Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.23.3
Leases
 9 Months Ended
Oct. 02, 2023
Leases [Abstract]  
Leases LeasesThe 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 Nine Months Ended
(in thousands) Classification October 2, 2023 October 3, 2022 October 2, 2023 October 3, 2022
Operating lease cost Occupancy and related expenses
Pre-opening costs
Store closure costs		 $ 3,202  $ 3,202  $ 9,665  $ 9,796 
Finance lease cost:
   Amortization of right-of-use assets Depreciation and amortization expense 55  62  168  196 
   Interest on lease liabilities Interest expense 12  15  39  48 
Less: Sublease income Occupancy and related expenses (62) (47) (156) (141)
Total lease cost $ 3,207  $ 3,232  $ 9,716  $ 9,899 

The maturity of the Company's operating and finance lease liabilities as of October 2, 2023 is as follows:

(in thousands) Operating Leases Finance Leases
One Year $ 12,252  $ 114 
Two Years 12,242  248 
Three Years 10,382  234 
Four Years 8,873  224 
Five Years 7,120  219 
Thereafter 9,109  385 
Total undiscounted lease payments 59,978  1,424 
Less: present value adjustment (7,054) (144)
Total net lease liabilities $ 52,924  $ 1,280 

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:

October 2, 2023 October 3, 2022
Weighted-average remaining lease term (in years)
Operating leases 5.5 6.3
Finance leases 5.7 6.5
Weighted-average discount rate
Operating leases 7.3  % 6.0  %
Finance leases 6.0  % 6.0  %
Leases LeasesThe 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 Nine Months Ended
(in thousands) Classification October 2, 2023 October 3, 2022 October 2, 2023 October 3, 2022
Operating lease cost Occupancy and related expenses
Pre-opening costs
Store closure costs		 $ 3,202  $ 3,202  $ 9,665  $ 9,796 
Finance lease cost:
   Amortization of right-of-use assets Depreciation and amortization expense 55  62  168  196 
   Interest on lease liabilities Interest expense 12  15  39  48 
Less: Sublease income Occupancy and related expenses (62) (47) (156) (141)
Total lease cost $ 3,207  $ 3,232  $ 9,716  $ 9,899 

The maturity of the Company's operating and finance lease liabilities as of October 2, 2023 is as follows:

(in thousands) Operating Leases Finance Leases
One Year $ 12,252  $ 114 
Two Years 12,242  248 
Three Years 10,382  234 
Four Years 8,873  224 
Five Years 7,120  219 
Thereafter 9,109  385 
Total undiscounted lease payments 59,978  1,424 
Less: present value adjustment (7,054) (144)
Total net lease liabilities $ 52,924  $ 1,280 

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:

October 2, 2023 October 3, 2022
Weighted-average remaining lease term (in years)
Operating leases 5.5 6.3
Finance leases 5.7 6.5
Weighted-average discount rate
Operating leases 7.3  % 6.0  %
Finance leases 6.0  % 6.0  %