Note 9 - Leases

 

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, all of which are leased under operating leases that expire at various times through 2035. Our leases have remaining lease terms of less than 1 year to 10 years, some of which include options to extend for up to 5 years, and some of which include options to terminate within 1 year. The weighted-average remaining lease term was 6.4 years and the weighted-average discount rate was 4.9% as of January 3, 2026. We recorded fixed operating lease expense of $8.1 million, $8.5 million, and $7.8 million, respectively, for fiscal 2025, 2024, and 2023.

 

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during fiscal 2025:

 

Operating lease right-of-use assets

 

(In thousands)

 

Balance as of December 28, 2024

 $13,870 

Right-of-use assets obtained for new or renewed lease contracts during the period

  32,548 

Amortization of right-of-use assets during the period

  (6,834)

Adjustments for present value and foreign currency effects

  (125)

Balance as of January 3, 2026

 $39,459 

 

Operating lease liabilities

 

(In thousands)

 

Balance as of December 28, 2024

 $15,251 

Lease liabilities accrued for new or renewed lease contracts during the period

  32,548 

Lease liability for renewed lease on facility restructured prior to adoption of ASC 842

  1,547 

Accretion of lease liabilities

  1,250 

Operating cash used for payments on lease liabilities

  (8,330)

Adjustments for present value and foreign currency effects

  (159)

Balance as of January 3, 2026

  42,107 

Less: Current portion of operating lease liabilities (included in Accrued liabilities)

  (5,980)

Long-term operating lease liabilities, net of current portion

 $36,127 

 

Maturities of operating lease liabilities as of January 3, 2026 are as follows:

 

Fiscal year

 

(In thousands)

 

2026

 $7,798 

2027

  8,570 

2028

  7,821 

2029

  5,424 

2030

  5,457 

Thereafter

  14,718 

Total lease payments

  49,788 

Less: amount representing interest

  (7,681)

Total lease liabilities

 $42,107 

 

Historical Timeline

Fiscal YearFiled
2026Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 23, 2022
2021Feb 26, 2021
2019Feb 24, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.