Leases

9 Months Ended

Sep. 29, 2023

Leases [Abstract]

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	September 29, 2023		December 31, 2022
Weighted average remaining lease term:
Operating leases	6.8 years		7.2 years
Financing leases	3.7 years		4.3 years
Weighted average discount rate:
Operating leases	3.7	%	3.6	%
Financing leases	5.2	%	5.2	%

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	Third Quarter				First Nine Months
(in thousands)	2023		2022		2023		2022
Operating lease costs	$	8,293	$	7,750	$	24,871	$	22,389
Short-term and variable leases	4,151		3,731		11,942		11,006
Depreciation expense from financing leases	413		411		1,235		1,903
Interest expense on financing lease obligations	109		139		346		753
Total lease cost	$	12,966	$	12,031	$	38,394	$	36,051

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a

summary of future minimum lease payments for all noncancelable operating leases and financing leases as of September 29, 2023:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2023	$	7,690	$	692
2024	28,915		2,808
2025	22,940		2,869
2026	19,773		1,233
2027	17,487		338
Thereafter	51,741		965
Total minimum lease payments including interest	$	148,546	$	8,905
Less:  Amounts representing interest	18,894		795
Present value of minimum lease principal payments	129,652		8,110
Less:  Current portion of lease liabilities	26,074		2,440
Noncurrent portion of lease liabilities	$	103,578	$	5,670

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2022:

(in thousands)	Operating Leases		Financing Leases
2023	$	31,697	$	2,750
2024	27,663		2,808
2025	21,628		2,869
2026	19,036		1,233
2027	17,227		338
Thereafter	51,372		966
Total minimum lease payments including interest	$	168,623	$	10,964
Less:  Amounts representing interest	22,225		1,142
Present value of minimum lease principal payments	146,398		9,822
Less:  Current portion of lease liabilities	27,635		2,303
Noncurrent portion of lease liabilities	$	118,763	$	7,519

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Nine Months
(in thousands)	2023		2022
Cash flows from operating activities impact:
Operating leases	$	24,666	$	21,502
Interest payments on financing lease obligations	346		753
Total cash flows from operating activities impact	$	25,012	$	22,255
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,712	$	2,441
Total cash flows from financing activities impact	$	1,712	$	2,441

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	September 29, 2023		December 31, 2022
Weighted average remaining lease term:
Operating leases	6.8 years		7.2 years
Financing leases	3.7 years		4.3 years
Weighted average discount rate:
Operating leases	3.7	%	3.6	%
Financing leases	5.2	%	5.2	%

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	Third Quarter				First Nine Months
(in thousands)	2023		2022		2023		2022
Operating lease costs	$	8,293	$	7,750	$	24,871	$	22,389
Short-term and variable leases	4,151		3,731		11,942		11,006
Depreciation expense from financing leases	413		411		1,235		1,903
Interest expense on financing lease obligations	109		139		346		753
Total lease cost	$	12,966	$	12,031	$	38,394	$	36,051

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a

summary of future minimum lease payments for all noncancelable operating leases and financing leases as of September 29, 2023:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2023	$	7,690	$	692
2024	28,915		2,808
2025	22,940		2,869
2026	19,773		1,233
2027	17,487		338
Thereafter	51,741		965
Total minimum lease payments including interest	$	148,546	$	8,905
Less:  Amounts representing interest	18,894		795
Present value of minimum lease principal payments	129,652		8,110
Less:  Current portion of lease liabilities	26,074		2,440
Noncurrent portion of lease liabilities	$	103,578	$	5,670

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2022:

(in thousands)	Operating Leases		Financing Leases
2023	$	31,697	$	2,750
2024	27,663		2,808
2025	21,628		2,869
2026	19,036		1,233
2027	17,227		338
Thereafter	51,372		966
Total minimum lease payments including interest	$	168,623	$	10,964
Less:  Amounts representing interest	22,225		1,142
Present value of minimum lease principal payments	146,398		9,822
Less:  Current portion of lease liabilities	27,635		2,303
Noncurrent portion of lease liabilities	$	118,763	$	7,519

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Nine Months
(in thousands)	2023		2022
Cash flows from operating activities impact:
Operating leases	$	24,666	$	21,502
Interest payments on financing lease obligations	346		753
Total cash flows from operating activities impact	$	25,012	$	22,255
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,712	$	2,441
Total cash flows from financing activities impact	$	1,712	$	2,441