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Leases (Notes) | 12 Months Ended
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Jan. 02, 2021
Leases [Abstract] |
Lessee, Operating Leases [Text Block] | LEASES Description of Leases The Company’s leases consist primarily of corporate offices, retail stores, distribution centers, showrooms, vehicles and office equipment. The Company leases assets in the normal course of business to meet its current and future needs while providing flexibility to its operations. The Company enters into contracts with third parties to lease specifically identified assets. Most of the Company’s leases have contractually specified renewal periods. Most retail store leases have early termination clauses that the Company can elect if stipulated sales amounts are not achieved. The Company determines the lease term for each lease based on the terms of each contract and factors in renewal and early termination options if such options are reasonably certain to be exercised. In response to the COVID-19 pandemic and the effect the pandemic had on the Company’s leased properties, the Company has been actively seeking rent relief from its landlords. The Company considered the FASB staff guidance issued in April 2020 in relation to accounting for lease concessions made in connection with the effects of the COVID-19 pandemic and elected to apply the temporary practical expedient to account for rent deferrals and abatements as though the enforceable rights and obligations existed in each contract. Depending on the timing of the future payments, amounts deferred and payable in future periods have been included in “Other accrued liabilities” and “Other liabilities” on the Company’s condensed consolidated balance sheets. The Company continued to recognize lease expense on a straight-line basis for its leases over the related lease terms. Accounting for Leases Under FASB ASC Topic 842, Leases, the Company has elected the practical expedient to account for lease components and nonlease components associated with individual leases as a single lease component for all of its leases. In addition, the Company has elected to account for multiple lease components as a single lease component. The Company’s leases may include variable lease costs such as payments based on changes to an index, payments based on a percentage of retail store sales, and maintenance, utilities, shared marketing or other service costs that are paid directly to the lessor under terms of the lease. The Company recognizes variable lease payments when the amounts are incurred and determinable. The Company has elected to account for leases of less than one year as short-term leases and accordingly does not recognize a right-of-use asset or lease liability for these leases. The Company recognizes rent expense on a straight-line basis over the lease term. The Company subleases certain portions of leased offices and distribution centers that exceed the Company’s current operational needs. Since the Company utilizes the majority of the leased space and retains the obligation to the lessor, the underlying leases continue to be accounted for as operating leases. Sublease income is recognized on a straight-line basis over the term of the sublease, and beginning in fiscal 2019, is recognized in other expense (income), net on the consolidated statements of operations. The Company recognizes a lease liability in current and noncurrent liabilities equal to the present value of the fixed future lease payments using an incremental borrowing rate as of the commencement date of each lease. The incremental borrowing rate is based on an interest rate that the Company would normally pay to borrow on a collateralized basis over a similar term and amount equal to the lease payments. The weighted-average discount rate for operating leases as of January 2, 2021 is 5.2%. The Company also recognizes a right-of-use asset, which is equal to the lease liability as of January 2, 2021 adjusted for the remaining balance of accrued rent and unamortized lease incentives. The following is a summary of the Company’s lease cost.
| Fiscal Year
(In millions) | 2020 |  | 2019 |  |
Operating lease cost | $ | 34.1 |  |  | $ | 32.6 |  |  |
Variable lease cost | 12.3 |  |  | 14.5 |  |  |
Short-term lease cost | 1.2 |  |  | 1.2 |  |  |
Sublease income | (4.8) |  |  | (4.0) |  |  |
Total lease cost | $ | 42.8 |  |  | $ | 44.3 |  |  |
The weighted-average remaining lease term for operating leases as of January 2, 2021 is 9.5 years. Future undiscounted cash flows for operating leases for the fiscal periods subsequent to January 2, 2021 are as follows:
(In millions) | Operating Leases
2021 | $ | 33.9 |
2022 | 29.5 |
2023 | 21.7 |
2024 | 18.3 |
2025 | 17.5 |
Thereafter | 90.2 |
Total future payments | 211.1 |
Less: imputed interest | 46.8 |
Recognized lease liability | $ | 164.3 |
The Company made cash payments of $28.6 million and $33.2 million for operating lease liabilities during fiscal 2020 and 2019, respectively. The Company entered into new or amended leases that resulted in the noncash recognition of right-of-use assets and lease liabilities of $6.0 million and $26.8 million during fiscal 2020 and 2019, respectively. The Company did not enter into any real estate leases with commencement dates subsequent to January 2, 2021. Rental expense under all operating leases, under the previous lease standard ASC 840 and consisting primarily of minimum rentals, totaled $32.0 million in fiscal year 2018. The Company recognized sublease income of $2.8 million in fiscal year 2018.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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