Leases

9 Months Ended

Sep. 28, 2024

At September 28, 2024 and December 30, 2023, the Company’s lease assets and lease liabilities, primarily for its studios and corporate offices, were as follows:


	September 28, 2024		December 30, 2023
Assets:
Operating leases	$	45,312	$	52,272
Finance leases		0		5
Total lease assets	$	45,312	$	52,277

Liabilities:
Current
Operating leases	$	8,976	$	9,613
Finance leases		0		4
Noncurrent
Operating leases		46,925		53,461
Finance leases		—		—
Total lease liabilities	$	55,901	$	63,078

For the three and nine months ended September 28, 2024 and September 30, 2023, the components of the Company’s lease expense were as follows:


	Three Months Ended					Nine Months Ended
	September 28,		September 30,			September 28,			September 30,
	2024		2023			2024			2023
Operating lease cost:
Fixed lease cost	$	3,874	$	4,312		$	11,766		$	17,423
Lease termination cost (benefit)		21		(538	)		(135	)		11,512
Variable lease cost		4		15			21			46
Total operating lease cost	$	3,899	$	3,789		$	11,652		$	28,981
Finance lease cost:
Amortization of leased assets		1		5		$	4		$	43
Interest on lease liabilities		0		0			0			1
Total finance lease cost	$	1	$	5		$	4		$	44
Total lease cost	$	3,900	$	3,794		$	11,656		$	29,025

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 $914 and $2,741 of sublease income for the three and nine months ended September 28, 2024, respectively, and $931 and $2,455 of sublease income for the three and nine months ended September 30, 2023, respectively, as an offset to general and administrative expenses.

At September 28, 2024 and December 30, 2023, the Company’s weighted average remaining lease term and weighted average discount rates were as follows:


	September 28, 2024		December 30, 2023
Weighted Average Remaining Lease Term (years)
Operating leases		6.90		7.31
Finance leases		0.20		0.48

Weighted Average Discount Rate
Operating leases		7.61		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 6.90 years as of September 28, 2024.

At September 28, 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	$	2,533	$	0	$	2,533
Fiscal 2025		13,388		—		13,388
Fiscal 2026		10,373		—		10,373
Fiscal 2027		9,552		—		9,552
Fiscal 2028		9,106		—		9,106
Fiscal 2029		8,988		—		8,988
Thereafter		17,852		—		17,852
Total lease payments	$	71,792	$	0	$	71,792
Less imputed interest		15,891		0		15,891
Present value of lease liabilities	$	55,901	$	0	$	55,901

Supplemental cash flow information related to leases for the nine months ended September 28, 2024 and September 30, 2023 were as follows:


	Nine Months Ended
	September 28,			September 30,
	2024			2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	11,939		$	17,826
Operating cash flows from finance leases	$	0		$	1
Financing cash flows from finance leases	$	4		$	43

Lease assets obtained (modified) in exchange for new (modified) operating lease liabilities	$	1,451		$	(6,683	)
Lease assets (modified) obtained in exchange for (modified) new finance lease liabilities	$	(1	)	$	—