XML 31 R20.htm IDEA: XBRL DOCUMENT
v3.23.1

LEASES | 3 Months Ended
--- | ---
Apr. 01, 2023
Leases [Abstract] |
LEASES | LEASES The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from approximately one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements. The components of lease expense were as follows (in thousands):
Lease Cost |  | Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location |  | For the 13 Weeks Ended April 1, 2023 |  | For the 13 Weeks Ended April 2, 2022 |  |  |  |
Operating lease cost(1)(2) |  | SG&A |  | $ | 17,877 |  |  | $ | 20,192 |  |  |  |  |
Short-term lease cost |  | SG&A |  | $ | 215 |  |  | $ | 184 |  |  |  |  |
Variable lease cost |  | SG&A |  | $ | 6,120 |  |  | $ | 6,948 |  |  |  |  |
_______________________________________________ (1) Includes sublease income, which was immaterial. (2) Excludes the impact of deferred or abated rent amounts The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases |  | Condensed Consolidated Balance Sheets Location |  | April 1, 2023 |  | December 31, 2022
Assets |  |  |  |  |  |
Operating |  | Operating lease ROU assets |  | $ | 147,179 |  |  | $ | 156,947 |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating |  | Current operating lease liabilities |  | $ | 45,642 |  |  | $ | 49,702 |
Noncurrent: |  |  |  |  |  |
Operating |  | Long-term operating lease liabilities |  | $ | 140,801 |  |  | $ | 150,188 |
The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount Rate |  | April 1, 2023 |  | December 31, 2022
Weighted-average remaining lease term: |  |  |  |
Operating leases |  | 5.7 years |  | 5.6 years
Weighted-average discount rate: |  |  |  |
Operating leases |  | 14.2 | % |  | 14.1 | %
Future minimum lease payments by year as of April 1, 2023 were as follows (in thousands):
Fiscal Year |  | Operating Leases |  |
2023 (remaining) |  | $ | 58,533 |  |  |
2024 |  | 55,266 |  |  |
2025 |  | 39,174 |  |  |
2026 |  | 31,076 |  |  |
2027 |  | 22,408 |  |  |
Thereafter |  | 79,989 |  |  |
Total lease payments |  | $ | 286,446 |  |  |
Less: Interest |  | 100,003 |  |  |
Total lease obligations |  | $ | 186,443 |  |  |
Supplemental cash flow information related to leases was as follows (in thousands):
| For the 13 Weeks Ended April 1, 2023 |  | For the 13 Weeks Ended April 2, 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases(1) | $ | 22,362 |  |  | $ | 24,439 |
Leased assets obtained in exchange for new operating lease liabilities | 6,263 |  |  | 1,494 |
_______________________________________________ (1) Excludes the impact of deferred or abated rent amounts As of April 1, 2023, the Company did not have any material operating or finance leases that have been signed but not commenced.
LEASES | LEASES The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from approximately one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements. The components of lease expense were as follows (in thousands):
Lease Cost |  | Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location |  | For the 13 Weeks Ended April 1, 2023 |  | For the 13 Weeks Ended April 2, 2022 |  |  |  |
Operating lease cost(1)(2) |  | SG&A |  | $ | 17,877 |  |  | $ | 20,192 |  |  |  |  |
Short-term lease cost |  | SG&A |  | $ | 215 |  |  | $ | 184 |  |  |  |  |
Variable lease cost |  | SG&A |  | $ | 6,120 |  |  | $ | 6,948 |  |  |  |  |
_______________________________________________ (1) Includes sublease income, which was immaterial. (2) Excludes the impact of deferred or abated rent amounts The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases |  | Condensed Consolidated Balance Sheets Location |  | April 1, 2023 |  | December 31, 2022
Assets |  |  |  |  |  |
Operating |  | Operating lease ROU assets |  | $ | 147,179 |  |  | $ | 156,947 |
Liabilities |  |  |  |  |  |
Current: |  |  |  |  |  |
Operating |  | Current operating lease liabilities |  | $ | 45,642 |  |  | $ | 49,702 |
Noncurrent: |  |  |  |  |  |
Operating |  | Long-term operating lease liabilities |  | $ | 140,801 |  |  | $ | 150,188 |
The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount Rate |  | April 1, 2023 |  | December 31, 2022
Weighted-average remaining lease term: |  |  |  |
Operating leases |  | 5.7 years |  | 5.6 years
Weighted-average discount rate: |  |  |  |
Operating leases |  | 14.2 | % |  | 14.1 | %
Future minimum lease payments by year as of April 1, 2023 were as follows (in thousands):
Fiscal Year |  | Operating Leases |  |
2023 (remaining) |  | $ | 58,533 |  |  |
2024 |  | 55,266 |  |  |
2025 |  | 39,174 |  |  |
2026 |  | 31,076 |  |  |
2027 |  | 22,408 |  |  |
Thereafter |  | 79,989 |  |  |
Total lease payments |  | $ | 286,446 |  |  |
Less: Interest |  | 100,003 |  |  |
Total lease obligations |  | $ | 186,443 |  |  |
Supplemental cash flow information related to leases was as follows (in thousands):
| For the 13 Weeks Ended April 1, 2023 |  | For the 13 Weeks Ended April 2, 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases(1) | $ | 22,362 |  |  | $ | 24,439 |
Leased assets obtained in exchange for new operating lease liabilities | 6,263 |  |  | 1,494 |
_______________________________________________ (1) Excludes the impact of deferred or abated rent amounts As of April 1, 2023, the Company did not have any material operating or finance leases that have been signed but not commenced.

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 https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types: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 https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration