Lease Commitments

12 Months Ended

Dec. 27, 2025

Leases [Abstract]

Lease Commitments

Lease Commitments

Under ASC 842, a contract contains a lease if there is an identified asset and the Company has the right to control the asset. The Company determines whether a contract contains a lease at contract inception. The Company leases office and production space under various non-cancellable operating leases that expire no later than 2036. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants. The Company has elected to use the available practical expedient to account for the lease and non-lease components of its leases as a single component. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate ("IBR"), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations.

All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Consolidated Balance Sheets. Short-term lease expenses are recognized on a straight-line basis over the lease term.

The following table presents the classification of right of use assets and lease liabilities as of December 27, 2025 and December 28, 2024:

		Fiscal Year Ended
(in thousands)	Consolidated Balance Sheet Classification	December 27, 2025		December 28, 2024
Operating Leases
Right of use assets - operating lease	Right of use lease assets	$	85,318	$	71,513
Current operating lease liabilities	Accrued liabilities	11,347		13,626
Non-current operating lease liabilities	Non-current lease liabilities	71,664		60,558
Total operating lease liabilities		$	83,011	$	74,184
Finance Leases
Right of use assets - finance lease	Right of use lease assets	$	945	$	698
Current finance lease liabilities	Accrued liabilities	88		274
Non-current finance lease liabilities	Non-current lease liabilities	101		1
Total finance lease liabilities		$	189	$	275

The following table represents the lease costs for 2025, 2024, and 2023:

		Fiscal Year Ended
(in thousands)	Consolidated Statements of Net (Loss) Income Classification	December 27, 2025		December 28, 2024		December 30, 2023
Operating lease expenses	Cost of sales, Selling, general, and administrative expenses	$	18,906	$	17,310	$	15,817
Finance lease:
Finance lease expenses	Cost of sales	107		96		219
Interest on lease liabilities	Other (income) expense, net	9		8		19
Short-term lease expenses	Cost of sales, Selling, general, and administrative expenses	758		1,170		1,229
Variable lease expenses	Cost of sales, Selling, general, and administrative expenses	1,407		1,151		1,034
Total lease costs	Cost of sales, Selling, general, and administrative expenses	$	21,187	$	19,735	$	18,318

The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $21.2 million, $19.7 million, and $18.3 million in 2025, 2024, and 2023, respectively.

Maturity of lease liabilities as of December 27, 2025 (in thousands)	Operating Leases		Finance Leases
2026	$	15,282	$	94
2027	14,481		97
2028	13,681		4
2029	13,031		4
2030	10,583		—
2031 and thereafter	35,091		—
Total lease payments	$	102,149	$	199
Less: Imputed interest	(19,138)		(10)
Present value of lease liabilities	$	83,011	$	189

	Fiscal Year Ended
	December 27, 2025		December 28, 2024
Weighted-average remaining lease term (years)
Operating leases	7.63		8.67
Finance leases	1.56		1.00
Weighted-average discount rate
Operating leases	5.07	%	5.39	%
Finance leases	5.30	%	2.00	%

	Fiscal Year Ended
(in thousands)	December 27, 2025		December 28, 2024		December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow - payments on operating leases	$	(19,848)	$	(13,258)	$	(14,518)
Operating cash flow - interest payments on finance leases	(9)		(8)		(19)
Financing cash flow - payments on finance lease obligations	(377)		(280)		(1,164)
Leased assets obtained in exchange of new lease obligations, including leases acquired:
Operating leases	$	21,895	$	26,785	$	16,689
Finance leases	269		—		—

There were no sale leaseback transactions for the fiscal years ended December 27, 2025 and December 30, 2023. The net gain recorded from a sale leaseback transaction was $0.3 million for the fiscal year ended December 28, 2024.

Lease Commitments

Lease Commitments

Under ASC 842, a contract contains a lease if there is an identified asset and the Company has the right to control the asset. The Company determines whether a contract contains a lease at contract inception. The Company leases office and production space under various non-cancellable operating leases that expire no later than 2036. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants. The Company has elected to use the available practical expedient to account for the lease and non-lease components of its leases as a single component. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.

The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate ("IBR"), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations.

All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Consolidated Balance Sheets. Short-term lease expenses are recognized on a straight-line basis over the lease term.

The following table presents the classification of right of use assets and lease liabilities as of December 27, 2025 and December 28, 2024:

		Fiscal Year Ended
(in thousands)	Consolidated Balance Sheet Classification	December 27, 2025		December 28, 2024
Operating Leases
Right of use assets - operating lease	Right of use lease assets	$	85,318	$	71,513
Current operating lease liabilities	Accrued liabilities	11,347		13,626
Non-current operating lease liabilities	Non-current lease liabilities	71,664		60,558
Total operating lease liabilities		$	83,011	$	74,184
Finance Leases
Right of use assets - finance lease	Right of use lease assets	$	945	$	698
Current finance lease liabilities	Accrued liabilities	88		274
Non-current finance lease liabilities	Non-current lease liabilities	101		1
Total finance lease liabilities		$	189	$	275

The following table represents the lease costs for 2025, 2024, and 2023:

		Fiscal Year Ended
(in thousands)	Consolidated Statements of Net (Loss) Income Classification	December 27, 2025		December 28, 2024		December 30, 2023
Operating lease expenses	Cost of sales, Selling, general, and administrative expenses	$	18,906	$	17,310	$	15,817
Finance lease:
Finance lease expenses	Cost of sales	107		96		219
Interest on lease liabilities	Other (income) expense, net	9		8		19
Short-term lease expenses	Cost of sales, Selling, general, and administrative expenses	758		1,170		1,229
Variable lease expenses	Cost of sales, Selling, general, and administrative expenses	1,407		1,151		1,034
Total lease costs	Cost of sales, Selling, general, and administrative expenses	$	21,187	$	19,735	$	18,318

The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $21.2 million, $19.7 million, and $18.3 million in 2025, 2024, and 2023, respectively.

Maturity of lease liabilities as of December 27, 2025 (in thousands)	Operating Leases		Finance Leases
2026	$	15,282	$	94
2027	14,481		97
2028	13,681		4
2029	13,031		4
2030	10,583		—
2031 and thereafter	35,091		—
Total lease payments	$	102,149	$	199
Less: Imputed interest	(19,138)		(10)
Present value of lease liabilities	$	83,011	$	189

	Fiscal Year Ended
	December 27, 2025		December 28, 2024
Weighted-average remaining lease term (years)
Operating leases	7.63		8.67
Finance leases	1.56		1.00
Weighted-average discount rate
Operating leases	5.07	%	5.39	%
Finance leases	5.30	%	2.00	%

	Fiscal Year Ended
(in thousands)	December 27, 2025		December 28, 2024		December 30, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flow - payments on operating leases	$	(19,848)	$	(13,258)	$	(14,518)
Operating cash flow - interest payments on finance leases	(9)		(8)		(19)
Financing cash flow - payments on finance lease obligations	(377)		(280)		(1,164)
Leased assets obtained in exchange of new lease obligations, including leases acquired:
Operating leases	$	21,895	$	26,785	$	16,689
Finance leases	269		—		—

There were no sale leaseback transactions for the fiscal years ended December 27, 2025 and December 30, 2023. The net gain recorded from a sale leaseback transaction was $0.3 million for the fiscal year ended December 28, 2024.