Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.24.3
Leases
 9 Months Ended
Sep. 28, 2024
Leases [Abstract]  
Leases Leases
The Company primarily leases certain office and manufacturing facilities, as well as vehicles, copiers, and other equipment. These leases generally have an original lease term between 1 year and 20 years, and some include options to extend (generally 5 to 10 years). Lease agreements generally do not include material variable lease payments, residual value guarantees, or restrictive covenants.
The components of right-of-use (“ROU”) assets and lease liabilities were as follows:
(dollar amounts in millions) Balance Sheet Classification September 28, 2024 December 30, 2023
Assets:
Operating lease assets Right-of-use assets, net $ 47.3  $ 47.6 
Finance lease assets Right-of-use assets, net 3.8  3.3 
Total leased assets $ 51.1  $ 50.9 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.2  $ 5.4 
Financing Current maturities of long-term debt 1.3  1.0 
Noncurrent:
Operating Other long-term liabilities 46.3  46.9 
Financing Long-term debt 2.4  2.4 
Total lease liabilities $ 56.2  $ 55.7 
The components of lease expense were as follows:
Three Months Ended Nine Months Ended
(dollar amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023
Operating lease cost $ 2.6  $ 2.2  $ 7.5  $ 6.5 
Variable lease cost 0.3  0.2  0.6  0.5 
Short-term lease cost —  —  0.6  — 
Finance lease cost:
Amortization of right-of-use assets 0.4  0.2  1.0  0.5 
Interest on lease liabilities 0.1  0.1  0.2  0.1 
Total lease cost $ 3.4  $ 2.7  $ 9.9  $ 7.6 
Other information related to leases was as follows:
September 28, 2024 December 30, 2023
Weighted Average Remaining Lease Term (in years)
Operating Leases 8.2 8.9
Finance Leases 3.0 3.4
Weighted Average Discount Rate
Operating Leases 7.6% 7.6%
Finance Leases 7.9% 8.4%
As of September 28, 2024, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
(dollar amounts in millions)
2024 $ 2.5 
2025 9.8 
2026 9.5 
2027 8.4 
2028 8.2 
Thereafter 33.1 
Total future lease payments $ 71.5 
Less: imputed interest $ (19.0)
Present value of future lease payments $ 52.5 
As of September 28, 2024, future minimum repayments of finance leases were as follows:
(dollar amounts in millions)
2024 $ 0.4 
2025 1.6 
2026 1.0 
2027 0.8 
2028 0.4 
Thereafter — 
Total future lease payments $ 4.2 
Less: imputed interest $ (0.5)
Present value of future lease payments $ 3.7 
Leases Leases
The Company primarily leases certain office and manufacturing facilities, as well as vehicles, copiers, and other equipment. These leases generally have an original lease term between 1 year and 20 years, and some include options to extend (generally 5 to 10 years). Lease agreements generally do not include material variable lease payments, residual value guarantees, or restrictive covenants.
The components of right-of-use (“ROU”) assets and lease liabilities were as follows:
(dollar amounts in millions) Balance Sheet Classification September 28, 2024 December 30, 2023
Assets:
Operating lease assets Right-of-use assets, net $ 47.3  $ 47.6 
Finance lease assets Right-of-use assets, net 3.8  3.3 
Total leased assets $ 51.1  $ 50.9 
Liabilities:
Current:
Operating Accrued expenses and other current liabilities $ 6.2  $ 5.4 
Financing Current maturities of long-term debt 1.3  1.0 
Noncurrent:
Operating Other long-term liabilities 46.3  46.9 
Financing Long-term debt 2.4  2.4 
Total lease liabilities $ 56.2  $ 55.7 
The components of lease expense were as follows:
Three Months Ended Nine Months Ended
(dollar amounts in millions) September 28, 2024 September 30, 2023 September 28, 2024 September 30, 2023
Operating lease cost $ 2.6  $ 2.2  $ 7.5  $ 6.5 
Variable lease cost 0.3  0.2  0.6  0.5 
Short-term lease cost —  —  0.6  — 
Finance lease cost:
Amortization of right-of-use assets 0.4  0.2  1.0  0.5 
Interest on lease liabilities 0.1  0.1  0.2  0.1 
Total lease cost $ 3.4  $ 2.7  $ 9.9  $ 7.6 
Other information related to leases was as follows:
September 28, 2024 December 30, 2023
Weighted Average Remaining Lease Term (in years)
Operating Leases 8.2 8.9
Finance Leases 3.0 3.4
Weighted Average Discount Rate
Operating Leases 7.6% 7.6%
Finance Leases 7.9% 8.4%
As of September 28, 2024, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
(dollar amounts in millions)
2024 $ 2.5 
2025 9.8 
2026 9.5 
2027 8.4 
2028 8.2 
Thereafter 33.1 
Total future lease payments $ 71.5 
Less: imputed interest $ (19.0)
Present value of future lease payments $ 52.5 
As of September 28, 2024, future minimum repayments of finance leases were as follows:
(dollar amounts in millions)
2024 $ 0.4 
2025 1.6 
2026 1.0 
2027 0.8 
2028 0.4 
Thereafter — 
Total future lease payments $ 4.2 
Less: imputed interest $ (0.5)
Present value of future lease payments $ 3.7