| Leases |
LEASES Leases as Lessee
Balance sheet information related to right-of-use assets and liabilities is as follows: | | | | | | | | | | | | | | | | Balance Sheet Location | June 27,
2026 | | December 27, 2025 | | Operating Leases: | | | | | | Operating lease right-of-use assets | Operating lease right-of-use assets | $ | 23,698 | | | $ | 23,649 | | | | | | | | Current portion of operating lease liabilities | Current portion of operating lease liabilities | $ | 5,254 | | | $ | 4,553 | | | Noncurrent portion of operating lease liabilities | Operating lease liabilities | 19,623 | | | 20,200 | | | Total operating lease liabilities | | $ | 24,877 | | | $ | 24,753 | | | | | | | | Finance Leases: | | | | | | Finance lease right-of-use assets | Property, plant, and equipment, net | $ | 407 | | | $ | 381 | | | | | | | | Current portion of finance lease liabilities | Current portion of long-term debt | $ | 167 | | | $ | 150 | | | Noncurrent portion of finance lease liabilities | Long-term debt | 133 | | | 154 | | | Total financing lease liabilities | | $ | 300 | | | $ | 304 | |
Lease cost recognized in the consolidated condensed financial statements is summarized as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 27,
2026 | | June 28,
2025 | | June 27,
2026 | | June 28,
2025 | | Operating lease cost | $ | 1,659 | | | $ | 1,687 | | | $ | 3,213 | | | $ | 3,119 | | | Variable lease cost | 150 | | | — | | | 465 | | | 325 | | | Total lease costs | $ | 1,809 | | | $ | 1,687 | | | $ | 3,678 | | | $ | 3,444 | | | | | | | | | | | Finance lease cost: | | | | | | | | | Amortization of lease assets | $ | 29 | | | $ | 25 | | | $ | 53 | | | $ | 49 | | | Interest on lease liabilities | 6 | | | 6 | | | 12 | | | 12 | | | Total finance lease costs | $ | 35 | | | $ | 31 | | | $ | 65 | | | $ | 61 | |
Other supplemental information related to leases is summarized as follows: | | | | | | | | | | | | | | | | | June 27,
2026 | | June 28,
2025 | | Weighted average remaining lease term (in years): | | | | | | Operating leases | | 4.92 | | 5.72 | | Finance leases | | 2.22 | | 2.47 | | | | | | | Weighted average discount rate: | | | | | | Operating leases | | 7.73 | % | | 7.29 | % | | Finance leases | | 7.03 | % | | 5.59 | % | | | | | | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | Operating cash flows from operating leases | | $ | 3,137 | | | $ | 3,016 | | | Operating cash flows from finance leases | | 12 | | | 12 | | | Financing cash flows from finance leases | | 83 | | | 75 | |
The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of June 27, 2026:
| | | | | | | | | | | | | Fiscal Year | | Operating Leases | Finance Leases | | Remaining for 2026 | | $ | 3,492 | | $ | 86 | | | 2027 | | 7,008 | | 162 | | | 2028 | | 6,448 | | 39 | | | 2029 | | 5,613 | | 21 | | | 2030 | | 2,617 | | 21 | | | Thereafter | | 4,964 | | 3 | | | Total future minimum lease payments (undiscounted) | | 30,142 | | 332 | | | Less: Present value discount | | 5,265 | | 32 | | | Total lease liability | | $ | 24,877 | | $ | 300 | |
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 | | Six Months Ended | | | June 27,
2026 | | June 28,
2025 | | June 27,
2026 | | June 28,
2025 | | Operating lease income | | $ | 588 | | | $ | 566 | | | $ | 1,154 | | | $ | 1,030 | | | | | | | | | | |
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 June 27, 2026:
| | | | | | | | | | | | | Fiscal Year | Gross Lease Payments | Payments to Head Lessor | Net Lease Payments | | 2026 | $ | 1,092 | | $ | 215 | | $ | 877 | | | 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 | $ | 19,721 | | $ | 3,829 | | $ | 15,892 | |
|
| Leases |
LEASES Leases as Lessee
Balance sheet information related to right-of-use assets and liabilities is as follows: | | | | | | | | | | | | | | | | Balance Sheet Location | June 27,
2026 | | December 27, 2025 | | Operating Leases: | | | | | | Operating lease right-of-use assets | Operating lease right-of-use assets | $ | 23,698 | | | $ | 23,649 | | | | | | | | Current portion of operating lease liabilities | Current portion of operating lease liabilities | $ | 5,254 | | | $ | 4,553 | | | Noncurrent portion of operating lease liabilities | Operating lease liabilities | 19,623 | | | 20,200 | | | Total operating lease liabilities | | $ | 24,877 | | | $ | 24,753 | | | | | | | | Finance Leases: | | | | | | Finance lease right-of-use assets | Property, plant, and equipment, net | $ | 407 | | | $ | 381 | | | | | | | | Current portion of finance lease liabilities | Current portion of long-term debt | $ | 167 | | | $ | 150 | | | Noncurrent portion of finance lease liabilities | Long-term debt | 133 | | | 154 | | | Total financing lease liabilities | | $ | 300 | | | $ | 304 | |
Lease cost recognized in the consolidated condensed financial statements is summarized as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 27,
2026 | | June 28,
2025 | | June 27,
2026 | | June 28,
2025 | | Operating lease cost | $ | 1,659 | | | $ | 1,687 | | | $ | 3,213 | | | $ | 3,119 | | | Variable lease cost | 150 | | | — | | | 465 | | | 325 | | | Total lease costs | $ | 1,809 | | | $ | 1,687 | | | $ | 3,678 | | | $ | 3,444 | | | | | | | | | | | Finance lease cost: | | | | | | | | | Amortization of lease assets | $ | 29 | | | $ | 25 | | | $ | 53 | | | $ | 49 | | | Interest on lease liabilities | 6 | | | 6 | | | 12 | | | 12 | | | Total finance lease costs | $ | 35 | | | $ | 31 | | | $ | 65 | | | $ | 61 | |
Other supplemental information related to leases is summarized as follows: | | | | | | | | | | | | | | | | | June 27,
2026 | | June 28,
2025 | | Weighted average remaining lease term (in years): | | | | | | Operating leases | | 4.92 | | 5.72 | | Finance leases | | 2.22 | | 2.47 | | | | | | | Weighted average discount rate: | | | | | | Operating leases | | 7.73 | % | | 7.29 | % | | Finance leases | | 7.03 | % | | 5.59 | % | | | | | | | Cash paid for amounts included in the measurement of lease liabilities: | | | | | | Operating cash flows from operating leases | | $ | 3,137 | | | $ | 3,016 | | | Operating cash flows from finance leases | | 12 | | | 12 | | | Financing cash flows from finance leases | | 83 | | | 75 | |
The following table summarizes the Company's future minimum lease payments under non-cancellable contractual obligations for operating and financing liabilities as of June 27, 2026:
| | | | | | | | | | | | | Fiscal Year | | Operating Leases | Finance Leases | | Remaining for 2026 | | $ | 3,492 | | $ | 86 | | | 2027 | | 7,008 | | 162 | | | 2028 | | 6,448 | | 39 | | | 2029 | | 5,613 | | 21 | | | 2030 | | 2,617 | | 21 | | | Thereafter | | 4,964 | | 3 | | | Total future minimum lease payments (undiscounted) | | 30,142 | | 332 | | | Less: Present value discount | | 5,265 | | 32 | | | Total lease liability | | $ | 24,877 | | $ | 300 | |
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 | | Six Months Ended | | | June 27,
2026 | | June 28,
2025 | | June 27,
2026 | | June 28,
2025 | | Operating lease income | | $ | 588 | | | $ | 566 | | | $ | 1,154 | | | $ | 1,030 | | | | | | | | | | |
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 June 27, 2026:
| | | | | | | | | | | | | Fiscal Year | Gross Lease Payments | Payments to Head Lessor | Net Lease Payments | | 2026 | $ | 1,092 | | $ | 215 | | $ | 877 | | | 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 | $ | 19,721 | | $ | 3,829 | | $ | 15,892 | |
|