Leases

9 Months Ended

Oct. 03, 2021

Leases [Abstract]

Leases

Leases

The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets:

		As of
		October 3, 2021		January 3, 2021
Assets	Classification
Operating lease	Operating lease right of use asset, net	$	414,612	$	399,688
Finance lease	Property and equipment, net	23,499		23,556
Total leased assets		$	438,111	$	423,244
Liabilities
Current
Operating lease	Current operating lease liabilities	$	42,637	$	45,675
Finance lease	Current portion of long-term debt	3,608		6,245
Noncurrent
Operating lease	Noncurrent operating lease liabilities	397,640		376,099
Finance lease	Long-term debt, less current portion	21,906		19,979
Total leased liabilities		$	465,791	$	447,998

Lease costs were as follows:

		Quarter Ended				Three Quarters Ended
		October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Lease cost	Classification
Operating lease cost	Selling, general and administrative expense	$	648	$	752	$	1,967	$	2,325
Operating lease cost	Operating expenses	21,201		17,149		62,910		50,748
Short-term lease cost	Operating expenses	233		693		1,797		2,122
Variable lease costs	Operating expenses	4,015		2,497		11,309		6,385
Sublease income	Royalties and other revenues	(108)		(140)		(285)		(380)
Finance lease cost:
Amortization of right of use assets	Depreciation and amortization expense	727		586		2,375		1,917
Interest on lease liabilities	Interest expense, net	$	466	$	484	$	1,540	$	1,545

Supplemental disclosures of cash flow information related to leases were as follows:

	Three Quarters Ended
	October 3, 2021		September 27, 2020
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	67,129	$	54,031
Operating cash flows from finance leases	1,458		1,452
Financing cash flows from finance leases	2,512		2,619
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	48,770		33,427
Finance leases	$	1,788	$	6,827

The Company did not record any lease termination costs in the quarter and three quarters ended October 3, 2021. Lease termination charges included in Other (income)/expenses, net were $1.6 million and $3.3 million in the quarter and three quarters ended September 27, 2020, respectively.

Leases

Leases

The Company included the following amounts related to operating and finance lease assets and liabilities within the Condensed Consolidated Balance Sheets:

		As of
		October 3, 2021		January 3, 2021
Assets	Classification
Operating lease	Operating lease right of use asset, net	$	414,612	$	399,688
Finance lease	Property and equipment, net	23,499		23,556
Total leased assets		$	438,111	$	423,244
Liabilities
Current
Operating lease	Current operating lease liabilities	$	42,637	$	45,675
Finance lease	Current portion of long-term debt	3,608		6,245
Noncurrent
Operating lease	Noncurrent operating lease liabilities	397,640		376,099
Finance lease	Long-term debt, less current portion	21,906		19,979
Total leased liabilities		$	465,791	$	447,998

Lease costs were as follows:

		Quarter Ended				Three Quarters Ended
		October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Lease cost	Classification
Operating lease cost	Selling, general and administrative expense	$	648	$	752	$	1,967	$	2,325
Operating lease cost	Operating expenses	21,201		17,149		62,910		50,748
Short-term lease cost	Operating expenses	233		693		1,797		2,122
Variable lease costs	Operating expenses	4,015		2,497		11,309		6,385
Sublease income	Royalties and other revenues	(108)		(140)		(285)		(380)
Finance lease cost:
Amortization of right of use assets	Depreciation and amortization expense	727		586		2,375		1,917
Interest on lease liabilities	Interest expense, net	$	466	$	484	$	1,540	$	1,545

Supplemental disclosures of cash flow information related to leases were as follows:

	Three Quarters Ended
	October 3, 2021		September 27, 2020
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	67,129	$	54,031
Operating cash flows from finance leases	1,458		1,452
Financing cash flows from finance leases	2,512		2,619
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	48,770		33,427
Finance leases	$	1,788	$	6,827

The Company did not record any lease termination costs in the quarter and three quarters ended October 3, 2021. Lease termination charges included in Other (income)/expenses, net were $1.6 million and $3.3 million in the quarter and three quarters ended September 27, 2020, respectively.