Leases
The Company has operating leases for real estate, vehicles and office equipment, which are accounted for in accordance with ASC 842, "Leases." Real estate leases are used to secure office space for the Company's administrative, engineering, production support and manufacturing activities. The Company's leases have remaining lease terms of up to eight years, some of which include options to extend the leases for up to five years, and some of which include options to terminate the leases within one year.
The components of lease expense were as follows:
| | | | | | | | | | | |
| Fiscal Year Ended |
| (in thousands) | January 25, 2026 | | January 26, 2025 |
| Operating lease cost | $ | 7,273 | | | $ | 7,278 | |
| Short-term lease cost | 65 | | | 219 | |
| | | |
| Less: sublease income | (522) | | | (552) | |
| Total lease cost | $ | 6,816 | | | $ | 6,945 | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | |
| Fiscal Year Ended |
| (in thousands) | January 25, 2026 | | January 26, 2025 |
| Cash paid for amounts included in the measurement of lease liabilities | $ | 7,878 | | | $ | 7,899 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 7,180 | | | $ | 3,509 | |
| | | |
| | | | | |
| |
| January 25, 2026 |
| Weighted-average remaining lease term - operating leases (in years) | 4.8 |
| Weighted-average discount rate on remaining lease payments - operating leases | 6.9 | % |
Supplemental balance sheet information related to leases was as follows:
| | | | | | | | | | | |
| |
| (in thousands) | January 25, 2026 | | January 26, 2025 |
| Operating lease right-of-use assets in "Other Assets" | $ | 23,455 | | | $ | 21,729 | |
| | | |
| Operating lease liabilities in "Accrued Liabilities" | $ | 6,063 | | | $ | 6,006 | |
| Operating lease liabilities in "Other long-term Liabilities" | 20,697 | | | 18,502 | |
| Total operating lease liabilities | $ | 26,760 | | | $ | 24,508 | |
Maturities of lease liabilities as of January 25, 2026 are as follows:
| | | | | |
| (in thousands) | |
| Fiscal Year Ending: | |
| 2027 | $ | 7,649 | |
| 2028 | 7,075 | |
| 2029 | 5,964 | |
| 2030 | 4,066 | |
| 2031 | 3,489 | |
| Thereafter | 3,438 | |
| Total lease payments | 31,681 | |
| Less: imputed interest | (4,921) | |
| Total | $ | 26,760 | |
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.