XML 34 R16.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Lease Commitments | 12 Months Ended
--- | ---
Jan. 01, 2022
Leases [Abstract] |
Lease Commitments | Lease Commitments Under ASC 842, a contract contains a lease if there is an identified asset and the Company has the right to control the asset. The Company determines whether a contract contains a lease at contract inception. The Company leases office and production space under various non-cancellable operating leases that expire no later than 2031. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The Company also has production equipment, office equipment and vehicles under operating leases. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants. The Company has elected to use the available practical expedient to account for the lease and non-lease components of its leases as a single component. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate ('IBR"), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations. All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Consolidated Balance Sheets. Short-term lease expenses are recognized on a straight-line basis over the lease term. The following table presents the classification of ROU assets and lease liabilities as of January 1, 2022 and December 26, 2020:
Leases (in thousands) | Consolidated Balance Sheet Classification | January 1, 2022 |  | December 26, 2020
Assets |  |  |  |
Operating ROU assets | Right of use assets, net | $ | 29,616 |  |  | $ | 17,615 |
Liabilities |  |  |  |
Current operating lease liabilities | Accrued liabilities | $ | 9,018 |  |  | $ | 6,811 |
Non-current operating lease liabilities | Non-current operating lease liabilities | 22,305 |  |  | 12,950 |
Total lease liabilities |  | $ | 31,323 |  |  | $ | 19,761 |
The following table represents the lease costs for 2021 and 2020:
Leases (in thousands) | Consolidated Statements of Net Income Classification | Fiscal Year Ended January 1, 2022 |  | Fiscal Year Ended December 26, 2020
Short-term lease expenses | Cost of sales, SG&A expenses | $ | 345 |  |  | $ | 512 |
Variable lease expenses | Cost of sales, SG&A expenses | 1,165 |  |  | 1,307 |
Operating lease rent expenses | Cost of sales, SG&A expenses | 9,929 |  |  | 8,591 |
Total operating lease costs | Cost of sales, SG&A expenses | $ | 11,439 |  |  | $ | 10,410 |
The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $11.4 million, $10.4 million, and $10.1 million in 2021, 2020, and 2019, respectively.
Maturity of Lease Liabilities as of January 1, 2022 (in thousands) | Operating leases
2022 | $ | 10,080 |
2023 | 7,840 |
2024 | 7,323 |
2025 | 3,135 |
2026 | 1,322 |
2027 and thereafter | 4,607 |
Total lease payments | $ | 34,307 |
Present value of lease liabilities | $ | 31,323 |
Operating Lease Term and Discount Rate | Fiscal Year Ended January 1, 2022 |  | Fiscal Year Ended December 26, 2020
Weighted-average remaining lease term (years) | 4.79 |  | 3.41
Weighted-average discount rate | 4.27 | % |  | 5.06 | %
Cash Flow Information related to Leases (in thousands) |  | Fiscal Year Ended January 1, 2022
Cash paid for amounts included in the measurement of lease liabilities |  |
Operating cash flow payments for operating leases |  | $ | (10,150) |
Leased assets obtained in exchange for operating lease liabilities |  | 20,217 |
Other Information (in thousands) |  |
Net gain from sale and leaseback transaction |  | (4,058) |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration