Lease Commitments

12 Months Ended

Dec. 28, 2024

Leases [Abstract]

Lessee, Operating Leases

LEASE COMMITMENTS

Accounting Policy

At the commencement date of a lease, the company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term, including variable fees that are known or subject to a minimum floor. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company's lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When a contract excludes an implicit rate, the company utilizes an incremental borrowing rate based on information available at the lease commencement date including lease term and geographic region. The initial valuation of the right-of-use (“ROU”) asset includes the initial measurement of the lease liability, lease payments made in advance of the lease commencement date and

initial direct costs incurred by the company and excludes lease incentives. Operating lease ROU assets are included in other assets and operating lease liabilities are included in accrued expenses and other non-current liabilities.

Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the Consolidated Balance Sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term.

Leases

The company leases warehouse space, office facilities and equipment under operating leases. The company had operating lease costs of $39.3 million, $39.6 million and $35.7 million in fiscal 2024, 2023 and 2022 respectively, including short-term lease expense and variable lease costs, which were immaterial in the year.

Leases (in thousands)	December 28, 2024		December 30, 2023
Operating lease right-of-use assets:
Other assets	$	121,168	$	109,373
Operating lease liabilities:
Accrued expenses	27,938		26,417
Other non-current liabilities	98,042		87,550
Total Liability	$	125,980	$	113,967

Total Lease Commitments (in thousands)	Operating Leases
2025	$	32,266
2026	28,416
2027	22,337
2028	18,295
2029	14,608
2030 and thereafter	26,156
Total future lease commitments	142,078
Less imputed interest	16,098
Total	$	125,980

Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended December 28, 2024			Twelve Months Ended December 30, 2023
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	33,719		$	30,117
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	21,305		$	28,524
	December 28, 2024			December 30, 2023
Weighted-average remaining lease terms - Operating	5.7 years			5.2 years
Weighted-average discount rate - Operating	4.3		%	3.6		%