v3.26.1
LEASES
 6 Months Ended
Jun. 27, 2026
Leases [Abstract]  
LEASES
9. LEASES
For leases with initial terms greater than 12 months, the Company considers these right-of-use assets and records the related asset and obligation at the present value of lease payments over the term. For leases with initial terms equal to or less than 12 months, the Company does not consider them as right-of-use assets and instead considers them short-term lease costs that are recognized on a straight-line basis over the lease term. The Company’s leases may include escalation clauses, renewal options, and/or termination options that are factored into the Company’s determination of lease term and lease payments when it is reasonably certain the option will be exercised. The Company elected to take the practical expedient and not separate lease and non-lease components of contracts. The Company estimates an incremental borrowing rate to discount the lease payments based on information available at lease commencement because the implicit rate of the lease is generally not known.
The Company leases manufacturing facilities, office space, land, and certain vehicles and equipment under operating leases. The Company also leases certain vehicles and equipment under finance leases. The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
The components of lease expense for the fiscal quarter and two fiscal quarters ended June 27, 2026 and June 28, 2025 were as follows (in thousands):
Fiscal Quarter EndedTwo Fiscal Quarters Ended
June 27, 2026June 28, 2025June 27, 2026June 28, 2025
Operating lease expense$2,450 $2,164 $4,737 $4,326 
Finance lease amortization of assets219 211 435 421 
Finance lease interest on lease liabilities58 67 116 135 
Short-term lease expense67 96 139 193 
Variable lease expense228 168 462 367 
Total lease expense$3,022 $2,706 $5,889 $5,442 
Operating and finance lease right-of-use assets and lease-related liabilities as of June 27, 2026 and December 31, 2025 were as follows (in thousands):
June 27, 2026December 31, 2025Classification
Lease right-of-use assets:
Operating leases$30,332 $30,723 Operating lease right-of-use assets
Finance leases2,641 2,714 Other assets
Total lease right-of-use assets$32,973 $33,437 
Lease-related liabilities:
Current
Operating leases$6,892 $7,630 Current operating lease liabilities
Finance leases885 815 Accrued expenses and other current liabilities
Non-current
Operating leases24,314 23,964 Non-current operating lease liabilities
Finance leases1,978 2,125 Other long-term liabilities
Total lease liabilities$34,069 $34,534 
The table below presents supplemental information related to leases as of June 27, 2026 and December 31, 2025:
June 27, 2026December 31, 2025
Weighted-average remaining lease term (years):
Finance leases3.33.6
Operating leases5.64.9
Weighted-average discount rate:
Finance leases7.9 %8.1 %
Operating leases6.3 %5.9 %
The table below presents supplemental information related to the cash flows for operating leases recorded on the condensed consolidated statements of cash flows (in thousands):
Two Fiscal Quarters Ended
June 27, 2026June 28, 2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases$3,751 $3,666 
The following table summarizes fiscal year maturities of operating lease liabilities as of June 27, 2026 (in thousands):
Operating LeasesFinance LeasesTotal
Remainder of fiscal year 2026$4,631 $545 $5,176 
20277,745 1,049 8,794 
20286,400 977 7,377 
20295,769 492 6,261 
20304,572 161 4,733 
Thereafter8,101 17 8,118 
Total lease payments37,218 3,241 40,459 
Less: Interest(6,012)(378)(6,390)
Present value of lease liability$31,206 $2,863 $34,069