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Note 11 - Leases

9 Months Ended

Sep. 25, 2021

11.

Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms of 12 months or less are not recorded on the condensed consolidated balance sheet, but we recognized those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. Lease and non-lease components are included in the calculation of the ROU asset and lease liabilities.

Our leases have remaining lease terms of 1 year to 36 years, some of which include one or more options to extend the leases for up to 25 years. Our lease term includes renewal terms when we are reasonably certain we will exercise the renewal options. We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities.

Supplemental balance sheet information related to leases was as follows:

(in thousands)	Classification	September 25, 2021			December 26, 2020
Assets
Operating lease assets	Operating lease right-of-use assets	$	26,274		$	29,203
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		455			486
Total lease assets		$	26,729		$	29,689
Liabilities
Current
Operating	Other accrued liabilities	$	4,945		$	5,287
Finance	Other accrued liabilities		182			179
Noncurrent
Operating	Long-term lease liabilities		23,035			25,565
Finance	Long-term lease liabilities		109			222
Total lease liabilities		$	28,271		$	31,253

Weighted-average remaining lease term (years)
Operating leases			7.0			7.3
Finance leases			2.0			2.3

Weighted-average discount rate
Operating leases			6.3	%		6.3	%
Finance leases			0.7	%		0.0	%

(1)

Finance lease assets are recorded net of accumulated amortization of $0.1 million as of September 25, 2021 and December 26, 2020.

The components of lease expense were as follows:

	Three Months Ended						Nine Months Ended
(in thousands)	September 25, 2021			September 26, 2020			September 25, 2021			September 26, 2020
Operating leases	$	1,799		$	2,074		$	5,866		$	6,337
Variable lease expense		508			523			1,634			1,602
Short-term operating leases		1			15			68			53
Finance leases
Amortization of leased assets		21			17			66			65
Interest on lease liabilities		-			-			1			57
Sublease income		(21	)		(31	)		(61	)		(94	)
Net lease cost	$	2,308		$	2,598		$	7,574		$	8,020

Future minimum lease payments at September 25, 2021, are as follows:

	Operating			Finance
(in thousands)	leases⁽¹⁾			leases			Total
2021	$	1,671		$	46		$	1,717
2022		6,322			184			6,506
2023		5,371			40			5,411
2024		5,043			11			5,054
2025		4,914			11			4,925
Thereafter		12,232			3			12,235
Total lease payments		35,553			295			35,848
Less: Interest		(7,573	)		(4	)		(7,577	)
Present value of lease liabilities	$	27,980		$	291		$	28,271

(1)

Excludes sublease income of $0.1 million in 2022 and 2023.

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended
(in thousands)	September 25, 2021		September 26, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,953	$	6,207
Operating cash flows from finance leases	$	1	$	57
Financing cash flows from finance leases	$	142	$	104
Leased assets obtained in exchange for new finance lease liabilities	$	54	$	468
Leased assets obtained in exchange for new operating lease liabilities	$	3,669	$	1,830