v3.22.2.2
LEASES
 9 Months Ended
Oct. 01, 2022
Leases [Abstract]  
LEASES LEASES
The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments.
Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from approximately one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements.
The components of lease expense were as follows (in thousands):
Lease Cost Condensed Consolidated
Statements of Income (Loss)
and Comprehensive
Income (Loss) Location		For the 13 Weeks Ended October 1, 2022For the 13 Weeks Ended October 2, 2021For the 39 Weeks Ended October 1, 2022For the 39 Weeks Ended October 2, 2021
Operating lease cost(1)
SG&A$18,445 $21,356 $58,001 $66,450 
Short-term lease costSG&A$170 $153 $570 $472 
Variable lease costSG&A$7,166 $6,252 $21,817 $17,032 
_______________________________________________
(1) Includes sublease income, which was immaterial.

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases Condensed
Consolidated
Balance Sheets
Location		October 1, 2022January 1, 2022
Assets
OperatingOperating lease ROU assets $156,448 $177,597 
Liabilities
Current:
OperatingCurrent operating lease liabilities$48,238 $58,721 
Noncurrent:
OperatingLong-term operating lease liabilities$151,928 $174,520 

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount RateOctober 1, 2022January 1, 2022
Weighted-average remaining lease term:
Operating leases 5.7 years5.7 years
Weighted-average discount rate:
Operating leases 14.2 %14.1 %
Future minimum lease payments by year as of October 1, 2022 were as follows (in thousands):
Fiscal YearOperating Leases
2022 (remaining)$21,708 
202373,629 
202450,214 
202535,551 
202628,772 
Thereafter94,674 
Total lease payments$304,548 
Less: Interest104,382 
Total lease obligations$200,166 


Supplemental cash flow information related to leases was as follows (in thousands):
For the 39 Weeks Ended October 1, 2022For the 39 Weeks Ended October 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$68,182 $83,189 
Leased assets obtained in exchange for new operating lease liabilities22,775 11,319 
As of October 1, 2022, the Company did not have any material operating or finance leases that have been signed but not commenced.
LEASES LEASES
The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments.
Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from approximately one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less at inception. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain lease agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements.
The components of lease expense were as follows (in thousands):
Lease Cost Condensed Consolidated
Statements of Income (Loss)
and Comprehensive
Income (Loss) Location		For the 13 Weeks Ended October 1, 2022For the 13 Weeks Ended October 2, 2021For the 39 Weeks Ended October 1, 2022For the 39 Weeks Ended October 2, 2021
Operating lease cost(1)
SG&A$18,445 $21,356 $58,001 $66,450 
Short-term lease costSG&A$170 $153 $570 $472 
Variable lease costSG&A$7,166 $6,252 $21,817 $17,032 
_______________________________________________
(1) Includes sublease income, which was immaterial.

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases Condensed
Consolidated
Balance Sheets
Location		October 1, 2022January 1, 2022
Assets
OperatingOperating lease ROU assets $156,448 $177,597 
Liabilities
Current:
OperatingCurrent operating lease liabilities$48,238 $58,721 
Noncurrent:
OperatingLong-term operating lease liabilities$151,928 $174,520 

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount RateOctober 1, 2022January 1, 2022
Weighted-average remaining lease term:
Operating leases 5.7 years5.7 years
Weighted-average discount rate:
Operating leases 14.2 %14.1 %
Future minimum lease payments by year as of October 1, 2022 were as follows (in thousands):
Fiscal YearOperating Leases
2022 (remaining)$21,708 
202373,629 
202450,214 
202535,551 
202628,772 
Thereafter94,674 
Total lease payments$304,548 
Less: Interest104,382 
Total lease obligations$200,166 


Supplemental cash flow information related to leases was as follows (in thousands):
For the 39 Weeks Ended October 1, 2022For the 39 Weeks Ended October 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$68,182 $83,189 
Leased assets obtained in exchange for new operating lease liabilities22,775 11,319 
As of October 1, 2022, the Company did not have any material operating or finance leases that have been signed but not commenced.