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Leases
6 Months Ended
Mar. 26, 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 March 26, 2022.

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

 

 

 

Three Months Ended

 

 

 

Six Months Ended

 

 

 

March 26,

 

 

March 27,

 

 

 

March 26,

 

 

March 27,

 

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

Lease expense

 

$

10,548

 

 

$

9,358

 

 

 

$

20,386

 

 

$

18,292

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash payments for operating leases

 

 

10,601

 

 

 

9,412

 

 

 

 

20,675

 

 

 

18,353

 

Right-of-use assets obtained in exchange

   for new operating lease liabilities

 

 

5,885

 

 

 

9,377

 

 

 

 

24,789

 

 

 

21,764

 

Weighted-average remaining lease term

 

 

 

 

 

 

 

 

 

 

6.2 years

 

 

6.3 years

 

Weighted-average discount rate

 

 

 

 

 

 

 

 

 

 

 

4.9

%

 

 

5.3

%

 

The following table summarizes future minimum lease payments under non-cancelable operating leases as of March 26, 2022:  

 

Fiscal Year

 

Operating Leases

 

2022 (remaining)

 

$

19,877

 

2023

 

 

35,507

 

2024

 

 

29,600

 

2025

 

 

25,259

 

2026

 

 

20,511

 

2027 and thereafter

 

 

30,800

 

Total future minimum lease payments

 

$

161,554

 

Less: interest

 

 

(22,784

)

Total lease obligations

 

$

138,770