Leases

12 Months Ended

Dec. 26, 2021

Leases [Abstract]

Leases

Leases

Lessee activities

Operating leases

We have operating leases for office space and equipment. For all leases, a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, are recognized in the Consolidated Balance Sheet as of December 26, 2021, as described below.

The table below presents the lease-related assets and liabilities recorded on the balance sheet:

(In thousands)	Classification in the Consolidated Balance Sheet	December 26, 2021		December 27, 2020
Operating lease right-of-use assets	Miscellaneous assets	$	62,567	$	52,304
Current operating lease liabilities	Accrued expenses and other	$	9,078	$	9,056
Noncurrent operating lease liabilities	Other	63,614		52,695
Total operating lease liabilities		$	72,692	$	61,751

The total lease cost for operating leases included in operating costs in our Consolidated Statement of Operations was as follows:

	For the Twelve Months Ended
(In thousands)	December 26, 2021		December 27, 2020		December 29, 2019
Operating lease cost	$	11,926	$	11,467	$	9,980
Short term and variable lease cost	1,575		1,776		1,814
Total lease cost	$	13,501	$	13,243	$	11,794

The table below presents additional information regarding operating leases:

(In thousands, except lease term and discount rate)	December 26, 2021			December 27, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	12,254		$	11,533
Right-of-use assets obtained in exchange for operating lease liabilities	$	19,457		$	9,004
Weighted-average remaining lease term	9.4 years			8.7 years
Weighted-average discount rate	3.63		%	4.41		%

Maturities of lease liabilities on an annual basis for the Company’s operating leases as of December 26, 2021, were as follows:

(In thousands)	Amount
2022	$	11,170
2023	10,157
2024	9,548
2025	8,372
2026	8,023
Later Years	38,673
Total lease payments	$	85,943
Less: Interest	(13,251)
Present value of lease liabilities	$	72,692

Finance lease    

We had a finance lease in connection with the land at our College Point, N.Y., printing and distribution facility. Interest on the lease liability was recorded in Interest income/(expense) and other, net in our Consolidated Statement of Operations. Repayments of the principal portion of our lease liability are recorded within financing activities section and payments of interest on our lease liability are recorded within operating activities section in the Consolidated Statement of Cash Flows for our finance lease. On August 1, 2019, using existing cash, we purchased the assets under the finance lease for $6.9 million, which resulted in the settlement of our finance lease obligation.

Lessor activities

Our leases to third parties predominantly relate to office space in the Company Headquarters.

As of December 26, 2021, and December 27, 2020, the cost and accumulated depreciation related to the Company Headquarters included in Property, plant and equipment in our Consolidated Balance Sheet was approximately $516 million and $240 million and $516 million and $222 million, respectively. Office space leased to third parties represents approximately 36% of gross square feet of the Company Headquarters.

We generate building rental revenue from the floors in the Company Headquarters that we lease to third parties. The building rental revenue was as follows:

	For the Twelve Months Ended
(In thousands)	December 26, 2021		December 27, 2020		December 29, 2019
Building rental revenue(1)	$	22,851	$	28,516	$	30,595

(1) Building rental revenue includes approximately $10.8 million related to subleases for the fiscal year ended December 29, 2019..

Maturities of lease payments to be received on an annual basis for the Company’s office space operating leases as of December 26, 2021, were as follows:

(In thousands)	Amount
2022	$	30,564
2023	29,010
2024	29,053
2025	29,344
2026	29,344
Later Years	101,781
Total building rental revenue from operating leases	$	249,096

Leases

Leases

Lessee activities

Operating leases

We have operating leases for office space and equipment. For all leases, a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, are recognized in the Consolidated Balance Sheet as of December 26, 2021, as described below.

The table below presents the lease-related assets and liabilities recorded on the balance sheet:

(In thousands)	Classification in the Consolidated Balance Sheet	December 26, 2021		December 27, 2020
Operating lease right-of-use assets	Miscellaneous assets	$	62,567	$	52,304
Current operating lease liabilities	Accrued expenses and other	$	9,078	$	9,056
Noncurrent operating lease liabilities	Other	63,614		52,695
Total operating lease liabilities		$	72,692	$	61,751

The total lease cost for operating leases included in operating costs in our Consolidated Statement of Operations was as follows:

	For the Twelve Months Ended
(In thousands)	December 26, 2021		December 27, 2020		December 29, 2019
Operating lease cost	$	11,926	$	11,467	$	9,980
Short term and variable lease cost	1,575		1,776		1,814
Total lease cost	$	13,501	$	13,243	$	11,794

The table below presents additional information regarding operating leases:

(In thousands, except lease term and discount rate)	December 26, 2021			December 27, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	12,254		$	11,533
Right-of-use assets obtained in exchange for operating lease liabilities	$	19,457		$	9,004
Weighted-average remaining lease term	9.4 years			8.7 years
Weighted-average discount rate	3.63		%	4.41		%

Maturities of lease liabilities on an annual basis for the Company’s operating leases as of December 26, 2021, were as follows:

(In thousands)	Amount
2022	$	11,170
2023	10,157
2024	9,548
2025	8,372
2026	8,023
Later Years	38,673
Total lease payments	$	85,943
Less: Interest	(13,251)
Present value of lease liabilities	$	72,692

Finance lease    

We had a finance lease in connection with the land at our College Point, N.Y., printing and distribution facility. Interest on the lease liability was recorded in Interest income/(expense) and other, net in our Consolidated Statement of Operations. Repayments of the principal portion of our lease liability are recorded within financing activities section and payments of interest on our lease liability are recorded within operating activities section in the Consolidated Statement of Cash Flows for our finance lease. On August 1, 2019, using existing cash, we purchased the assets under the finance lease for $6.9 million, which resulted in the settlement of our finance lease obligation.

Lessor activities

Our leases to third parties predominantly relate to office space in the Company Headquarters.

As of December 26, 2021, and December 27, 2020, the cost and accumulated depreciation related to the Company Headquarters included in Property, plant and equipment in our Consolidated Balance Sheet was approximately $516 million and $240 million and $516 million and $222 million, respectively. Office space leased to third parties represents approximately 36% of gross square feet of the Company Headquarters.

We generate building rental revenue from the floors in the Company Headquarters that we lease to third parties. The building rental revenue was as follows:

	For the Twelve Months Ended
(In thousands)	December 26, 2021		December 27, 2020		December 29, 2019
Building rental revenue(1)	$	22,851	$	28,516	$	30,595

(1) Building rental revenue includes approximately $10.8 million related to subleases for the fiscal year ended December 29, 2019..

Maturities of lease payments to be received on an annual basis for the Company’s office space operating leases as of December 26, 2021, were as follows:

(In thousands)	Amount
2022	$	30,564
2023	29,010
2024	29,053
2025	29,344
2026	29,344
Later Years	101,781
Total building rental revenue from operating leases	$	249,096