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Leases
 12 Months Ended
Jan. 01, 2022
Leases [Abstract]  
Leases Leases
The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As of January 1, 2022, approximately 84 percent of the value of the Corporation's leased assets is for real estate. The remaining 16 percent of the value of the Corporation's leased assets is for equipment.

As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and overseas operations.

Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from one to ten years. The exercise of lease renewal options is at the Corporation's sole discretion. Certain real estate leases include an option to terminate the lease term earlier than the specified lease term for a fee. These options are not included as part of the lease term unless they are reasonably certain to be exercised.

Many of the Corporation's real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation's lease agreements do not contain any material residual value guarantees.

The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component.

On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant.

Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following (in thousands):
Classification202120202019
Operating lease costs
FixedCost of sales$2,312 $1,819 $1,803 
Selling and administrative expenses23,115 25,357 24,149 
Short-term / variableCost of sales985 434 700 
Selling and administrative expenses674 1,772 1,140 
Finance lease costs
AmortizationCost of sales949 473 279 
Selling and administrative, and interest expense1,857 265 201 
Less: Sublease income
Cost of sales(174)— — 
Selling and administrative expenses(346)(130)(181)
Total lease costs$29,372 $29,990 $28,091 
Maturity of lease liabilities as of January 1, 2022 is as follows (in thousands):
Operating Leases (a)Finance Leases (b)Total
2022$21,876 $2,914 $24,790 
202318,883 2,841 21,724 
202414,943 2,484 17,427 
202513,338 2,085 15,423 
202610,070 139 10,209 
Thereafter15,225 — 15,225 
Total lease payments94,335 10,463 104,798 
Less: Interest(7,779)(325)(8,104)
Present value of lease liabilities$86,556 $10,138 $96,694 

(a)At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $17.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced, which are excluded from operating lease liabilities.
(b)At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $3.4 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities.

The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of January 1, 2022:
Weighted-Average Discount Rate (percent)Weighted-Average Remaining Lease Term
 (years)
Operating leases3.0 %5.3
Finance leases1.8 %3.8

The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities (in thousands):
202120202019
Cash paid for amounts included in the measurements of lease liabilities
Operating cash flows from operating / finance leases$24,679 $31,461 $26,446 
Financing cash flows from finance leases$2,671 $674 $419 
Leased assets obtained in exchange for new operating / finance lease liabilities$49,344 $27,260 $25,268 
Leases Leases
The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As of January 1, 2022, approximately 84 percent of the value of the Corporation's leased assets is for real estate. The remaining 16 percent of the value of the Corporation's leased assets is for equipment.

As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and overseas operations.

Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from one to ten years. The exercise of lease renewal options is at the Corporation's sole discretion. Certain real estate leases include an option to terminate the lease term earlier than the specified lease term for a fee. These options are not included as part of the lease term unless they are reasonably certain to be exercised.

Many of the Corporation's real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation's lease agreements do not contain any material residual value guarantees.

The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component.

On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant.

Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following (in thousands):
Classification202120202019
Operating lease costs
FixedCost of sales$2,312 $1,819 $1,803 
Selling and administrative expenses23,115 25,357 24,149 
Short-term / variableCost of sales985 434 700 
Selling and administrative expenses674 1,772 1,140 
Finance lease costs
AmortizationCost of sales949 473 279 
Selling and administrative, and interest expense1,857 265 201 
Less: Sublease income
Cost of sales(174)— — 
Selling and administrative expenses(346)(130)(181)
Total lease costs$29,372 $29,990 $28,091 
Maturity of lease liabilities as of January 1, 2022 is as follows (in thousands):
Operating Leases (a)Finance Leases (b)Total
2022$21,876 $2,914 $24,790 
202318,883 2,841 21,724 
202414,943 2,484 17,427 
202513,338 2,085 15,423 
202610,070 139 10,209 
Thereafter15,225 — 15,225 
Total lease payments94,335 10,463 104,798 
Less: Interest(7,779)(325)(8,104)
Present value of lease liabilities$86,556 $10,138 $96,694 

(a)At this time there are no operating lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $17.3 million of legally binding minimum lease payments for operating leases signed but not yet commenced, which are excluded from operating lease liabilities.
(b)At this time there are no finance lease options to extend lease terms that are reasonably certain of being exercised. Currently the Corporation has $3.4 million of legally binding minimum lease payments for finance leases signed but not yet commenced, which are excluded from finance lease liabilities.

The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of January 1, 2022:
Weighted-Average Discount Rate (percent)Weighted-Average Remaining Lease Term
 (years)
Operating leases3.0 %5.3
Finance leases1.8 %3.8

The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities (in thousands):
202120202019
Cash paid for amounts included in the measurements of lease liabilities
Operating cash flows from operating / finance leases$24,679 $31,461 $26,446 
Financing cash flows from finance leases$2,671 $674 $419 
Leased assets obtained in exchange for new operating / finance lease liabilities$49,344 $27,260 $25,268