Leases

9 Months Ended

Sep. 26, 2025


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 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 the commencement date in determining the present value of lease payments.

We lease facilities under non-cancelable operating leases that expire at various dates from 2025 through 2037. 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.

During the three and nine months ended September 26, 2025, we recorded $0.4 million and $1.7 million, respectively, in non-cash impairment charges from the abandonment of ROU lease assets in connection with our exit from our Scotland operations and our Consolidation Restructuring Plan (see Note 12). The impairment charges are included in Selling, general, and administrative expenses within the accompanying consolidated statement of operations.

The components of lease expense are as follows:


	Three Months Ended				Nine Months Ended
	September 26, 2025		September 27, 2024		September 26, 2025		September 27, 2024
Operating lease cost	$	2,796	$	2,603	$	8,426	$	7,587

Supplemental cash flow information related to leases is as follows:


	Nine Months Ended
	September 26, 2025		September 27, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,665	$	7,404

Supplemental balance sheet information related to leases is as follows:


	September 26, 2025	December 27, 2024
Weighted-average remaining lease term of operating leases	5.7 years	6.1 years
Weighted-average discount rate of operating leases	4.9%	4.7%

Future minimum lease payments under non-cancelable leases are as follows as of September 26, 2025:


2025, remaining	$	2,706
2026	11,641
2027	10,731
2028	5,907
2029	3,228
Thereafter	12,294
Total future minimum lease payments	46,507
Less imputed interest	(6,836)
Total lease liabilities	39,671
Less current portion	(11,337)
Total lease liabilities, less current portion	$	28,334