Leases

9 Months Ended

Sep. 29, 2019

Leases [Abstract]

Leases

Leases

We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and certain equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms of less than 1 year to 16 years, some of which include options to extend the lease for a period of up to 15 years and some include options to terminate the leases within 1 year. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. Our lease agreements do not contain any material residual value guarantees or material variable lease payments.

We have entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on our balance sheet, and for the three and nine months ended September 29, 2019, the rent expense for short-term leases was not material.

We have certain property and equipment lease contracts that may contain lease and non-lease components, and we have elected to utilize the practical expedient to account for these components together as a single combined lease component.

As the rate implicit in most of our lease is not readily determinable, we use the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

The components of lease expense were as follows:

	Three Months Ended			Nine Months Ended
	September 29, 2019
	(In thousands)
Operating lease cost	$	(4,505	)	$	(14,247	)
Finance lease cost
Amortization of right-of-use asset	$	(43	)	$	(111	)
Interest on lease liabilities	(6		)	(16		)
Total finance lease cost	$	(49	)	$	(127	)

Supplemental cash flow information related to leases was as follows:

	Three Months Ended			Nine Months Ended
	September 29, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(4,842	)	$	(14,978	)
Operating cash flows from finance leases	(8		)	(24		)
Financing cash flows from finance leases	(59		)	(232		)

Supplemental balance sheet information related to leases was as follows:

	September 29, 2019
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	78,788
Accrued liabilities	$	16,981
Long-term operating lease liabilities	73,436
Total operating lease liabilities	$	90,417
Finance leases:
Other long-lived assets, at cost	$	723
Accumulated depreciation	(592		)
Other long-lived assets, net	$	131

Weighted Average Remaining Lease Term
Operating leases	7 years
Finance leases	2 years
Weighted Average Discount Rate
Operating leases	6.9	%
Finance leases	5.9	%

Maturities of lease liabilities as of September 29, 2019 were as follows:

	Operating Leases		Finance Leases
	(In thousands)
2019	$	6,045	$	68
2020	23,051		229
2021	19,742		131
2022	16,107		59
2023	13,382		34
Thereafter	41,896		11
Total	$	120,223	$	532

Leases

Leases

We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and certain equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms of less than 1 year to 16 years, some of which include options to extend the lease for a period of up to 15 years and some include options to terminate the leases within 1 year. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. Our lease agreements do not contain any material residual value guarantees or material variable lease payments.

We have entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on our balance sheet, and for the three and nine months ended September 29, 2019, the rent expense for short-term leases was not material.

We have certain property and equipment lease contracts that may contain lease and non-lease components, and we have elected to utilize the practical expedient to account for these components together as a single combined lease component.

As the rate implicit in most of our lease is not readily determinable, we use the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

The components of lease expense were as follows:

	Three Months Ended			Nine Months Ended
	September 29, 2019
	(In thousands)
Operating lease cost	$	(4,505	)	$	(14,247	)
Finance lease cost
Amortization of right-of-use asset	$	(43	)	$	(111	)
Interest on lease liabilities	(6		)	(16		)
Total finance lease cost	$	(49	)	$	(127	)

Supplemental cash flow information related to leases was as follows:

	Three Months Ended			Nine Months Ended
	September 29, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(4,842	)	$	(14,978	)
Operating cash flows from finance leases	(8		)	(24		)
Financing cash flows from finance leases	(59		)	(232		)

Supplemental balance sheet information related to leases was as follows:

	September 29, 2019
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	78,788
Accrued liabilities	$	16,981
Long-term operating lease liabilities	73,436
Total operating lease liabilities	$	90,417
Finance leases:
Other long-lived assets, at cost	$	723
Accumulated depreciation	(592		)
Other long-lived assets, net	$	131

Weighted Average Remaining Lease Term
Operating leases	7 years
Finance leases	2 years
Weighted Average Discount Rate
Operating leases	6.9	%
Finance leases	5.9	%

Maturities of lease liabilities as of September 29, 2019 were as follows:

	Operating Leases		Finance Leases
	(In thousands)
2019	$	6,045	$	68
2020	23,051		229
2021	19,742		131
2022	16,107		59
2023	13,382		34
Thereafter	41,896		11
Total	$	120,223	$	532