Leases

12 Months Ended

Dec. 26, 2020

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 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. As of December 26, 2020, total ROU assets and lease liabilities were as follows:



	Classification	December 26, 2020		December 28, 2019
Right-of-use assets		(in thousands)
Operating lease assets	Operating right-of-use assets	$	58,483	$	53,758
Finance lease assets	Property, plant and equipment, net		4,035		2,531
Lease Liabilities
Current
Operating lease liabilities	Current operating lease liabilities		8,232		5,168
Finance lease liabilities	Accrued expenses and other current liabilities		1,453		546
Non-current
Operating lease liabilities	Non-current operating lease liabilities		59,171		53,940
Finance lease liabilities	Other liabilities		2,631		2,042

The gross value and accumulated depreciation of ROU assets related to finance leases as of December 26, 2020 were as follows:

	Finance Leases
	December 26, 2020			December 28, 2019
	(in thousands)
Gross value	$	5,526		$	2,837
Accumulated amortization		(1,491	)		(306	)
Carrying value	$	4,035		$	2,531

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

	Lease Cost
	December 26, 2020		December 28, 2019
	(in thousands)
Operating lease cost	$	9,764	$	5,625
Variable lease costs not included in liability		1,643		1,064
Finance lease cost:
Amortization of right-of-use asset	$	1,185	$	306
Interest on lease liabilities		143		56
Total finance lease cost	$	1,328	$	362

Maturities of lease liabilities as of December 26, 2020 are as follows:

	Operating			Finance			Weighted-Average Remaining Term in Years
	Leases			Leases			Operating Leases		Finance Leases
	(in thousands)
2021	$	10,454		$	1,572
2022		9,908			1,572
2023		9,737			863
2024		9,714			265
2025		6,389			8
Thereafter		32,891			15
Total lease payments		79,093			4,295
Less imputed interest (based on 3.5% weighted- average discount rate)		(11,690	)		(211	)
Present value of lease liability	$	67,403		$	4,084			8.8		2.9