Leases

3 Months Ended

Mar. 28, 2025

10. Leases

Most leases held by the Company expire between 2025 and 2036. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include one or more options to renew the lease terms from one to ten years and options to terminate the leases within one year. The exercise of lease renewal or termination options is at the Company’s sole discretion; therefore, the majority of renewal options to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable lives of the right-of-use assets and leasehold improvements are limited to the expected lease terms.

The following table summarizes the components of lease costs (in thousands):


	Three Months Ended
	March 28,		March 29,
	2025		2024
Operating lease cost	$	2,739	$	2,967
Finance lease cost
Amortization of right-of-use assets		151		151
Interest on lease liabilities		52		62
Variable lease cost		276		251
Total lease cost	$	3,218	$	3,431

The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate):


	March 28,			December 31,
	2025			2024
Operating leases
Operating lease right-of-use assets	$	41,321		$	42,908

Current portion of operating lease liabilities	$	9,958		$	9,879
Operating lease liabilities		38,694			40,548
Total operating lease liabilities	$	48,652		$	50,427

Finance leases
Property, plant and equipment, gross	$	9,582		$	9,582
Accumulated depreciation		(7,025	)		(6,874	)
Finance lease assets included in property, plant and equipment, net	$	2,557		$	2,708

Accrued expenses and other current liabilities	$	770		$	759
Other liabilities		2,978			3,175
Total finance lease liabilities	$	3,748		$	3,934

Weighted-average remaining lease term (in years):
Operating leases		7.3			7.4
Finance leases		4.3			4.5

Weighted-average discount rate:
Operating leases		4.81	%		4.82	%
Finance leases		5.54	%		5.54	%

The following table provides additional details of cash flow information related to the Company’s leases (in thousands):


	Three Months Ended
	March 28,		March 29,
	2025		2024
Cash paid for lease liabilities:
Operating cash outflows related to finance leases	$	52	$	62
Operating cash outflows related to operating leases	$	2,465	$	2,123
Financing cash outflows related to finance leases	$	186	$	176

Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities(1)	$	221	$	8,676

(1)The amount for the three months ended March 29, 2024 includes $8.1 million of right-of-use assets acquired as part of the Motion Solutions acquisition.

Future minimum lease payments under operating and finance leases expiring subsequent to March 28, 2025, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):


Year Ending December 31,	Operating Leases			Finance Leases
2025 (remainder of year)	$	8,761		$	715
2026		10,554			979
2027		8,994			1,003
2028		6,146			1,003
2029		5,349			502
Thereafter		19,376			—
Total minimum lease payments		59,180			4,202
Less: Interest		(10,528	)		(454	)
Present value of lease liabilities	$	48,652		$	3,748