Right-of-use (“ROU”) assets and lease liabilities balances were as follows (in thousands):


	April 4, 2026		January 3, 2026
Assets:
Operating lease right-of-use assets	$	1,501,223	$	1,500,786
Finance lease right-of-use assets		3,139		3,394
Total lease right-of-use assets	$	1,504,362	$	1,504,180
Liabilities—current:
Operating lease liabilities	$	149,753	$	146,594
Finance lease liabilities		1,030		1,022
Total current lease liabilities		150,783		147,616
Liabilities—long-term:
Operating lease liabilities		1,451,863		1,447,524
Finance lease liabilities		2,481		2,741
Total long-term lease liabilities		1,454,344		1,450,265
Total lease liabilities	$	1,605,127	$	1,597,881

Finance lease ROU assets are included in other assets and finance lease liabilities are included in other current liabilities and other long-term liabilities on the unaudited condensed consolidated balance sheets. Refer to Note 8, Fair Value Measurements, for information regarding impairment of ROU assets.

The components of lease expense were as follows (in thousands):


	Three Months Ended
	April 4, 2026		March 29, 2025
Lease expense:
Operating lease expense	$	78,182	$	73,090
Finance lease expense:
Amortization of right-of-use assets		255		350
Interest on lease liabilities		78		94
Short-term lease expense		2,482		2,775
Variable lease expense		21,823		17,970
Total lease expense	$	102,820	$	94,279

The weighted average remaining lease term and the weighted average discount rate were as follows:


	April 4, 2026			January 3, 2026
Weighted average remaining lease term (in years) (Operating)		9			9
Weighted average remaining lease term (in years) (Finance)		4			5
Weighted average discount rate (Operating)		9.1	%		9.2	%
Weighted average discount rate (Finance)		8.5	%		8.6	%

The following table summarizes the maturity of lease liabilities as of April 4, 2026 (in thousands):


	Finance Leases		Operating Leases		Total Leases
Remainder of 2026	$	967	$	209,989	$	210,956
2027		1,220		302,378		303,598
2028		694		283,235		283,929
2029		418		263,387		263,805
2030		388		244,506		244,894
Thereafter		410		1,057,374		1,057,784
Total lease payments		4,097		2,360,869		2,364,966
Less imputed interest		586		759,253		759,839
Present value of lease liabilities		3,511		1,601,616		1,605,127
Less current portion of lease liabilities		1,030		149,753		150,783
Long-term lease liabilities	$	2,481	$	1,451,863	$	1,454,344

As of April 4, 2026, the Company had entered into additional operating leases that have not yet commenced with total fixed payment obligations of $198.2 million. The leases are expected to commence between 2026 and 2027 and have initial lease terms of approximately 15 years.

The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. The rates are estimated using key inputs such as credit ratings, base rates, and spreads, which considered the rates on the Company's first lien term loan.