Most leases held by the Company expire between 2026 and 2037. In the U.K., where longer lease terms are more common, the Company has a land lease that extends through 2078. Certain leases include one or more options to renew the lease terms from one to ten years and options to terminate the leases within one year. The exercise of lease renewal or termination options is at the Company’s sole discretion; therefore, the majority of renewal options to extend the lease terms are not included in the Company’s right-of-use assets and operating lease liabilities as they are not reasonably certain of being exercised. The Company regularly evaluates the renewal options and includes the renewal periods in the lease term when they are reasonably certain of being exercised. The depreciable lives of the right-of-use assets and leasehold improvements are limited to the expected lease terms.

The following table summarizes the components of lease costs (in thousands):


	Three Months Ended				Six Months Ended
	July 3,		June 27,		July 3,		June 27,
	2026		2025		2026		2025
Operating lease cost	$	2,723	$	2,881	$	5,638	$	5,620
Finance lease cost
Amortization of right-of-use assets		151		150		301		301
Interest on lease liabilities		40		50		82		102
Variable lease cost		368		394		624		670
Total lease cost	$	3,282	$	3,475	$	6,645	$	6,693

The following table provides additional details of balance sheet information related to the Company’s leases (in thousands, except lease term and discount rate):


	July 3,			December 31,
	2026			2025
Operating leases
Operating lease right-of-use assets	$	46,531		$	41,697

Current portion of operating lease liabilities	$	9,876		$	9,857
Operating lease liabilities		43,286			38,873
Total operating lease liabilities	$	53,162		$	48,730

Finance leases
Property, plant and equipment, gross	$	9,582		$	9,582
Accumulated depreciation		(7,777	)		(7,476	)
Finance lease assets included in property, plant and equipment, net	$	1,805		$	2,106

Accrued expenses and other current liabilities	$	876		$	828
Other liabilities		1,903			2,348
Total finance lease liabilities	$	2,779		$	3,176

Weighted-average remaining lease term (in years):
Operating leases		7.3			7.3
Finance leases		3.0			3.5

Weighted-average discount rate:
Operating leases		4.84	%		4.92	%
Finance leases		5.54	%		5.54	%

The following table provides additional details of cash flow information related to the Company’s leases (in thousands):


	Six Months Ended
	July 3,		June 27,
	2026		2025
Cash paid for lease liabilities:
Operating cash outflows related to finance leases	$	82	$	102
Operating cash outflows related to operating leases	$	5,959	$	5,019
Financing cash outflows related to finance leases	$	397	$	375

Supplemental non-cash information:
Right-of-use assets obtained in exchange for new operating lease liabilities(1)	$	9,688	$	3,602

(1)The amount for the six months ended June 27, 2025 includes $3.1 million of right-of-use assets acquired as part of the Keonn acquisition.

Future minimum lease payments under operating and finance leases expiring subsequent to July 3, 2026, including operating leases associated with facilities that have been vacated as a result of the Company’s restructuring actions, are summarized as follows (in thousands):


Year Ending December 31,	Operating Leases			Finance Leases
2026 (remainder of year)	$	5,858		$	502
2027		11,645			1,003
2028		9,214			1,003
2029		8,110			502
2030		7,674			—
Thereafter		22,189			—
Total minimum lease payments		64,690			3,010
Less: Interest		(11,528	)		(231	)
Present value of lease liabilities	$	53,162		$	2,779