Leases

12 Months Ended

Dec. 25, 2021

H. Leases

The Company has various lease agreements in place for facilities and equipment. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2034. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at le commencement to determine the present value of the lease payments. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. Total right-of-use ("ROU") assets and lease liabilities were as follows:


	Classification	Leases
		December 25, 2021		December 26, 2020
		(in thousands)
Right-of-use assets
Operating lease assets	Operating right-of-use assets	$	52,774	$	58,483
Finance lease assets	Property, plant and equipment, net		3,014		4,035
Lease Liabilities
Current
Operating lease liabilities	Current operating lease liabilities		7,634		8,232
Finance lease liabilities	Accrued expenses and other current liabilities		1,598		1,453
Non-current
Operating lease liabilities	Non-current operating lease liabilities		53,849		59,171
Finance lease liabilities	Other liabilities		1,459		2,631

The gross value and accumulated depreciation of ROU assets related to finance leases were as follows:


	Finance Leases
	December 25, 2021			December 26, 2020
	(in thousands)
Gross value	$	5,998		$	5,526
Accumulated amortization		(2,984	)		(1,491	)
Carrying value	$	3,014		$	4,035

Components of lease cost for the fiscal year-ended are as follows:



	Fifty-two weeks ended
	December 25, 2021		December 26, 2020		December 28, 2019
	(in thousands)
Operating lease cost	$	10,283	$	9,764	$	5,625
Variable lease costs not included in liability		1,132		1,643		1,064
Finance lease cost:
Amortization of right-of-use asset		1,493	$	1,185	$	306
Interest on lease liabilities		121		143		56
Total finance lease cost	$	1,614	$	1,328	$	362

Maturities of lease liabilities as of December 25, 2021 are as follows:


	Operating			Finance			Weighted- Average Remaining Term in Years
	Leases			Leases			Operating Leases		Finance Leases
				(in thousands)
2022	$	9,633		$	1,669
2023		10,411			959
2024		10,407			362
2025		7,102			104
2026		6,671			56
Thereafter		26,907			8
Total lease payments		71,131			3,158
Less imputed interest (based on 3.4% weighted-average discount rate)		(9,648	)		(101	)
Present value of lease liability	$	61,483		$	3,057			8.0	2.3