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Leases

3 Months Ended

Mar. 29, 2025

Leases [Abstract]

Finance Leases

Lessee

The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2033. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants.

The components of operating and finance lease costs for the thirteen weeks ended March 29, 2025 and thirteen weeks ended March 30, 2024 were as follows:

						Thirteen Weeks Ended March 29, 2025						Thirteen Weeks Ended March 30, 2024
Operating lease costs						$	5,648					$	5,214
Short term lease costs						713						1,231
Variable lease costs						602						517
Finance lease costs:
Amortization of right of use assets						1,271						939
Interest on lease liabilities						223						128

Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $6,963 in the thirteen weeks ended March 29, 2025 and $6,962 in the thirteen weeks ended March 30, 2024. Rent expense includes operating lease costs as well as expenses for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles, and short-term rental expenses.

The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 29, 2025 and December 28, 2024:

						March 29, 2025												December 28, 2024
						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted average remaining lease term						5.23						4.04						5.41						3.06
Weighted average discount rate						6.68		%				5.84		%				6.70		%				5.91		%

Supplemental balance sheet information related to the Company's finance leases was as follows as of March 29, 2025 and December 28, 2024:

						March 29, 2025						December 28, 2024
Finance lease assets, net, included in property plant and equipment						$	15,364					$	9,415
Current portion of long-term debt						4,723						3,720
Long-term debt, less current portion						10,995						6,028
Total principal payable on finance leases						$	15,718					$	9,748

Supplemental cash flow information related to the Company's operating and finance leases was as follows for the thirteen weeks ended March 29, 2025 and thirteen weeks ended March 30, 2024:

						Thirteen Weeks Ended March 29, 2025						Thirteen Weeks Ended March 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases						$	5,468					$	5,270
Operating cash outflow from finance leases						207						124
Financing cash outflow from finance leases						1,270						875

As of March 29, 2025, our future minimum rental commitments are immaterial for lease agreements beginning after the current reporting period. Maturities of our lease liabilities for all operating and finance leases are as follows as of March 29, 2025:

						Operating Leases						Finance Leases
Remaining 2025						$	16,425					$	4,212
2026						21,371						4,634
2027						18,717						3,416
2028						16,151						2,473
2029						11,364						1,846
Thereafter						15,341						1,036
Total future minimum rental commitments						99,369						17,617
Less - amounts representing interest						(15,182)						(1,899)
Present value of lease liabilities						$	84,187					$	15,718

Lessor

The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.

Operating Leases

Lessee

The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both 1) the right to obtain substantially all of the economic benefits from the use of the asset and 2) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2033. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees, nor material restrictive covenants.

The components of operating and finance lease costs for the thirteen weeks ended March 29, 2025 and thirteen weeks ended March 30, 2024 were as follows:

						Thirteen Weeks Ended March 29, 2025						Thirteen Weeks Ended March 30, 2024
Operating lease costs						$	5,648					$	5,214
Short term lease costs						713						1,231
Variable lease costs						602						517
Finance lease costs:
Amortization of right of use assets						1,271						939
Interest on lease liabilities						223						128

Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $6,963 in the thirteen weeks ended March 29, 2025 and $6,962 in the thirteen weeks ended March 30, 2024. Rent expense includes operating lease costs as well as expenses for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles, and short-term rental expenses.

The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments.

The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 29, 2025 and December 28, 2024:

						March 29, 2025												December 28, 2024
						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted average remaining lease term						5.23						4.04						5.41						3.06
Weighted average discount rate						6.68		%				5.84		%				6.70		%				5.91		%

Supplemental balance sheet information related to the Company's finance leases was as follows as of March 29, 2025 and December 28, 2024:

						March 29, 2025						December 28, 2024
Finance lease assets, net, included in property plant and equipment						$	15,364					$	9,415
Current portion of long-term debt						4,723						3,720
Long-term debt, less current portion						10,995						6,028
Total principal payable on finance leases						$	15,718					$	9,748

Supplemental cash flow information related to the Company's operating and finance leases was as follows for the thirteen weeks ended March 29, 2025 and thirteen weeks ended March 30, 2024:

						Thirteen Weeks Ended March 29, 2025						Thirteen Weeks Ended March 30, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases						$	5,468					$	5,270
Operating cash outflow from finance leases						207						124
Financing cash outflow from finance leases						1,270						875

As of March 29, 2025, our future minimum rental commitments are immaterial for lease agreements beginning after the current reporting period. Maturities of our lease liabilities for all operating and finance leases are as follows as of March 29, 2025:

						Operating Leases						Finance Leases
Remaining 2025						$	16,425					$	4,212
2026						21,371						4,634
2027						18,717						3,416
2028						16,151						2,473
2029						11,364						1,846
Thereafter						15,341						1,036
Total future minimum rental commitments						99,369						17,617
Less - amounts representing interest						(15,182)						(1,899)
Present value of lease liabilities						$	84,187					$	15,718

Lessor

The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.

X

- References

No definition available.

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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

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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

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