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Leases
6 Months Ended
Jun. 28, 2024
Leases [Abstract]  
Leases

11. Leases

Most leases held by the Company expire between 2024 and 2036. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include one or more options to renew the lease terms from one to ten years and options to terminate the leases within one year. The exercise of lease renewal or termination options is at the Company’s sole discretion; therefore, the majority of renewal options to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable lives of the right-of-use assets and leasehold improvements are limited to the expected lease terms.

The following table summarizes the components of lease costs (in thousands):

 

Three Months Ended

 

 

Six Months Ended

 

 

June 28,

 

 

June 30,

 

 

June 28,

 

 

June 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating lease cost

$

2,834

 

 

$

2,639

 

 

$

5,801

 

 

$

5,277

 

Finance lease cost

 

 

 

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

150

 

 

 

151

 

 

 

301

 

 

 

301

 

Interest on lease liabilities

 

60

 

 

 

69

 

 

 

122

 

 

 

140

 

Variable lease cost

 

342

 

 

 

325

 

 

 

593

 

 

 

561

 

Total lease cost

$

3,386

 

 

$

3,184

 

 

$

6,817

 

 

$

6,279

 

 

The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate):

 

June 28,

 

 

December 31,

 

 

2024

 

 

2023

 

Operating leases

 

 

 

 

 

Operating lease right-of-use assets

$

43,641

 

 

$

38,302

 

 

 

 

 

 

 

Current portion of operating lease liabilities

$

9,757

 

 

$

8,189

 

Operating lease liabilities

 

41,279

 

 

 

37,345

 

Total operating lease liabilities

$

51,036

 

 

$

45,534

 

 

 

 

 

 

 

Finance leases

 

 

 

 

 

Property, plant and equipment, gross

$

9,582

 

 

$

9,582

 

Accumulated depreciation

 

(6,573

)

 

 

(6,272

)

Finance lease assets included in property, plant and equipment, net

$

3,009

 

 

$

3,310

 

 

 

 

 

 

 

Accrued expenses and other current liabilities

$

738

 

 

$

718

 

Other liabilities

 

3,559

 

 

 

3,934

 

Total finance lease liabilities

$

4,297

 

 

$

4,652

 

 

 

 

 

 

 

Weighted-average remaining lease term (in years):

 

 

 

 

 

Operating leases

 

7.4

 

 

 

7.6

 

Finance leases

 

5.0

 

 

 

5.5

 

 

 

 

 

 

 

Weighted-average discount rate:

 

 

 

 

 

Operating leases

 

4.73

%

 

 

4.84

%

Finance leases

 

5.54

%

 

 

5.54

%

The following table provides additional details of cash flow information related to the Company’s leases (in thousands):

 

Six Months Ended

 

 

June 28,

 

 

June 30,

 

 

2024

 

 

2023

 

Cash paid for lease liabilities:

 

 

 

 

 

Operating cash outflows related to finance leases

$

122

 

 

$

140

 

Operating cash outflows related to operating leases

$

4,314

 

 

$

3,966

 

Financing cash outflows related to finance leases

$

355

 

 

$

313

 

 

 

 

 

 

 

Supplemental non-cash information:

 

 

 

 

 

Right-of-use assets obtained in exchange for new operating lease liabilities(1)

$

9,623

 

 

$

3,186

 

(1)The amount for the six months ended June 28, 2024 includes $8.1 million of right-of-use assets acquired as part of the Motion Solutions acquisition.

Future minimum lease payments under operating and finance leases expiring subsequent to June 28, 2024, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):

Year Ending December 31,

Operating Leases

 

 

Finance Leases

 

2024 (remainder of year)

$

5,822

 

 

$

477

 

2025

 

11,448

 

 

 

954

 

2026

 

9,571

 

 

 

979

 

2027

 

8,199

 

 

 

1,003

 

2028

 

5,538

 

 

 

1,003

 

Thereafter

 

21,344

 

 

 

501

 

Total minimum lease payments

 

61,922

 

 

 

4,917

 

Less: Interest

 

(10,886

)

 

 

(620

)

Present value of lease liabilities

$

51,036

 

 

$

4,297