Leases

3 Months Ended

Mar. 26, 2022

Leases [Abstract]

Leases

5. Leases

During the three months ended March 26, 2022, we entered into a warehouse and distribution services agreement with a third-party. In connection with the services agreement, we have agreed to reimburse the service provider for substantially all of its facility costs applicable to the warehouse in which services are provided. This agreement resulted in a deemed new lease for the company for accounting purposes. The lease commenced on March 1, 2022 and runs through February 28, 2034. The lease includes fixed rental payments as well as variable payments for operating expenses that will be billed based on actual costs.

Upon the lease commencement date, we recorded an operating lease right of use asset of $35.1 million, a short-term operating lease liability (included in other accrued liabilities in the consolidated balance sheet) of $2.0 million, and a long-term operating lease liability of $33.1 million.

The following table summarizes the maturities of the lease liability for our new deemed lease as of March 26, 2022:

(in thousands)	March 26, 2022
Remainder of 2022	$	2,321
2023		3,160
2024		3,239
2025		3,320
2026		3,403
2027 and thereafter		27,001
Total fixed lease payments	$	42,444