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Leases
 9 Months Ended
Oct. 01, 2023
Leases [Abstract]  
Leases 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.
The Company records a right-of-use asset and lease liability for leases extending beyond one year for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region.
As of October 1, 2023, there were no significant leases that had not commenced.
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of October 1, 2023 and January 1, 2023:
October 1, 2023January 1, 2023
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$75,604 $81,644 
 
Current portion of operating lease liabilities$10,829 $11,857 
Operating lease liabilities67,554 72,305 
Total operating lease liabilities$78,383 $84,162 
 
Property, plant and equipment, net$6,406 $5,845 
 
Accrued expenses$2,256 $2,101 
Other long-term liabilities4,534 4,138 
Total finance lease liabilities$6,790 $6,239 
Lease Costs
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$696 $581 $2,056 $1,636 
Interest on lease liabilities79 45 224 115 
Operating lease cost4,740 4,743 14,141 14,310 
Short-term lease cost187 204 934 642 
Variable lease cost583 614 1,924 2,012 
Total lease cost$6,285 $6,187 $19,279 $18,715 
Other Supplemental Information
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$60 $35 $167 $88 
Operating cash flows from operating leases4,130 4,406 12,771 13,854 
Financing cash flows from finance leases545 525 1,853 1,535 
Right-of-use assets obtained in exchange for new finance lease liabilities1,414 182 2,450 2,525 
Right-of-use assets obtained (adjusted) in exchange for new (remeasured) operating lease liabilities
236 (734)4,199 6,089 
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 October 1, 2023 and January 1, 2023:
 October 1, 2023January 1, 2023
Weighted-average remaining lease term – finance leases (in years)3.763.82
Weighted-average remaining lease term – operating leases (in years)8.779.29
Weighted-average discount rate – finance leases5.16 %3.79 %
Weighted-average discount rate – operating leases5.99 %5.89 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2023 (excluding the nine months ended October 1, 2023)
$2,733 $569 
202414,999 2,518 
202513,069 1,733 
202612,767 1,202 
202710,246 868 
Thereafter48,882 662 
Total future minimum lease payments (undiscounted)102,696 7,552 
Less: Present value discount(24,313)(762)
Total lease liability$78,383 $6,790 
Leases 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.
The Company records a right-of-use asset and lease liability for leases extending beyond one year for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region.
As of October 1, 2023, there were no significant leases that had not commenced.
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of October 1, 2023 and January 1, 2023:
October 1, 2023January 1, 2023
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$75,604 $81,644 
 
Current portion of operating lease liabilities$10,829 $11,857 
Operating lease liabilities67,554 72,305 
Total operating lease liabilities$78,383 $84,162 
 
Property, plant and equipment, net$6,406 $5,845 
 
Accrued expenses$2,256 $2,101 
Other long-term liabilities4,534 4,138 
Total finance lease liabilities$6,790 $6,239 
Lease Costs
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$696 $581 $2,056 $1,636 
Interest on lease liabilities79 45 224 115 
Operating lease cost4,740 4,743 14,141 14,310 
Short-term lease cost187 204 934 642 
Variable lease cost583 614 1,924 2,012 
Total lease cost$6,285 $6,187 $19,279 $18,715 
Other Supplemental Information
Three Months EndedNine Months Ended
October 1, 2023October 2, 2022October 1, 2023October 2, 2022
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$60 $35 $167 $88 
Operating cash flows from operating leases4,130 4,406 12,771 13,854 
Financing cash flows from finance leases545 525 1,853 1,535 
Right-of-use assets obtained in exchange for new finance lease liabilities1,414 182 2,450 2,525 
Right-of-use assets obtained (adjusted) in exchange for new (remeasured) operating lease liabilities
236 (734)4,199 6,089 
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 October 1, 2023 and January 1, 2023:
 October 1, 2023January 1, 2023
Weighted-average remaining lease term – finance leases (in years)3.763.82
Weighted-average remaining lease term – operating leases (in years)8.779.29
Weighted-average discount rate – finance leases5.16 %3.79 %
Weighted-average discount rate – operating leases5.99 %5.89 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2023 (excluding the nine months ended October 1, 2023)
$2,733 $569 
202414,999 2,518 
202513,069 1,733 
202612,767 1,202 
202710,246 868 
Thereafter48,882 662 
Total future minimum lease payments (undiscounted)102,696 7,552 
Less: Present value discount(24,313)(762)
Total lease liability$78,383 $6,790