Leases

12 Months Ended

Dec. 30, 2023

Leases

9. Leases

9. LEASES

The Company enters into leases for manufacturing facilities, warehouses, sales offices, plant equipment, vehicles, and certain other equipment with varying end dates from April 2024 to April 2033, including renewal options.

The following table (in millions) represents the impact of leasing on the consolidated balance sheets:

	Balance Sheet Classification	December 30, 2023		December 31, 2022
Assets:
Operating lease assets, net	Right of use assets	$	17.2	$	12.2
Finance lease right of use assets, net	Property, plant and equipment, net		0.9		-
Total leased assets, net			18.1		12.2
Liabilities:
Current operating lease liabilities	Current portion of operating lease liability		4.4		3.1
Current finance lease liabilities	Current portion of financing lease liability		0.2		-
Noncurrent operating lease liabilities	Operating lease liability, less current portion		12.8		9.2
Noncurrent finance lease liabilities	Financing lease liability, less current portion		0.7		-
Total lease liabilities		$	18.1	$	12.3

Cash paid included in the measurement of operating lease liabilities was $4.3 million and $3.6 million for the fiscal years ended December 30, 2023 and December 31, 2022, respectively, all of which were included within the operating cash flow section of the consolidated statements of cash flows. Lease assets obtained in exchange for new operating lease liabilities were $8.5 million and $4.0 million for the fiscal years ended December 30, 2023 and December 31, 2022, respectively.

Cash paid included in the measurement of finance lease liabilities was $0.1 million for the fiscal year ended December 30, 2023  which was included within the financing cash flow section of the consolidated statements of cash flows for the fiscal years ended December 30, 2023.

Total operating lease expense was $4.0 million and $3.3 million for the fiscal years ended December 30, 2023 and December 31, 2022, respectively.

Total financing lease expense was $0.1 million for the fiscal year ended December 30, 2023.

The future payments (in millions) due under non-cancelable operating and finance leases as of December 30, 2023 are as follows:

	Operating			Finance
2024	$	4.4		$	0.2
2025		3.1			0.2
2026		2.5			0.2
2027 and thereafter		10.2			0.6
		20.2			1.1
Less effects of discounting		(3.0	)		(0.2	)
Lease liabilities recognized	$	17.2		$	0.9

As of December 30, 2023, the weighted average lease term for all operating and finance leases is 7.0  and 6.1 years, respectively. The weighted average discount rate associated with operating leases was 6.2% while the weighted average discount rate associated with finance leases was 6.4%.