XML 31 R18.htm IDEA: XBRL DOCUMENT

Leases

12 Months Ended

Jan. 02, 2021

The Company enters into operating and finance lease commitments primarily for its manufacturing and office space, vehicles, and equipment leases that expire on various dates over the next 14 years, some of which include one or more options to extend the lease for up to 5 years. In addition, the Company leases land associated with certain of its buildings in Canada and China, under long-term leases expiring on various dates ranging from 2032 to 2062, one of which includes an assumed option to extend the lease for up to 10 years.

The components of lease expense are as follows:


(In thousands)	January 2, 2021		December 28, 2019
Operating Lease Cost	$	5,602	$	5,534

Short-Term Lease Cost	671		715


(In thousands)	January 2, 2021		December 28, 2019
Finance Lease Cost:
ROU asset amortization	1,157		1,213
Interest on lease liabilities	74		94
Total Finance Lease Cost	1,231		1,307

Total Lease Costs	$	7,504	$	7,556

The accompanying consolidated statement of income included expenses from operating leases of $5,575,000 in 2018 recognized under Topic 840, the Company's previous lease accounting standard.

Supplemental cash flow information related to leases is as follows:


(In thousands)	January 2, 2021		December 28, 2019
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
Operating cash flows from operating leases	$	5,782	$	5,636
Operating cash flows from finance leases	$	74	$	93
Financing cash flows from finance leases	$	1,139	$	1,144

ROU Assets Obtained in Exchange for Lease Obligations (a):
Operating leases	$	2,560	$	28,484
Finance leases	$	622	$	3,847

(a)Included in 2019 were additions related to the transition adjustment for the adoption of ASC 842. The post-adoption additions of operating leases were $13,167,000, of which $10,994,000 related to ROU assets obtained as part of the acquisition of SMH in 2019. The post-adoption additions of finance leases were $2,496,000, of which $528,000 related to ROU assets obtained as part of the acquisition of SMH.

Supplemental balance sheet information related to leases is as follows:


(In thousands)	Balance Sheet Line Item	January 2, 2021		December 28, 2019
Operating Leases:
ROU assets	Other assets	$	25,460	$	27,139

Short-term liabilities	Other current liabilities	$	4,396	$	4,184
Long-term liabilities	Other long-term liabilities	22,198		24,411
Total operating lease liabilities		$	26,594	$	28,595

Finance Leases:
ROU assets, at cost	Property, plant, and equipment, at cost	$	3,707	$	3,775
ROU assets accumulated amortization	Accumulated depreciation and amortization	(2,108)		(1,475)
ROU assets, net	Property, plant, and equipment, net	$	1,599	$	2,300

Short-term obligations	Current maturities of long-term obligations	$	915	$	1,116
Long-term obligations	Long-term obligations	716		1,192
Total finance lease liabilities		$	1,631	$	2,308


	January 2, 2021		December 28, 2019
Weighted Average Remaining Lease Term (in years):
Operating leases	9.4		10.2
Finance leases	2.0		2.3

Weighted Average Discount Rate:
Operating leases	3.88	%	3.96	%
Finance leases	3.52	%	4.10	%

As of January 2, 2021, future lease payments for lease liabilities are as follows:


	Operating		Finance
(In thousands)	Leases		Leases
2021	$	5,332	$	951
2022	4,359		528
2023	3,495		189
2024	2,870		8
2025	2,616		6
2026 and Thereafter	13,480		—
Total Future Lease Payments	32,152		1,682
Less: Imputed Interest	(5,558)		(51)
Present Value of Lease Payments	$	26,594	$	1,631

As of January 2, 2021, the Company had no significant operating and finance leases that had not yet commenced.

Leases