Leases

12 Months Ended

Dec. 29, 2023

Leases [Abstract]

Leases

Note 9 — Leases

Finance Leases

The Company entered into finance leases primarily related to purchases of equipment used for manufacturing, furniture and computer-related equipment. These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term. Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands):

	2023			2022
Machinery and equipment	$	—		$	30
Computer equipment and software		6			18
Furniture and fixtures		475			475
Finance lease ROU assets, gross		481			523
Less accumulated depreciation		(298	)		(181	)
Finance lease ROU assets, net	$	183		$	342
Current finance lease obligations	$	165		$	169
Long-term finance lease obligations		42			210
Total finance lease liability	$	207		$	379
Weighted-average remaining lease term (in years)		1.3			2.2
Weighted-average discount rate		4.24	%		4.10	%

Supplemental cash flow information related to finance leases consisted of the following (in thousands):

	Years Ended
	2023		2022		2021
Amortization of finance lease ROU asset	$	151	$	160	$	83
Interest on finance lease liabilities		12		17		6
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows		12		17		6
Financing cash flows		161		126		348
ROU assets obtained in exchange for new finance lease liabilities		—		—		475

Operating Leases

The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers. These operating leases are two to ten years in length with options to extend. The Company does not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease. Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator. For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term.

Note 9 — Leases (Continued)

Operating Leases (Continued)

Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands):

	2023			2022
Machinery and equipment	$	735		$	789
Computer equipment and software		446			446
Real property		40,869			34,465
Operating lease ROU assets, gross		42,050			35,700
Less accumulated depreciation		(7,663	)		(5,430	)
Operating lease ROU assets, net	$	34,387		$	30,270
Current operating lease obligations	$	4,202		$	3,524
Long-term operation lease obligations		31,425			27,136
Total operating lease liability	$	35,627		$	30,660
Weighted-average remaining lease term (in years)		7.3			7.5
Weighted-average discount rate		5.48	%		3.87	%

Supplemental cash flow information related to operating leases was as follows (in thousands):

	Years Ended
	2023		2022		2021
Operating lease cost	$	5,239	$	4,473	$	3,345
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows		4,875		4,171		3,259
ROU assets obtained in exchange for new operating lease liabilities		8,498		2,860		29,269

Future Maturities of Lease Liabilities

Estimated future maturities of lease liabilities under operating and finance leases having initial or remaining non-cancelable lease terms more than one year are as follows (in thousands):

Year Ended	Operating Leases			Finance Leases
2024	$	6,247		$	171
2025		5,583			42
2026		5,246			—
2027		5,506			—
2028		5,581			—
Thereafter		17,705			—
Total minimum lease payments, including interest	$	45,868		$	213
Less amounts representing interest		(10,241	)		(6	)
Total lease liability	$	35,627		$	207