Note 11 - Leases

3 Months Ended

Mar. 28, 2026

Notes to Financial Statements

Lessee, Leases [Text Block]

11. Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms of 12 months or less are not recorded on the condensed consolidated balance sheet, but we recognize those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. Lease and non-lease components are included in the calculation of the ROU asset and lease liabilities.

Our leases have remaining lease terms of up to 32 years, some of which include one or more options to extend the lease for up to 25 years. Our lease terms include renewal terms when we are reasonably certain that we will exercise the renewal options. We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities.

Supplemental balance sheet information related to leases was as follows:

(in thousands)	Classification	March 28, 2026			December 27, 2025
Assets
Operating lease assets	Operating lease right-of-use assets	$	28,422		$	29,271
Finance lease assets	Property, plant and equipment, net		54			68
Total lease assets		$	28,476		$	29,339
Liabilities
Current
Operating	Other accrued liabilities	$	2,909		$	3,100
Noncurrent
Operating	Long-term lease liabilities		31,149			31,693
Total lease liabilities		$	34,058		$	34,793
Weighted-average remaining lease term (years)
Operating leases			8.9			9.0
Weighted-average discount rate
Operating leases			6.5	%		6.5	%

The components of lease expense were as follows:

	Three Months Ended
(in thousands)	March 28, 2026		March 29, 2025
Operating leases	$	1,683	$	1,522
Variable lease expense		910		646
Short-term operating leases		8		14
Finance leases
Amortization of leased assets		13		21
Interest on lease liabilities		-		1
Net lease cost	$	2,614	$	2,204

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
(in thousands)	March 28, 2026		March 29, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,307	$	1,508
Financing cash flows from finance leases	$	-	$	3
Leased assets obtained in exchange for new operating lease liabilities	$	346	$	63

Future minimum lease payments on March 28, 2026, are as follows:

	Operating			Finance
(in thousands)	leases			leases		Total
2026	$	4,953		$	-	$	4,953
2027		5,342			-		5,342
2028		4,359			-		4,359
2029		4,640			-		4,640
2030		4,876			-		4,876
Thereafter		22,103			-		22,103
Total lease payments		46,273			-		46,273
Less: Interest		(12,215	)		-		(12,215	)
Present value of lease liabilities	$	34,058		$	-	$	34,058