Leases

3 Months Ended

Mar. 31, 2023


Note 5 – Leases

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. For purposes of calculating operating lease ROU assets and operating lease liabilities, we use the non-cancelable lease term plus options to extend that we are reasonably certain to take. Lease expense for operating lease payments is recognized on a straight-line basis over the lease term. Our leases generally do not provide an implicit rate. As such, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

We lease facilities under various non-cancelable operating leases expiring through 2031. In addition to base rental payments, we are generally responsible for our proportionate share of operating expenses, including facility maintenance, insurance, and property taxes. As these amounts are variable, they are not included in lease liabilities.

The components of lease expense are as follows:


	Three Months Ended
	March 31, 2023		April 1, 2022
Operating lease cost	$	2,411	$	2,045

Supplemental cash flow information related to leases is as follows:


	Three Months Ended
	March 31, 2023		April 1, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2,237	$	1,823

Supplemental balance sheet information related to leases is as follows:


	March 31, 2023	December 30, 2022
Weighted-average remaining lease term of operating leases	5.2 years	5.3 years
Weighted-average discount rate of operating leases	3.2%	3.0%

Future minimum lease payments under non-cancelable leases are as follows as of March 31, 2023:


2023, remaining	$	7,117
2024	9,074
2025	8,418
2026	7,968
2027	6,968
Thereafter	5,367
Total future minimum lease payments	44,912
Less imputed interest	(3,467)
Total lease liabilities	$	41,445