Leases

12 Months Ended

Dec. 31, 2022

11. Leases

The Company leases various corporate-owned centers and office space to support ongoing business operations under non-cancellable lease agreements with terms expiring through 2032. These lease agreements typically have a lease term ranging from one to 10 years. Many of our leases contain renewal options which are exercisable at our discretion. These renewal options allow us to extend certain leases for an additional five to 10 years. Most lease arrangements contain tenant improvement allowances, rent holidays and/or rent escalation clauses. In addition to base rent, certain leases require the Company to pay a portion of real estate taxes, utilities, building operating expenses, insurance and other charges in addition to rent. Certain of our leases are subject to variable lease payments that are determined on a basis other than an index or a rate. As such, they are excluded from the calculation of lease liabilities and right-of-use

assets and are expensed as incurred. We currently have two sublease agreements in which we sublease real estate no longer used by the Company to other entities with terms expiring through 2023. Neither of these sublease agreements provides for any renewal options and expire on the same dates as their respective head leases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We have no related party leases.

Total lease costs consisted of the following:


	Year Ended December 31, 2022
Operating lease costs	$	2,052
Variable lease costs		729
Sublease income		(614	)
Total lease costs	$	2,167

Rent expense, including common area maintenance and property taxes, was $2,429, and $3,064 for the years ended December 25, 2021 and December 26, 2020 respectively, and is included in selling, general and administrative expense on the Consolidated Statements of Operations.

Future maturities of operating lease liabilities as of December 31, 2022 were as follows:


Fiscal Years Ending
2023	$	1,524
2024		1,346
2025		1,232
2026		880
2027		863
Thereafter		290
Total lease payments		6,135
Less: amount representing interest		(596	)
Present value of lease liabilities		5,539
Less: current portion		(1,312	)
Operating lease liabilities, net of current portion	$	4,227

Future minimum rental payments as of December 25, 2021 were as follows:


Fiscal Years Ending
2022	$	2,098
2023		1,524
2024		1,346
2025		1,232
2026		880
Thereafter		1,152
Total	$	8,232

The weighted average lease term and discount rate of our operating leases as of December 31, 2022 were as follows:



Weighted average remaining lease term (years)	4.6
Weighted average discount rate	4.4	%

Cash paid for amounts included in the measurement of lease liabilities was as follows:


	Year Ended December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,331