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LEASES
 6 Months Ended
Jul. 03, 2021
Leases [Abstract]  
Leases LEASES
The Company leases certain manufacturing facilities, warehouses/distribution centers, office space, machinery, equipment, IT assets, and vehicles. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, it is considered to be or contain a lease. Right-of-use ("ROU") assets and lease liabilities are recognized at lease commencement date based on the present value of the future lease payments over the expected lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rate is calculated based upon the sovereign treasury rate for the currency in which the lease liability is denominated when the Company takes possession of the leased asset, adjusted for various factors, such as term and internal credit spread. The ROU asset also includes any lease payments made and excludes lease incentive and initial direct costs incurred.

Leases entered into may include one or more options to renew. The renewal terms can extend the lease term from one to twenty-five years. The exercise of lease renewal options is at the Company's sole discretion. Renewal option periods are included in the measurement of the ROU asset and lease liability when the exercise is reasonably certain to occur. Some leases include options to terminate the lease upon breach of contract and are remeasured at that point in time.

The depreciable life of leased assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
Some of the Company's lease agreements include rental payments adjusted periodically for inflation or are based on an index rate. These increases are reflected as variable lease payments and are included in the measurement of the ROU asset and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Operating Lease Assets, Current Operating Lease Liabilities, and Noncurrent Operating Lease Liabilities. ROU assets and liabilities arising from finance leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Net Property, Plant and Equipment, Current Maturities of Long-Term Debt, and Long-Term Debt.

Short-term and variable lease expenses were immaterial. The components of lease expense were as follows (in millions):
Three Months EndedSix Months Ended
July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Operating Lease Cost$7.7 $7.6 $15.4 $15.3 
Finance Lease Cost:
   Amortization of ROU Assets0.1 0.1 0.2 0.2 
   Interest on Lease Liabilities0.1 — 0.1 0.1 
Total Lease Expense$7.9 7.7 $15.7 $15.6 

Maturity of lease liabilities as of July 3, 2021 were as follows (in millions):
Operating LeasesFinance LeasesTotal
Remainder of 2021$14.3 $0.3 $14.6 
202222.4 0.5 22.9 
202315.6 0.6 16.2 
202410.6 0.6 11.2 
20258.0 0.6 8.6 
Thereafter18.7 1.3 20.0 
Total Lease Payments$89.6 $3.9 $93.5 
Less: Interest(14.4)(0.7)(15.1)
Present Value of Lease Liabilities$75.2 $3.2 $78.4 

Other information related to leases was as follows (in millions):
Six Months Ended
Supplemental Cash Flows InformationJuly 3, 2021June 27, 2020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
  Operating Cash Flows Used For Operating Leases$12.4 $14.8 
  Operating Cash Flows Used For Finance Leases0.1 0.1 
  Financing Cash Flows Used For Finance Leases0.2 0.2 
Leased Assets Obtained in Exchange for New Operating Lease Liabilities9.7 18.3 
Weighted Average Remaining Lease Term
Operating Leases4.4 years5.2 years
Finance Leases6.8 years7.8 years
Weighted Average Discount Rate
Operating Leases6.7 %8.3 %
Finance Leases5.9 %5.9 %
As of July 3, 2021, the Company has additional operating leases that have not yet commenced for future lease payments of $5.8 million. The Company had no finance leases that had not yet commenced nor entered into during the quarter.
Leases LEASES
The Company leases certain manufacturing facilities, warehouses/distribution centers, office space, machinery, equipment, IT assets, and vehicles. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, it is considered to be or contain a lease. Right-of-use ("ROU") assets and lease liabilities are recognized at lease commencement date based on the present value of the future lease payments over the expected lease term.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The incremental borrowing rate is calculated based upon the sovereign treasury rate for the currency in which the lease liability is denominated when the Company takes possession of the leased asset, adjusted for various factors, such as term and internal credit spread. The ROU asset also includes any lease payments made and excludes lease incentive and initial direct costs incurred.

Leases entered into may include one or more options to renew. The renewal terms can extend the lease term from one to twenty-five years. The exercise of lease renewal options is at the Company's sole discretion. Renewal option periods are included in the measurement of the ROU asset and lease liability when the exercise is reasonably certain to occur. Some leases include options to terminate the lease upon breach of contract and are remeasured at that point in time.

The depreciable life of leased assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.
Some of the Company's lease agreements include rental payments adjusted periodically for inflation or are based on an index rate. These increases are reflected as variable lease payments and are included in the measurement of the ROU asset and lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Operating leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Operating Lease Assets, Current Operating Lease Liabilities, and Noncurrent Operating Lease Liabilities. ROU assets and liabilities arising from finance leases are included in the following asset and liability accounts on the Company's Condensed Consolidated Balance Sheet: Net Property, Plant and Equipment, Current Maturities of Long-Term Debt, and Long-Term Debt.

Short-term and variable lease expenses were immaterial. The components of lease expense were as follows (in millions):
Three Months EndedSix Months Ended
July 3, 2021June 27, 2020July 3, 2021June 27, 2020
Operating Lease Cost$7.7 $7.6 $15.4 $15.3 
Finance Lease Cost:
   Amortization of ROU Assets0.1 0.1 0.2 0.2 
   Interest on Lease Liabilities0.1 — 0.1 0.1 
Total Lease Expense$7.9 7.7 $15.7 $15.6 

Maturity of lease liabilities as of July 3, 2021 were as follows (in millions):
Operating LeasesFinance LeasesTotal
Remainder of 2021$14.3 $0.3 $14.6 
202222.4 0.5 22.9 
202315.6 0.6 16.2 
202410.6 0.6 11.2 
20258.0 0.6 8.6 
Thereafter18.7 1.3 20.0 
Total Lease Payments$89.6 $3.9 $93.5 
Less: Interest(14.4)(0.7)(15.1)
Present Value of Lease Liabilities$75.2 $3.2 $78.4 

Other information related to leases was as follows (in millions):
Six Months Ended
Supplemental Cash Flows InformationJuly 3, 2021June 27, 2020
Cash Paid for Amounts Included in the Measurement of Lease Liabilities:
  Operating Cash Flows Used For Operating Leases$12.4 $14.8 
  Operating Cash Flows Used For Finance Leases0.1 0.1 
  Financing Cash Flows Used For Finance Leases0.2 0.2 
Leased Assets Obtained in Exchange for New Operating Lease Liabilities9.7 18.3 
Weighted Average Remaining Lease Term
Operating Leases4.4 years5.2 years
Finance Leases6.8 years7.8 years
Weighted Average Discount Rate
Operating Leases6.7 %8.3 %
Finance Leases5.9 %5.9 %
As of July 3, 2021, the Company has additional operating leases that have not yet commenced for future lease payments of $5.8 million. The Company had no finance leases that had not yet commenced nor entered into during the quarter.