The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers. These operating leases are two to ten years in length with options to extend. The Company does not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease. Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator. For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands):


	April 3, 2026			January 2, 2026
Machinery and equipment	$	813		$	773
Computer equipment and software		373			413
Real property		39,095			39,824
Operating lease right-of-use assets, gross		40,281			41,010
Less accumulated depreciation		(11,709	)		(11,401	)
Operating lease right-of-use assets, net	$	28,572		$	29,609

Current operating lease obligations	$	6,102		$	5,872
Long-term operating lease obligations		31,189			32,481
Total operating lease liability	$	37,291		$	38,353
Weighted-average remaining lease term (in years)		6.5			6.7
Weighted-average discount rate		6.41	%		6.33	%

As discussed in Note 1, during the three months ended March 28, 2025, the Company recognized impairment on real property right-of-use assets of $3,407,000. The impairment relates to the Company’s decision to exit several of its leased properties, for which the Company has obtained a subtenant for one of its properties and is actively pursuing subleasing the remaining properties. The impairment was determined based on market comparables of similar subleased properties. The impairment is recorded in Restructuring, impairment and related charges on the Condensed Consolidated Statements of Operations.

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Three Months Ended
	April 3, 2026		March 28, 2025
Operating lease cost	$	2,124	$	2,149
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows		1,982		1,652
Right-of-use assets obtained in exchange for new operating lease liabilities		449		304

Estimated future maturities of lease liabilities under operating leases having initial or remaining non-cancelable lease terms more than one year as of April 3, 2026 is as follows (in thousands):


As of April 3, 2026 12 Months Ended	Operating Leases
March 2027	$	8,380
March 2028		7,388
March 2029		7,114
March 2030		7,021
March 2031		5,922
Thereafter		11,261
Total future minimum lease payments		47,086
Less amounts representing interest		(9,795	)
Total lease liability	$	37,291