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Leases

12 Months Ended

Jan. 01, 2022

We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our finance leases range from one year to 35 years, while our operating leases range from one year to 20 years, some of which may include options to extend the leases generally between one year and 10 years, and some of which may include options to terminate the leases within one year.

The components of lease expense were as follows:


	For the Year Ended
(in millions of U.S. dollars)	January 1, 2022		January 2, 2021
Operating lease cost	$	50.0	$	49.0
Short-term lease cost	6.3		8.0
Finance lease cost
Amortization of right-of-use assets	$	15.7	$	11.7
Interest on lease liabilities	3.6		3.5
Total finance lease cost	$	19.3	$	15.2
Sublease income	$	0.8	$	0.7

Supplemental cash flow information related to leases was as follows:


	For the Year Ended
(in millions of U.S. dollars)	January 1, 2022		January 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	51.4	$	52.2
Operating cash flows from finance leases	3.3		3.6
Financing cash flows from finance leases	13.8		10.5
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	37.2	$	29.5
Finance leases	35.8		52.2

Supplemental balance sheet information related to leases was as follows:


(in millions of U.S. dollars, except lease term and discount rate)	January 1, 2022		January 2, 2021
Operating leases
Operating lease right-of-use assets	$	177.4	$	180.6
Current operating lease obligations	32.3		35.5
Operating lease obligations	148.7		148.0
Total operating lease obligations	$	181.0	$	183.5

Financing leases
Property, plant and equipment, net	$	90.4	$	71.0
Current maturities of long-term debt	17.0		13.2
Long-term debt	75.8		58.3
Total finance lease obligations	$	92.8	$	71.5


Weighted Average Remaining Lease Term	January 1, 2022		January 2, 2021
Operating leases	7.7 years		7.6 years
Finance leases	10.1 years		5.5 years

Weighted Average Discount Rate
Operating leases	5.9	%	6.1	%
Finance leases	3.6	%	4.9	%

Maturities of operating lease obligations were as follows:


(in millions of U.S. dollars)	January 1, 2022
2022	$	41.4
2023	36.9
2024	31.2
2025	25.7
2026	17.6
Thereafter	80.5
Total lease payments	233.3
Less imputed interest	(52.3)
Present value of lease obligations	$	181.0

Maturities of finance lease obligations were as follows:


(in millions of U.S. dollars)	January 1, 2022
2022	$	19.7
2023	18.5
2024	16.6
2025	15.5
2026	11.8
Thereafter	36.0
Total lease payments	118.1
Less imputed interest	(25.3)
Present value of lease obligations	$	92.8

Prior to January 1, 2022, we entered into two building leases; the first with a 10 year term beginning in 2022 and the second with a 13.3 year term beginning in 2022. The total lease commitment for these two operating leases is approximately $21.9 million.

Prior to January 1, 2022, we entered into a 10.8 year office lease beginning in 2022. The total lease commitment for this operating lease is approximately $18.7 million.

Leases