Lessee ROU Assets and Lease Liabilities |
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| Lessee ROU Assets and Lease Liabilities | 11. Lessee ROU Assets and Lease Liabilities The Company leases certain facilities in North and South America, Europe, the Middle East and Asia-Pacific regions under operating lease agreements expiring at various dates through January 2032. In addition, the Company leases equipment in the U.S. and Europe pursuant to leases that are classified as operating leases and expire at various dates through January 2029. The majority of these leases are non-cancellable and generally do not contain any material restrictive covenants, material residual value guarantees, or other material guarantees. The Company recognizes lease costs under these agreements using a straight-line method based on total lease payments. Certain facility leases contain predetermined price escalations and in some cases renewal options, the longest of which is for five years. The Company generally estimates the applicable discount rate used to determine the net present value of lease payments based on available information at the lease commencement date. As of June 28, 2025, the weighted-average discount rate used by the Company for all operating leases was approximately 4.0%. The balance sheet classifications for amounts related to the Company’s operating leases for which it is the lessee are as follows:
As of June 28, 2025 and December 28, 2024, accumulated amortization for lessee ROU assets was $34.5 million and $32.4 million, respectively. The weighted-average remaining lease term for the Company’s operating leases was 4.3 years as of June 28, 2025. As of June 28, 2025, estimated future operating lease payments for each of the following fiscal years were as follows:
______________ (1) Includes optional renewal period for certain leases. During the three months ended June 28, 2025 and June 29, 2024, operating lease costs were approximately $2.4 million and $2.5 million, respectively. During the six months ended June 28, 2025 and June 29, 2024, operating lease costs were approximately $4.0 million and $5.1 million, respectively.
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