Lease Commitments

12 Months Ended

Jan. 02, 2021

LEASE COMMITMENTS

Accounting Policy

At the commencement date of a lease, the company recognizes a liability to make lease payments and an asset representing the right to use the underlying asset during the lease term. The lease liability is measured at the present value of lease payments over the lease term, including variable fees that are known or subject to a minimum floor. The lease liability includes lease component fees, while non-lease component fees are expensed as incurred for all asset classes. The company's lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. When a contract excludes an implicit rate, the company utilizes an incremental borrowing rate based on information available at the lease commencement date including lease term and geographic region. The initial valuation of the right-of-use (“ROU”) asset includes the initial measurement of the lease liability, lease payments made in advance of the lease commencement date and initial direct costs incurred by the Company and excludes lease incentives. Operating lease ROU assets are included in other assets and operating lease liabilities are included accrued expenses and other non-current liabilities.

Leases with an initial term of 12 months or less are classified as short-term leases and are not recorded on the Consolidated Balance Sheets. The lease expense for short-term leases is recognized on a straight-line basis over the lease term.

Leases

The company leases warehouse space, office facilities and equipment under operating leases. The company has operating lease costs of $31.2 million, $31.0 million and $30.2 million in fiscal 2020, 2019 and 2018 respectively, including short-term lease expense and variable lease costs, which were immaterial in the year.


Leases (in thousands)	January 2, 2021		December 28, 2019

Operating lease right-of-use assets	$	97,193	$	96,655


Operating Lease Liability:
Current	22,493		21,827
Non-current	76,529		75,018
Total Liability	$	99,022	$	96,845


Total Lease Commitments (in thousands)	Operating Leases
2021	$	24,675
2022	21,230
2023	16,650
2024	13,214
2025	9,315
2026 and thereafter	23,446
Total future lease commitments	108,530
Less imputed interest	9,508
Total	$	99,022


Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended January 2, 2021			Twelve Months Ended December 28, 2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	26,024		$	24,794

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	25,433			25,306

	January 2, 2021			December 28, 2019

Weighted-average remaining lease terms leases - Operating	6.0 years			6.3 years

Weighted-average discount rate - Operating	3.0		%	3.4		%