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Note 11 - Leases

12 Months Ended

Dec. 25, 2021

11.

Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms with 12 months or less are not recorded in the consolidated balance sheet, but we recognized those lease payments in the 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 right of use asset (“ROU”) asset and lease liabilities.

Our leases have remaining lease terms ranging from 1 year to 36 years, some of which include one or more options to extend the lease for up to 25 years. Our lease term includes renewal terms when we are reasonably certain that 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:

		December 25,			December 26,
(in thousands)	Classification	2021			2020
Assets:
Operating lease assets	Operating lease right-of-use assets	$	25,060		$	29,203
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		423			486
Total lease assets		$	25,483		$	29,689
Liabilities:
Current:
Operating	Other accrued liabilities	$	4,886		$	5,287
Finance	Other accrued liabilities		167			179
Noncurrent:
Operating	Long-term lease liabilities		21,977			25,565
Finance	Long-term lease liabilities		63			222
Total lease liabilities		$	27,093		$	31,253

Weighted-average remaining lease term (years):
Operating leases			6.9			7.3
Finance leases			1.8			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 in 2021 and 2020.

The components of lease expense were as follows:

	December 25,			December 26,
(in thousands)	2021			2020
Operating leases	$	7,638		$	8,374
Variable lease expense		2,192			2,110
Short-term operating leases		69			93
Finance leases:
Amortization of leased assets		86			84
Interest on lease liabilities		2			57
Sublease income		(81	)		(113	)
Net lease cost	$	9,906		$	10,605

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

	Operating			Finance
(in thousands)	leases⁽¹⁾			leases			Total
2022	$	6,341		$	170		$	6,511
2023		5,445			40			5,485
2024		5,050			11			5,061
2025		4,912			11			4,923
2026		2,617			2			2,619
Thereafter		9,656			-			9,656
Total lease payments		34,021			234			34,255
Less: Interest		(7,158	)		(4	)		(7,162	)
Present value of lease liabilities	$	26,863		$	230		$	27,093

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

Supplemental cash flow information related to leases was as follows:

	December 25,		December 26,
(in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7,628	$	8,079
Operating cash flows from finance leases	$	1	$	57
Financing cash flows from finance leases	$	186	$	146
Leased assets obtained in exchange for new finance lease liabilities	$	54	$	489
Leased assets obtained in exchange for new operating lease liabilities	$	3,866	$	2,403