LEASES

9 Months Ended

Sep. 26, 2020

Leases [Abstract]

LEASES

LEASES

Operating and Finance Leases

Right-of-use lease assets and lease liabilities are reported in the Company’s unaudited condensed consolidated balance sheets as follows:

	September 26, 2020		December 28, 2019
	(in thousands)
Operating leases
Operating lease right-of-use assets, net	$	168,379	$	140,085
Other current liabilities	$	24,870	$	20,357
Operating lease right-of-use liabilities	146,578		116,252
Total operating lease liabilities	$	171,448	$	136,609
Finance leases
Property, plant and equipment, net	$	30,247	$	32,519
Current portion of long-term debt and finance leases	$	2,929	$	2,997
Long-term debt, net and finance leases	24,854		27,530
Total finance lease liabilities	$	27,783	$	30,527

The components of operating and finance lease costs were as follows:

	Three Months Ended				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
	(in thousands)
Operating lease costs	$	8,416	$	7,839	$	24,387	$	23,433
Finance lease costs:
Amortization of right-of-use assets	966		1,070		2,853		2,921
Interest on lease liabilities	323		360		986		1,001
Short-term lease costs	530		256		1,644		652
Variable lease costs	1,556		646		3,669		1,911
Sublease income	(440)		(383)		(1,216)		(474)
Total lease costs	$	11,351	$	9,788	$	32,323	$	29,444

Other information related to leases was as follows:

Supplemental cash flow information

	Nine Months Ended
	September 26, 2020		September 28, 2019
	(in thousands)
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21,959	$	20,084
Operating cash flows from finance leases	986		1,058
Finance cash flows from finance leases	3,474		2,862
Non-cash leases activity:
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	50,491	$	20,805
Right-of-use lease assets obtained in exchange for new finance lease liabilities	735		4,741

Lease term and discount rate                                    

	As of
	September 26, 2020
Weighted-average remaining lease term (in years)
Operating lease	8.24
Finance lease	12.60
Weighted-average discount rate
Operating lease	4.16
Finance lease	4.52

At the lease commencement date, the discount rate implicit in the lease is used to discount the lease liability if readily determinable. If not readily determinable or leases do not contain an implicit rate, the Company’s incremental borrowing rate is used as the discount rate.

As of September 26, 2020, maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows:

	Operating Leases		Finance Leases
	(in thousands)
2020 (excluding the nine months ended September 26, 2020)	$	7,846	$	1,134
2021	30,704		3,904
2022	26,432		3,342
2023	23,321		3,030
2024	22,636		2,810
Thereafter	94,238		22,511
Total minimum future lease payments	205,177		36,731
Less: Imputed interest	33,729		8,948
Total lease liabilities	$	171,448	$	27,783

Total minimum future lease payments (predominantly operating leases) of approximately $70 million for leases that have not commenced as of September 26, 2020, as the Company does not yet control the underlying assets, are not included in the unaudited condensed consolidated financial statements. These leases are expected to commence between fiscal years 2020 and 2024 with lease terms of approximately 8 to 16 years.

LEASES

LEASES

Operating and Finance Leases

Right-of-use lease assets and lease liabilities are reported in the Company’s unaudited condensed consolidated balance sheets as follows:

	September 26, 2020		December 28, 2019
	(in thousands)
Operating leases
Operating lease right-of-use assets, net	$	168,379	$	140,085
Other current liabilities	$	24,870	$	20,357
Operating lease right-of-use liabilities	146,578		116,252
Total operating lease liabilities	$	171,448	$	136,609
Finance leases
Property, plant and equipment, net	$	30,247	$	32,519
Current portion of long-term debt and finance leases	$	2,929	$	2,997
Long-term debt, net and finance leases	24,854		27,530
Total finance lease liabilities	$	27,783	$	30,527

The components of operating and finance lease costs were as follows:

	Three Months Ended				Nine Months Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
	(in thousands)
Operating lease costs	$	8,416	$	7,839	$	24,387	$	23,433
Finance lease costs:
Amortization of right-of-use assets	966		1,070		2,853		2,921
Interest on lease liabilities	323		360		986		1,001
Short-term lease costs	530		256		1,644		652
Variable lease costs	1,556		646		3,669		1,911
Sublease income	(440)		(383)		(1,216)		(474)
Total lease costs	$	11,351	$	9,788	$	32,323	$	29,444

Other information related to leases was as follows:

Supplemental cash flow information

	Nine Months Ended
	September 26, 2020		September 28, 2019
	(in thousands)
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21,959	$	20,084
Operating cash flows from finance leases	986		1,058
Finance cash flows from finance leases	3,474		2,862
Non-cash leases activity:
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	50,491	$	20,805
Right-of-use lease assets obtained in exchange for new finance lease liabilities	735		4,741

Lease term and discount rate                                    

	As of
	September 26, 2020
Weighted-average remaining lease term (in years)
Operating lease	8.24
Finance lease	12.60
Weighted-average discount rate
Operating lease	4.16
Finance lease	4.52

At the lease commencement date, the discount rate implicit in the lease is used to discount the lease liability if readily determinable. If not readily determinable or leases do not contain an implicit rate, the Company’s incremental borrowing rate is used as the discount rate.

As of September 26, 2020, maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows:

	Operating Leases		Finance Leases
	(in thousands)
2020 (excluding the nine months ended September 26, 2020)	$	7,846	$	1,134
2021	30,704		3,904
2022	26,432		3,342
2023	23,321		3,030
2024	22,636		2,810
Thereafter	94,238		22,511
Total minimum future lease payments	205,177		36,731
Less: Imputed interest	33,729		8,948
Total lease liabilities	$	171,448	$	27,783

Total minimum future lease payments (predominantly operating leases) of approximately $70 million for leases that have not commenced as of September 26, 2020, as the Company does not yet control the underlying assets, are not included in the unaudited condensed consolidated financial statements. These leases are expected to commence between fiscal years 2020 and 2024 with lease terms of approximately 8 to 16 years.