Leases

3 Months Ended

Mar. 30, 2024

At March 30, 2024 and December 30, 2023, the Company’s lease assets and lease liabilities, primarily for its studios and corporate offices, were as follows:


	March 30, 2024		December 30, 2023
Assets:
Operating leases	$	50,133	$	52,272
Finance leases		2		5
Total lease assets	$	50,135	$	52,277

Liabilities:
Current
Operating leases	$	9,660	$	9,613
Finance leases		2		4
Noncurrent
Operating leases		51,256		53,461
Finance leases		—		—
Total lease liabilities	$	60,918	$	63,078

For the three months ended March 30, 2024 and April 1, 2023, the components of the Company’s lease expense were as follows:


	Three Months Ended
	March 30,			April 1,
	2024			2023
Operating lease cost:
Fixed lease cost	$	3,983		$	7,153
Lease termination (benefit) cost		(156	)		12,219
Variable lease cost		14			15
Total operating lease cost	$	3,841		$	19,387
Finance lease cost:
Amortization of leased assets	$	2		$	26
Interest on lease liabilities		0			0
Total finance lease cost	$	2		$	26
Total lease cost	$	3,843		$	19,413

As previously disclosed, in conjunction with the continued rationalization of its real estate portfolio, the Company entered into subleases with commencement dates in the first quarter of fiscal 2023. The Company recorded $912 and $621 of sublease income for the three months ended March 30, 2024 and April 1, 2023, respectively, as an offset to general and administrative expenses.

At March 30, 2024 and December 30, 2023, the Company’s weighted average remaining lease term and weighted average discount rates were as follows:


	March 30, 2024		December 30, 2023
Weighted Average Remaining Lease Term (years)
Operating leases		7.14		7.31
Finance leases		0.70		0.48

Weighted Average Discount Rate
Operating leases		7.55		7.54
Finance leases		3.69		4.10

The Company’s leases have remaining lease terms of 0 to 8 years with a weighted average lease term of 7.14 years as of March 30, 2024.

At March 30, 2024, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows:


	Operating Leases		Finance Leases		Total
Remainder of fiscal 2024	$	10,342	$	2	$	10,344
Fiscal 2025		13,081		—		13,081
Fiscal 2026		10,228		—		10,228
Fiscal 2027		9,473		—		9,473
Fiscal 2028		9,030		—		9,030
Fiscal 2029		8,950		—		8,950
Thereafter		17,852		—		17,852
Total lease payments	$	78,956	$	2	$	78,958
Less imputed interest		18,040		0		18,040
Present value of lease liabilities	$	60,916	$	2	$	60,918

Supplemental cash flow information related to leases for the three months ended March 30, 2024 and April 1, 2023 were as follows:


	Three Months Ended
	March 30,			April 1,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,964		$	7,208
Operating cash flows from finance leases	$	0		$	0
Financing cash flows from finance leases	$	2		$	26

Lease assets obtained (modified) in exchange for new (modified) operating lease liabilities	$	766		$	(1,052	)
Lease assets (modified) obtained in exchange for (modified) new finance lease liabilities	$	(1	)	$	—