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Leases | 3 Months Ended
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Mar. 29, 2025
Leases [Abstract] |
Leases | Leases The Company leases its retail, office and manufacturing space under operating leases which, in addition to the minimum lease payments, may require payment of a proportionate share of the real estate taxes and certain building operating expenses. While the Company’s local market development approach generally results in long-term participation in given markets, the retail store leases generally provide for an initial lease term of five to ten years. The Company’s office and manufacturing leases provide for an initial lease term of up to fifteen years. In addition, the Company’s mall-based retail store leases may require payment of variable rent based on net sales in excess of certain thresholds. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at the Company’s sole discretion. Lease options are included in the lease term only if exercise is reasonably certain at lease commencement. The Company’s lease agreements do not contain any material residual value guarantees. The Company also leases vehicles and certain equipment under operating leases with an initial lease term of three to six years. The Company’s operating lease costs include facility, vehicle and equipment lease costs, but exclude variable lease costs. Operating lease costs are recognized on a straight-line basis over the lease term, after consideration of rent escalations and rent holidays. The lease term for purposes of the calculation begins on the earlier of the lease commencement date or the date the Company takes possession of the property. During lease renewal negotiations that extend beyond the original lease term, the Company estimates straight-line rent expense based on current market conditions. Variable lease costs are recorded when it is probable the cost has been incurred and the amount can be reasonably estimated. Future payments for real estate taxes and certain building operating expenses for which the Company is obligated are not included in operating lease costs. At March 29, 2025, the Company’s finance right-of-use assets and lease liabilities were not significant. Lease costs were as follows (in thousands):
| Three Months Ended |
| March 29, 2025 |  | March 30, 2024 |
Operating lease costs(1) | $26,537 |  | $26,826 |
Variable lease costs(2) | $103 |  | $(49) |
___________________________ (1)Includes short-term lease costs which are not significant. (2)Variable lease costs include adjustments to percentage rent. The maturities of operating lease liabilities for subsequent years are as follows(1) (in thousands):
2025 (excluding the three months ended March 29, 2025) | $79,025
2026 | 96,149
2027 | 79,655
2028 | 66,229
2029 | 45,658
2030 | 31,636
Thereafter | 47,078
Total operating lease payments(2) | 445,430
Less: Interest | 68,521
Present value of operating lease liabilities | $376,909
___________________________ (1)T otal operating lease payments exclude $13 million of legally binding minimum lease payments for leases signed but not yet commenced. (2)Includes the current portion of $83 million for operating lease liabilities. Other information related to operating leases was as follows:
|  | March 29, 2025 |  | December 28, 2024
Weighted-average remaining lease term (in years) |  | 5.3 |  | 5.4
Weighted-average discount rate |  | 6.6% |  | 6.6%
|  | Three Months Ended
(in thousands) |  | March 29, 2025 |  | March 30, 2024
Cash paid for amounts included in present value of operating lease liabilities |  | $26,589 |  | $27,222
Right-of-use assets obtained in exchange for operating lease liabilities |  | $7,711 |  | $12,990

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- 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 + Details
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