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Leases | 12 Months Ended
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Dec. 28, 2024
Leases [Abstract] |
Leases | Leases The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As of December 28, 2024, approximately 88 percent of the value of the Corporation’s leased assets is for real estate. The remaining 12 percent of the value of the Corporation’s leased assets is for equipment. As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and international operations. Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from one to ten years. The exercise of lease renewal options is at the Corporation’s sole discretion. Certain real estate leases include an option to terminate the lease term earlier than the specified lease term for a fee. These options are not included as part of the lease term unless they are reasonably certain to be exercised. Many of the Corporation’s real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation’s lease agreements do not contain any material residual value guarantees. The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant. Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following:
| Classification |  | 2024 |  | 2023 |  | 2022
Operating lease costs |  |  |  |  |  |  |
Fixed | Cost of sales |  | $ | 6.3 |  |  | $ | 5.4 |  |  | $ | 2.9 |
| Selling and administrative expenses |  | 25.2 |  |  | 24.3 |  |  | 22.7 |
Short-term / variable | Cost of sales |  | 1.5 |  |  | 1.4 |  |  | 1.3 |
| Selling and administrative expenses |  | 1.6 |  |  | 1.7 |  |  | 1.5 |
Finance lease costs |  |  |  |  |  |  |
Amortization | Cost of sales |  | 1.3 |  |  | 1.4 |  |  | 1.2 |
| Selling and administrative, and interest expense |  | 4.2 |  |  | 3.1 |  |  | 2.5 |
Less: Sublease income |  |  |  |  |  |  |
| Cost of sales |  | (0.0) |  |  | (0.0) |  |  | 0.0 |
| Selling and administrative expenses |  | (1.0) |  |  | (0.5) |  |  | (0.3) |
Total lease costs |  |  | $ | 39.0 |  |  | $ | 37.0 |  |  | $ | 31.9 |
Maturity of lease liabilities as of December 28, 2024 is as follows:
| Operating Leases |  | Finance Leases |  | Total
2025 | $ | 35.1 |  |  | $ | 6.2 |  |  | $ | 41.3 |
2026 | 31.5 |  |  | 4.0 |  |  | 35.5 |
2027 | 24.5 |  |  | 2.7 |  |  | 27.2 |
2028 | 16.0 |  |  | 2.0 |  |  | 18.1 |
2029 | 14.4 |  |  | 0.9 |  |  | 15.3 |
Thereafter | 55.5 |  |  | 0.0 |  |  | 55.5 |
Total lease payments | 177.0 |  |  | 16.0 |  |  | 193.0 |
Less: Interest | (39.4) |  |  | (1.5) |  |  | (40.9) |
Present value of lease liabilities | $ | 137.6 |  |  | $ | 14.5 |  |  | $ | 152.1 |
As of December 28, 2024, there were $1.1 million and $0.4 million of legally binding minimum lease payments for operating leases and finance leases, respectively, that were signed but not yet commenced and thus excluded from lease liabilities. Additionally, there were no operating or finance lease options to extend lease terms that were reasonably certain of being exercised as of current fiscal year end. The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of December 28, 2024:
| Weighted-Average Discount Rate |  | Weighted-Average Remaining Lease Term (years)
Operating leases | 6.3 | % |  | 6.9
Finance leases | 5.5 | % |  | 3.4
The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities:
| 2024 |  | 2023 |  | 2022
Cash paid for amounts included in the measurements of lease liabilities |  |  |  |  |
Operating cash flows from operating / finance leases | $ | 31.9 |  |  | $ | 29.7 |  |  | $ | 22.6 |
Financing cash flows from finance leases | $ | 4.8 |  |  | $ | 4.2 |  |  | $ | 3.3 |
Leased assets obtained in exchange for new operating / finance lease liabilities | $ | 38.3 |  |  | $ | 62.3 |  |  | $ | 39.2 |
Leases | Leases The Corporation leases certain showrooms, office space, manufacturing facilities, distribution centers, retail stores, and equipment and determines if an arrangement is a lease at inception. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets; expense for these leases is recognized on a straight-line basis over the lease term. As of December 28, 2024, approximately 88 percent of the value of the Corporation’s leased assets is for real estate. The remaining 12 percent of the value of the Corporation’s leased assets is for equipment. As the rates implicit in its leases cannot be readily determined, the Corporation estimates secured incremental borrowing rates based on the information available at the commencement date in determining the present value of lease payments. The Corporation uses separate discount rates for its United States operations and international operations. Certain real estate leases include one or more options to renew with renewal terms that can extend the lease term from one to ten years. The exercise of lease renewal options is at the Corporation’s sole discretion. Certain real estate leases include an option to terminate the lease term earlier than the specified lease term for a fee. These options are not included as part of the lease term unless they are reasonably certain to be exercised. Many of the Corporation’s real estate lease agreements include periods of rent holidays and payments that escalate over the lease term by specified amounts. While not significant, certain equipment leases have variable lease payments based on machine hours and certain real estate leases have rate changes based on the Consumer Price Index. The Corporation’s lease agreements do not contain any material residual value guarantees. The Corporation has lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. On occasion, the Corporation rents or subleases certain real estate to third parties. This sublease portfolio consists mainly of operating leases for office furniture showrooms and is not significant. Lease costs included in the Consolidated Statements of Comprehensive Income consisted of the following:
| Classification |  | 2024 |  | 2023 |  | 2022
Operating lease costs |  |  |  |  |  |  |
Fixed | Cost of sales |  | $ | 6.3 |  |  | $ | 5.4 |  |  | $ | 2.9 |
| Selling and administrative expenses |  | 25.2 |  |  | 24.3 |  |  | 22.7 |
Short-term / variable | Cost of sales |  | 1.5 |  |  | 1.4 |  |  | 1.3 |
| Selling and administrative expenses |  | 1.6 |  |  | 1.7 |  |  | 1.5 |
Finance lease costs |  |  |  |  |  |  |
Amortization | Cost of sales |  | 1.3 |  |  | 1.4 |  |  | 1.2 |
| Selling and administrative, and interest expense |  | 4.2 |  |  | 3.1 |  |  | 2.5 |
Less: Sublease income |  |  |  |  |  |  |
| Cost of sales |  | (0.0) |  |  | (0.0) |  |  | 0.0 |
| Selling and administrative expenses |  | (1.0) |  |  | (0.5) |  |  | (0.3) |
Total lease costs |  |  | $ | 39.0 |  |  | $ | 37.0 |  |  | $ | 31.9 |
Maturity of lease liabilities as of December 28, 2024 is as follows:
| Operating Leases |  | Finance Leases |  | Total
2025 | $ | 35.1 |  |  | $ | 6.2 |  |  | $ | 41.3 |
2026 | 31.5 |  |  | 4.0 |  |  | 35.5 |
2027 | 24.5 |  |  | 2.7 |  |  | 27.2 |
2028 | 16.0 |  |  | 2.0 |  |  | 18.1 |
2029 | 14.4 |  |  | 0.9 |  |  | 15.3 |
Thereafter | 55.5 |  |  | 0.0 |  |  | 55.5 |
Total lease payments | 177.0 |  |  | 16.0 |  |  | 193.0 |
Less: Interest | (39.4) |  |  | (1.5) |  |  | (40.9) |
Present value of lease liabilities | $ | 137.6 |  |  | $ | 14.5 |  |  | $ | 152.1 |
As of December 28, 2024, there were $1.1 million and $0.4 million of legally binding minimum lease payments for operating leases and finance leases, respectively, that were signed but not yet commenced and thus excluded from lease liabilities. Additionally, there were no operating or finance lease options to extend lease terms that were reasonably certain of being exercised as of current fiscal year end. The following table summarizes the weighted-average discount rates and weighted-average remaining lease terms for operating and finance leases as of December 28, 2024:
| Weighted-Average Discount Rate |  | Weighted-Average Remaining Lease Term (years)
Operating leases | 6.3 | % |  | 6.9
Finance leases | 5.5 | % |  | 3.4
The following table summarizes cash paid for amounts included in the measurements of lease liabilities and the leased assets obtained in exchange for new operating and finance lease liabilities:
| 2024 |  | 2023 |  | 2022
Cash paid for amounts included in the measurements of lease liabilities |  |  |  |  |
Operating cash flows from operating / finance leases | $ | 31.9 |  |  | $ | 29.7 |  |  | $ | 22.6 |
Financing cash flows from finance leases | $ | 4.8 |  |  | $ | 4.2 |  |  | $ | 3.3 |
Leased assets obtained in exchange for new operating / finance lease liabilities | $ | 38.3 |  |  | $ | 62.3 |  |  | $ | 39.2 |

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