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Leases
 9 Months Ended
Oct. 02, 2022
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 2, 2022, there were no significant leases that had not commenced.
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of October 2, 2022 and January 2, 2022:
October 2, 2022January 2, 2022
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$77,447 $90,561 
 
Current portion of operating lease liabilities$12,400 $14,588 
Operating lease liabilities67,021 77,905 
Total operating lease liabilities$79,421 $92,493 
 
Property, plant and equipment, net$5,134 $6,547 
 
Accrued expenses$1,963 $1,837 
Other long-term liabilities3,563 3,201 
Total finance lease liabilities$5,526 $5,038 
Lease Costs
Three Months EndedNine Months Ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$581 $646 $1,636 $1,230 
Interest on lease liabilities45 37 115 104 
Operating lease cost4,743 5,240 14,310 17,040 
Short-term lease cost204 222 642 864 
Variable lease cost614 730 2,012 2,018 
Total lease cost$6,187 $6,875 $18,715 $21,256 
Other Supplemental Information
Three Months EndedNine Months Ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$35 $16 $88 $83 
Operating cash flows from operating leases4,406 6,677 13,854 17,353 
Financing cash flows from finance leases525 680 1,535 1,796 
Right-of-use assets obtained in exchange for new finance lease liabilities182 67 2,525 2,811 
Right-of-use assets (adjusted) obtained in exchange for (remeasured) new operating lease liabilities(734)6,417 6,089 12,062 
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 2, 2022 and January 2, 2022:
 October 2, 2022January 2, 2022
Weighted-average remaining lease term – finance leases (in years)3.773.20
Weighted-average remaining lease term – operating leases (in years)9.409.97
Weighted-average discount rate – finance leases3.16 %2.82 %
Weighted-average discount rate – operating leases5.80 %5.87 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2022 (excluding the nine months ended October 2, 2022)
$4,071 $532 
202313,354 1,918 
202412,413 1,573 
202510,589 855 
202610,864 396 
Thereafter54,382 644 
Total future minimum lease payments (undiscounted)105,673 5,918 
Less: Present value discount(26,252)(392)
Total lease liability$79,421 $5,526 
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 2, 2022, there were no significant leases that had not commenced.
The table below represents a summary of the balances recorded in the consolidated condensed balance sheets related to the Company’s leases as of October 2, 2022 and January 2, 2022:
October 2, 2022January 2, 2022
Balance Sheet LocationOperating LeasesFinance LeasesOperating LeasesFinance Leases
(in thousands)
Operating lease right-of-use assets$77,447 $90,561 
 
Current portion of operating lease liabilities$12,400 $14,588 
Operating lease liabilities67,021 77,905 
Total operating lease liabilities$79,421 $92,493 
 
Property, plant and equipment, net$5,134 $6,547 
 
Accrued expenses$1,963 $1,837 
Other long-term liabilities3,563 3,201 
Total finance lease liabilities$5,526 $5,038 
Lease Costs
Three Months EndedNine Months Ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(in thousands)
Finance lease cost:
Amortization of right-of-use assets$581 $646 $1,636 $1,230 
Interest on lease liabilities45 37 115 104 
Operating lease cost4,743 5,240 14,310 17,040 
Short-term lease cost204 222 642 864 
Variable lease cost614 730 2,012 2,018 
Total lease cost$6,187 $6,875 $18,715 $21,256 
Other Supplemental Information
Three Months EndedNine Months Ended
October 2, 2022October 3, 2021October 2, 2022October 3, 2021
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$35 $16 $88 $83 
Operating cash flows from operating leases4,406 6,677 13,854 17,353 
Financing cash flows from finance leases525 680 1,535 1,796 
Right-of-use assets obtained in exchange for new finance lease liabilities182 67 2,525 2,811 
Right-of-use assets (adjusted) obtained in exchange for (remeasured) new operating lease liabilities(734)6,417 6,089 12,062 
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 2, 2022 and January 2, 2022:
 October 2, 2022January 2, 2022
Weighted-average remaining lease term – finance leases (in years)3.773.20
Weighted-average remaining lease term – operating leases (in years)9.409.97
Weighted-average discount rate – finance leases3.16 %2.82 %
Weighted-average discount rate – operating leases5.80 %5.87 %
Maturity Analysis
A maturity analysis of lease payments under non-cancellable leases is presented as follows:
Fiscal YearOperating LeasesFinance Leases
(in thousands)
2022 (excluding the nine months ended October 2, 2022)
$4,071 $532 
202313,354 1,918 
202412,413 1,573 
202510,589 855 
202610,864 396 
Thereafter54,382 644 
Total future minimum lease payments (undiscounted)105,673 5,918 
Less: Present value discount(26,252)(392)
Total lease liability$79,421 $5,526