Leases

6 Months Ended

Jun. 30, 2022

Leases [Abstract]

Leases

Leases

The Company determines if an arrangement is a lease at inception. The Company evaluates each lease for classification as either a finance lease or an operating lease according to accounting guidance ASU No. 2016-02, Leases (Topic 842). The Company performs this evaluation at the inception of the lease and when a modification is made to a lease. The Company leases real estate and equipment with lease terms of one year to 45 years, some of which include options to extend and/or terminate the lease.

The majority of the Company’s lease agreements include fixed rental payments. For those leases with variable payments based on increases in an index subsequent to lease commencement, such payments are recognized as variable lease expense as they occur. Variable lease payments that do not depend on an index or rate, including those that depend on the Company’s performance or use of the underlying asset, are also expensed as incurred. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term.

Total lease cost consists of the following:

		13 Weeks Ended				26 Weeks Ended
Lease Cost	Classification	June 30, 2022		July 1, 2021		June 30, 2022		July 1, 2021
Finance lease costs:
Amortization of finance lease assets	Depreciation and amortization	$	696	$	668	$	1,401	$	1,380
Interest on lease liabilities	Interest expense	216		240		437		490
		$	912	$	908	$	1,838	$	1,870
Operating lease costs:
Operating lease costs	Rent expense	$	6,364	$	6,465	$	12,741	$	12,786
Variable lease cost	Rent expense	178		(158)		15		(173)
Short-term lease cost	Rent expense	36		37		72		72
		$	6,578	$	6,344	$	12,828	$	12,685

Additional information related to leases is as follows:

	13 Weeks Ended				26 Weeks Ended
Other Information	June 30, 2022		July 1, 2021		June 30, 2022		July 1, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Financing cash flows from finance leases	$	752	$	699	$	1,336	$	1,329
Operating cash flows from finance leases	216		240		437		490
Operating cash flows from operating leases	7,012		7,899		14,136		$	15,292
Right of use assets obtained in exchange for new lease obligations:
Finance lease liabilities	116		—		188		—
Operating lease liabilities	—		—		183		1,575

	June 30, 2022		December 30, 2021
Finance leases:
Property and equipment – gross	$	75,262	$	75,124
Accumulated depreciation and amortization	(59,552)		(58,197)
Property and equipment - net	$	15,710	$	16,927

Remaining lease terms and discount rates are as follows:

Lease Term and Discount Rate	June 30, 2022		December 30, 2021
Weighted-average remaining lease terms:
Finance leases	8 years		8 years
Operating leases	13 years		13 years
Weighted-average discount rates:
Finance leases	4.58	%	4.58	%
Operating leases	4.60	%	4.48	%

Deferred rent payments of approximately $1,442 for the Company’s operating leases have been included in the total operating lease obligations as of June 30, 2022, of which approximately $698 is included in long-term operating lease obligations.