XML 36 R16.htm IDEA: XBRL DOCUMENT

LEASES

12 Months Ended

Dec. 28, 2024

F.LEASES

We determine if an arrangement is a lease at inception. We lease certain real estate under non-cancelable operating lease agreements with typical original terms ranging from one to ten years. We are required to pay real estate taxes and other occupancy costs under certain leases, which are variable in nature and not included in the right of use asset or lease liability. Certain leases carry renewal options of five to fifteen years. We believe that future leases will likely have similar terms. We also lease motor vehicles, equipment, and an aircraft under operating lease agreements for periods of one to ten years. We do not typically enter into leases with residual value guarantees. There were no restrictions or covenants imposed by any lease agreements.

We believe finance leases have no significant impact to our consolidated balance sheet and statement of earnings as of December 28, 2024.

As of December 28, 2024, we have no leases that have not yet commenced that would significantly impact our financial position.

There were no lease transactions between related parties as of December 28, 2024.

The rates implicit in our leases are primarily not readily available. To determine the discount rate used to present value the lease payments, we utilize the 7-year treasury note rate plus a blend of rate spreads associated with our 10 to 15 year senior notes along with estimated spreads based on current market conditions. We feel the determined rate is a reasonable representation of our lease population.

Lease costs under non-cancelable operating leases on December 28, 2024 and December 30, 2023 are as follows (in thousands):



		2024		2023
Operating lease cost	$	39,914	$	33,829
Short-term lease cost		8,461		9,525
Variable lease cost		6,373		6,332
Sublease income		(2,468)		(2,267)
Total lease cost	$	52,280	$	47,419

Rent expense was approximately $54.7 million, $49.7 million, and $48.2 million in 2024, 2023, and 2022, respectively.

The amounts paid for operating leases, included in the measurement of lease liabilities, were $35.2 million in the year ended December 28, 2024 and $32.4 million in the year ended December 30, 2023. In addition, right-of-use assets obtained in exchange for new operating lease liabilities were approximately $45.6 million and $35.4 million, respectively, for the years ended December 28, 2024 and December 30, 2023.

Future minimum payments under non-cancelable operating leases on December 28, 2024 are as follows (in thousands):


	Operating
	Leases
2025	$	33,151
2026		30,665
2027		21,085
2028		16,049
2029		10,527
Thereafter		33,769
Total minimum lease payments	$	145,246
Less present value discount		(22,281)
Total lease liability	$	122,965

As of December 28, 2024 and December 30, 2023, the weighted average lease term for operating leases was 6.91 years and 7.21 years, respectively. Similarly, the weighted average discount rate for operating leases was 4.86% and 4.53%, respectively.