| Leases |
10. Leases The Company's finance and operating lease assets and liabilities as of December 28, 2025 and December 29, 2024 were as follows (in thousands):
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| December 28, 2025 |
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Finance(1)
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Operating(2)
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| Lease assets, net |
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$ |
4,388 |
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$ |
295,996 |
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| Current portion of lease obligations |
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1,092 |
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49,111 |
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| Long-term portion of lease obligations |
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5,646 |
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300,055 |
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| Total |
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$ |
6,738 |
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$ |
349,166 |
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| December 29, 2024 |
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Finance(1)
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Operating(2)
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| Lease assets, net |
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$ |
5,328 |
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$ |
331,617 |
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| Current portion of lease obligations |
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1,019 |
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50,083 |
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| Long-term portion of lease obligations |
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6,746 |
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345,635 |
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| Total |
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$ |
7,765 |
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$ |
395,718 |
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(1) Finance lease assets and obligations are included in other assets, net, accrued liabilities and other, and other non-current liabilities within our Consolidated Balance Sheets.
(2) Operating lease assets and obligations are included in operating lease assets, net, current portion of operating lease liabilities, and long-term portion of operating lease liabilities within our Consolidated Balance Sheets.
The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in occupancy on our Consolidated Statements of Operations and Comprehensive Income (Loss) are as follows (in thousands):
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Year Ended |
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December 28, 2025 |
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December 29, 2024 |
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December 31, 2023 |
| Operating lease cost |
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$ |
73,388 |
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$ |
75,059 |
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$ |
72,346 |
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| Finance lease cost: |
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Amortization of right of use assets(1)
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$ |
886 |
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$ |
936 |
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$ |
985 |
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Interest on lease liabilities (2)
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385 |
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438 |
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|
520 |
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| Total finance lease cost |
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$ |
1,271 |
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$ |
1,374 |
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$ |
1,505 |
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| Variable lease cost |
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$ |
20,140 |
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$ |
19,077 |
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$ |
19,806 |
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| Total lease costs |
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$ |
94,799 |
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$ |
95,510 |
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$ |
93,657 |
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(1) Amortization of finance lease right of use assets is recorded to depreciation and amortization in our Consolidated Statements of Operations and Comprehensive Income (Loss).
(2) Interest on finance lease liabilities is recorded to interest expense in our Consolidated Statements of Operations and Comprehensive Income (Loss).
Maturities of our lease liabilities as of December 28, 2025 were as follows (in thousands):
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Finance Leases |
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Operating Leases |
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| 2026 |
$ |
1,433 |
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$ |
78,240 |
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| 2027 |
1,340 |
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72,440 |
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| 2028 |
1,111 |
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64,925 |
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| 2029 |
953 |
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56,061 |
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| 2030 |
715 |
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48,375 |
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| Thereafter |
2,460 |
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178,023 |
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| Total future lease liability |
$ |
8,012 |
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$ |
498,064 |
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| Less imputed interest |
$ |
1,274 |
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$ |
148,898 |
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| Present value of lease liability |
$ |
6,738 |
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$ |
349,166 |
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Supplemental cash flow information related to leases are as follows (in thousands, except other information):
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Year Ended |
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December 28, 2025 |
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December 29, 2024 |
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December 31, 2023 |
Cash flows from operating activities: |
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| Cash paid related to lease liabilities |
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| Operating leases |
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$ |
80,358 |
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$ |
83,043 |
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$ |
80,469 |
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| Finance leases |
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385 |
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|
438 |
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|
520 |
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Cash flows from financing activities: |
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| Cash paid related to lease liabilities |
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| Finance leases |
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$ |
1,036 |
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$ |
923 |
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$ |
898 |
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| Cash paid for amounts included in the measurement of lease liabilities |
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$ |
81,779 |
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$ |
84,404 |
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$ |
81,887 |
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| Right of use assets obtained in exchange for operating lease obligations |
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$ |
20,446 |
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$ |
26,089 |
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$ |
53,915 |
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| Right of use assets obtained in exchange for finance lease obligations |
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$ |
— |
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$ |
— |
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$ |
81 |
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| Other information related to operating leases as follows: |
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| Weighted average remaining lease term |
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7.69 |
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8.25 |
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8.68 |
| Weighted average discount rate |
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9.11 |
% |
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8.62 |
% |
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8.15 |
% |
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| Other information related to financing leases as follows: |
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| Weighted average remaining lease term |
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7.64 |
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8.47 |
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9.34 |
| Weighted average discount rate |
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4.83 |
% |
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4.85 |
% |
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4.87 |
% |
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