Note 7 - Leases

6 Months Ended

Jun. 29, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 7 - Leases

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center. All of our facilities are leased under operating leases, which expire at various times through 2029, with a weighted-average remaining lease term of 3.2 years and a weighted-average discount rate of 6.0% as of June 29, 2024.

We recorded fixed operating lease expenses of $2.2 million and $1.9 million for the second quarter of fiscal 2024 and 2023, respectively, and $4.3 million and $3.8 million for the first six months of fiscal 2024 and 2023, respectively.

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first six months of fiscal 2024:

Operating lease right-of-use assets	(In thousands)
Balance as of December 30, 2023	$	14,487
Right-of-use assets obtained for new lease contracts during the period		7,162
Amortization of right-of-use assets during the period		(3,812	)
Impairment of right-of use asset during the period (recorded in Restructuring charges)		(384	)
Adjustments for present value and foreign currency effects		(127	)
Balance as of June 29, 2024	$	17,326

Operating lease liabilities	(In thousands)
Balance as of December 30, 2023	$	16,310
Lease liabilities incurred for new lease contracts during the period		7,162
Accretion of lease liabilities		526
Operating cash used for payments on lease liabilities		(4,564	)
Adjustments for present value and foreign currency effects		(210	)
Balance as of June 29, 2024		19,224
Less: Current portion of operating lease liabilities (included in Accrued liabilities)		(7,249	)
Long-term operating lease liabilities, net of current portion	$	11,975

Maturities of operating lease liabilities as of June 29, 2024 are as follows:

Fiscal year	(In thousands)
2024 (Remaining 2 quarters)	$	4,270
2025		6,744
2026		4,580
2027		2,804
2028		2,226
Thereafter		446
Total lease payments		21,070
Less: amount representing interest		(1,846	)
Total lease liabilities	$	19,224

Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $3.8 million at June 29, 2024 and is recorded in Accrued liabilities and in Other long-term liabilities on our Consolidated Balance Sheets.