Leases

3 Months Ended

Mar. 28, 2026

LEASES

Leases as Lessee

Balance sheet information related to right-of-use assets and liabilities is as follows:


	Balance Sheet Location	March 28, 2026		December 27, 2025
Operating Leases:
Operating lease right-of-use assets	Operating lease right-of-use assets	$	22,541	$	23,649

Current portion of operating lease liabilities	Current portion of operating lease liabilities	$	4,781	$	4,553
Noncurrent portion of operating lease liabilities	Operating lease liabilities	18,963		20,200
Total operating lease liabilities		$	23,744	$	24,753

Finance Leases:
Finance lease right-of-use assets	Property, plant, and equipment, net	$	436	$	381

Current portion of finance lease liabilities	Current portion of long-term debt	$	165	$	150
Noncurrent portion of finance lease liabilities	Long-term debt	177		154
Total financing lease liabilities		$	342	$	304

Lease cost recognized in the consolidated condensed financial statements is summarized as follows:


	Three Months Ended
	March 28, 2026		March 29, 2025
Operating lease cost	$	1,554	$	1,432
Variable lease cost	315		350
Total lease costs	$	1,869	$	1,782

Finance lease cost:
Amortization of lease assets	$	24	$	24
Interest on lease liabilities	6		6
Total finance lease costs	$	30	$	30

Other supplemental information related to leases is summarized as follows:


	March 28, 2026			March 29, 2025
Weighted average remaining lease term (in years):
Operating leases	5.12			6.16
Finance leases	2.38			2.71

Weighted average discount rate:
Operating leases	7.29		%	6.84		%
Finance leases	6.87		%	5.59		%

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,454		$	1,318
Operating cash flows from finance leases	6			6
Financing cash flows from finance leases	41			37

The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of March 28, 2026:


Fiscal Year	Operating Leases		Finance Leases
Remaining for 2026	$	4,758	$	134
2027	6,381		162
2028	5,822		39
2029	4,987		21
2030	1,991		21
Thereafter	4,756		2
Total future minimum lease payments (undiscounted)	28,695		379
Less: Present value discount	4,951		37
Total lease liability	$	23,744	$	342

Leases as Lessor

The Company leases or subleases to third parties certain excess space in its facilities, which are included as fixed assets. The leases are accounted for as operating leases and the lease or sublease income is included in other operating income, net. The Company recognizes lease income on a straight-line basis as collectability is probable, including any escalation or lease incentives, as applicable, and the Company continues to recognize the underlying asset which is included in property, plant and equipment, net on the Company's consolidated condensed balance sheets. The leases do not have any residual value guarantees. The Company has elected the practical expedient to combine all non-lease components as a combined component. The nature of the Company’s sublease agreements do not provide for variable lease payments or options to purchase.

Lease income and sublease income related to fixed lease payments is recognized in other operating income, net in the consolidated condensed statement of operations because they are not ordinary activities of the Company and is summarized as follows:


	Three Months Ended
	March 28, 2026		March 29, 2025
Operating lease income	$	566	$	463

The following table summarizes the Company's undiscounted lease payments to be received under operating leases including amounts to be paid by the Company to the head lessor for the next five years and thereafter as of March 28, 2026:


Fiscal Year	Gross Lease Payments		Payments to Head Lessor		Net Lease Payments
2026	$	1,635	$	323	$	1,312
2027	2,221		438		1,783
2028	2,265		447		1,818
2029	2,311		456		1,855
2030	2,357		465		1,892
Thereafter	9,475		1,808		7,667
Total	$	20,264	$	3,937	$	16,327

Leases