XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Leases | 9 Months Ended
--- | ---
Oct. 04, 2020
Leases [Abstract] |
Leases | LEASES General The Company has operating and finance leases for manufacturing equipment, corporate offices, showrooms, distribution facilities, design centers, as well as computer and office equipment. The Company’s leases have terms ranging from 1 to 20 years, some of which may include options to extend the lease term for up to 5 years, and certain leases may include an option to terminate the lease. Our lease accounting may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option. The Company records a right-of-use asset and lease liability for leases extending beyond one year for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region. As of October 4, 2020, there were no significant leases that had not commenced as of the end of the third quarter. The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to our leases as of October 4, 2020 and December 29, 2019:
| October 4, 2020 |  | December 29, 2019
Balance Sheet Location | Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
| (In thousands)
Operating lease right-of-use assets | $ | 99,815 |  |  |  |  | $ | 107,044 |  |  |
Current portion of operating lease liabilities | $ | 14,015 |  |  |  |  | $ | 15,914 |  |  |
Operating lease liabilities | 87,276 |  |  |  |  | 91,829 |  |  |
Total operating lease liabilities | $ | 101,291 |  |  |  |  | $ | 107,743 |  |  |
Property and equipment |  |  | $ | 5,786 |  |  |  |  | $ | 5,007 |
Accrued expenses |  |  | $ | 1,415 |  |  |  |  | $ | 1,489 |
Other long-term liabilities |  |  | 2,299 |  |  |  |  | 1,673 |
Total finance lease liabilities |  |  | $ | 3,714 |  |  |  |  | $ | 3,162 |
Lease Costs
| Three Months Ended |  | Nine Months Ended
| October 4, 2020 |  | September 29, 2019 |  | October 4, 2020 |  | September 29, 2019
| (In thousands)
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 176 |  |  | $ | 112 |  |  | $ | 811 |  |  | $ | 536 |
Interest on lease liabilities | 22 |  |  | 12 |  |  | 56 |  |  | 31 |
Operating lease cost | 6,095 |  |  | 6,023 |  |  | 19,076 |  |  | 17,624 |
Short-term lease cost | 85 |  |  | 363 |  |  | 426 |  |  | 1,509 |
Variable lease cost | 1,089 |  |  | 561 |  |  | 2,659 |  |  | 1,319 |
Total lease cost | $ | 7,467 |  |  | $ | 7,071 |  |  | $ | 23,028 |  |  | $ | 21,019 |
Other Supplemental Information
| Three Months Ended |  | Nine Months Ended
| October 4, 2020 |  | September 29, 2019 |  | October 4, 2020 |  | September 29, 2019
| (In thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from finance leases | $ | 22 |  |  | $ | 12 |  |  | $ | 56 |  |  | $ | 31 |
Operating cash flows from operating leases | 5,528 |  |  | 5,653 |  |  | 16,978 |  |  | 16,158 |
Financing cash flows from finance leases | 442 |  |  | 291 |  |  | 1,252 |  |  | 808 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 1,156 |  |  | 252 |  |  | 1,709 |  |  | 803 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,517 |  |  | 1,437 |  |  | 5,582 |  |  | 7,973 |
Lease Term and Discount Rate The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of October 4, 2020 and December 29, 2019:
| October 4, 2020 |  | December 29, 2019
Weighted-average remaining lease term – finance leases (in years) | 3.29 |  | 2.76
Weighted-average remaining lease term – operating leases (in years) | 10.59 |  | 10.60
Weighted-average discount rate – finance leases | 2.75 | % |  | 2.06 | %
Weighted-average discount rate – operating leases | 5.96 | % |  | 5.86 | %
Maturity Analysis A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal Year | Operating Leases |  | Finance Leases
| (In thousands)
2020 (excluding the nine months ended October 4, 2020) | $ | 5,262 |  |  | $ | 411 |
2021 | 18,529 |  |  | 1,367 |
2022 | 15,126 |  |  | 903 |
2023 | 12,464 |  |  | 680 |
2024 | 10,513 |  |  | 407 |
Thereafter | 78,668 |  |  | 153 |
Total future minimum lease payments (undiscounted) | 140,562 |  |  | 3,921 |
Less: Present value discount | (39,271) |  |  | (207) |
Total lease liability | $ | 101,291 |  |  | $ | 3,714 |
Policy Elections The Company made an accounting policy election not to separate lease and non-lease components for all asset classes, except for data center assets, and will account for the lease payments as a single component. The Company also made an accounting policy election to exclude leases with an initial term of 12 months or less from the calculation of the right-of-use asset and lease liability recorded on the consolidated condensed balance sheets. These leases primarily represent month-to-month operating leases for vehicles and office equipment where we were reasonably certain that we would not elect an option to extend the lease.
Leases | LEASES General The Company has operating and finance leases for manufacturing equipment, corporate offices, showrooms, distribution facilities, design centers, as well as computer and office equipment. The Company’s leases have terms ranging from 1 to 20 years, some of which may include options to extend the lease term for up to 5 years, and certain leases may include an option to terminate the lease. Our lease accounting may include these options to extend or terminate a lease when it is reasonably certain that we will exercise that option. The Company records a right-of-use asset and lease liability for leases extending beyond one year for operating and finance leases once a contract that contains a lease is executed and we have the right to control the use of the leased asset. The right-of-use asset is measured as the present value of the lease obligation. The discount rate used to calculate the present value of the lease liability was the Company’s incremental borrowing rate for the applicable geographical region. As of October 4, 2020, there were no significant leases that had not commenced as of the end of the third quarter. The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to our leases as of October 4, 2020 and December 29, 2019:
| October 4, 2020 |  | December 29, 2019
Balance Sheet Location | Operating Leases |  | Finance Leases |  | Operating Leases |  | Finance Leases
| (In thousands)
Operating lease right-of-use assets | $ | 99,815 |  |  |  |  | $ | 107,044 |  |  |
Current portion of operating lease liabilities | $ | 14,015 |  |  |  |  | $ | 15,914 |  |  |
Operating lease liabilities | 87,276 |  |  |  |  | 91,829 |  |  |
Total operating lease liabilities | $ | 101,291 |  |  |  |  | $ | 107,743 |  |  |
Property and equipment |  |  | $ | 5,786 |  |  |  |  | $ | 5,007 |
Accrued expenses |  |  | $ | 1,415 |  |  |  |  | $ | 1,489 |
Other long-term liabilities |  |  | 2,299 |  |  |  |  | 1,673 |
Total finance lease liabilities |  |  | $ | 3,714 |  |  |  |  | $ | 3,162 |
Lease Costs
| Three Months Ended |  | Nine Months Ended
| October 4, 2020 |  | September 29, 2019 |  | October 4, 2020 |  | September 29, 2019
| (In thousands)
Finance lease cost: |  |  |  |  |  |  |
Amortization of right-of-use assets | $ | 176 |  |  | $ | 112 |  |  | $ | 811 |  |  | $ | 536 |
Interest on lease liabilities | 22 |  |  | 12 |  |  | 56 |  |  | 31 |
Operating lease cost | 6,095 |  |  | 6,023 |  |  | 19,076 |  |  | 17,624 |
Short-term lease cost | 85 |  |  | 363 |  |  | 426 |  |  | 1,509 |
Variable lease cost | 1,089 |  |  | 561 |  |  | 2,659 |  |  | 1,319 |
Total lease cost | $ | 7,467 |  |  | $ | 7,071 |  |  | $ | 23,028 |  |  | $ | 21,019 |
Other Supplemental Information
| Three Months Ended |  | Nine Months Ended
| October 4, 2020 |  | September 29, 2019 |  | October 4, 2020 |  | September 29, 2019
| (In thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from finance leases | $ | 22 |  |  | $ | 12 |  |  | $ | 56 |  |  | $ | 31 |
Operating cash flows from operating leases | 5,528 |  |  | 5,653 |  |  | 16,978 |  |  | 16,158 |
Financing cash flows from finance leases | 442 |  |  | 291 |  |  | 1,252 |  |  | 808 |
Right-of-use assets obtained in exchange for new finance lease liabilities | 1,156 |  |  | 252 |  |  | 1,709 |  |  | 803 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 1,517 |  |  | 1,437 |  |  | 5,582 |  |  | 7,973 |
Lease Term and Discount Rate The table below presents the weighted average remaining lease terms and discount rates for finance and operating leases as of October 4, 2020 and December 29, 2019:
| October 4, 2020 |  | December 29, 2019
Weighted-average remaining lease term – finance leases (in years) | 3.29 |  | 2.76
Weighted-average remaining lease term – operating leases (in years) | 10.59 |  | 10.60
Weighted-average discount rate – finance leases | 2.75 | % |  | 2.06 | %
Weighted-average discount rate – operating leases | 5.96 | % |  | 5.86 | %
Maturity Analysis A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal Year | Operating Leases |  | Finance Leases
| (In thousands)
2020 (excluding the nine months ended October 4, 2020) | $ | 5,262 |  |  | $ | 411 |
2021 | 18,529 |  |  | 1,367 |
2022 | 15,126 |  |  | 903 |
2023 | 12,464 |  |  | 680 |
2024 | 10,513 |  |  | 407 |
Thereafter | 78,668 |  |  | 153 |
Total future minimum lease payments (undiscounted) | 140,562 |  |  | 3,921 |
Less: Present value discount | (39,271) |  |  | (207) |
Total lease liability | $ | 101,291 |  |  | $ | 3,714 |
Policy Elections The Company made an accounting policy election not to separate lease and non-lease components for all asset classes, except for data center assets, and will account for the lease payments as a single component. The Company also made an accounting policy election to exclude leases with an initial term of 12 months or less from the calculation of the right-of-use asset and lease liability recorded on the consolidated condensed balance sheets. These leases primarily represent month-to-month operating leases for vehicles and office equipment where we were reasonably certain that we would not elect an option to extend the lease.

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 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 -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration