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Leases
12 Months Ended
Dec. 28, 2020
Leases [Abstract]  
Leases

(2)

Leases

The Company leases some of its manufacturing and assembly plants, sales offices and equipment under non-cancellable operating leases that expire at various dates through 2049. The majority of the Company’s lease arrangements are comprised of fixed payments and certain leases consist of variable payments based on equipment usage. These variable payments are not included in the measurement of the ROU asset or lease liability due to uncertainty of the payment amount and are recorded as lease expense in the period incurred. Certain leases contain renewal provisions at the Company’s option. Most of the leases require the Company to pay for certain other costs such as property taxes and maintenance. Certain leases also contain rent escalation clauses (step rents) that require additional rental amounts in the later years of the term. Rent expense for leases with step rents is recognized on a straight-line basis

over the minimum lease term. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expense were as follows:

 

 

 

For the Year Ended

 

 

 

December 28, 2020

 

 

December 30, 2019

 

 

 

(In thousands)

 

Operating lease cost

 

$

9,304

 

 

$

8,560

 

Variable lease cost

 

 

529

 

 

 

591

 

Short-term lease cost

 

 

525

 

 

 

520

 

 

Supplemental cash flow information related to leases was as follows:

 

 

 

For the Year Ended

 

 

 

December 28, 2020

 

 

December 30, 2019

 

 

 

(In thousands)

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

8,865

 

 

$

8,265

 

Right-of-use assets obtained in exchange for new lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

 

10,036

 

 

 

13,596

 

 

Supplemental balance sheet information related to leases was as follows:

 

 

 

As of

 

 

 

December 28, 2020

 

 

December 30, 2019

 

 

 

(In thousands)

 

Operating lease right-of-use assets

 

$

24,340

 

 

$

22,173

 

Other current liabilities

 

 

8,144

 

 

 

7,111

 

Operating lease liabilities

 

 

17,211

 

 

 

15,413

 

Total operating lease liabilities

 

$

25,355

 

 

$

22,524

 

 

 

 

As of

 

 

 

December 28, 2020

 

 

December 30, 2019

 

Weighted average remaining lease term

 

4.2 years

 

 

4.4 years

 

Weighted average discount rate

 

 

3.31

%

 

 

3.92

%

 

Maturities of operating lease liabilities were as follows (1):

 

 

 

(In thousands)

 

Less than one year

 

$

9,170

 

1 - 2 years

 

 

5,240

 

2 - 3 years

 

 

4,562

 

3 - 4 years

 

 

3,586

 

4 - 5 years

 

 

2,313

 

Thereafter

 

 

2,336

 

Total lease payments

 

 

27,207

 

Less imputed interest

 

 

(1,852

)

Total

 

$

25,355

 

 

 

(1)

Excludes $955 of legally binding minimum lease payments for leases signed but not yet commenced.

 

Operating Leases Pre-Topic 842 Adoption

The following is a schedule of future minimum lease payments as of December 31, 2018:

 

 

Operating Leases

 

 

 

(In thousands)

 

2019

 

$

6,204

 

2020

 

 

4,677

 

2021

 

 

3,406

 

2022

 

 

2,408

 

2023

 

 

2,172

 

Thereafter

 

 

4,172

 

Total minimum lease payments

 

$

23,039

 

Total rent expense for the year ended December 31, 2018 was approximately $9,297.