| Leases |
G. Leases The Company has various lease agreements in place for facilities and equipment. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options, and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2034. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at lease commencement to determine the present value of the lease payments. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. Total right-of-use ("ROU") assets and lease liabilities were as follows at:
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Classification |
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Leases |
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December 30,
2023 |
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December 31,
2022 |
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(in thousands) |
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Right-of-use assets |
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Operating lease assets |
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Operating right-of-use assets |
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$ |
35,559 |
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$ |
43,768 |
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Finance lease assets |
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Property, plant, and equipment, net |
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|
2,680 |
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|
1,424 |
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Lease Liabilities |
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Current |
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Operating lease liabilities |
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Current operating lease liabilities |
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9,113 |
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|
8,866 |
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Finance lease liabilities |
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Accrued expenses and other current liabilities |
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1,257 |
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|
935 |
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Non-current |
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Operating lease liabilities |
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Non-current operating lease liabilities |
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36,161 |
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45,274 |
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Finance lease liabilities |
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Other liabilities |
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1,451 |
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|
524 |
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The gross value and accumulated depreciation of ROU assets related to finance leases were as follows at:
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Finance Leases |
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December 30,
2023 |
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December 31,
2022 |
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(in thousands) |
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Gross value |
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$ |
6,134 |
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$ |
5,998 |
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Accumulated amortization |
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(3,454 |
) |
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(4,574 |
) |
Carrying value |
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$ |
2,680 |
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$ |
1,424 |
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Components of lease cost for the fiscal year-ended are as follows at:
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Fiscal years ended |
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December 30,
2023 |
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December 31,
2022 |
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December 25,
2021 |
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(in thousands) |
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Operating lease cost: |
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Amortization of right-of-use assets |
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$ |
8,339 |
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$ |
9,978 |
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$ |
10,283 |
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Variable lease costs not included in liability |
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|
606 |
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|
702 |
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1,132 |
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Total operating lease cost |
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$ |
8,945 |
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$ |
10,680 |
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$ |
11,415 |
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Finance lease cost: |
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Amortization of right-of-use assets |
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$ |
1,568 |
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$ |
1,590 |
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$ |
1,493 |
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Interest on lease liabilities |
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138 |
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71 |
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|
121 |
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Total finance lease cost |
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$ |
1,706 |
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$ |
1,661 |
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$ |
1,614 |
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Additionally, during 2023 and 2022, the Company recorded impairment charges on right-of use assets of $0.4 million and $0.2 million, respectively, included within impairment of brewery assets within the Company's consolidated statements of comprehensive income. Maturities of lease liabilities as of December 30, 2023 are as follows:
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Operating |
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Finance |
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Weighted- Average
Remaining Term
in Years |
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Leases |
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Leases |
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Operating
Leases |
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Finance
Leases |
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(in thousands) |
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2024 |
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$ |
10,529 |
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$ |
1,367 |
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2025 |
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|
7,102 |
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|
1,109 |
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2026 |
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|
6,671 |
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|
391 |
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2027 |
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6,122 |
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8 |
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2028 |
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6,039 |
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— |
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Thereafter |
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14,746 |
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— |
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Total lease payments |
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51,209 |
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2,875 |
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Less imputed interest (based on 3.5% weighted-average
discount rate) |
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(5,935 |
) |
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(167 |
) |
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Present value of lease liabilities |
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$ |
45,274 |
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$ |
2,708 |
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6.8 |
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2.2 |
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