LEASES

6 Months Ended

Mar. 28, 2025

The Company leases certain facilities and machinery and equipment under long-term, non-cancelable operating leases. The Company determines if an arrangement is a lease at inception.

As of March 28, 2025, the Company had approximately 150 leases, with remaining terms ranging from less than one year to 14 years. Some of the leases contain variable payment terms, such as payments based on fluctuations in the Consumer Price Index (CPI). Some leases also contain options to extend or terminate the lease. To the extent the Company is reasonably certain to exercise these options, they have been considered in the calculation of the right-of-use ("ROU") assets and lease liabilities. Under current lease agreements, there are no residual value guarantees or restrictive lease covenants. In calculating the ROU assets and lease liabilities, several assumptions and judgments were made by the Company, including whether a contract is or contains a lease under the applicable definition, and the determination of the discount rate, which is assumed to be the incremental borrowing rate. The incremental borrowing rate is derived from information available to the Company at the lease commencement date based on lease length and location.

The components of lease expense recognized in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended March 28, 2025 and March 29, 2024 were as follows:


	Three months ended				Six months ended
	March 28, 2025		March 29, 2024		March 28, 2025		March 29, 2024
Lease Cost
Operating lease costs	$	2,647	$	2,476	$	5,271	$	4,941
Short-term lease costs	561		599		1,128		1,226
Variable lease costs	50		43		99		86
Total lease cost	$	3,258	$	3,118	$	6,498	$	6,253

Included in the amounts in the table above was rent expense to related parties of $313 and $627 for the three and six months ended March 28, 2025, respectively, and $313 and $627 for the three and six months ended March 29, 2024, respectively.

As of March 28, 2025, the Company did not have any finance leases or sublease agreements. Additionally, the Company does not have any leases in which it is the lessor. While the Company extended or renewed various existing leases during the quarter, there were no significant new leases entered into during the quarter ended March 28, 2025. As of March 28, 2025, the Company did not have any significant operating lease commitments that have not yet commenced. Supplemental balance sheet, cash flow, and other information related to operating leases was as follows:


	Six months ended
	March 28, 2025			March 29, 2024
Operating leases:

Operating lease ROU assets	$	46,978		$	50,880

Current operating lease liabilities	8,130			7,682
Non-current operating lease liabilities	40,695			44,915
Total operating lease liabilities	$	48,825		$	52,597

Weighted average remaining lease term (in years)	10.59			11.28

Weighted average discount rate	3.4		%	3.2		%

Cash paid for amounts included in the measurement of lease liabilities	$	5,028		$	4,569

ROU assets obtained in exchange for lease liabilities	$	4,032		$	3,276

Future minimum rental commitments under non-cancelable operating leases with an initial lease term in excess of one year at March 28, 2025 were as follows:


Year	Related parties included in total		Total
Remainder of 2025	$	657	$	5,229
2026	1,348		9,177
2027	226		7,362
2028	—		4,799
2029	—		3,505
Thereafter	—		29,763
Total undiscounted lease payments	2,231		59,835
Less: Imputed interest	(29)		(11,010)
Total net lease liability	$	2,202	$	48,825