Leases (Tables)

12 Months Ended

Jan. 03, 2021

Lease cost includes both the fixed and variable expenses recorded for leases. The components of lease cost are as follows:

		Year Ended			Year Ended
	Classification	January 3, 2021			December 29, 2019
Operating lease cost	Selling, general and administrative expenses⁽^{1), (2)}	$	191,279		$	177,089
Finance lease cost:
Amortization of Property and Equipment	Depreciation and amortization		966			966
Interest on lease liabilities	Interest expense		970			997
Variable lease cost	Selling, general and administrative expenses⁽¹⁾		57,789			53,731
Sublease income	Selling, general and administrative expenses		(1,192	)		(1,057	)
Total net lease cost		$	249,812		$	231,726

(1)

Supply chain-related amounts of $7.8 million and $8.2 million were included in cost of sales for 2020 and 2019, respectively.

(2)

Rent expense in fiscal year 2018 totaled $137.5 million under ASC 840.

Supplemental balance sheet information related to leases is as follows:

		As of		As of
	Classification	January 3, 2021		December 29, 2019
Assets
Operating	Operating lease assets	$	1,045,408	$	1,028,436
Finance	Property and equipment, net		9,218		10,184
Total lease assets		$	1,054,626	$	1,038,620
Liabilities
Current
Operating	Current portion of operating lease liabilities	$	135,739	$	106,153
Finance	Current portion of finance lease liabilities		959		754
Noncurrent
Operating	Long-term operating lease liabilities		1,069,535		1,078,927
Finance	Long-term debt and finance lease liabilities		10,459		11,419
Total lease liabilities		$	1,216,692	$	1,197,253

	January 3, 2021			December 29, 2019
Weighted average remaining lease term (years)
Operating leases		9.8			10.2
Finance leases		9.7			10.7
Weighted average discount rate
Operating leases		7.2	%		7.5	%
Finance leases		8.4	%		8.3	%

Supplemental cash flow and other information related to leases is as follows:

	Year Ended		Year Ended
	January 3, 2021		December 29, 2019
Cash paid for amounts included in measurement of lease liabilities:
Operating cash flows for operating leases	$	186,280	$	153,292
Operating cash flows for finance leases		970		997

Lease assets obtained in exchange for lease liabilities:
Finance leases	$	—	$	—
Operating leases		118,075		160,134

A summary of maturities of lease liabilities is as follows:

(1)	Operating lease payments include $184.8 million related to options to extend lease terms that are reasonably certain of being exercised and exclude $183.0 million of legally binding minimum lease payments for leases executed but not yet commenced.