Quarterly report pursuant to Section 13 or 15(d)

Leases

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Leases
 3 Months Ended
Apr. 01, 2024
Leases [Abstract]  
Leases Leases
The Company has entered into various lease agreements and these agreements expire on various dates through 2032 and have renewal options.
The components of lease expense for the periods shown is as follows:

Quarter Ended
(in thousands) Classification April 1, 2024 April 3, 2023
Operating lease cost Occupancy and related expenses $ 3,271  $ 3,107 
Pre-opening costs 77  — 
Store closure costs 115  — 
Lease termination recovery Asset impairment (56) $ — 
Finance lease cost:
Amortization of right-of use assets Depreciation and amortization expense 88  58 
Interest on lease liabilities Interest expense 45  14 
Less: Sublease income Occupancy and related expenses (71) (47)
Total lease cost $ 3,469  $ 3,132 

The maturity of the Company's operating and finance lease liabilities as of April 1, 2024 is as follows:

(in thousands) Operating Leases Finance Leases
2024 $ 10,394  $ 410 
2025 13,331  533 
2026 11,672  504 
2027 10,033  472 
2028 8,397  448 
2029 and thereafter 10,125  561 
Total undiscounted lease payments 63,952  2,928 
Less: present value adjustment (11,168) (736)
Total net lease liabilities $ 52,784  $ 2,192 

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates.

A summary of lease terms and discount rates for finance and operating leases is as follows:

April 1, 2024 April 3, 2023
Weighted-average remaining lease term (in years)
Operating leases 5.3 5.9
Finance leases 5.9 6.1
Weighted-average discount rate
Operating leases 7.6  % 6.3  %
Finance leases 10.5  % 6.0  %
Leases Leases
The Company has entered into various lease agreements and these agreements expire on various dates through 2032 and have renewal options.
The components of lease expense for the periods shown is as follows:

Quarter Ended
(in thousands) Classification April 1, 2024 April 3, 2023
Operating lease cost Occupancy and related expenses $ 3,271  $ 3,107 
Pre-opening costs 77  — 
Store closure costs 115  — 
Lease termination recovery Asset impairment (56) $ — 
Finance lease cost:
Amortization of right-of use assets Depreciation and amortization expense 88  58 
Interest on lease liabilities Interest expense 45  14 
Less: Sublease income Occupancy and related expenses (71) (47)
Total lease cost $ 3,469  $ 3,132 

The maturity of the Company's operating and finance lease liabilities as of April 1, 2024 is as follows:

(in thousands) Operating Leases Finance Leases
2024 $ 10,394  $ 410 
2025 13,331  533 
2026 11,672  504 
2027 10,033  472 
2028 8,397  448 
2029 and thereafter 10,125  561 
Total undiscounted lease payments 63,952  2,928 
Less: present value adjustment (11,168) (736)
Total net lease liabilities $ 52,784  $ 2,192 

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The Company gives consideration to its recent debt issuances as well as publicly available data for instruments with similar characteristics when calculating its incremental borrowing rates.

A summary of lease terms and discount rates for finance and operating leases is as follows:

April 1, 2024 April 3, 2023
Weighted-average remaining lease term (in years)
Operating leases 5.3 5.9
Finance leases 5.9 6.1
Weighted-average discount rate
Operating leases 7.6  % 6.3  %
Finance leases 10.5  % 6.0  %