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. |