Leases

3 Months Ended

Mar. 30, 2025

The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its business. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. As of March 30, 2025, there were no options to terminate and nineteen options to extend that were accounted for in the determination of the applicable lease term for the Company's outstanding leases. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for outstanding leases as of March 30, 2025. The Company did not have any leases that had not yet commenced but that created significant rights and/or obligations as of March 30, 2025.

The components of lease expense were as follows (in thousands):


	Three-months Ended
	March 30, 2025		March 31, 2024
Operating lease expense	$	3,471	$	3,563
Short-term lease expense (1)	209		82

(1) Leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability

Supplemental balance sheet information related to leases was as follows:


	March 30, 2025		December 31, 2024
Weighted average remaining lease term	9.4 years		9.9 years
Weighted average discount rate	5.9	%	5.9	%

Supplemental cash flow information related to leases was as follows (in thousands):


	Three-months Ended
	March 30, 2025		March 31, 2024
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,422	$	3,208

Maturities of lease liabilities as of March 30, 2025 were as follows (in thousands):


	Amount
Remainder of fiscal 2025	$	11,179
2026	12,337
2027	10,792
2028	9,528
2029	8,371
2030	7,854
Thereafter	36,597
Total undiscounted lease payments	$	96,658
Less: imputed interest	22,956
Total operating lease liabilities	$	73,702

The Company leases a building in Singapore that serves as a distribution center for customers in Asia. The lease contains two components: an 88,000 square-foot premises that had a commencement date in June of 2023 and a second 27,000 square-foot premises that does not commence until the fourth quarter of 2025. Accordingly, the second component of the lease has not yet been recorded on the Consolidated Balance Sheets, nor has it created any significant rights and obligations as of March 30, 2025. This second lease component has an original term of eight years and the Company has the right and option to extend this term by an additional five years, commencing upon the expiration of the original term. Future payment obligations associated with this lease component total $13,396,000, $163,000 of which is payable in the remainder of 2025 and which reflects the estimated extension period of five years. Future payment obligations related to this lease component are not included in the future operating lease cash payments table above.

The Company has entered into a lease for a 6,500 square-foot building in Aachen, Germany for a term of ten years. The commencement date for this lease is expected to be in the second quarter of 2025, and therefore it has not yet been recorded on the Consolidated Balance Sheets, nor has it created any significant rights and obligations as of March 30, 2025. The Company has the right and option to extend the term of this lease for an additional period of five years, commencing upon the expiration of the original term. Future payment obligations associated with this lease total $9,142,000, $503,000 of which is payable in the remainder of 2025. Future payment obligations related to this lease are not included in the future operating lease cash payments table above.