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Leases
 6 Months Ended
Jun. 25, 2022
Leases [Abstract]  
Leases Leases
The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of June 25, 2022, the Company’s leases have remaining lease terms of 1 year to 14.4 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the right of use (“ROU”) assets as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company uses its incremental borrowing rate in determining the present value of lease payments unless the lease provides an implicit or explicit interest rate. The weighted average discount rate used in determining the operating lease ROU assets and liabilities as of June 25, 2022 and December 31, 2021 was 7.7 percent and 7.6 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of June 25, 2022 and December 31, 2021 was 7.0 percent.
The Company’s operating and finance lease cost is as follows:
Three Months EndedSix Months Ended
June 25, 2022June 26, 2021June 25, 2022June 26, 2021
Operating Leases
   Operating lease expense $1,917 $1,423 $3,848 $2,838 
Finance Leases
   Amortization of ROU assets94 87 185 173 
   Interest35 42 72 85 
Total$2,046 $1,552 $4,105 $3,096 
As of June 25, 2022, the weighted average remaining lease term is 5.3 years and 4.3 years for operating leases and financing leases, respectively. As of December 31, 2021, the weighted average remaining lease term is 5.3 years and 4.9 years for operating leases and finance leases, respectively. Cash used in operating activities includes approximately $2 million and $3 million from operating lease payments made during the six months ended June 25, 2022 and June 26, 2021, respectively. Finance lease cash flows were immaterial during the six months ended June 25, 2022 and June 26, 2021.
As of June 25, 2022 and December 31, 2021, assets acquired under finance leases of $2 million and $2 million, respectively, are reflected in Property, Plant and Equipment, net. The Company’s finance leases are included as debt and the maturities for the remainder of 2022 and the next four years and thereafter are included in Note 7 — Debt and Finance Leases.
The Company’s consolidated balance sheet includes the following operating lease assets and liabilities:
Balance Sheet ClassificationJune 25, 2022December 31, 2021
Right-of-use assets Other assets$15,904 $18,316 
Lease liabilities, currentAccrued and other current liabilities$6,013 $6,050 
Lease liabilities, non-currentOther long-term liabilities$10,113 $12,551 
As of June 25, 2022, operating lease maturities for the remainder of 2022 through 2026 and thereafter are as follows:
June 25, 2022
Remainder of 2022$4,100 
20236,194 
20242,697 
20251,746 
20261,118 
Thereafter5,222 
Total minimum lease payments$21,077 
Less: imputed interest(4,950)
Present value of future minimum lease payments$16,127 
Leases Leases
The Company’s operating and finance leases are primarily for corporate offices, warehouse space, rail cars and equipment. As of June 25, 2022, the Company’s leases have remaining lease terms of 1 year to 14.4 years with standard renewal and termination options available at the Company’s discretion. Certain equipment leases have purchase options at the end of the term of the lease, which are not included in the right of use (“ROU”) assets as it is not reasonably certain that the Company will exercise such options. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The Company uses its incremental borrowing rate in determining the present value of lease payments unless the lease provides an implicit or explicit interest rate. The weighted average discount rate used in determining the operating lease ROU assets and liabilities as of June 25, 2022 and December 31, 2021 was 7.7 percent and 7.6 percent, respectively. The weighted average discount rate used in determining the finance lease ROU assets and liabilities as of June 25, 2022 and December 31, 2021 was 7.0 percent.
The Company’s operating and finance lease cost is as follows:
Three Months EndedSix Months Ended
June 25, 2022June 26, 2021June 25, 2022June 26, 2021
Operating Leases
   Operating lease expense $1,917 $1,423 $3,848 $2,838 
Finance Leases
   Amortization of ROU assets94 87 185 173 
   Interest35 42 72 85 
Total$2,046 $1,552 $4,105 $3,096 
As of June 25, 2022, the weighted average remaining lease term is 5.3 years and 4.3 years for operating leases and financing leases, respectively. As of December 31, 2021, the weighted average remaining lease term is 5.3 years and 4.9 years for operating leases and finance leases, respectively. Cash used in operating activities includes approximately $2 million and $3 million from operating lease payments made during the six months ended June 25, 2022 and June 26, 2021, respectively. Finance lease cash flows were immaterial during the six months ended June 25, 2022 and June 26, 2021.
As of June 25, 2022 and December 31, 2021, assets acquired under finance leases of $2 million and $2 million, respectively, are reflected in Property, Plant and Equipment, net. The Company’s finance leases are included as debt and the maturities for the remainder of 2022 and the next four years and thereafter are included in Note 7 — Debt and Finance Leases.
The Company’s consolidated balance sheet includes the following operating lease assets and liabilities:
Balance Sheet ClassificationJune 25, 2022December 31, 2021
Right-of-use assets Other assets$15,904 $18,316 
Lease liabilities, currentAccrued and other current liabilities$6,013 $6,050 
Lease liabilities, non-currentOther long-term liabilities$10,113 $12,551 
As of June 25, 2022, operating lease maturities for the remainder of 2022 through 2026 and thereafter are as follows:
June 25, 2022
Remainder of 2022$4,100 
20236,194 
20242,697 
20251,746 
20261,118 
Thereafter5,222 
Total minimum lease payments$21,077 
Less: imputed interest(4,950)
Present value of future minimum lease payments$16,127