Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.1
Leases
 3 Months Ended
Apr. 03, 2023
Leases [Abstract]  
Leases Leases
The Company has entered into various lease agreements. For the quarters ended April 3, 2023 and March 31, 2022 rent expense was approximately $3.1 million, and $3.3 million, respectively. These lease agreements expire on various dates through 2032 and have renewal options.

The components of lease expense for the quarters ended April 3, 2023 and March 31, 2022 is as follows:
(in thousands) Classification Quarter Ended
 April 3, 2023		 Quarter Ended March 31, 2022
Operating lease cost Occupancy and related expenses
Pre-opening costs
Store closure costs		 $ 3,107  $ 3,251 
Finance lease cost:
   Amortization of right-of-use assets Depreciation and amortization expense 58  52 
   Interest on lease liabilities Interest expense 14  12 
Less: Sublease income Occupancy and related expenses (47) (47)
Total lease cost $ 3,132  $ 3,268 


The maturity of the Company's operating and finance lease liabilities as of April 3, 2023 is as follows:

(in thousands) Operating Leases Finance Leases
2023 $ 12,733  $ 148 
2024 11,431  184 
2025 9,947  170 
2026 8,131  159 
2027 6,710  152 
2028 5,384  134 
Thereafter 8,427  118 
Total undiscounted lease payments 62,763  1,065 
Less: present value adjustment 9,862  171 
Total net lease liabilities $ 52,901  $ 894 

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:

Quarter Ended Quarter Ended
April 3, 2023 March 31, 2022
Weighted-average remaining lease term (in years)
Operating leases 5.9 6.6
Finance leases 6.1 6.6
Weighted-average discount rate
Operating leases 6.3  % 6.0  %
Finance leases 6.0  % 6.0  %
Leases Leases
The Company has entered into various lease agreements. For the quarters ended April 3, 2023 and March 31, 2022 rent expense was approximately $3.1 million, and $3.3 million, respectively. These lease agreements expire on various dates through 2032 and have renewal options.

The components of lease expense for the quarters ended April 3, 2023 and March 31, 2022 is as follows:
(in thousands) Classification Quarter Ended
 April 3, 2023		 Quarter Ended March 31, 2022
Operating lease cost Occupancy and related expenses
Pre-opening costs
Store closure costs		 $ 3,107  $ 3,251 
Finance lease cost:
   Amortization of right-of-use assets Depreciation and amortization expense 58  52 
   Interest on lease liabilities Interest expense 14  12 
Less: Sublease income Occupancy and related expenses (47) (47)
Total lease cost $ 3,132  $ 3,268 


The maturity of the Company's operating and finance lease liabilities as of April 3, 2023 is as follows:

(in thousands) Operating Leases Finance Leases
2023 $ 12,733  $ 148 
2024 11,431  184 
2025 9,947  170 
2026 8,131  159 
2027 6,710  152 
2028 5,384  134 
Thereafter 8,427  118 
Total undiscounted lease payments 62,763  1,065 
Less: present value adjustment 9,862  171 
Total net lease liabilities $ 52,901  $ 894 

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:

Quarter Ended Quarter Ended
April 3, 2023 March 31, 2022
Weighted-average remaining lease term (in years)
Operating leases 5.9 6.6
Finance leases 6.1 6.6
Weighted-average discount rate
Operating leases 6.3  % 6.0  %
Finance leases 6.0  % 6.0  %