Note 7 - Leases

9 Months Ended

Oct. 01, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, the terms of which are described in our 2021 10-K. All of our facilities are leased under operating leases, which expire at various times through 2028, with a weighted-average remaining lease term of 3.6 years and a weighted-average discount rate of 5.4% as of October 1, 2022.

We recorded fixed operating lease expenses of $1.9 million and $2.0 million for the third quarter of fiscal 2022 and 2021, respectively, and $5.8 million and $5.9 million for the first nine months of fiscal 2022 and 2021, respectively.

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first nine months of fiscal 2022:

Operating lease right-of-use assets	(in thousands)
Balance as of January 1, 2022	$	23,818
Right-of-use assets obtained for new lease contracts during the period		639
Amortization of right-of-use assets during the period		(4,995	)
Impairment of right-of use asset during the period (recorded in Restructuring charges)		(1,149	)
Adjustments for present value and foreign currency effects		(941	)
Balance as of October 1, 2022	$	17,372

Operating lease liabilities	(in thousands)
Balance as of January 1, 2022	$	24,944
Lease liabilities incurred for new lease contracts during the period		639
Accretion of lease liabilities		849
Operating cash used by payments on lease liabilities		(5,500	)
Adjustments for present value and foreign currency effects		(920	)
Balance as of October 1, 2022		20,012
Less: Current portion of operating lease liabilities (included in Accrued expenses)		(5,843	)
Long-term operating lease liabilities, net of current portion	$	14,169

Maturities of operating lease liabilities as of October 1, 2022 are as follows:

Fiscal year	(in thousands)
2022 (Remaining quarter)		1,305
2023		7,333
2024		5,331
2025		3,608
2026		2,549
Thereafter		2,103
Total lease payments		22,229
Less: amount representing interest		(2,217	)
Total lease liabilities	$	20,012

Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $6.2 million at October 1, 2022 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.