Annual report pursuant to Section 13 and 15(d)

LEASES

v3.22.0.1
LEASES
 12 Months Ended
Jan. 01, 2022
Leases [Abstract]  
LEASES LEASES
The following table presents lease-related assets and liabilities recorded in the Company's balance sheets:
(In thousands) December 2021 December 2020
Assets
Operating lease assets, noncurrent $ 54,950  $ 60,443 
Total lease assets $ 54,950  $ 60,443 
Liabilities
Operating lease liabilities, current $ 24,195  $ 27,329 
Operating lease liabilities, noncurrent 32,993  39,806 
Total lease liabilities $ 57,188  $ 67,135 
Weighted-average remaining lease term (in years)
Operating leases 3.62 3.89
Weighted-average discount rate
Operating leases 2.85  % 4.08  %
Lease costs
The following table presents certain information related to lease costs for operating leases:
Year Ended December
(In thousands) 2021 2020 2019
Operating lease costs $ 30,394  $ 40,906  $ 37,743 
Short-term lease costs (excluding leases of one month or less) 272  1,114  3,043 
Variable lease costs 3,505  3,960  5,300 
Total lease costs $ 34,171  $ 45,980  $ 46,086 
Other information
The following table presents supplemental cash flow and non-cash information related to operating leases:
Year Ended December
(In thousands) 2021 2020 2019
Cash paid for amounts included in the measurement of lease liabilities - operating cash flows $ 37,474  $ 45,225  $ 46,239 
Right-of-use operating lease assets obtained in exchange for new operating leases - non-cash activity $ 4,323  $ 2,591  $ 39,874 
The following table presents future maturities of operating lease liabilities as of December 2021:
(In thousands) Lease Obligations
2022 $ 25,261 
2023 13,635 
2024 9,802 
2025 5,556 
2026 1,859 
Thereafter 3,820 
Total future minimum lease payments 59,933 
Less: amounts related to imputed interest (2,745)
Present value of future minimum lease payments 57,188 
Less: operating lease liabilities, current 24,195 
Operating lease liabilities, noncurrent $ 32,993 
As of December 2021, the Company had not entered into any operating lease arrangements that had not yet commenced. The Company continuously monitors and may negotiate contract amendments that include extensions or modifications to existing leases.
In April 2020, the FASB provided interpretive guidance that simplified accounting for rent concessions, including rent deferrals, that are a direct consequence of COVID-19. In response to temporary store closures related to COVID-19, the Company negotiated rent deferrals and other rent concessions with its landlords. The Company has elected to not evaluate whether a COVID-19 related rent concession constitutes a lease modification and has accounted for rent deferrals or other rent concessions as lease modifications in accordance with existing Accounting Standards Codification ("ASC") 842 guidance.
During 2021 and 2020, the Company assessed retail store assets, including the related operating lease assets, for impairment due to the decision to exit certain VF Outlet locations as well as retail store closures resulting from COVID-19. Refer to Note 13 to the Company's financial statements for additional information on the related fair value measurements.