Leases

3 Months Ended

Mar. 29, 2025

At March 29, 2025 and December 28, 2024, the Company’s lease assets and lease liabilities for its studios and corporate offices were as follows:


	March 29, 2025		December 28, 2024
Assets:
Operating leases	$	39,786	$	42,047
Total lease assets	$	39,786	$	42,047

Liabilities:
Current
Operating leases	$	7,387	$	8,168
Noncurrent
Operating leases		42,587		44,322
Total lease liabilities	$	49,974	$	52,490

For the three months ended March 29, 2025 and March 30, 2024, the components of the Company’s lease expense were as follows:


	Three Months Ended
	March 29,		March 30,
	2025		2024
Operating lease cost:
Fixed lease cost	$	3,459	$	3,983
Lease termination benefit		—		(156	)
Variable lease cost		2		14
Total operating lease cost	$	3,461	$	3,841
Finance lease cost:
Amortization of leased assets		—		2
Interest on lease liabilities		—		0
Total finance lease cost	$	—	$	2
Total lease cost	$	3,461	$	3,843

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 $1,119 and $912 of sublease income for the three months ended March 29, 2025 and March 30, 2024, respectively, as an offset to general and administrative expenses.

At March 29, 2025 and December 28, 2024, the Company’s weighted average remaining lease term and weighted average discount rates were as follows:


	March 29, 2025		December 28, 2024
Weighted Average Remaining Lease Term (years)
Operating leases		6.72		6.84

Weighted Average Discount Rate
Operating leases		7.73		7.68

The Company’s leases have remaining lease terms of 0 to 7 years with a weighted average lease term of 6.72 years as of March 29, 2025.

At March 29, 2025, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows:


	Operating Leases
Remainder of fiscal 2025	$	8,402
Fiscal 2026		10,151
Fiscal 2027		9,312
Fiscal 2028		9,076
Fiscal 2029		8,965
Fiscal 2030		8,694
Thereafter		9,158
Total lease payments	$	63,758
Less imputed interest		13,784
Present value of lease liabilities	$	49,974

Supplemental cash flow information related to leases for the three months ended March 29, 2025 and March 30, 2024 were as follows:


	Three Months Ended
	March 29,		March 30,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,698	$	3,964
Operating cash flows from finance leases	$	—	$	0
Financing cash flows from finance leases	$	—	$	2

Lease assets obtained in exchange for new operating lease liabilities	$	171	$	766
Lease assets modified in exchange for modified finance lease liabilities	$	—	$	(1	)