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Note 11 - Leases

12 Months Ended

Dec. 31, 2022

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 35 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 31,			December 25,
(in thousands)	Classification	2022			2021
Assets:
Operating lease assets	Operating lease right-of-use assets	$	22,804		$	25,060
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		323			423
Total lease assets		$	23,127		$	25,483
Liabilities:
Current:
Operating	Other accrued liabilities	$	4,927		$	4,886
Finance	Other accrued liabilities		49			167
Noncurrent:
Operating	Long-term lease liabilities		19,185			21,977
Finance	Long-term lease liabilities		24			63
Total lease liabilities		$	24,185		$	27,093

Weighted-average remaining lease term (years):
Operating leases			6.2			6.9
Finance leases			1.7			1.8

Weighted-average discount rate:
Operating leases			6.2	%		6.3	%
Finance leases			2.2	%		0.7	%

(1)

Finance lease assets are recorded net of accumulated amortization of $0.2 million and $0.1 million in 2022 and 2021, respectively.

The components of lease expense were as follows:

	December 31,			December 25,
(in thousands)	2022			2021
Operating leases	$	6,698		$	7,638
Variable lease expense		2,220			2,192
Short-term operating leases		4			69
Finance leases:
Amortization of leased assets		88			86
Interest on lease liabilities		1			2
Sublease income		(69	)		(81	)
Net lease cost	$	8,942		$	9,906

Future minimum lease payments at December 31, 2022, are as follows:

	Operating			Finance
(in thousands)	leases			leases			Total
2023	$	6,197		$	50		$	6,247
2024		5,848			11			5,859
2025		5,234			11			5,245
2026		2,849			3			2,852
2027		1,780			-			1,780
Thereafter		7,904			-			7,904
Total lease payments		29,812			75			29,887
Less: Interest		(5,700	)		(2	)		(5,702	)
Present value of lease liabilities	$	24,112		$	73		$	24,185

Supplemental cash flow information related to leases was as follows:

	December 31,		December 25,
(in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,716	$	7,628
Operating cash flows from finance leases	$	1	$	1
Financing cash flows from finance leases	$	167	$	186
Leased assets obtained in exchange for new finance lease liabilities	$	-	$	54
Leased assets obtained in exchange for new operating lease liabilities	$	2,874	$	3,866