Lease Commitments

12 Months Ended

Dec. 30, 2023

Leases [Abstract]

Lessee, Operating Leases

LEASE COMMITMENTS

Accounting Policy

At the commencement date of a lease, the company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term, including variable fees that are known or subject to a minimum floor. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company's lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When a contract excludes an implicit rate, the company utilizes an incremental borrowing rate based on information available at the lease commencement date including lease term and geographic region. The initial valuation of the right-of-use (“ROU”) asset includes the initial measurement of the lease liability, lease payments made in advance of the lease commencement date and initial direct costs incurred by the company and excludes lease incentives. Operating lease ROU assets are included in other assets and operating lease liabilities are included in accrued expenses and other non-current liabilities.

Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the Consolidated Balance Sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term.

Leases

The company leases warehouse space, office facilities and equipment under operating leases. The company has operating lease costs of $39.6 million, $35.7 million and $31.5 million in fiscal 2023, 2022 and 2021 respectively, including short-term lease expense and variable lease costs, which were immaterial in the year.

Leases (in thousands)	December 30, 2023		December 31, 2022
Operating lease right-of-use assets:
Other assets	$	109,373	$	102,314
Operating lease liabilities:
Accrued expenses	26,417		25,250
Other non-current liabilities	87,550		80,242
Total Liability	$	113,967	$	105,492

Total Lease Commitments (in thousands)	Operating Leases
2024	$	29,818
2025	25,794
2026	22,028
2027	16,381
2028	12,432
2029 and thereafter	19,028
Total future lease commitments	125,481
Less imputed interest	11,514
Total	$	113,967

Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended December 30, 2023			Twelve Months Ended December 31, 2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	30,117		$	28,104
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	28,524			20,725
	December 30, 2023			December 31, 2022
Weighted-average remaining lease terms - Operating	5.2 years			5.5 years
Weighted-average discount rate - Operating	3.6		%	2.9		%