operating lease expense includes short-term leases and variable lease payments, which are immaterial.

Our future lease commitments as of August 30, 2025 included the following related party and non-related party leases:
Operating LeasesFinancing Leases
(in millions)
Related Party Amount(1,2)
Non-Related Party AmountTotalNon-Related Party Amount
Fiscal 2026$2.3 $7.9 $10.2 $2.2 
Fiscal 20272.3 7.2 9.5 2.2 
Fiscal 20282.3 6.9 9.2 2.5 
Fiscal 20292.3 6.5 8.8 1.0 
Fiscal 20302.3 5.2 7.5 0.8 
Thereafter3.3 7.8 11.1 0.6 
Total future undiscounted lease payments14.8 41.5 56.3 9.3 
Less: Interest2.7 6.8 9.5 1.2 
Total reported lease liabilities$12.1 $34.7 $46.8 $8.1 
(1)    Future lease commitments do not include annual escalators based on the CPI. In the event there are changes to CPI, lease liabilities are not remeasured and instead are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.
(2)    Related to a lease agreement between one of our operating segments and a third party, of which one of our Executive Officers holds a 20% ownership interest.
Additional information related to our leases is as follows:
202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$7.9 $5.9 $5.0 
Operating cash flows from financing leases0.6 0.6 0.5 
Financing cash flows from financing leases1.6 1.4 1.1 
Weighted average remaining lease term:
Operating leases6.07.07.3
Finance leases3.84.75.2
Weighted average discount rate:
Operating leases6.4 %6.4 %6.2 %
Finance leases6.5 %6.5 %6.4 %