XML 25 R14.htm IDEA: XBRL DOCUMENT v3.21.1
Leases
 3 Months Ended
Apr. 04, 2021
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 April 4, 2021, there were no significant leases that had not commenced as of the end of the first quarter.
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to our leases as of April 4, 2021 and January 3, 2021:
April 4, 2021January 3, 2021
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$94,609 $98,013 
 
Current portion of operating lease liabilities$13,289 $13,555 
Operating lease liabilities83,173 86,468 
Total operating lease liabilities$96,462 $100,023 
 
Property, plant and equipment, net$6,835 $6,138 
 
Accrued expenses$1,733 $1,496 
Other long-term liabilities3,148 2,688 
Total finance lease liabilities$4,881 $4,184 
Lease Costs
Three Months Ended
April 4, 2021April 5, 2020
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$279 $300 
Interest on lease liabilities32 18 
Operating lease cost5,886 6,222 
Short-term lease cost463 175 
Variable lease cost806 646 
Total lease cost$7,466 $7,361 
Other Supplemental Information
Three Months Ended
April 4, 2021April 5, 2020
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$32 $18 
Operating cash flows from operating leases5,200 5,881 
Financing cash flows from finance leases527 399 
Right-of-use assets obtained in exchange for new finance lease liabilities1,273 213 
Right-of-use assets obtained in exchange for new operating lease liabilities2,378 977 
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 April 4, 2021 and January 3, 2021:
 April 4, 2021January 3, 2021
Weighted-average remaining lease term – finance leases (in years)3.193.35
Weighted-average remaining lease term – operating leases (in years)10.4110.61
Weighted-average discount rate – finance leases2.60 %2.64 %
Weighted-average discount rate – operating leases5.98 %5.98 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2021 (excluding the three months ended April 4, 2021)
$14,250 $1,437 
202216,036 1,519 
202313,000 1,237 
202410,889 712 
20259,939 196 
Thereafter68,815 — 
Total future minimum lease payments (undiscounted)132,929 5,101 
Less: Present value discount(36,467)(220)
Total lease liability$96,462 $4,881 
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 April 4, 2021, there were no significant leases that had not commenced as of the end of the first quarter.
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to our leases as of April 4, 2021 and January 3, 2021:
April 4, 2021January 3, 2021
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$94,609 $98,013 
 
Current portion of operating lease liabilities$13,289 $13,555 
Operating lease liabilities83,173 86,468 
Total operating lease liabilities$96,462 $100,023 
 
Property, plant and equipment, net$6,835 $6,138 
 
Accrued expenses$1,733 $1,496 
Other long-term liabilities3,148 2,688 
Total finance lease liabilities$4,881 $4,184 
Lease Costs
Three Months Ended
April 4, 2021April 5, 2020
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$279 $300 
Interest on lease liabilities32 18 
Operating lease cost5,886 6,222 
Short-term lease cost463 175 
Variable lease cost806 646 
Total lease cost$7,466 $7,361 
Other Supplemental Information
Three Months Ended
April 4, 2021April 5, 2020
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$32 $18 
Operating cash flows from operating leases5,200 5,881 
Financing cash flows from finance leases527 399 
Right-of-use assets obtained in exchange for new finance lease liabilities1,273 213 
Right-of-use assets obtained in exchange for new operating lease liabilities2,378 977 
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 April 4, 2021 and January 3, 2021:
 April 4, 2021January 3, 2021
Weighted-average remaining lease term – finance leases (in years)3.193.35
Weighted-average remaining lease term – operating leases (in years)10.4110.61
Weighted-average discount rate – finance leases2.60 %2.64 %
Weighted-average discount rate – operating leases5.98 %5.98 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2021 (excluding the three months ended April 4, 2021)
$14,250 $1,437 
202216,036 1,519 
202313,000 1,237 
202410,889 712 
20259,939 196 
Thereafter68,815 — 
Total future minimum lease payments (undiscounted)132,929 5,101 
Less: Present value discount(36,467)(220)
Total lease liability$96,462 $4,881 
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.