The Company has operating and finance leases for the Company’s retail store facilities, distribution center, corporate offices, IT systems hardware, and distribution center delivery tractors and equipment, and accounts for these leases in accordance with ASC 842.

Certain of the leases for the Company’s retail store facilities provide for variable payments for property taxes, insurance, common area maintenance payments related to triple net leases, rental payments based on future sales volumes at the leased location, as well as certain equipment sales taxes, licenses, fees and repairs, which are not measurable at the inception of the lease, or rental payments that are adjusted periodically for inflation. The Company recognizes variable lease expense for these leases in the period incurred which, for contingent rent, begins in the period in which it becomes probable that the specified target that triggers the variable lease payments will be achieved. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense were as follows:


	13 Weeks Ended
	March 30, 2025		March 31, 2024
	(In thousands)
Lease expense:
Operating lease expense	$	20,620	$	21,039
Variable lease expense		5,081		4,682
Operating lease expense		25,701		25,721

Amortization of right-of-use assets		1,245		1,142
Interest on lease liabilities		192		228
Finance lease expense		1,437		1,370
Total lease expense	$	27,138	$	27,091

Other information related to leases was as follows:


	13 Weeks Ended
	March 30, 2025			March 31, 2024
	(In thousands)
Operating cash flows from operating leases	$	21,218		$	22,213
Financing cash flows from finance leases		982			899
Operating cash flows from finance leases		222			261
Cash paid for amounts included in the measurement of lease liabilities	$	22,422		$	23,373

Right-of-use assets obtained in exchange for new finance lease liabilities	$	1,066		$	517
Right-of-use assets obtained in exchange for new operating lease liabilities	$	8,665		$	21,674
Weighted-average remaining lease term—finance leases	3.4 years			4.1 years
Weighted-average remaining lease term—operating leases	4.8 years			4.9 years
Weighted-average discount rate—finance leases		6.4	%		6.2	%
Weighted-average discount rate—operating leases		5.9	%		5.5	%

Maturities of finance and operating lease liabilities as of March 30, 2025 were as follows:


Fiscal Year Ending:	Finance Leases			Operating Leases
	(In thousands)
2025 (remaining nine months)	$	3,524		$	63,288
2026		4,381			74,713
2027		3,123			54,384
2028		2,071			40,121
2029		632			31,305
Thereafter		—			40,896
Undiscounted cash flows	$	13,731		$	304,707
Reconciliation of lease liabilities:
Weighted-average remaining lease term	3.4 years			4.8 years
Weighted-average discount rate		6.4	%		5.9	%
Present values	$	12,273		$	264,518
Lease liabilities - current		3,780			68,841
Lease liabilities - long-term		8,493			195,677
Lease liabilities - total	$	12,273		$	264,518
Difference between undiscounted and discounted cash flows	$	1,458		$	40,189