XML 31 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
LEASES
 12 Months Ended
Dec. 28, 2024
Leases [Abstract]  
LEASES LEASES
We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of December 28, 2024, the initial lease terms of the various leases range from one to 20 years. ROU lease assets and liabilities associated with leases with an initial term of twelve months or less are not recorded on the balance sheet.
Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We use our collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components, with the exception of our distribution facilities. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the assets and liabilities related to operating and finance leases (in thousands):
Balance Sheet Location
December 28, 2024
December 30, 2023
Assets:
Operating lease assetsOperating lease right-of-use assets$78,279 $77,556 
Finance lease assets
Property and equipment, net
5,625 6,295 
Total lease assets$83,904 $83,851 
Liabilities:
Current
Operating lease liabilitiesOperating lease liabilities$19,621 $14,726 
Finance lease liabilitiesCurrent maturities of long-term debt2,256 2,360 
Non-current
Operating lease liabilitiesOperating lease liabilities, non-current73,586 76,163 
Finance lease liabilitiesLong-term debt, net of current portion1,190 3,445 
Total lease liabilities$96,653 $96,694 

The following table presents the components of lease costs (in thousands):
Fiscal Year Ended
December 28, 2024December 30, 2023December 31, 2022
Operating lease costs$19,623 $14,889 12,943 
Finance lease cost - amortization of right-of-use assets2,014 1,862 1,860 
Finance lease cost - interest on lease liabilities109 138 182 
Short-term lease cost356 246 67 
Variable lease cost4,897 5,537 4,645 
Sublease income(827)(747)(743)
Total lease cost$26,172 $21,925 $18,954 

The following table presents lease terms and discount rates:
December 28, 2024December 30, 2023
Weighted average remaining lease term:
Operating leases6.41 years6.38 years
Finance leases2.98 years4.01 years
Weighted average discount rate:
Operating leases5.24 %4.87 %
Finance leases2.39 %2.50 %
The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 28, 2024 (in thousands):
Operating LeasesFinance LeasesTotal
2025$24,034 $2,315 $26,349 
202620,582 973 21,555 
202715,767 142 15,909 
202811,718 106 11,824 
20298,940 — 8,940 
Thereafter29,449 — 29,449 
Total lease payments110,490 3,536 114,026 
Less: Effect of discounting to net present value17,283 90 17,373 
Present value of lease liabilities$93,207 $3,446 $96,653 

The following table presents supplemental cash flow information related to our leases (in thousands):
December 28, 2024December 30, 2023December 31, 2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases$20,038 $15,047 $13,387 
Operating cash flows used in finance leases109 137 182 
Financing cash flows used in finance leases3,719 2,131 2,063 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases16,670 35,497 12,083 
Finance leases1,362 625 17 
LEASES LEASES
We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of December 28, 2024, the initial lease terms of the various leases range from one to 20 years. ROU lease assets and liabilities associated with leases with an initial term of twelve months or less are not recorded on the balance sheet.
Operating lease assets represent the right to use an underlying asset for the lease term, and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We use our collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components, with the exception of our distribution facilities. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the assets and liabilities related to operating and finance leases (in thousands):
Balance Sheet Location
December 28, 2024
December 30, 2023
Assets:
Operating lease assetsOperating lease right-of-use assets$78,279 $77,556 
Finance lease assets
Property and equipment, net
5,625 6,295 
Total lease assets$83,904 $83,851 
Liabilities:
Current
Operating lease liabilitiesOperating lease liabilities$19,621 $14,726 
Finance lease liabilitiesCurrent maturities of long-term debt2,256 2,360 
Non-current
Operating lease liabilitiesOperating lease liabilities, non-current73,586 76,163 
Finance lease liabilitiesLong-term debt, net of current portion1,190 3,445 
Total lease liabilities$96,653 $96,694 

The following table presents the components of lease costs (in thousands):
Fiscal Year Ended
December 28, 2024December 30, 2023December 31, 2022
Operating lease costs$19,623 $14,889 12,943 
Finance lease cost - amortization of right-of-use assets2,014 1,862 1,860 
Finance lease cost - interest on lease liabilities109 138 182 
Short-term lease cost356 246 67 
Variable lease cost4,897 5,537 4,645 
Sublease income(827)(747)(743)
Total lease cost$26,172 $21,925 $18,954 

The following table presents lease terms and discount rates:
December 28, 2024December 30, 2023
Weighted average remaining lease term:
Operating leases6.41 years6.38 years
Finance leases2.98 years4.01 years
Weighted average discount rate:
Operating leases5.24 %4.87 %
Finance leases2.39 %2.50 %
The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of December 28, 2024 (in thousands):
Operating LeasesFinance LeasesTotal
2025$24,034 $2,315 $26,349 
202620,582 973 21,555 
202715,767 142 15,909 
202811,718 106 11,824 
20298,940 — 8,940 
Thereafter29,449 — 29,449 
Total lease payments110,490 3,536 114,026 
Less: Effect of discounting to net present value17,283 90 17,373 
Present value of lease liabilities$93,207 $3,446 $96,653 

The following table presents supplemental cash flow information related to our leases (in thousands):
December 28, 2024December 30, 2023December 31, 2022
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases$20,038 $15,047 $13,387 
Operating cash flows used in finance leases109 137 182 
Financing cash flows used in finance leases3,719 2,131 2,063 
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases16,670 35,497 12,083 
Finance leases1,362 625 17