Lease Commitments

12 Months Ended

Jan. 01, 2022

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 $31.5 million, $30.1 million and $30.6 million in fiscal 2021, 2020 and 2019 respectively, including short-term lease expense and variable lease costs, which were immaterial in the year.


Leases (in thousands)	January 1, 2022		January 2, 2021
Operating lease right-of-use assets:
Other assets	$	93,388	$	97,193


Operating lease liabilities:
Accrued expenses	22,753		22,493
Other non-current liabilities	74,202		76,529
Total Liability	$	96,955	$	99,022


Total Lease Commitments (in thousands)	Operating Leases
2022	$	24,903
2023	21,458
2024	17,588
2025	12,581
2026	10,122
2027 and thereafter	19,062
Total future lease commitments	105,714
Less imputed interest	8,759
Total	$	96,955


Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended January 1, 2022			Twelve Months Ended January 2, 2021
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	25,957		$	26,024

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	16,353			25,433

	January 1, 2022			January 2, 2021

Weighted-average remaining lease terms - Operating	5.6 years			6.0 years

Weighted-average discount rate - Operating	2.8		%	3.0		%