Leases

6 Months Ended

Jul. 02, 2022

3.Leases

At July 2, 2022 and January 1, 2022, the Company’s lease assets and lease liabilities, primarily for its studios and corporate offices, were as follows:

	July 2, 2022		January 1, 2022
Assets:
Operating lease assets	$	83,777	$	89,902
Finance lease assets		102		127
Total leased assets	$	83,879	$	90,029

Liabilities:
Current
Operating	$	18,431	$	20,297
Finance		53		75
Noncurrent
Operating	$	73,210	$	78,157
Finance		15		29
Total lease liabilities	$	91,709	$	98,558

For the three and six months ended July 2, 2022 and July 3, 2021, the components of the Company’s lease expense were as follows:

	Three Months Ended				Six Months Ended
	July 2,		July 3,		July 2,		July 3,
	2022		2021		2022		2021
Operating lease cost:
Fixed lease cost	$	7,791	$	9,782	$	15,903	$	20,826
Lease termination cost		2,220		3,208		2,100		6,360
Variable lease cost		6		5		13		9
Total operating lease cost	$	10,017	$	12,995	$	18,016	$	27,195
Finance lease cost:
Amortization of leased assets		26		37		61		80
Interest on lease liabilities		1		2		2		5
Total finance lease cost	$	27	$	39	$	63	$	85
Total lease cost	$	10,044	$	13,034	$	18,079	$	27,280

At July 2, 2022 and January 1, 2022, the Company’s weighted average remaining lease term and weighted average discount rates were as follows:

	July 2, 2022		January 1, 2022
Weighted Average Remaining Lease Term (years)
Operating leases		7.15		7.29
Finance leases		1.19		1.54

Weighted Average Discount Rate
Operating leases		7.10		7.15
Finance leases		3.34		5.31

The Company’s leases have remaining lease terms of 0 to 10 years with a weighted average lease term of 7.14 years as of July 2, 2022.

At July 2, 2022, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows:

	Operating Leases		Finance Leases		Total
Remainder of fiscal 2022	$	11,847	$	32	$	11,879
Fiscal 2023		23,072		33		23,105
Fiscal 2024		16,988		4		16,992
Fiscal 2025		12,151		—		12,151
Fiscal 2026		9,571		—		9,571
Fiscal 2027		9,376		—		9,376
Thereafter		36,182		—		36,182
Total lease payments	$	119,187	$	69	$	119,256
Less imputed interest		27,546		1		27,547
Present value of lease liabilities	$	91,641	$	68	$	91,709

Supplemental cash flow information related to leases for the six months ended July 2, 2022 and July 3, 2021 were as follows:

	Six Months Ended
	July 2,		July 3,
	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	16,733	$	22,078
Operating cash flows from finance leases	$	2	$	5
Financing cash flows from finance leases	$	61	$	80

Leased assets obtained (modified) in exchange for new (modified) operating lease liabilities	$	6,909	$	(1,012	)
Leased assets obtained in exchange for new finance lease liabilities	$	44	$	81