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Note 7 - Leases

12 Months Ended

Sep. 26, 2021

7 LEASES

We lease certain real estate, vehicles, and equipment. Our leases have remaining lease terms of 1 to 40 years, some of which may include options to extend the leases, and some of which may include options to terminate the leases. The exercise of lease renewal options is at our sole discretion. The depreciable lives of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise.

Total lease expense consists of the following:

(Thousands of Dollars)	September 26, 2021		September 27, 2020
Operating lease costs		14,846		10,148
Variable lease costs		92		1,911
Short-term lease costs		—		426
Total Operating Lease Expense		14,938		12,485

Supplemental cash flow information related to our operating leases was as follows:

(Thousands of Dollars)	September 26, 2021	September 27, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	14,789	10,003
Right-of-use assets obtained in exchange for operating lease liabilities	932	1,630

As of September 26, 2021, maturities of lease liabilities were as follows:

(Thousands of Dollars)	September 26, 2021
2022		13,826
2023		13,089
2024		12,074
2025		10,928
2026		9,755
Thereafter		38,334
Total lease payments		98,006
Less: interest		(31,711)
Present value of lease liabilities		66,295

Our lease contracts are discounted using the incremental borrowing rate for the Company. We determined the incremental borrowing rate based on a senior secured collateral adjusted yield curve for the Company. This yield curve reflects the estimated rate that would have been paid by the Company to borrow on a collateralized basis over a similar term in a similar economic environment. The weighted average revolving lease terms and discount rates for all of our operating leases were as follows.

	September 26, 2021
Weighted average remaining lease term (years)		7.98
Weighted Average discount rate		8.03%