XML 35 R16.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Lease Commitments | 12 Months Ended
--- | ---
Dec. 28, 2024
Leases [Abstract] |
Lease Commitments | Lease Commitments Under ASC 842, a contract contains a lease if there is an identified asset and the Company has the right to control the asset. The Company determines whether a contract contains a lease at contract inception. The Company leases office and production space under various non-cancellable operating leases that expire no later than 2036. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The Company also has production equipment, office equipment and vehicles under operating leases and finance leases that were acquired through the C&K acquisition. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants. The Company has elected to use the available practical expedient to account for the lease and non-lease components of its leases as a single component. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate ("IBR"), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations. All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Consolidated Balance Sheets. Short-term lease expenses are recognized on a straight-line basis over the lease term. The following table presents the classification of right of use assets and lease liabilities as of December 28, 2024 and December 30, 2023:
|  |  | Fiscal Year Ended
(in thousands) | Consolidated Balance Sheet Classification |  | December 28, 2024 |  | December 30, 2023
Operating Leases |  |  |  |  |
Right of use assets - operating lease | Right of use lease assets |  | $ | 71,513 |  |  | $ | 60,991 |
Current operating lease liabilities | Accrued liabilities |  | 13,626 |  |  | 11,676 |
Non-current operating lease liabilities | Non-current lease liabilities |  | 60,558 |  |  | 49,180 |
Total operating lease liabilities |  |  | $ | 74,184 |  |  | $ | 60,856 |
Finance Leases |  |  |  |  |
Right of use assets - finance lease | Right of use lease assets |  | $ | 698 |  |  | $ | 1,379 |
Current finance lease liabilities | Accrued liabilities |  | 274 |  |  | 434 |
Non-current finance lease liabilities | Non-current lease liabilities |  | 1 |  |  | 292 |
Total finance lease liabilities |  |  | $ | 275 |  |  | $ | 726 |
The following table represents the lease costs for 2024, 2023, and 2022:
|  |  | Fiscal Year Ended
(in thousands) | Consolidated Statements of Net Income Classification |  | December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Operating lease expenses | Cost of sales, Selling, general, and administrative expenses |  | $ | 17,310 |  |  | $ | 15,817 |  |  | $ | 14,071 |
Finance lease: |  |  |  |  |  |  |
Finance lease expenses | Cost of sales |  | 96 |  |  | 219 |  |  | 112 |
Interest on lease liabilities | Other (income) expense, net |  | 8 |  |  | 19 |  |  | 13 |
Short-term lease expenses | Cost of sales, Selling, general, and administrative expenses |  | 1,170 |  |  | 1,229 |  |  | 1,130 |
Variable lease expenses | Cost of sales, Selling, general, and administrative expenses |  | 1,151 |  |  | 1,034 |  |  | 1,091 |
Total lease costs | Cost of sales, Selling, general, and administrative expenses |  | $ | 19,735 |  |  | $ | 18,318 |  |  | $ | 16,417 |
The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $19.7 million, $18.3 million, and $16.4 million in 2024, 2023, and 2022, respectively.
Maturity of lease liabilities as of December 28, 2024 (in thousands) | Operating Leases |  | Finance Leases
2025 | $ | 17,270 |  |  | $ | 277 |
2026 | 11,053 |  |  | 1 |
2027 | 10,523 |  |  | — |
2028 | 9,909 |  |  | — |
2029 | 8,378 |  |  | — |
2030 and thereafter | 36,337 |  |  | — |
Total lease payments | $ | 93,470 |  |  | $ | 278 |
Less: Imputed interest | (19,286) |  |  | (3) |
Present value of lease liabilities | $ | 74,184 |  |  | $ | 275 |
| Fiscal Year Ended
| December 28, 2024 |  | December 30, 2023
Weighted-average remaining lease term (years) |  |  |
Operating leases | 8.67 |  | 8.38
Finance leases | 1.00 |  | 1.69
Weighted-average discount rate |  |  |
Operating leases | 5.39 | % |  | 5.39 | %
Finance leases | 2.00 | % |  | 1.90 | %
| Fiscal Year Ended
(in thousands) | December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |
Operating cash flow - payments on operating leases | $ | (13,258) |  |  | $ | (14,518) |  |  | $ | (12,298) |
Operating cash flow - interest payments on finance leases | (8) |  |  | (19) |  |  | (13) |
Financing cash flow - payments on finance lease obligations | (280) |  |  | (1,164) |  |  | (719) |
Leased assets obtained in exchange of new lease obligations, including leases acquired: |  |  |  |  |
Operating leases | $ | 26,785 |  |  | $ | 16,689 |  |  | $ | 37,760 |
Finance leases | — |  |  | — |  |  | 2,502 |
The net gain recorded from a sale leaseback transaction was $0.3 million for the fiscal year ended December 28, 2024. There were no sale leaseback transactions for the fiscal years ended December 30, 2023 and December 31, 2022.
Lease Commitments | Lease Commitments Under ASC 842, a contract contains a lease if there is an identified asset and the Company has the right to control the asset. The Company determines whether a contract contains a lease at contract inception. The Company leases office and production space under various non-cancellable operating leases that expire no later than 2036. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The Company also has production equipment, office equipment and vehicles under operating leases and finance leases that were acquired through the C&K acquisition. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants. The Company has elected to use the available practical expedient to account for the lease and non-lease components of its leases as a single component. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate ("IBR"), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations. All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Consolidated Balance Sheets. Short-term lease expenses are recognized on a straight-line basis over the lease term. The following table presents the classification of right of use assets and lease liabilities as of December 28, 2024 and December 30, 2023:
|  |  | Fiscal Year Ended
(in thousands) | Consolidated Balance Sheet Classification |  | December 28, 2024 |  | December 30, 2023
Operating Leases |  |  |  |  |
Right of use assets - operating lease | Right of use lease assets |  | $ | 71,513 |  |  | $ | 60,991 |
Current operating lease liabilities | Accrued liabilities |  | 13,626 |  |  | 11,676 |
Non-current operating lease liabilities | Non-current lease liabilities |  | 60,558 |  |  | 49,180 |
Total operating lease liabilities |  |  | $ | 74,184 |  |  | $ | 60,856 |
Finance Leases |  |  |  |  |
Right of use assets - finance lease | Right of use lease assets |  | $ | 698 |  |  | $ | 1,379 |
Current finance lease liabilities | Accrued liabilities |  | 274 |  |  | 434 |
Non-current finance lease liabilities | Non-current lease liabilities |  | 1 |  |  | 292 |
Total finance lease liabilities |  |  | $ | 275 |  |  | $ | 726 |
The following table represents the lease costs for 2024, 2023, and 2022:
|  |  | Fiscal Year Ended
(in thousands) | Consolidated Statements of Net Income Classification |  | December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Operating lease expenses | Cost of sales, Selling, general, and administrative expenses |  | $ | 17,310 |  |  | $ | 15,817 |  |  | $ | 14,071 |
Finance lease: |  |  |  |  |  |  |
Finance lease expenses | Cost of sales |  | 96 |  |  | 219 |  |  | 112 |
Interest on lease liabilities | Other (income) expense, net |  | 8 |  |  | 19 |  |  | 13 |
Short-term lease expenses | Cost of sales, Selling, general, and administrative expenses |  | 1,170 |  |  | 1,229 |  |  | 1,130 |
Variable lease expenses | Cost of sales, Selling, general, and administrative expenses |  | 1,151 |  |  | 1,034 |  |  | 1,091 |
Total lease costs | Cost of sales, Selling, general, and administrative expenses |  | $ | 19,735 |  |  | $ | 18,318 |  |  | $ | 16,417 |
The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $19.7 million, $18.3 million, and $16.4 million in 2024, 2023, and 2022, respectively.
Maturity of lease liabilities as of December 28, 2024 (in thousands) | Operating Leases |  | Finance Leases
2025 | $ | 17,270 |  |  | $ | 277 |
2026 | 11,053 |  |  | 1 |
2027 | 10,523 |  |  | — |
2028 | 9,909 |  |  | — |
2029 | 8,378 |  |  | — |
2030 and thereafter | 36,337 |  |  | — |
Total lease payments | $ | 93,470 |  |  | $ | 278 |
Less: Imputed interest | (19,286) |  |  | (3) |
Present value of lease liabilities | $ | 74,184 |  |  | $ | 275 |
| Fiscal Year Ended
| December 28, 2024 |  | December 30, 2023
Weighted-average remaining lease term (years) |  |  |
Operating leases | 8.67 |  | 8.38
Finance leases | 1.00 |  | 1.69
Weighted-average discount rate |  |  |
Operating leases | 5.39 | % |  | 5.39 | %
Finance leases | 2.00 | % |  | 1.90 | %
| Fiscal Year Ended
(in thousands) | December 28, 2024 |  | December 30, 2023 |  | December 31, 2022
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |  |
Operating cash flow - payments on operating leases | $ | (13,258) |  |  | $ | (14,518) |  |  | $ | (12,298) |
Operating cash flow - interest payments on finance leases | (8) |  |  | (19) |  |  | (13) |
Financing cash flow - payments on finance lease obligations | (280) |  |  | (1,164) |  |  | (719) |
Leased assets obtained in exchange of new lease obligations, including leases acquired: |  |  |  |  |
Operating leases | $ | 26,785 |  |  | $ | 16,689 |  |  | $ | 37,760 |
Finance leases | — |  |  | — |  |  | 2,502 |
The net gain recorded from a sale leaseback transaction was $0.3 million for the fiscal year ended December 28, 2024. There were no sale leaseback transactions for the fiscal years ended December 30, 2023 and December 31, 2022.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration