Leases
The Company leases certain facilities, vehicles, and equipment which expire on various dates through 2041. The following table includes supplemental information with regards to the Company’s operating leases:
| | | | | | | | | | | | | | |
| (In thousands, except lease term and discount rate) | | 2025 | | 2024 |
| | | | |
| Operating lease right-of-use assets | | $ | 27,211 | | $ | 32,702 |
| | | | |
| Current portion of operating lease liabilities | | 8,520 | | 8,117 |
| Noncurrent operating lease liabilities | | 18,970 | | 24,547 |
| | | | |
| Total operating lease liabilities | | $ | 27,490 | | $ | 32,664 |
| | | | |
| Weighted average discount rate | | 4.14 | % | | 3.87 | % |
| Weighted average remaining lease term (in years) | | 3.59 | | 4.72 |
Some of the Company’s leases include variable lease costs such as taxes, insurance, etc. These costs are immaterial for disclosure.
The following table presents certain information related to operating lease costs and cash paid during the period:
| | | | | | | | | | | | | | |
| | For the Year Ended |
| (In thousands) | | December 27, 2025 | | December 28, 2024 |
| | | | |
| Operating lease costs | | $ | 9,993 | | | $ | 10,036 | |
| Short term lease costs | | 4,514 | | | 3,512 | |
| | | | |
| Total lease costs | | $ | 14,507 | | | $ | 13,548 | |
| | | | |
| Cash paid for amounts included in the measurement of lease liabilities | | $ | 9,748 | | | $ | 9,609 | |
Maturities of the Company’s operating leases are as follows:
| | | | | | | | |
| (In thousands) | | Amount |
| | |
| 2026 | | $ | 9,407 | |
| 2027 | | 7,961 | |
| 2028 | | 4,927 | |
| 2029 | | 3,459 | |
| 2030 | | 2,365 | |
| 2031 and thereafter | | 1,341 | |
| | |
| Total lease payments | | 29,460 | |
| Less imputed interest | | (1,970) | |
| | |
| Total lease obligations | | 27,490 | |
| Less current obligations | | (8,520) | |
| | |
| Noncurrent lease obligations | | $ | 18,970 | |
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.