Note 7 - Leases

9 Months Ended

Oct. 02, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, the terms of which are described in our 2020 10-K. In the first quarter of fiscal 2021, we extended the leases for our Hillsboro, Oregon and Shanghai, China facilities, which resulted in approximately $7.2 million of the increase in right-of-use assets and operating lease liabilities. All of our facilities are leased under operating leases, which expire at various times through 2028, with a weighted-average remaining lease term of 4.4 years and a weighted-average discount rate of 5.3% as of October 2, 2021.

We recorded fixed operating lease expenses of $2.0 million and $1.9 million for the third quarter of fiscal 2021 and 2020, respectively, and $5.9 and $5.7 million for the first nine months of fiscal 2021 and 2020, respectively. 

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first nine months of fiscal 2021:

Operating lease right-of-use assets	(in thousands)
Balance as of January 2, 2021	$	22,178
Right-of-use assets obtained for new and modified lease contracts during the period		7,550
Amortization of right-of-use assets during the period		(4,926	)
Adjustments for present value and foreign currency effects		20
Balance as of October 2, 2021	$	24,822

Operating lease liabilities	(in thousands)
Balance as of January 2, 2021	$	23,055
Lease liabilities incurred for new lease contracts during the period		7,550
Accretion of lease liabilities		988
Operating cash used by payments on lease liabilities		(5,786	)
Adjustments for present value and foreign currency effects		14
Balance as of October 2, 2021		25,821
Less: Current portion of operating lease liabilities (included in Accrued expenses)		(5,414	)
Long-term operating lease liabilities, net of current portion	$	20,407

Maturities of operating lease liabilities as of October 2, 2021 are as follows:

Fiscal year	(in thousands)
2021 (remaining quarter)	$	1,299
2022		7,175
2023		7,212
2024		5,296
2025		3,651
Thereafter		4,614
Total lease payments		29,247
Less: amount representing interest		(3,426	)
Total lease liabilities	$	25,821

Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $7.4 million at October 2, 2021 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.