Leases

3 Months Ended

Mar. 31, 2023

10. Leases

Most leases held by the Company expire between 2023 and 2036. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include one or more options to renew, with renewal terms that can extend the lease term from one to 10 years, and options to terminate the leases within one year. The exercise of lease renewal or termination options is at the Company’s sole discretion; therefore, the majority of renewal options to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable lives of the right-of-use assets and leasehold improvements are limited to the expected lease terms.

The following table summarizes the components of lease costs (in thousands):


	Three Months Ended
	March 31,		April 1,
	2023		2022
Operating lease cost	$	2,638	$	2,744
Finance lease cost
Amortization of right-of-use assets		150		150
Interest on lease liabilities		71		79
Variable lease cost		236		265
Total lease cost	$	3,095	$	3,238

The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate):


	March 31,			December 31,
	2023			2022
Operating leases
Operating lease right-of-use assets	$	41,964		$	43,317

Current portion of operating lease liabilities	$	7,657		$	7,793
Operating lease liabilities		39,578			40,808
Total operating lease liabilities	$	47,235		$	48,601

Finance leases
Property, plant and equipment, gross	$	9,582		$	9,582
Accumulated depreciation		(5,821	)		(5,670	)
Finance lease assets included in property, plant and equipment, net	$	3,761		$	3,912

Accrued expenses and other current liabilities	$	684		$	668
Other liabilities		4,476			4,652
Total finance lease liabilities	$	5,160		$	5,320

Weighted-average remaining lease term (in years):
Operating leases		8.1			8.2
Finance leases		6.3			6.5
Weighted-average discount rate:
Operating leases		4.72	%		4.64	%
Finance leases		5.54	%		5.54	%

The following table provides additional details of cash flow information related to the Company’s leases (in thousands):


	Three Months Ended
	March 31,		April 1,
	2023		2022
Cash paid for amounts included in lease liabilities:
Operating cash flows from finance leases	$	71	$	79
Operating cash flows from operating leases	$	1,988	$	1,985
Financing cash flows from finance leases	$	156	$	148
Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities	$	142	$	787

Future minimum lease payments under operating and finance leases expiring subsequent to March 31, 2023, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):


Year Ending December 31,	Operating Leases			Finance Leases
2023 (remainder of year)	$	6,954		$	710
2024		8,974			954
2025		8,413			954
2026		7,225			979
2027		6,366			1,003
Thereafter		20,537			1,505
Total minimum lease payments		58,469			6,105
Less: Interest		(11,234	)		(945	)
Present value of lease liabilities	$	47,235		$	5,160