LEASES

3 Months Ended

Mar. 27, 2021

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:

	March 27, 2021		December 26, 2020
	(in thousands)
Operating leases
Operating lease right-of-use assets, net	$	197,668	$	178,220
Other current liabilities	$	25,868	$	24,674
Operating lease right-of-use liabilities	173,015		155,595
Total operating lease liabilities	$	198,883	$	180,269
Finance leases
Property, plant and equipment, net	$	31,437	$	31,614
Current portion of long-term debt and finance leases	$	2,823	$	3,018
Long-term debt, net and finance leases	26,021		26,029
Total finance lease liabilities	$	28,844	$	29,047

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

	Three Months Ended
	March 27, 2021		March 28, 2020
	(in thousands)
Operating lease costs	$	9,352	$	8,077
Finance lease costs:
Amortization of right-of-use assets	848		951
Interest on lease liabilities	328		340
Short-term lease costs	950		589
Variable lease costs	883		1,045
Sublease income	(374)		(586)
Total lease costs	$	11,987	$	10,416

Other information related to leases was as follows:

Supplemental cash flow information

	Three Months Ended
	March 27, 2021		March 28, 2020
	(in thousands)
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,503	$	6,974
Operating cash flows from finance leases	328		340
Finance cash flows from finance leases	942		1,572
Non-cash leases activity:
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	25,968	$	25,407
Right-of-use lease assets obtained in exchange for new finance lease liabilities	86		593

Lease term and discount rate                                

	As of		As of
	March 27, 2021		March 28, 2020
Weighted-average remaining lease term (in years)
Operating lease	8.7		8.4
Finance lease	12.4		12.7
Weighted-average discount rate
Operating lease	3.9	%	4.2	%
Finance lease	4.5	%	4.5	%

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, which is based on the information available at the lease commencement date and represents a rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment.

As of March 27, 2021, 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)
2021 (excluding the three months ended March 27, 2021)	$	24,996	$	3,078
2022	30,659		3,738
2023	28,248		3,411
2024	27,113		3,181
2025	24,635		2,902
Thereafter	101,665		21,597
Total minimum future lease payments	237,316		37,907
Less: Imputed interest	38,433		9,063
Total lease liabilities	$	198,883	$	28,844

Total minimum future lease payments (predominantly operating leases) of approximately $108 million for leases that have not commenced as of March 27, 2021, 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 2021 and 2024 with lease terms of approximately 8 to 15 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:

	March 27, 2021		December 26, 2020
	(in thousands)
Operating leases
Operating lease right-of-use assets, net	$	197,668	$	178,220
Other current liabilities	$	25,868	$	24,674
Operating lease right-of-use liabilities	173,015		155,595
Total operating lease liabilities	$	198,883	$	180,269
Finance leases
Property, plant and equipment, net	$	31,437	$	31,614
Current portion of long-term debt and finance leases	$	2,823	$	3,018
Long-term debt, net and finance leases	26,021		26,029
Total finance lease liabilities	$	28,844	$	29,047

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

	Three Months Ended
	March 27, 2021		March 28, 2020
	(in thousands)
Operating lease costs	$	9,352	$	8,077
Finance lease costs:
Amortization of right-of-use assets	848		951
Interest on lease liabilities	328		340
Short-term lease costs	950		589
Variable lease costs	883		1,045
Sublease income	(374)		(586)
Total lease costs	$	11,987	$	10,416

Other information related to leases was as follows:

Supplemental cash flow information

	Three Months Ended
	March 27, 2021		March 28, 2020
	(in thousands)
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	8,503	$	6,974
Operating cash flows from finance leases	328		340
Finance cash flows from finance leases	942		1,572
Non-cash leases activity:
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	25,968	$	25,407
Right-of-use lease assets obtained in exchange for new finance lease liabilities	86		593

Lease term and discount rate                                

	As of		As of
	March 27, 2021		March 28, 2020
Weighted-average remaining lease term (in years)
Operating lease	8.7		8.4
Finance lease	12.4		12.7
Weighted-average discount rate
Operating lease	3.9	%	4.2	%
Finance lease	4.5	%	4.5	%

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, which is based on the information available at the lease commencement date and represents a rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment.

As of March 27, 2021, 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)
2021 (excluding the three months ended March 27, 2021)	$	24,996	$	3,078
2022	30,659		3,738
2023	28,248		3,411
2024	27,113		3,181
2025	24,635		2,902
Thereafter	101,665		21,597
Total minimum future lease payments	237,316		37,907
Less: Imputed interest	38,433		9,063
Total lease liabilities	$	198,883	$	28,844

Total minimum future lease payments (predominantly operating leases) of approximately $108 million for leases that have not commenced as of March 27, 2021, 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 2021 and 2024 with lease terms of approximately 8 to 15 years.