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Leases
9 Months Ended
Jun. 25, 2022
Lessee Disclosure [Abstract]  
Leases
8.
Leases

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 14, “Guarantees” for more information.

The Partnership does not have any material lease obligations that were signed, but not yet commenced as of June 25, 2022.

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

 

 

 

Three Months Ended

 

 

 

Nine Months Ended

 

 

 

June 25,

 

 

June 26,

 

 

 

June 25,

 

 

June 26,

 

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

Lease expense

 

$

10,462

 

 

$

9,578

 

 

 

$

30,848

 

 

$

27,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other information:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash payments for operating leases

 

 

10,519

 

 

 

9,676

 

 

 

 

31,194

 

 

 

28,028

 

Right-of-use assets obtained in exchange
   for new operating lease liabilities

 

 

6,354

 

 

 

12,654

 

 

 

 

31,143

 

 

 

34,418

 

Weighted-average remaining lease term

 

 

 

 

 

 

 

 

6.1 years

 

 

6.2 years

 

Weighted-average discount rate

 

 

 

 

 

 

 

 

 

4.9

%

 

 

5.2

%

 

The following table summarizes future minimum lease payments under non-cancelable operating leases as of June 25, 2022:

 

Fiscal Year

 

Operating Leases

 

2022 (remaining)

 

$

9,854

 

2023

 

 

36,773

 

2024

 

 

30,918

 

2025

 

 

26,554

 

2026

 

 

21,785

 

2027 and thereafter

 

 

34,261

 

Total future minimum lease payments

 

$

160,145

 

Less: interest

 

 

(22,548

)

Total lease obligations

 

$

137,597