Leases

6 Months Ended

Jun. 27, 2020

Leases [Abstract]

Leases

Leases

We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our finance leases range from 1 year to 8 years while our operating leases range from 1 year to 22 years, some of which may include options to extend the leases generally between 1 year and 10 years, and some of which may include options to terminate the leases within 1 year.

The components of lease expense for the three and six months ended June 27, 2020 and June 29, 2019, respectively, is shown in the table below:

	For the Three Months Ended				For the Six Months Ended
(in millions of U.S. dollars)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Operating lease cost	$	11.5	$	11.3	$	24.0	$	22.9
Short-term lease cost	1.7		0.4		4.0		1.3
Finance lease cost
Amortization of right-of-use assets	$	2.6	$	2.0	$	4.3	$	2.7
Interest on lease liabilities	0.8		0.1		1.8		0.3
Total finance lease cost	$	3.4	$	2.1	$	6.1	$	3.0
Sublease income	$	0.2	$	0.2	$	0.4	$	0.5

Supplemental cash flow information related to leases for the three and six months ended June 27, 2020 and June 29, 2019, respectively, is shown in the tables below:

	For the Three Months Ended
(in millions of U.S. dollars)	June 27, 2020		June 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11.3	$	11.3
Operating cash flows from finance leases	0.8		0.2
Financing cash flows from finance leases	2.4		1.1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	7.6	$	6.7
Finance leases	2.3		4.2

	For the Six Months Ended
(in millions of U.S. dollars)	June 27, 2020		June 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	23.9	$	24.2
Operating cash flows from finance leases	1.7		0.3
Financing cash flows from finance leases	$	3.8	$	1.8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	14.9	$	8.0
Finance leases	24.0		13.4

        Supplemental balance sheet information related to leases as of June 27, 2020 and December 28, 2019, respectively, is shown in the table below:

(in millions of U.S. dollars, except lease term and discount rate)	June 27, 2020		December 28, 2019
Operating leases
Operating lease right-of-use assets	$	179.5	$	185.7
Current operating lease obligations	37.9		36.5
Operating lease obligations	147.5		155.2
Total operating lease obligations	$	185.4	$	191.7
Financing leases
Property, plant and equipment, net	$	42.1	$	30.4
Current maturities of long-term debt	9.6		5.7
Long-term debt	39.6		23.7
Total finance lease obligations	$	49.2	$	29.4

Weighted Average Remaining Lease Term	June 27, 2020		December 28, 2019
Operating leases	8.3		8.7
Finance leases	5.5		5.6
Weighted Average Discount Rate
Operating leases	6.2	%	6.2	%
Finance leases	5.3	%	6.3	%

Maturities of operating lease obligations were as follows:

(in millions of U.S. dollars)	June 27, 2020		December 28, 2019
Remainder of 2020	$	27.0	$	47.8
2021	41.2		38.4
2022	31.7		29.6
2023	27.2		25.3
2024	22.0		20.6
Thereafter	94.9		93.5
Total lease payments	244.0		255.2
Less imputed interest	(58.6)		(63.5)
Present value of lease obligations	$	185.4	$	191.7

Maturities of finance lease obligations were as follows:

(in millions of U.S. dollars)	June 27, 2020		December 28, 2019
Remainder of 2020	$	7.5	$	6.8
2021	11.3		6.1
2022	10.2		5.7
2023	8.9		5.4
2024	7.4		4.6
Thereafter	11.7		6.4
Total lease payments	57.0		35.0
Less imputed interest	(7.8)		(5.6)
Present value of lease obligations	$	49.2	$	29.4

Leases

Leases

We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our finance leases range from 1 year to 8 years while our operating leases range from 1 year to 22 years, some of which may include options to extend the leases generally between 1 year and 10 years, and some of which may include options to terminate the leases within 1 year.

The components of lease expense for the three and six months ended June 27, 2020 and June 29, 2019, respectively, is shown in the table below:

	For the Three Months Ended				For the Six Months Ended
(in millions of U.S. dollars)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Operating lease cost	$	11.5	$	11.3	$	24.0	$	22.9
Short-term lease cost	1.7		0.4		4.0		1.3
Finance lease cost
Amortization of right-of-use assets	$	2.6	$	2.0	$	4.3	$	2.7
Interest on lease liabilities	0.8		0.1		1.8		0.3
Total finance lease cost	$	3.4	$	2.1	$	6.1	$	3.0
Sublease income	$	0.2	$	0.2	$	0.4	$	0.5

Supplemental cash flow information related to leases for the three and six months ended June 27, 2020 and June 29, 2019, respectively, is shown in the tables below:

	For the Three Months Ended
(in millions of U.S. dollars)	June 27, 2020		June 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11.3	$	11.3
Operating cash flows from finance leases	0.8		0.2
Financing cash flows from finance leases	2.4		1.1
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	7.6	$	6.7
Finance leases	2.3		4.2

	For the Six Months Ended
(in millions of U.S. dollars)	June 27, 2020		June 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	23.9	$	24.2
Operating cash flows from finance leases	1.7		0.3
Financing cash flows from finance leases	$	3.8	$	1.8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	14.9	$	8.0
Finance leases	24.0		13.4

        Supplemental balance sheet information related to leases as of June 27, 2020 and December 28, 2019, respectively, is shown in the table below:

(in millions of U.S. dollars, except lease term and discount rate)	June 27, 2020		December 28, 2019
Operating leases
Operating lease right-of-use assets	$	179.5	$	185.7
Current operating lease obligations	37.9		36.5
Operating lease obligations	147.5		155.2
Total operating lease obligations	$	185.4	$	191.7
Financing leases
Property, plant and equipment, net	$	42.1	$	30.4
Current maturities of long-term debt	9.6		5.7
Long-term debt	39.6		23.7
Total finance lease obligations	$	49.2	$	29.4

Weighted Average Remaining Lease Term	June 27, 2020		December 28, 2019
Operating leases	8.3		8.7
Finance leases	5.5		5.6
Weighted Average Discount Rate
Operating leases	6.2	%	6.2	%
Finance leases	5.3	%	6.3	%

Maturities of operating lease obligations were as follows:

(in millions of U.S. dollars)	June 27, 2020		December 28, 2019
Remainder of 2020	$	27.0	$	47.8
2021	41.2		38.4
2022	31.7		29.6
2023	27.2		25.3
2024	22.0		20.6
Thereafter	94.9		93.5
Total lease payments	244.0		255.2
Less imputed interest	(58.6)		(63.5)
Present value of lease obligations	$	185.4	$	191.7

Maturities of finance lease obligations were as follows:

(in millions of U.S. dollars)	June 27, 2020		December 28, 2019
Remainder of 2020	$	7.5	$	6.8
2021	11.3		6.1
2022	10.2		5.7
2023	8.9		5.4
2024	7.4		4.6
Thereafter	11.7		6.4
Total lease payments	57.0		35.0
Less imputed interest	(7.8)		(5.6)
Present value of lease obligations	$	49.2	$	29.4