Leases (Tables)

9 Months Ended

Sep. 28, 2022

Leases [Abstract]

Schedule of lease cost

The following table presents the Company’s total lease cost, disaggregated by underlying asset (in thousands):

	Thirteen Weeks Ended
	September 28, 2022						September 29, 2021
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	18	$	1	$	19	$	18	$	1	$	19
Interest on lease liabilities		10		1		11		14		1		15
Operating lease cost		6,646		256		6,902		6,552		267		6,819
Short-term lease cost		—		4		4		—		7		7
Variable lease cost		151		196		347		138		70		208
Sublease income		(1,130)		—		(1,130)		(1,128)		—		(1,128)
Total lease cost	$	5,695	$	458	$	6,153	$	5,594	$	346	$	5,940

	Thirty-Nine Weeks Ended
	September 28, 2022						September 29, 2021
	Property		Equipment				Property		Equipment
	Leases		Leases		Total		Leases		Leases		Total
Finance lease cost:
Amortization of right-of-use assets	$	55	$	2	$	57	$	60	$	2	$	62
Interest on lease liabilities		32		2		34		44		2		46
Operating lease cost		19,795		776		20,571		19,935		861		20,796
Short-term lease cost		—		11		11		—		17		17
Variable lease cost		458		463		921		413		260		673
Sublease income		(3,387)		—		(3,387)		(2,722)		—		(2,722)
Total lease cost	$	16,953	$	1,254	$	18,207	$	17,730	$	1,142	$	18,872

The following table presents the Company’s total lease cost on the condensed consolidated statements of income (in thousands):

	Thirteen Weeks Ended				Thirty-Nine Weeks Ended
	September 28, 2022		September 29, 2021		September 28, 2022		September 29, 2021
Lease cost – Occupancy and other operating expenses	$	5,969	$	5,811	$	17,709	$	18,191
Lease cost – General & administrative		133		97		343		316
Lease cost – Depreciation and amortization		18		18		55		60
Lease cost – Interest expense		11		14		35		44
Lease cost – Closed-store reserve		22		—		65		261
Total lease cost	$	6,153	$	5,940	$	18,207	$	18,872

During the thirteen and thirty-nine weeks ended September 28, 2022 and September 29, 2021, the Company had the following cash and non-cash activities associated with its leases (dollars in thousands):

	Thirty-Nine Weeks Ended September 28, 2022								Thirty-Nine Weeks Ended September 29, 2021
	Property			Equipment					Property			Equipment
	Leases			Leases			Total		Leases			Leases			Total
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows used for operating leases	$	20,364		$	737		$	21,101	$	19,371		$	831		$	20,202
Financing cash flows used for finance leases	$	82		$	42		$	124	$	67		$	33		$	100
Non-cash investing and financing activities:
Operating lease ROU assets obtained in exchange for lease liabilities:
Operating lease ROU assets	$	10,486		$	86		$	10,572	$	13,848		$	—		$	13,848
Finance lease ROU assets obtained in exchange for lease liabilities:
Finance lease ROU assets	$	—		$	28		$	28	$	—		$	196		$	196
Derecognition of ROU assets due to terminations, impairment or modifications	$	(39)		$	(24)		$	(63)	$	(4,513)		$	(99)		$	(4,612)
Other Information
Weighted-average remaining years in lease term—finance leases		18.12			3.44					18.56			4.27
Weighted-average remaining years in lease term—operating leases		10.91			1.57					11.37			1.66
Weighted-average discount rate—finance leases		2.57	%		1.53	%				2.84	%		1.54	%
Weighted-average discount rate—operating leases		4.49	%		3.82	%				4.43	%		3.91	%

Schedule of Financing Leases

Information regarding the Company’s minimum future lease obligations as of September 28, 2022 is as follows (in thousands):

	Finance		Operating Leases
	Minimum		Minimum		Minimum
	Lease		Lease		Sublease
For the Years Ending	Payments		Payments		Income
December 28, 2022	$	38	$	7,073	$	937
December 27, 2023		151		27,673		3,698
December 25, 2024		151		25,348		3,510
December 31, 2025		147		23,186		3,115
December 30, 2026		114		21,048		2,789
Thereafter		1,583		135,928		23,165
Total	$	2,184	$	240,256	$	37,214
Less: imputed interest (1.53% - 4.49%)		(422)		(52,631)
Present value of lease obligations		1,762		187,625
Less: current maturities		(109)		(20,063)
Noncurrent portion	$	1,653	$	167,562

Schedule of Operating Leases

Information regarding the Company’s minimum future lease obligations as of September 28, 2022 is as follows (in thousands):

	Finance		Operating Leases
	Minimum		Minimum		Minimum
	Lease		Lease		Sublease
For the Years Ending	Payments		Payments		Income
December 28, 2022	$	38	$	7,073	$	937
December 27, 2023		151		27,673		3,698
December 25, 2024		151		25,348		3,510
December 31, 2025		147		23,186		3,115
December 30, 2026		114		21,048		2,789
Thereafter		1,583		135,928		23,165
Total	$	2,184	$	240,256	$	37,214
Less: imputed interest (1.53% - 4.49%)		(422)		(52,631)
Present value of lease obligations		1,762		187,625
Less: current maturities		(109)		(20,063)
Noncurrent portion	$	1,653	$	167,562