Lease Commitments

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lessee, Operating Leases

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 in 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 $35.7 million, $31.5 million and $30.1 million in fiscal 2022, 2021 and 2020 respectively, including short-term lease expense and variable lease costs, which were immaterial in the year.

Leases (in thousands)	December 31, 2022		January 1, 2022
Operating lease right-of-use assets:
Other assets	$	102,314	$	93,388
Operating lease liabilities:
Accrued expenses	25,250		22,753
Other non-current liabilities	80,242		74,202
Total Liability	$	105,492	$	96,955

Total Lease Commitments (in thousands)	Operating Leases
2023	$	27,645
2024	23,177
2025	18,086
2026	14,818
2027	10,453
2028 and thereafter	20,181
Total future lease commitments	114,360
Less imputed interest	8,868
Total	$	105,492

Other Lease Information (in thousands, except lease term and discount rate)	Twelve Months Ended December 31, 2022			Twelve Months Ended January 1, 2022
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	28,104		$	25,957
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	20,725			16,353
	December 31, 2022			January 1, 2022
Weighted-average remaining lease terms - Operating	5.5 years			5.6 years
Weighted-average discount rate - Operating	2.9		%	2.8		%