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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2022
Commitments and Contingencies. |
Commitments and Contingencies | Note 8 – Commitments and Contingencies Facilities Leases The Company’s leases its corporate headquarters located in Torrance, California. The Company also leases warehouse space in LaSalle, Illinois, Chesapeake, Virginia, Las Vegas, Nevada, Grand Prairie, Texas, and Jacksonville, Florida, in addition to leasing office space for the Philippines subsidiary. Facility rent expense for fiscal years 2022, 2021, and 2020 was $7,846, $6,019 and 4,058, respectively. Quantitative information regarding the Company’s leases are as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | Fiscal Year ended | ​
​ |  | ​ | December 31, 2022 | January 1, 2022 |  | January 2, 2021 | ​
Components of lease cost | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Finance lease cost components | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Amortization of finance lease assets | ​ | $ | 4,440 | ​ | $ | 2,571 | ​ | $ | 1,246 | ​
Interest on finance lease liabilities | ​ | ​ | 1,139 | ​ | ​ | 1,111 | ​ | ​ | 735 | ​
Total finance lease costs | ​ | $ | 5,579 | ​ | $ | 3,682 | ​ | $ | 1,981 | ​
Operating lease costs | ​ | $ | 4,107 | ​ | $ | 2,441 | ​ | $ | 1,890 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Total lease cost | ​ | $ | 9,686 | ​ | $ | 6,123 | ​ | $ | 3,871 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Supplemental cash flow information related to operating and finance leases is as follows: | ​ | ​ | Fiscal Year ended | ​
​ | ​ | ​ | December 31, 2022 | January 1, 2022 | ​ | January 2, 2021 | ​
Cash paid for amounts included in the measurement of lease liabilities: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Operating cash outflow from operating leases | ​ | $ | 5,269 | ​ | $ | 3,399 | ​ | ​ | 1,676 | ​
Operating cash outflow from finance leases | ​ | ​ | 1,139 | ​ | ​ | 1,111 | ​ | ​ | 735 | ​
Financing cash outflow from finance leases | ​ | ​ | 4,232 | ​ | ​ | 2,164 | ​ | ​ | 1,005 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted-average remaining lease term-finance leases (in years) | ​ | ​ | 5.8 | ​ | ​ | 7.2 | ​ | ​ | 8.9 | ​
Weighted-average remaining lease term-operating leases (in years) | ​ | ​ | 5.4 | ​ | ​ | 6.3 | ​ | ​ | 6.3 | ​
Weighted-average discount rate-finance leases | ​ | ​ | 5.72 | % | ​ | 6.06 | % | ​ | 6.53 | %
Weighted-average discount rate-operating leases | ​ | ​ | 4.11 | % | ​ | 4.12 | % | ​ | 4.13 | %
​ Lease commitments as of December 31, 2022 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Finance Leases |  | Operating Leases |  | Total
2023 |  | $ | 5,839 | ​ | $ | 5,551 | ​ | $ | 11,390
2024 | ​ |  | 5,031 | ​ |  | 5,528 | ​ |  | 10,559
2025 | ​ |  | 3,985 | ​ |  | 5,139 | ​ |  | 9,124
2026 | ​ |  | 3,002 | ​ |  | 4,464 | ​ |  | 7,466
2027 | ​ |  | 1,723 | ​ |  | 4,424 | ​ |  | 6,147
Thereafter | ​ | ​ | 5,737 | ​ | ​ | 4,039 | ​ | ​ | 9,776
Total minimum payments required | ​ | ​ | 25,317 | ​ | ​ | 29,145 | ​ | ​ | 54,462
Less portion representing interest | ​ | ​ | 4,648 | ​ | ​ | 3,162 | ​ | ​ | 7,810
Present value of lease obligations | ​ | $ | 20,669 | ​ | $ | 25,983 | ​ | $ | 46,652
Less current portion of lease obligations | ​ |  | 4,753 | ​ |  | 4,571 | ​ |  | 9,324
Long-term portion of lease obligations | ​ | $ | 15,916 | ​ | $ | 21,412 | ​ | $ | 37,328
​ Legal Matters Asbestos. A wholly-owned subsidiary of the Company, Automotive Specialty Accessories and Parts, Inc. and its wholly-owned subsidiary Whitney Automotive Group, Inc. ("WAG"), are named defendants in several lawsuits involving claims for damages caused by installation of brakes during the late 1960’s and early 1970’s that contained asbestos. WAG marketed certain brakes, but did not manufacture any brakes. WAG maintains liability insurance coverage to protect its and the Company’s assets from losses arising from the litigation and coverage is provided on an occurrence rather than a claims made basis, and the Company is not expected to incur significant out-of-pocket costs in connection with this matter that would be material to its consolidated financial statements. Ordinary course litigation. The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. As of the date hereof, the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position, results of operations or cash flow of the Company. The Company maintains liability insurance coverage to protect the Company’s assets from losses arising out of or involving activities associated with ongoing and normal business operations. Related Party Matters The Company has entered into indemnification agreements with the Company’s directors and executive officers. These agreements require the Company to indemnify these individuals to the fullest extent permitted under law against liabilities that may arise by reason of their service to the Company, and to advance expenses incurred as a result of any proceeding against them as to which they could be indemnified.

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