Lease Commitments

12 Months Ended

Jan. 03, 2026

LEASE COMMITMENTS

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 lease payments that are determined to be probable. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company includes options to extend or terminate a lease in the lease term 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.

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.

The company leases warehouse space, office facilities and equipment under operating leases. The company had operating lease costs of $27.7 million, $26.2 million and $24.5 million in fiscal 2025, 2024 and 2023 respectively, including short-term lease expense and variable lease costs, which were not material.

The following table provides information about the company's operating leases (in thousands):


	Jan 3, 2026		Dec 28, 2024
Operating lease right-of-use assets:
Other assets	$	109,942	$	82,377


Operating lease liabilities:
Accrued expenses	19,522		17,829
Other non-current liabilities	94,257		67,478
Total operating lease liabilities	$	113,779	$	85,307

Future operating lease payments for each of the next five years is as follows (in thousands):


2026	$	24,010
2027	21,185
2028	18,739
2029	16,035
2030	12,339
2031 and thereafter	41,289
Total future lease commitments	133,597
Less: Imputed interest	19,818
Present value of operating lease liabilities	$	113,779

Other information related to the company's operating leases is as follows (dollars in thousands):


	2025		2024		2023
Supplemental cash flow information:
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases	$	23,792	$	21,328	$	20,175
Right-of-use assets obtained in exchange for lease obligations	20,608		15,958		10,623


	Jan 3, 2026		Dec 28, 2024
Weighted-average remaining lease term	7.1 years		6.2 years
Weighted-average discount rate	4.5	%	4.1	%