Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
 6 Months Ended
Jun. 29, 2024
Leases [Abstract]  
Leases Leases
The Company primarily leases certain office and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating 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:
(in millions) Balance Sheet Classification June 29, 2024 December 30, 2023
Assets:
Operating lease assets Right-of-use assets, net $ 48.5  $ 47.6 
Finance lease assets Right-of-use assets, net 4.0  3.3 
Total leased assets $ 52.5  $ 50.9 
Liabilities:
Current:
Operating Other accrued expenses $ 6.0  $ 5.4 
Financing Current maturities of long-term debt 1.3  1.0 
Noncurrent:
Operating Other long-term liabilities 47.4  46.9 
Financing Long-term debt 2.5  2.4 
Total lease liabilities $ 57.2  $ 55.7 
The components of lease expense were as follows:
Three Months Ended Six Months Ended
(in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
Operating lease cost $ 2.5  $ 2.1  $ 4.9  $ 4.3 
Variable lease cost 0.1  0.2  0.3  0.3 
Short-term lease cost 0.4  —  0.6  — 
Finance lease cost:
Amortization of right-of-use assets 0.4  0.2  0.6  0.3 
Interest on lease liabilities —  0.1  0.1  0.1 
Total lease cost $ 3.4  $ 2.6  $ 6.5  $ 5.0 
Other information related to leases was as follows:
June 29, 2024 December 30, 2023
Weighted Average Remaining Lease Term (in years)
Operating Leases 8.36 8.85
Finance Leases 3.20 3.39
Weighted Average Discount Rate
Operating Leases 7.6% 7.6%
Finance Leases 8.0% 8.4%
As of June 29, 2024, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
(in millions)
2024 $ 4.8 
2025 9.7 
2026 9.4 
2027 8.3 
2028 8.2 
Thereafter 32.9 
Total future lease payments $ 73.3 
Less: imputed interest $ (19.9)
Present value of future lease payments $ 53.4 
As of June 29, 2024, future minimum repayments of finance leases were as follows:
(in millions)
2024 $ 0.8 
2025 1.5 
2026 1.0 
2027 0.8 
2028 0.2 
Thereafter — 
Total future lease payments $ 4.3 
Less: imputed interest $ (0.5)
Present value of future lease payments $ 3.8 
Leases Leases
The Company primarily leases certain office and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating 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:
(in millions) Balance Sheet Classification June 29, 2024 December 30, 2023
Assets:
Operating lease assets Right-of-use assets, net $ 48.5  $ 47.6 
Finance lease assets Right-of-use assets, net 4.0  3.3 
Total leased assets $ 52.5  $ 50.9 
Liabilities:
Current:
Operating Other accrued expenses $ 6.0  $ 5.4 
Financing Current maturities of long-term debt 1.3  1.0 
Noncurrent:
Operating Other long-term liabilities 47.4  46.9 
Financing Long-term debt 2.5  2.4 
Total lease liabilities $ 57.2  $ 55.7 
The components of lease expense were as follows:
Three Months Ended Six Months Ended
(in millions) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023
Operating lease cost $ 2.5  $ 2.1  $ 4.9  $ 4.3 
Variable lease cost 0.1  0.2  0.3  0.3 
Short-term lease cost 0.4  —  0.6  — 
Finance lease cost:
Amortization of right-of-use assets 0.4  0.2  0.6  0.3 
Interest on lease liabilities —  0.1  0.1  0.1 
Total lease cost $ 3.4  $ 2.6  $ 6.5  $ 5.0 
Other information related to leases was as follows:
June 29, 2024 December 30, 2023
Weighted Average Remaining Lease Term (in years)
Operating Leases 8.36 8.85
Finance Leases 3.20 3.39
Weighted Average Discount Rate
Operating Leases 7.6% 7.6%
Finance Leases 8.0% 8.4%
As of June 29, 2024, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
(in millions)
2024 $ 4.8 
2025 9.7 
2026 9.4 
2027 8.3 
2028 8.2 
Thereafter 32.9 
Total future lease payments $ 73.3 
Less: imputed interest $ (19.9)
Present value of future lease payments $ 53.4 
As of June 29, 2024, future minimum repayments of finance leases were as follows:
(in millions)
2024 $ 0.8 
2025 1.5 
2026 1.0 
2027 0.8 
2028 0.2 
Thereafter — 
Total future lease payments $ 4.3 
Less: imputed interest $ (0.5)
Present value of future lease payments $ 3.8