Leases

3 Months Ended

Apr. 02, 2021

Leases [Abstract]

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	April 2, 2021		December 31, 2020
Weighted average remaining lease term:
Operating leases	9.3 years		9.4 years
Financing leases	13.2 years		13.4 years
Weighted average discount rate:
Operating leases	4.0	%	4.0	%
Financing leases	3.2	%	3.2	%

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	First Quarter
(in thousands)	2021		2020
Operating lease costs	$	6,254	$	6,054
Short-term and variable leases	3,877		3,490
Depreciation expense from financing leases	1,414		925
Interest expense on financing lease obligations	584		266
Total lease cost	$	12,129	$	10,735

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of April 2, 2021:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2021	$	17,926	$	5,317
2022	20,970		7,145
2023	18,125		7,201
2024	15,330		7,396
2025	13,747		7,593
Thereafter	77,353		55,826
Total minimum lease payments including interest	$	163,451	$	90,478
Less:  Amounts representing interest	28,576		15,813
Present value of minimum lease principal payments	134,875		74,665
Less:  Current portion of lease liabilities	19,388		5,909
Noncurrent portion of lease liabilities	$	115,487	$	68,756

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2020:

(in thousands)	Operating Leases		Financing Leases
2021	$	24,056	$	7,079
2022	20,970		7,145
2023	18,125		7,201
2024	15,330		7,396
2025	13,747		7,593
Thereafter	77,353		55,827
Total minimum lease payments including interest	$	169,581	$	92,241
Less:  Amounts representing interest	29,892		16,397
Present value of minimum lease principal payments	139,689		75,844
Less:  Current portion of lease liabilities	19,766		5,860
Noncurrent portion of lease liabilities	$	119,923	$	69,984

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Quarter
(in thousands)	2021		2020
Cash flows from operating activities impact:
Operating leases	$	6,129	$	4,195
Interest payments on financing lease obligations	316		266
Total cash flows from operating activities impact	$	6,445	$	4,461
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,447	$	1,485
Total cash flows from financing activities impact	$	1,447	$	1,485

As of April 2, 2021, the Company had one equipment and two vehicle operating lease commitments that had not yet commenced. These lease commitments are expected to commence during the second quarter of 2021. The equipment lease has a lease term of approximately 10 years and the vehicle leases have lease terms of approximately three years. The additional lease liability associated with these lease commitments is expected to be $4.7 million.

Leases

Leases

Following is a summary of the weighted average remaining lease term and the weighted average discount rate for the Company’s leases:

	April 2, 2021		December 31, 2020
Weighted average remaining lease term:
Operating leases	9.3 years		9.4 years
Financing leases	13.2 years		13.4 years
Weighted average discount rate:
Operating leases	4.0	%	4.0	%
Financing leases	3.2	%	3.2	%

Following is a summary of the Company’s leases within the condensed consolidated statements of operations:

	First Quarter
(in thousands)	2021		2020
Operating lease costs	$	6,254	$	6,054
Short-term and variable leases	3,877		3,490
Depreciation expense from financing leases	1,414		925
Interest expense on financing lease obligations	584		266
Total lease cost	$	12,129	$	10,735

The future minimum lease payments related to the Company’s leases include renewal options the Company has determined to be reasonably certain and exclude payments to landlords for real estate taxes and common area maintenance. Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of April 2, 2021:

(in thousands)	Operating Leases		Financing Leases
Remainder of 2021	$	17,926	$	5,317
2022	20,970		7,145
2023	18,125		7,201
2024	15,330		7,396
2025	13,747		7,593
Thereafter	77,353		55,826
Total minimum lease payments including interest	$	163,451	$	90,478
Less:  Amounts representing interest	28,576		15,813
Present value of minimum lease principal payments	134,875		74,665
Less:  Current portion of lease liabilities	19,388		5,909
Noncurrent portion of lease liabilities	$	115,487	$	68,756

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of December 31, 2020:

(in thousands)	Operating Leases		Financing Leases
2021	$	24,056	$	7,079
2022	20,970		7,145
2023	18,125		7,201
2024	15,330		7,396
2025	13,747		7,593
Thereafter	77,353		55,827
Total minimum lease payments including interest	$	169,581	$	92,241
Less:  Amounts representing interest	29,892		16,397
Present value of minimum lease principal payments	139,689		75,844
Less:  Current portion of lease liabilities	19,766		5,860
Noncurrent portion of lease liabilities	$	119,923	$	69,984

Following is a summary of the Company’s leases within the condensed consolidated statements of cash flows:

	First Quarter
(in thousands)	2021		2020
Cash flows from operating activities impact:
Operating leases	$	6,129	$	4,195
Interest payments on financing lease obligations	316		266
Total cash flows from operating activities impact	$	6,445	$	4,461
Cash flows from financing activities impact:
Principal payments on financing lease obligations	$	1,447	$	1,485
Total cash flows from financing activities impact	$	1,447	$	1,485

As of April 2, 2021, the Company had one equipment and two vehicle operating lease commitments that had not yet commenced. These lease commitments are expected to commence during the second quarter of 2021. The equipment lease has a lease term of approximately 10 years and the vehicle leases have lease terms of approximately three years. The additional lease liability associated with these lease commitments is expected to be $4.7 million.