XML 38 R18.htm IDEA: XBRL DOCUMENT

Note 9 - Leases

9 Months Ended

Sep. 26, 2020

9. Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms with 12 months or less are not recorded on the condensed consolidated balance sheet, but we recognized those lease payments in the condensed consolidated statements of operations on a straight-line basis over the lease term. Lease and non-lease components are included in the calculation of the ROU asset and lease liabilities.

Our leases have remaining lease terms of 1 year to 37 years, some of which include one or more options to extend the leases for up to 25 years. Our lease term includes renewal terms when we are reasonably certain we will exercise the renewal options.

We sublease certain leased assets to third parties, mainly as a result of unused space in our facilities. Supplemental balance sheet information related to leases was as follows:

(in thousands)	Classification	September 26, 2020			December 28, 2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	30,099		$	33,269
Finance lease assets	Property, plant and equipment, net ⁽¹⁾		463			2,515
Total lease assets		$	30,562		$	35,784
Liabilities
Current
Operating	Other accrued liabilities	$	5,099		$	5,458
Finance	Other accrued liabilities		164			2,574
Noncurrent
Operating	Long-term lease liabilities		26,293			28,877
Finance	Long-term lease liabilities		239			-
Total lease liabilities		$	31,795		$	36,909

Weighted-average remaining lease term (years)
Operating leases			7.5			7.9
Finance leases			2.5			0.5

Weighted-average discount rate
Operating leases			6.3	%		6.3	%
Finance leases			0.0	%		4.5	%

(1)

Finance lease assets are recorded net of accumulated amortization of $26,000 and $0.1 million as of September 26, 2020 and December 28, 2019 respectively.

The components of lease expense were as follows:

	Three Months Ended						Nine Months Ended
(in thousands)	September 26, 2020			September 28, 2019			September 26, 2020			September 28, 2019
Operating leases	$	2,074		$	2,142		$	6,337		$	6,381
Variable lease expense		523			570			1,602			1,765
Short-term operating leases		15			80			53			224
Finance leases
Amortization of leased assets		17			20			65			82
Interest on lease liabilities		-			29			57			117
Sublease income		(31	)		(31	)		(94	)		(101	)
Net lease cost	$	2,598		$	2,810		$	8,020		$	8,468

Future minimum lease payments at September 26, 2020, are as follows:

	Operating			Finance
(in thousands)	leases⁽¹⁾			leases		Total
2020	$	1,709		$	41	$	1,750
2021		6,733			164		6,897
2022		5,932			164		6,096
2023		5,158			34		5,192
2024		4,750			-		4,750
Thereafter		16,295			-		16,295
Total lease payments		40,577			403		40,980
Less: Interest		(9,185	)		-		(9,185	)
Present value of lease liabilities	$	31,392		$	403	$	31,795

(1)

Excludes sublease income of $0.1 million in 2021.

Supplemental cash flow information related to leases was as follows:

	Nine Months Ended
(in thousands)	September 26, 2020		September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,207	$	5,153
Operating cash flows from finance leases	$	57	$	109
Financing cash flows from finance leases	$	104	$	25
Leased assets obtained in exchange for new finance lease liabilities	$	468	$	-
Leased assets obtained in exchange for new operating lease liabilities	$	1,830	$	39,815