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Note 12 - Leases

12 Months Ended

Dec. 30, 2023

12.

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 34 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 30,			December 31,
(in thousands)	Classification	2023			2022
Assets:
Operating lease assets	Operating lease right-of-use assets	$	16,778		$	22,804
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		247			323
Total lease assets		$	17,025		$	23,127
Liabilities:
Current:
Operating	Other accrued liabilities	$	5,122		$	4,927
Finance	Other accrued liabilities		11			49
Noncurrent:
Operating	Long-term lease liabilities		13,160			19,185
Finance	Long-term lease liabilities		15			24
Total lease liabilities		$	18,308		$	24,185

Weighted-average remaining lease term (years):
Operating leases			5.5			6.2
Finance leases			2.1			1.7

Weighted-average discount rate:
Operating leases			6.4	%		6.2	%
Finance leases			4.0	%		2.2	%
(1) Finance lease assets are recorded net of accumulated amortization of $0.3 million and $0.2 million in 2023 and 2022, respectively.

The components of lease expense were as follows:

	December 30,			December 31,			December 25,
(in thousands)	2023			2022			2021
Operating leases	$	6,691		$	6,698		$	7,638
Variable lease expense		2,389			2,220			2,192
Short-term operating leases		16			4			69
Finance leases:
Amortization of leased assets		90			88			86
Interest on lease liabilities		1			1			2
Sublease income		(29	)		(69	)		(81	)
Net lease cost	$	9,158		$	8,942		$	9,906

Future minimum lease payments at December 30, 2023, are as follows:

	Operating			Finance
(in thousands)	leases			leases			Total
2024	$	6,090		$	12		$	6,102
2025		5,271			12			5,283
2026		2,520			3			2,523
2027		1,503			-			1,503
2028		1,269			-			1,269
Thereafter		5,547			-			5,547
Total lease payments		22,200			27			22,227
Less: Interest		(3,918	)		(1	)		(3,919	)
Present value of lease liabilities	$	18,282		$	26		$	18,308

Supplemental cash flow information related to leases was as follows:

	December 30,		December 31,		December 25,
(in thousands)	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,756	$	6,716	$	7,628
Operating cash flows from finance leases	$	1	$	1	$	1
Financing cash flows from finance leases	$	52	$	167	$	186
Leased assets obtained in exchange for new finance lease liabilities	$	-	$	-	$	54
Leased assets obtained in exchange for new operating lease liabilities	$	1,415	$	2,874	$	3,866
Financing lease assets acquired in MCT acquisition	$	19	$	-	$	-
Operating lease assets acquired in MCT acquisition	$	130	$	-	$	-