LeasesThe components of lease expense (reflected in selling, general and administrative expenses) for the years ended September 26, 2025, September 27, 2024 and September 29, 2023 were as follows (in thousands):
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| | | | September 26, 2025 | | September 27, 2024 | | September 29, 2023 |
| Lease cost | | | | | | | | |
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| Operating lease cost | | | | $ | 109,519 | | | $ | 112,088 | | | $ | 112,252 | |
| Variable lease cost | | | | 30,856 | | | 33,630 | | | 31,565 | |
| Sublease income | | | | (19,269) | | | (19,002) | | | (17,943) | |
| Total lease cost | | | | $ | 121,106 | | | $ | 126,716 | | | $ | 125,874 | |
Supplemental information related to the Company's leases for the years ended September 26, 2025, September 27, 2024 and September 29, 2023 was as follows (in thousands):
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| | September 26, 2025 | | September 27, 2024 | | September 29, 2023 |
| Cash paid for amounts included in the measurements of lease liabilities | | $ | 146,341 | | | $ | 152,453 | | | $ | 151,455 | |
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| Right-of-use assets obtained in exchange for new operating lease liabilities | | $ | 72,437 | | | $ | 48,727 | | | $ | 67,409 | |
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| Weighted average remaining lease term - operating leases | | 5.5 years | | 5.6 years | | 6.0 years |
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| Weighted average discount rate - operating leases | | 4.0% | | 3.6% | | 3.3% |
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Total remaining lease payments under the Company's leases for each of the succeeding years is as follows (in thousands):
| | | | | | | | |
| Fiscal Year | | Operating Leases |
| 2026 | | $ | 131,121 | |
| 2027 | | 107,336 | |
| 2028 | | 88,078 | |
| 2029 | | 66,201 | |
| 2030 | | 48,862 | |
| Thereafter | | 86,572 | |
| | 528,170 | |
| Less Interest | | (54,769) | |
| | $ | 473,401 | |
As of September 26, 2025, we have entered into operating leases that have not yet commenced of approximately $24.2 million.
Right-of-Use and Other Long-Lived Asset Impairment
During fiscal 2023, as a result of the Company's transformation initiatives, including the changing nature of the Company's use of office space for its workforce, the Company evaluated its existing real estate lease portfolio. These initiatives resulted in the abandonment of certain leased office spaces and the establishment of a formal plan to sublease certain other leased spaces that will no longer be utilized by the Company. In connection with the Company’s actions related to these initiatives, the Company evaluated certain of its lease right-of-use assets and related property, equipment and leasehold improvements for impairment under ASC 360.
As a result of the analysis, the Company recognized impairment losses of $46.7 million for the fiscal year September 29, 2023, which are included in selling, general and administrative expenses in the accompanying Statements of Earnings. The impairment losses recorded include $40.9 million related to right-of-use lease assets and $5.8 million
related to other long-lived assets, including property, equipment & improvements and leasehold improvements for the fiscal year ended September 29, 2023.
The fair values for the asset groups relating to the impaired long-lived assets were estimated primarily using discounted cash flow models (income approach) with Level 3 inputs. The significant assumptions used in estimating fair value include the expected downtime prior to the commencement of future subleases, projected sublease income over the remaining lease periods and discount rates that reflect the level of risk associated with receiving future cash flows.