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Leases

3 Months Ended

Mar. 30, 2024

LEASES

Leases as Lessee

Balance sheet information related to right-of-use assets and liabilities is as follows:


	Balance Sheet Location	March 30, 2024		December 30, 2023
Operating Leases:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	28,187	$	28,962

Current portion of operating lease liabilities	Current portion of operating lease liabilities	$	3,713	$	3,654
Noncurrent portion of operating lease liabilities	Operating lease liabilities	25,081		25,907
Total operating lease liabilities		$	28,794	$	29,561

Finance Leases:
Finance lease right-of-use assets	Property, plant, and equipment, net	$	135	$	138

Current portion of finance lease liabilities	Current portion of long-term debt	$	26	$	29
Noncurrent portion of finance lease liabilities	Long-term debt	96		102
Total financing lease liabilities		$	122	$	131

Lease cost recognized in the consolidated condensed financial statements is summarized as follows:


	Three Months Ended
	March 30, 2024		April 1, 2023
Operating lease cost	$	1,494	$	1,047

Finance lease cost:
Amortization of lease assets	$	4	$	43
Interest on lease liabilities	8		4
Total finance lease costs	$	12	$	47

Other supplemental information related to leases is summarized as follows:


	March 30, 2024			April 1, 2023
Weighted average remaining lease term (in years):
Operating leases	6.99			6.41
Finance leases	4.35			0.55

Weighted average discount rate:
Operating leases	6.80		%	6.40		%
Finance leases	6.67		%	6.19		%

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,485		$	1,028
Operating cash flows from finance leases	2			4
Financing cash flows from finance leases	9			81

The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of March 30, 2024:


Fiscal Year	Operating Leases		Finance Leases
2024	$	4,253	$	26
2025	5,418		31
2026	5,133		31
2027	5,303		34
2028	5,330		19
Thereafter	11,348		—
Total future minimum lease payments (undiscounted)	36,785		141
Less: Present value discount	7,991		19
Total lease liability	$	28,794	$	122

Leases as Lessor

The Company leases or subleases to third parties certain excess space in its facilities, which are included as fixed assets. The leases are accounted for as operating leases and the lease or sublease income is included in other operating (income) expense, net. The Company recognizes lease income on a straight-line basis as collectability is probable, including any escalation or lease incentives, as applicable, and the Company continues to recognize the underlying asset. The Company has elected the practical expedient to combine all non-lease components as a combined component. The nature of the Company’s sublease agreements do not provide for variable lease payments, options to purchase, or extensions.

Lease income and sublease income related to fixed lease payments recognized in the consolidated condensed financial statements is summarized as follows:


	Three Months Ended
	March 30, 2024		April 1, 2023
Operating lease income	$	375	$	—

The following table summarizes the Company's undiscounted lease payments to be received under operating leases including amounts to be paid by the Company to the head lessor for the next five years and thereafter as of March 30, 2024:


Fiscal Year	Gross Lease Payments		Payments to Head Lessor		Net Lease Payments
2024	$	935	$	188	$	747
2025	1,253		253		1,000
2026	1,278		256		1,022
2027	1,303		259		1,044
2028	766		163		603
Thereafter	—		—		—
Total	$	5,535	$	1,119	$	4,416

Leases