Leases (Notes)

3 Months Ended

Mar. 30, 2024

Leases [Abstract]

Leases

Leases

We lease certain office and parking facilities, warehouse space, equipment, vehicles and information technology equipment under operating and finance leases. Lease expense for these leases is recognized within the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The following table summarizes the amounts recognized in our Condensed Consolidated Balance Sheet related to leases:

	Condensed Consolidated Balance Sheet Classification	March 30, 2024		December 31, 2023
Assets
Operating lease assets	Right-of-use assets - operating leases	$	111,408	$	110,248
Finance lease assets	Property and equipment, net	20,188		18,613
Total lease assets		$	131,596	$	128,861
Liabilities
Current operating lease liabilities	Other current liabilities	$	39,602	$	39,043
Non-current operating lease liabilities	Lease liabilities - operating leases	72,014		71,134
Total operating lease liabilities		111,616		110,177
Current portion of finance lease liabilities	Current portion of long-term debt and finance lease liabilities	5,503		4,794
Non-current finance lease liabilities	Lease liabilities - finance leases	14,682		13,544
Total finance lease liabilities		20,185		18,338
Total lease liabilities		$	131,801	$	128,515

The components of lease cost recognized within our Condensed Consolidated Statements of Operations were as follows:

		Three Months Ended
	Condensed Consolidated Statements of Operations Classification	March 30, 2024		April 1, 2023
Operating lease cost	Operating expense	$	5,934	$	7,746
Operating lease cost	Selling expense	2,648		3,113
Operating lease cost	General and administrative expense	261		290
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	1,419		855
Interest expense on lease liabilities	Interest expense	200		90
Other lease cost (1)	Operating expense	1,943		1,448
Other lease cost (1)	Selling expense	375		487
Other lease cost (1)	General and administrative expense	(42)		26
Total lease cost		$	12,738	$	14,055

(1) Other lease cost includes short-term lease costs and variable lease costs.

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination option at the lease commencement date to determine if we are reasonably certain to exercise the option on

the basis of economic factors. The weighted average remaining lease terms as of March 30, 2024 was 3.6 years for operating leases and 4.4 years for finance leases.

The discount rate implicit within our leases is generally not determinable, and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The weighted average discount rates used to measure our lease liabilities as of March 30, 2024 were 4.20% for operating leases and 4.47% for finance leases.

Supplemental Cash Flow Information Related to Leases	Three Months Ended
	March 30, 2024		April 1, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(11,919)	$	(10,968)
Operating cash flows from finance leases	(200)		(90)
Financing cash flows from finance leases	(1,148)		(759)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	13,266		15,410
Finance leases	2,995		2,125

Maturity Analysis of Lease Liabilities		As of March 30, 2024
		Operating Leases		Finance Leases
	Remaining nine months of 2024	$	33,266	$	4,789
	2025	36,683		5,632
	2026	24,365		4,761
	2027	13,719		2,863
	2028	6,256		2,033
	2029	2,492		1,242
	Thereafter	3,433		886
	Total lease payments	120,214		22,206
	Less interest	8,598		2,021
	Total	$	111,616	$	20,185

Leases

Leases

We lease certain office and parking facilities, warehouse space, equipment, vehicles and information technology equipment under operating and finance leases. Lease expense for these leases is recognized within the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The following table summarizes the amounts recognized in our Condensed Consolidated Balance Sheet related to leases:

	Condensed Consolidated Balance Sheet Classification	March 30, 2024		December 31, 2023
Assets
Operating lease assets	Right-of-use assets - operating leases	$	111,408	$	110,248
Finance lease assets	Property and equipment, net	20,188		18,613
Total lease assets		$	131,596	$	128,861
Liabilities
Current operating lease liabilities	Other current liabilities	$	39,602	$	39,043
Non-current operating lease liabilities	Lease liabilities - operating leases	72,014		71,134
Total operating lease liabilities		111,616		110,177
Current portion of finance lease liabilities	Current portion of long-term debt and finance lease liabilities	5,503		4,794
Non-current finance lease liabilities	Lease liabilities - finance leases	14,682		13,544
Total finance lease liabilities		20,185		18,338
Total lease liabilities		$	131,801	$	128,515

The components of lease cost recognized within our Condensed Consolidated Statements of Operations were as follows:

		Three Months Ended
	Condensed Consolidated Statements of Operations Classification	March 30, 2024		April 1, 2023
Operating lease cost	Operating expense	$	5,934	$	7,746
Operating lease cost	Selling expense	2,648		3,113
Operating lease cost	General and administrative expense	261		290
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	1,419		855
Interest expense on lease liabilities	Interest expense	200		90
Other lease cost (1)	Operating expense	1,943		1,448
Other lease cost (1)	Selling expense	375		487
Other lease cost (1)	General and administrative expense	(42)		26
Total lease cost		$	12,738	$	14,055

(1) Other lease cost includes short-term lease costs and variable lease costs.

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination option at the lease commencement date to determine if we are reasonably certain to exercise the option on

the basis of economic factors. The weighted average remaining lease terms as of March 30, 2024 was 3.6 years for operating leases and 4.4 years for finance leases.

The discount rate implicit within our leases is generally not determinable, and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The weighted average discount rates used to measure our lease liabilities as of March 30, 2024 were 4.20% for operating leases and 4.47% for finance leases.

Supplemental Cash Flow Information Related to Leases	Three Months Ended
	March 30, 2024		April 1, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(11,919)	$	(10,968)
Operating cash flows from finance leases	(200)		(90)
Financing cash flows from finance leases	(1,148)		(759)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	13,266		15,410
Finance leases	2,995		2,125

Maturity Analysis of Lease Liabilities		As of March 30, 2024
		Operating Leases		Finance Leases
	Remaining nine months of 2024	$	33,266	$	4,789
	2025	36,683		5,632
	2026	24,365		4,761
	2027	13,719		2,863
	2028	6,256		2,033
	2029	2,492		1,242
	Thereafter	3,433		886
	Total lease payments	120,214		22,206
	Less interest	8,598		2,021
	Total	$	111,616	$	20,185