Leases

12 Months Ended

Jan. 02, 2021

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 one year to seven years, while our operating leases range from one year to 20 years, some of which may include options to extend the leases generally between one year and 10 years, and some of which may include options to terminate the leases within one year.

The components of lease expense were as follows:

	For the Year Ended
(in millions of U.S. dollars)	January 2, 2021		December 28, 2019
Operating lease cost	$	49.0	$	47.7
Short-term lease cost	8.0		3.0
Finance lease cost
Amortization of right-of-use assets	$	11.7	$	4.5
Interest on lease liabilities	3.5		1.2
Total finance lease cost	$	15.2	$	5.7
Sublease income	$	0.7	$	0.8

Supplemental cash flow information related to leases was as follows:

	For the Year Ended
(in millions of U.S. dollars)	January 2, 2021	December 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	52.2	$	47.2
Operating cash flows from finance leases	3.6	1.1
Financing cash flows from finance leases	10.5	3.8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	29.5	$	25.0
Finance leases	52.2	28.6

Supplemental balance sheet information related to leases was as follows:

(in millions of U.S. dollars, except lease term and discount rate)	January 2, 2021		December 28, 2019
Operating leases
Operating lease right-of-use assets	$	180.6	$	185.7
Current operating lease obligations	35.5		36.5
Operating lease obligations	148.0		155.2
Total operating lease obligations	$	183.5	$	191.7
Financing leases
Property, plant and equipment, net	$	71.0	$	30.4
Current maturities of long-term debt	13.2		5.8
Long-term debt	58.3		23.6
Total finance lease obligations	$	71.5	$	29.4

Weighted Average Remaining Lease Term	January 2, 2021		December 28, 2019
Operating leases	7.6 years		8.7 years
Finance leases	5.5 years		5.6 years
Weighted Average Discount Rate
Operating leases	6.1	%	6.2	%
Finance leases	4.9	%	6.3	%

Maturities of operating lease obligations were as follows:

(in millions of U.S. dollars)	January 2, 2021
2021	$	45.4
2022	35.1
2023	30.5
2024	25.2
2025	20.6
Thereafter	81.0
Total lease payments	237.8
Less imputed interest	(54.3)
Present value of lease obligations	$	183.5

Maturities of finance lease obligations were as follows:

(in millions of U.S. dollars)	January 2, 2021
2021	$	16.5
2022	15.5
2023	14.5
2024	12.7
2025	11.6
Thereafter	11.6
Total lease payments	82.4
Less imputed interest	(10.9)
Present value of lease obligations	$	71.5

During the fourth quarter of 2020, we entered into two building leases; the first with a 64 month term beginning in 2021 and the second with an 18 year term beginning in 2023. The total lease commitment for these two operating leases is approximately $28.8 million.

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 one year to seven years, while our operating leases range from one year to 20 years, some of which may include options to extend the leases generally between one year and 10 years, and some of which may include options to terminate the leases within one year.

The components of lease expense were as follows:

	For the Year Ended
(in millions of U.S. dollars)	January 2, 2021		December 28, 2019
Operating lease cost	$	49.0	$	47.7
Short-term lease cost	8.0		3.0
Finance lease cost
Amortization of right-of-use assets	$	11.7	$	4.5
Interest on lease liabilities	3.5		1.2
Total finance lease cost	$	15.2	$	5.7
Sublease income	$	0.7	$	0.8

Supplemental cash flow information related to leases was as follows:

	For the Year Ended
(in millions of U.S. dollars)	January 2, 2021	December 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	52.2	$	47.2
Operating cash flows from finance leases	3.6	1.1
Financing cash flows from finance leases	10.5	3.8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	29.5	$	25.0
Finance leases	52.2	28.6

Supplemental balance sheet information related to leases was as follows:

(in millions of U.S. dollars, except lease term and discount rate)	January 2, 2021		December 28, 2019
Operating leases
Operating lease right-of-use assets	$	180.6	$	185.7
Current operating lease obligations	35.5		36.5
Operating lease obligations	148.0		155.2
Total operating lease obligations	$	183.5	$	191.7
Financing leases
Property, plant and equipment, net	$	71.0	$	30.4
Current maturities of long-term debt	13.2		5.8
Long-term debt	58.3		23.6
Total finance lease obligations	$	71.5	$	29.4

Weighted Average Remaining Lease Term	January 2, 2021		December 28, 2019
Operating leases	7.6 years		8.7 years
Finance leases	5.5 years		5.6 years
Weighted Average Discount Rate
Operating leases	6.1	%	6.2	%
Finance leases	4.9	%	6.3	%

Maturities of operating lease obligations were as follows:

(in millions of U.S. dollars)	January 2, 2021
2021	$	45.4
2022	35.1
2023	30.5
2024	25.2
2025	20.6
Thereafter	81.0
Total lease payments	237.8
Less imputed interest	(54.3)
Present value of lease obligations	$	183.5

Maturities of finance lease obligations were as follows:

(in millions of U.S. dollars)	January 2, 2021
2021	$	16.5
2022	15.5
2023	14.5
2024	12.7
2025	11.6
Thereafter	11.6
Total lease payments	82.4
Less imputed interest	(10.9)
Present value of lease obligations	$	71.5

During the fourth quarter of 2020, we entered into two building leases; the first with a 64 month term beginning in 2021 and the second with an 18 year term beginning in 2023. The total lease commitment for these two operating leases is approximately $28.8 million.