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Leases

12 Months Ended

Jan. 02, 2022

LEASES

General

The Company has operating and finance leases for manufacturing equipment, corporate offices, showrooms, distribution facilities, design centers, as well as computer and office equipment. The Company’s leases have terms ranging from 1 to 20 years, some of which may include options to extend the lease term for up to 5 years, and certain leases may include an option to terminate the lease. Our lease accounting may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option.

As of January 2, 2022, there were no significant leases that had not commenced as of the end of fiscal year 2021.

The table below represents a summary of the balances recorded in the consolidated balance sheets related to our leases as of January 2, 2022 and January 3, 2021:


	January 2, 2022				January 3, 2021
Balance Sheet Location	Operating Leases		Finance Leases		Operating Leases		Finance Leases
	(in thousands)
Operating lease right-of-use assets	$	90,561			$	98,013

Current portion of operating lease liabilities	$	14,588			$	13,555
Operating lease liabilities	77,905				86,468
Total operating lease liabilities	$	92,493			$	100,023

Property, plant and equipment, net			$	6,547			$	6,138

Accrued expenses			$	1,837			$	1,496
Other long-term liabilities			3,201				2,688
Total finance lease liabilities			$	5,038			$	4,184

Lease Costs


	Fiscal Year
	2021		2020		2019
	(in thousands)
Finance lease cost:
Amortization of right-of-use assets	$	2,653	$	1,251	$	890
Interest on lease liabilities	140		86		51
Operating lease cost	21,581		25,213		24,246
Short-term lease cost	977		525		2,057
Variable lease cost	2,831		3,970		3,665
Total lease cost	$	28,182	$	31,045	$	30,909

Other Supplemental Information


	Fiscal Year
	2021		2020		2019
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	108	$	86	$	51
Operating cash flows from operating leases	22,210		22,206		22,597
Financing cash flows from finance leases	2,282		1,727		1,255
Right-of-use assets obtained in exchange for new finance lease liabilities	3,259		2,546		2,240
Right-of-use assets obtained in exchange for new operating lease liabilities	13,330		2,504		12,655

Lease Term and Discount Rate

The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of January 2, 2022 and January 3, 2021:


	End of Fiscal Year
	2021		2020
Weighted-average remaining lease term – finance leases (in years)	3.20		3.35
Weighted-average remaining lease term – operating leases (in years)	9.97		10.61
Weighted-average discount rate – finance leases	2.82	%	2.64	%
Weighted-average discount rate – operating leases	5.87	%	5.98	%

Maturity Analysis

A maturity analysis of lease payments under non-cancellable leases is presented as follows:


Fiscal Year	Operating Leases		Finance Leases
	(in thousands)
2022	$	17,883	$	1,919
2023	13,734		1,541
2024	12,189		1,161
2025	10,455		466
2026	10,655		150
Thereafter	60,618		49
Total future minimum lease payments (undiscounted)	125,534		5,286
Less: Present value discount	(33,041)		(248)
Total lease liability	$	92,493	$	5,038

Leases