v3.24.3
Basis of Presentation and Significant Accounting Policies (Tables)
 12 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Property and Equipment Balances and Estimated Useful Lives

The following table summarizes our property and equipment balances and their estimated useful lives (dollars in thousands):

 

 

Life

 

September 30,

 

 

(in years)

 

2024

 

 

2023

 

Land

 

N/A

 

$

5,672

 

 

$

10,038

 

Buildings and building improvements

 

5 – 40

 

 

45,564

 

 

 

56,688

 

Leasehold improvements

 

1 – 12

 

 

317,976

 

 

 

280,626

 

Furniture, fixtures and equipment

 

1 – 10

 

 

782,478

 

 

 

730,639

 

Total property and equipment, gross

 

 

 

 

1,151,690

 

 

 

1,077,991

 

Accumulated depreciation and amortization

 

 

 

 

(881,818

)

 

 

(780,212

)

Total property and equipment, net

 

 

 

$

269,872

 

 

$

297,779

 
Summary of Reclassification of Property Plant and Equipment Net into Other Current Assets As of September 30, 2024, we reclassified the following amounts out of property and equipment, net, (disposal group) into other current assets on our consolidated balance sheets for fiscal year 2024 (dollars in thousands):

 

 

September 30,

 

 

2024

 

Buildings and building improvements

 

$

11,629

 

Land

 

 

4,407

 

Furniture, fixtures and equipment

 

 

1,195

 

Total assets held for sale

 

$

17,231

 
Summary of Contract Liabilities and its Changes

The following table shows the amount of performance-based contract liabilities on our consolidated balance sheets as of September 30, 2024 and 2023 (in thousands):

 

 

 

 

September 30,

 

Contracts

 

Balance Sheet Classification

 

2024

 

 

2023

 

Gift cards

 

Accrued liabilities

 

$

4,980

 

 

$

5,940

 

Rewards loyalty program

 

Accrued liabilities

 

 

6,513

 

 

 

8,098

 

Total liability

 

 

 

$

11,493

 

 

$

14,038

 

Changes to our performance-based contract liabilities for fiscal years 2024 and 2023 were as follows (in thousands):

 

 

 

 

September 30,

 

 

 

 

 

2024

 

 

2023

 

September 30, 2023

 

 

 

$

14,038

 

 

$

13,460

 

Loyalty points and gift cards issued but not redeemed, net of estimated breakage

 

7,053

 

 

 

11,204

 

Revenue recognized from beginning liability

 

(9,598

)

 

 

(10,626

)

September 30, 2024

 

 

 

$

11,493

 

 

$

14,038

 

Private Label Rewards Credit Cards

We have a multi-year agreement with a third-party bank (the “Bank”) to provide our customers a private label credit card program in the U.S. Under the agreement, the Bank manages our customer’s credit approval and credit card accounts, while we facilitate credit applications and provide licensing to our brand and marketing services. The Bank accepts all customer default risks associated with these accounts. In connection with signing the agreement, we received a refundable payment from the Bank that we recorded as deferred revenue within other liabilities on our consolidated balance sheets and is being recognize on a straight-line basis, over the initial term of the agreement, into net sales in our consolidated statements of earnings.

Pursuant to the agreement, the Bank will contribute funding for the program marketing expenses and are recognized in net sales in our consolidated statements of earnings. In addition, we earn other immaterial amounts from the Bank, including incentive payments for achieving performance targets and the activation of credit cards.