Leases

12 Months Ended

Dec. 30, 2023

The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased asset and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated collateralized incremental borrowing rate, which is based on the yield curve for the respective lease terms and adjusted for each lease country to determine the present value of the lease payments.

Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements.

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


Lease Cost	Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location	Fiscal Year 2023		Fiscal Year 2022
Operating lease cost(1)	SG&A	$	72,296	$	76,528



Short-term lease cost	SG&A	$	1,145	$	802
Variable lease cost	SG&A	$	23,181	$	27,606

_______________________________________________

(1) Includes sublease income, which was immaterial.

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):


Leases	Consolidated Balance Sheets Location	December 30, 2023		December 31, 2022
Assets
Operating	Operating lease ROU assets	$	151,000	$	156,947


Liabilities
Current:
Operating	Current operating lease liabilities	$	43,565	$	49,702

Noncurrent:
Operating	Long-term operating lease liabilities	$	137,644	$	150,188

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:

Lease Term and Discount Rate

December 30, 2023

December 31, 2022

Weighted-average remaining lease term:

Operating leases

6.4 years

5.6 years

Weighted-average discount rate:

Operating leases

14.9

14.1

Future minimum lease payments by year as of December 30, 2023 were as follows (in thousands):


Fiscal Year	Operating Leases
2024	$	70,125
2025	50,188
2026	38,594
2027	27,775
2028	17,693
Thereafter	87,328
Total lease payments	$	291,703
Less: Interest	110,494
Total lease obligations	$	181,209

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


	Fiscal Year 2023		Fiscal Year 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	86,474	$	93,245



Leased assets obtained in exchange for new operating lease liabilities	41,430		34,248

As of December 30, 2023, the Company did not have any material operating or finance leases that have been signed but not commenced.

Leases

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


Lease Cost	Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location	Fiscal Year 2023		Fiscal Year 2022
Operating lease cost(1)	SG&A	$	72,296	$	76,528



Short-term lease cost	SG&A	$	1,145	$	802
Variable lease cost	SG&A	$	23,181	$	27,606

_______________________________________________

(1) Includes sublease income, which was immaterial.

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):


Leases	Consolidated Balance Sheets Location	December 30, 2023		December 31, 2022
Assets
Operating	Operating lease ROU assets	$	151,000	$	156,947


Liabilities
Current:
Operating	Current operating lease liabilities	$	43,565	$	49,702

Noncurrent:
Operating	Long-term operating lease liabilities	$	137,644	$	150,188

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:

Lease Term and Discount Rate

December 30, 2023

December 31, 2022

Weighted-average remaining lease term:

Operating leases

6.4 years

5.6 years

Weighted-average discount rate:

Operating leases

14.9

14.1

Future minimum lease payments by year as of December 30, 2023 were as follows (in thousands):


Fiscal Year	Operating Leases
2024	$	70,125
2025	50,188
2026	38,594
2027	27,775
2028	17,693
Thereafter	87,328
Total lease payments	$	291,703
Less: Interest	110,494
Total lease obligations	$	181,209

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


	Fiscal Year 2023		Fiscal Year 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	86,474	$	93,245



Leased assets obtained in exchange for new operating lease liabilities	41,430		34,248

As of December 30, 2023, the Company did not have any material operating or finance leases that have been signed but not commenced.