Leases (Tables)
|
12 Months Ended |
Jan. 01, 2024 |
|---|
| Leases [Abstract] |
|
| Assets And Liabilities, Lessee |
Upon transition, on January 1, 2022, the Company recorded the following increases (decreases) to the respective line items on the consolidated balance sheets:
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|
|
|
|
|
| (in thousands) |
Adjustment as of January 2, 2022 |
| Prepaid expenses |
$ |
(773) |
|
| Operating right-of-use asset, net |
57,385 |
|
| Finance right-of-use asset, net |
855 |
|
| Deferred rent |
(900) |
|
| Short-term operating lease liability |
9,457 |
|
| Short-term finance lease liability |
143 |
|
| Long-term operating lease liability |
49,149 |
|
| Long-term finance lease liability |
712 |
|
A summary of lease terms and discount rates for finance and operating leases is as follows:
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|
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|
Year Ended January 1, 2024 |
|
| Weighted-average remaining lease term (in years): |
|
| Operating Leases |
5.5 |
| Finance Leases |
6.6 |
| Weighted-average discount rate: |
|
| Operating Leases |
7.6 |
% |
| Finance Leases |
9.6 |
% |
|
| Lease, Cost |
A summary of finance and operating lease right-of-use assets and liabilities as of January 1, 2024 and January 2, 2023 is as follows:
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| (in thousands) |
Classification |
|
January 1, 2024 |
|
January 2, 2023 |
| Operating Leases |
Operating right-of-use asset, net |
|
$ |
46,052 |
|
|
$ |
45,741 |
|
| Finance Leases |
Property and equipment, net |
|
1,116 |
|
|
852 |
|
| Total right-of-use assets |
|
|
$ |
47,168
|
|
|
$ |
46,593
|
|
|
|
|
|
|
|
| Operating leases: |
|
|
|
|
|
|
Short-term operating lease liability |
|
$ |
10,111 |
|
|
$ |
9,924 |
|
|
Long-term operating lease liability |
|
44,631 |
|
|
40,748 |
|
| Finance leases: |
|
|
|
|
|
|
Short-term borrowings, including finance |
|
226 |
|
|
150 |
|
|
Long-term borrowings, including finance |
|
1,350 |
|
|
783 |
|
| Total lease liabilities |
|
|
$ |
56,318
|
|
|
$ |
51,605
|
|
The components of lease expense for the periods shown is as follows:
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|
| (in thousands) |
Classification |
|
Year Ended January 1, 2024 |
|
Year Ended
January 2, 2023 |
| Operating lease cost |
Occupancy and related expenses |
|
$ |
13,051 |
|
|
$ |
12,969 |
|
|
Pre-opening costs |
|
93 |
|
|
— |
|
|
Store closure costs |
|
75 |
|
|
— |
|
|
|
|
|
|
|
| Lease asset impairment |
Asset impairment |
|
2,617 |
|
|
3,846 |
|
|
|
|
|
|
|
| Finance lease costs: |
|
|
|
|
|
| Amortization of right-of use assets |
Depreciation and amortization expense |
|
282 |
|
|
258 |
|
| Interest on lease liabilities |
Interest expense |
|
85 |
|
|
63 |
|
| Less: Sublease income |
Occupancy and related expenses |
|
(204) |
|
|
(194) |
|
| Total lease cost |
|
|
$ |
15,999
|
|
|
$ |
16,942
|
|
|
|
|
|
|
|
|
| Schedule of approximate future minimum payments on operating leases |
The maturity of the Company's operating and finance lease liabilities as of January 1, 2024 is as follows:
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|
| (in thousands) |
Operating Leases |
|
Finance Leases |
| 2024 |
13,828 |
|
|
$ |
362 |
|
| 2025 |
13,270 |
|
|
348 |
|
| 2026 |
11,523 |
|
|
319 |
|
| 2027 |
9,881 |
|
|
287 |
|
| 2028 |
8,245 |
|
|
263 |
|
| 2029 and thereafter |
9,884 |
|
|
554 |
|
| Total undiscounted lease payments |
66,631 |
|
|
2,133 |
|
| Less: present value adjustment |
(11,889) |
|
|
(557) |
|
| Total net lease liabilities |
$ |
54,742 |
|
|
$ |
1,576 |
|
|
| Finance Lease, Liability, Fiscal Year Maturity |
The maturity of the Company's operating and finance lease liabilities as of January 1, 2024 is as follows:
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| (in thousands) |
Operating Leases |
|
Finance Leases |
| 2024 |
13,828 |
|
|
$ |
362 |
|
| 2025 |
13,270 |
|
|
348 |
|
| 2026 |
11,523 |
|
|
319 |
|
| 2027 |
9,881 |
|
|
287 |
|
| 2028 |
8,245 |
|
|
263 |
|
| 2029 and thereafter |
9,884 |
|
|
554 |
|
| Total undiscounted lease payments |
66,631 |
|
|
2,133 |
|
| Less: present value adjustment |
(11,889) |
|
|
(557) |
|
| Total net lease liabilities |
$ |
54,742 |
|
|
$ |
1,576 |
|
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