Note 8 - Leases

12 Months Ended

Jan. 02, 2021

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note 8 - Leases

Our facilities for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, are all leased under operating leases, which expire at various times through 2027. Our leases have remaining lease terms of 1 to 8 years, some of which include options to extend for up to 5 years, and some of which include options to terminate within 1 year. The weighted-average remaining lease term was 4.6 years and the weighted-average discount rate is 6.5% as of January 2, 2021. We recorded fixed operating lease expense of $7.6 million and $7.7 million, respectively, for fiscal 2020 and 2019. Rental expense under the previous guidance for operating leases was $8.3 million for fiscal 2018.

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during fiscal 2020:

Operating lease right-of-use assets	(in thousands)
Balance as of December 28, 2019	$	23,591
Right-of-use assets obtained for new and modified lease contracts during the period		4,297
Amortization of right-of-use assets during the period		(5,960	)
Adjustments for present value and foreign currency effects		250
Balance as of January 2, 2021	$	22,178

Operating lease liabilities	(in thousands)
Balance as of December 28, 2019	$	26,124
Lease liabilities incurred for new lease contracts during the period		2,646
Accretion of lease liabilities		1,629
Operating cash used by payments on lease liabilities		(7,713	)
Adjustments for present value and foreign currency effects		369
Balance as of January 2, 2021		23,055
Less: Current portion of operating lease liabilities (included in Accrued expenses)		(4,149	)
Long-term operating lease liabilities, net of current portion	$	18,906

Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $8.2 million at January 2, 2021 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.

Maturities of operating lease liabilities as of January 2, 2021 are as follows:

Fiscal year	(in thousands)
2021	$	5,615
2022		5,378
2023		5,057
2024		4,861
2025		3,552
Thereafter		3,229
Total lease payments		27,692
Less: amount representing interest		(4,637	)
Total lease liabilities	$	23,055