Post-effective amendment to a registration statement that is not immediately effective upon filing

Leases

v3.22.1
Leases
 3 Months Ended
Apr. 02, 2022
Leases [Abstract]  
Leases
14. Leases
On January, 2 2022, the Group adopted ASU
2016-02,
Leases, using the optional transition method. Under this method, the Group has recognized the cumulative effect adjustment to the opening balance of retained earnings. The Group has elected to adopt the package of practical expedients which apply to leases that commenced before the adoption date. By electing the package of practical expedients, the Group did not reassess whether any expired or existing contracts are or contain leases, the lease classification for any expired or existing leases, and the initial direct costs for any existing leases. At lease commencement, a
right-of-use
(“ROU”) asset and lease liability is recorded based on the present value of the future lease payments over the lease term. The Group has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. The Group leases facilities, vehicles, and other equipment under long-term operating and financing leases with varying terms.
In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar service, which are considered
non-lease
components for accounting purposes. For our real estate leases, we apply a practical expedient to include these
non-lease
components in calculating the ROU asset and lease liability. Furthermore, for all other types of leases the practical expedient was also elected whereby lease and
non-lease
components have been combined. The Group uses the
non-cancellable
lease term unless it is reasonably certain that a renewal or termination option will be exercised. When available, the Group will use the rate implicit in the lease to discount lease payments to present value, however as most leases do not provide an implicit rate, the Group will estimate the incremental borrowing rate to discount the lease payments. The Group estimates the incremental borrowing rate based on the rates of interest that the Group would have to pay to borrow an amount equal to the lease payments on a collateralized basis, over a similar term, and in a similar economic environment. The ROU asset also includes any lease prepayments and initial direct costs, offset by lease incentives. The Group does not consider renewal periods or early terminations to be reasonably certain and are thus not included in the lease term for real estate or equipment assets.
The components of ROU assets and lease liabilities were as follows: 
 

(in thousands)
  
Balance Sheet Classification
  
April 2, 2022
 
Assets:
              
Operating lease assets
   
Right-of-use
assets, net 		   $ 40,902  
Finance lease assets
   
Right-of-use
assets, net 		   $ 616  
 
 
Total leased assets
         $ 41,518  
 
 
Liabilities:
              
Current:
              
Operating
    Other accrued expenses    $ 4,762  
Financing
    Current maturities of long-term debt    $ 147  
Noncurrent:
              
Operating
    Other long-term liabilities    $ 38,241  
Financing
    Long-term debt    $ 470  
 
 
Total lease liabilities
         $ 43,620  
 
 
The components of lease expense were as follows:
 

(in thousands)
  
Three Months Ended
April 2, 2022
 
    
Operating lease cost
    $ 1,986      
Short-term lease cost
    $ 60      
Financial lease cost:
             
Amortization of
right-of-use
assets
    $ 17      
Interest on lease liabilities
    $ 3      
 
 
Total lease cost
    $ 2,066      
 
 
Other information related to leases was as follows:
 

 
  
Three Months Ended
April 2, 2022
 
Weighted Average Remaining Lease Term
         
Operating Leases
      10.0 years  
Finance Leases
      3.8 years  
   
Weighted Average Discount Rate
         
Operating Leases
      6.5%  
Finance Leases
      5.0%  
As of April 2, 2022, future minimum lease payments under noncancellable operating leases with initial or remaining lease terms in excess of one year were as follows:
 
(in thousands)
  
 
 
2022
    $ 5,577  
2023
    $ 6,957  
2024
    $ 6,068  
2025
    $ 5,680  
2026
    $ 5,265  
Later years
    $ 30,961  
 
 
 
 
 
Total future lease payments
    $ 60,508  
 
 
 
 
 
Less imputed interest
    $ (17,505 ) 
 
 
 
 
 
Present value of future lease payments
    $ 43,003  
 
 
 
 
 
As of April 2, 2022, minimum repayments of long-term debt under financing leases were as follows:
 
(in thousands)
  
 
 
2022
    $ 130  
2023
    $ 174  
2024
    $ 174  
2025
    $ 174  
2026
    $ 25  
Later years
    $ —    
 
 
 
 
 
Total future lease payments
    $ 677  
 
 
 
 
 
Less imputed interest
    $ (60 ) 
 
 
 
 
 
Present value of future lease payments
    $ 617