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Leases
12 Months Ended
Jan. 03, 2023
Leases [Abstract]  
Leases

6. Leases

Lease costs included on the Consolidated Statements of Operations consisted of the following (in thousands):

 

 

 

Fiscal Year

 

 

 

2022

 

 

2021

 

 

2020

 

Lease cost

 

$

60,163

 

 

$

57,807

 

 

$

55,996

 

Variable lease cost

 

 

3,445

 

 

 

1,739

 

 

 

142

 

Total lease costs

 

$

63,608

 

 

$

59,546

 

 

$

56,138

 

 

Weighted-average lease term and discount rate was as follows:

 

 

 

January 3, 2023

 

December 28, 2021

Weighted-average remaining lease term

 

11.5 Years

 

12.0 Years

Weighted-average discount rate

 

5.7

 

5.6

Operating lease obligation maturities as of January 3, 2023 were as follows (in thousands):

 

2023

 

$

66,032

 

2024

 

 

62,606

 

2025

 

 

58,109

 

2026

 

 

56,500

 

2027

 

 

53,656

 

Thereafter

 

 

300,376

 

Total lease payments

 

 

597,279

 

Less: imputed interest

 

 

(124,566

)

Present value of operating lease obligations

 

$

472,713

 

In response to the impact of the COVID-19 pandemic on our operations, from April 1, 2020 to June 30, 2020, we suspended the payment of rent and did not make lease payments under our existing lease agreements for the majority of our leases. During the suspension of payments, we continued to recognize expenses and liabilities for lease obligations and corresponding lease assets on the balance sheet in accordance with ASU 2016-02, Leases (Topic 842).

We negotiated lease payment deferrals and rent concessions for the majority of our leases. The negotiated concessions primarily were in the form of rent deferrals (full or partial) or abatements. In accordance with the relief issued in April 2020 by the FASB titled ASC Topic 842 and ASC Topic 840, Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic, we did not recognize contractual rent concessions as a lease contract modification when the total payments required by the modified contract were substantially the same or less than the total payments required by the original contract. Lease concessions that provided a substantial increase in the rights of the lessor or our obligations under the lease were accounted for as lease modifications in accordance with ASC Topic 842.