LEASESGeneral
The Company has operating and finance leases for manufacturing equipment, corporate offices, showrooms, vehicles, distribution facilities, design centers, as well as computer and office equipment. The Company’s leases have terms ranging from 1 to 20 years, some of which may include options to extend the lease term for up to 5 years, and certain leases may include an option to terminate the lease. Our lease accounting may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option.
As of December 28, 2025, there were no significant leases that had not commenced.
The table below represents a summary of the balances recorded in the consolidated balance sheets related to the Company’s leases as of December 28, 2025 and December 29, 2024:
| | | | | | | | | | | | | | | | | | | | | | | |
| December 28, 2025 | | December 29, 2024 |
| Balance Sheet Location | Operating Leases | | Finance Leases | | Operating Leases | | Finance Leases |
| (in thousands) |
| Operating lease right-of-use assets | $ | 78,191 | | | | | $ | 76,815 | | | |
| | | | | | | | |
| Current portion of operating lease liabilities | $ | 15,748 | | | | | $ | 12,296 | | | |
| Operating lease liabilities | 67,205 | | | | | 68,092 | | | |
| Total operating lease liabilities | $ | 82,953 | | | | | $ | 80,388 | | | |
| | | | | | | | |
| Property, plant and equipment, net | | | $ | 9,574 | | | | | $ | 8,079 | |
| | | | | | | | |
| Accrued expenses | | | $ | 3,155 | | | | | $ | 2,657 | |
| Other long-term liabilities | | | 6,817 | | | | | 5,797 | |
| Total finance lease liabilities | | | $ | 9,972 | | | | | $ | 8,454 | |
Lease Costs
| | | | | | | | | | | | | | | | | |
| Fiscal Year |
| 2025 | | 2024 | | 2023 |
| (in thousands) |
| Finance lease cost: | | | | | |
| Amortization of right-of-use assets | $ | 3,477 | | | $ | 3,079 | | | $ | 2,808 | |
| Interest on lease liabilities | 561 | | | 457 | | | 319 | |
| Operating lease cost | 20,305 | | | 19,495 | | | 18,850 | |
| Short-term lease cost | 557 | | | 827 | | | 1,143 | |
| Variable lease cost | 3,467 | | | 2,824 | | | 2,509 | |
| Total lease cost | $ | 28,367 | | | $ | 26,682 | | | $ | 25,629 | |
Other Supplemental Information
| | | | | | | | | | | | | | | | | |
| Fiscal Year |
| 2025 | | 2024 | | 2023 |
| (in thousands) |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from finance leases | $ | 534 | | | $ | 431 | | | $ | 237 | |
| Operating cash flows from operating leases | 18,603 | | | 17,246 | | | 15,552 | |
| Financing cash flows from finance leases | 3,059 | | | 2,913 | | | 2,419 | |
| Right-of-use assets obtained in exchange for new finance lease liabilities | 3,978 | | | 3,993 | | | 3,612 | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 10,159 | | | 4,598 | | | 15,561 | |
Lease Term and Discount Rate
The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of December 28, 2025 and December 29, 2024:
| | | | | | | | | | | |
| End of Fiscal Year |
| | 2025 | | 2024 |
| Weighted-average remaining lease term – finance leases (in years) | 4.07 | | 3.61 |
| Weighted-average remaining lease term – operating leases (in years) | 7.05 | | 7.68 |
| Weighted-average discount rate – finance leases | 6.52 | % | | 6.44 | % |
| Weighted-average discount rate – operating leases | 6.33 | % | | 6.39 | % |
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
| | | | | | | | | | | |
| Fiscal Year | Operating Leases | | Finance Leases |
| (in thousands) |
| 2026 | $ | 20,284 | | | $ | 3,696 | |
| 2027 | 17,250 | | | 3,010 | |
| 2028 | 13,492 | | | 2,046 | |
| 2029 | 11,435 | | | 1,101 | |
| 2030 | 8,723 | | | 539 | |
| Thereafter | 32,450 | | | 972 | |
| Total future minimum lease payments (undiscounted) | 103,634 | | | 11,364 | |
| Less: Present value discount | (20,681) | | | (1,392) | |
| Total lease liabilities | $ | 82,953 | | | $ | 9,972 | |
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.