Note 7 - Leases

6 Months Ended

Jun. 28, 2025

Note 7 - Leases

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center. All of our facilities are leased under operating leases, which expire at various times through 2035, with a weighted-average remaining lease term of 5.4 years and a weighted-average discount rate of 5.6% as of June 28, 2025.

We recorded fixed operating lease expenses of $2.3 million and $2.2 million for the second quarter of fiscal 2025 and 2024, respectively, and $4.4 million and $4.3 million for the first six months of fiscal 2025 and 2024, respectively.

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first six months of fiscal 2025:

Operating lease right-of-use assets	(In thousands)
Balance as of December 28, 2024	$	13,870
Right-of-use assets obtained for new lease contracts during the period		10,040
Amortization of right-of-use assets during the period		(3,840	)
Adjustments for present value and foreign currency effects		256
Balance as of June 28, 2025	$	20,326

Operating lease liabilities	(In thousands)
Balance as of December 28, 2024	$	15,251
Lease liabilities accrued for new lease contracts during the period		10,040
Accretion of lease liabilities		573
Operating cash used for payments on lease liabilities		(4,187	)
Adjustments for present value and foreign currency effects		221
Balance as of June 28, 2025		21,898
Less: Current portion of operating lease liabilities (included in Accrued liabilities)		(5,923	)
Long-term operating lease liabilities, net of current portion	$	15,975

Maturities of operating lease liabilities as of June 28, 2025 are as follows:

Fiscal year	(In thousands)
2025 (Remaining 2 quarters)	$	3,252
2026		6,494
2027		4,718
2028		3,685
2029		1,527
Thereafter		5,801
Total lease payments		25,477
Less: amount representing interest		(3,579	)
Total lease liabilities	$	21,898

Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $2.1 million at June 28, 2025 and is recorded in Accrued liabilities and in Other long-term liabilities on our Consolidated Balance Sheets.