Leases
The Company leases office or warehouse space in Wilmington, MA, Montreal, Canada, Plant City, FL, Andover, MA, Milpitas, CA, Coppell, Texas, and Ho Chi Minh City, Vietnam through operating lease arrangements. The Company has no finance lease agreements. The operating lease arrangements expire at various dates through December 2030.
The following table presents the balance sheet location of the Company’s operating leases (in thousands):
| | | | | |
| September 27, 2025 |
| ROU Assets: | |
| Other long-term assets | $ | 23,469 | |
| |
| Lease Liabilities: | |
| Accrued expenses and other current liabilities | $ | 7,722 | |
| Other long-term liabilities | 23,958 | |
| Total lease liabilities | $ | 31,680 | |
The following table presents maturities of the Company’s operating lease liabilities as of September 27, 2025, presented under ASC Topic 842 (in thousands):
| | | | | |
| September 27, 2025 |
| Fiscal year 2026 | $ | 9,762 | |
| Fiscal year 2027 | 9,394 | |
| Fiscal year 2028 | 5,595 | |
| Fiscal year 2029 | 5,473 | |
| Fiscal year 2030 and thereafter | 7,099 | |
| Total future minimum payments | $ | 37,323 | |
| Less: Implied interest | (5,643) | |
| Total lease liabilities | $ | 31,680 | |
As of September 27, 2025, the weighted-average remaining lease term and the weighted-average incremental borrowing rate of the Company’s operating leases was approximately 2.86 years and 7.5%, respectively. Operating cash flows for
amounts included in the measurement of the Company’s operating lease liabilities were $3.1 million for the year ended September 27, 2025. Net rental expense under operating leases was $11.9 million for the year ended September 27, 2025, $4.8 million for the year ended September 28, 2024, and $3.0 million for the year ended September 30, 2023.