Leases

3 Months Ended

Mar. 29, 2020

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 months ended March 29, 2020, 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 leases 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
	March 29, 2020		March 31, 2019
	(In thousands)
Operating lease cost	$	3,597	$	4,873
Finance lease cost
Amortization of right-of-use asset	$	33	$	26
Interest on lease liabilities	5		4
Total finance lease cost	$	38	$	30

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
	March 29, 2020		March 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,791	$	5,088
Operating cash flows from finance leases	5		9
Financing cash flows from finance leases	46		70

Supplemental balance sheet information related to leases was as follows:

	March 29, 2020		December 31, 2019
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	58,960	$	62,251
Accrued liabilities	$	13,626	$	13,900
Long-term operating lease liabilities	52,084		55,652
Total operating lease liabilities	$	65,710	$	69,552
Finance leases:
Other long-lived assets, at cost	$	748	$	823
Accumulated depreciation	(392)		(391)
Other long-lived assets, net	$	356	$	432

Weighted Average Remaining Lease Term
Operating leases	5 years		6 years
Finance leases	3 years		3 years
Weighted Average Discount Rate
Operating leases	6.8	%	6.9	%
Finance leases	6.2	%	6.2	%

The following table summarizes maturities of lease liabilities as of March 29, 2020 (in thousands):

2020	$	14,579
2021	17,866
2022	15,067
2023	11,854
2024	9,032
Thereafter	16,573
Total	$	84,971

The following table summarizes maturities of lease liabilities as of December 31, 2019 (in thousands):

2020	$	19,086
2021	16,988
2022	14,128
2023	11,598
2024	9,032
Thereafter	16,655
Total	$	87,487

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 months ended March 29, 2020, 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 leases 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
	March 29, 2020		March 31, 2019
	(In thousands)
Operating lease cost	$	3,597	$	4,873
Finance lease cost
Amortization of right-of-use asset	$	33	$	26
Interest on lease liabilities	5		4
Total finance lease cost	$	38	$	30

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
	March 29, 2020		March 31, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,791	$	5,088
Operating cash flows from finance leases	5		9
Financing cash flows from finance leases	46		70

Supplemental balance sheet information related to leases was as follows:

	March 29, 2020		December 31, 2019
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	58,960	$	62,251
Accrued liabilities	$	13,626	$	13,900
Long-term operating lease liabilities	52,084		55,652
Total operating lease liabilities	$	65,710	$	69,552
Finance leases:
Other long-lived assets, at cost	$	748	$	823
Accumulated depreciation	(392)		(391)
Other long-lived assets, net	$	356	$	432

Weighted Average Remaining Lease Term
Operating leases	5 years		6 years
Finance leases	3 years		3 years
Weighted Average Discount Rate
Operating leases	6.8	%	6.9	%
Finance leases	6.2	%	6.2	%

The following table summarizes maturities of lease liabilities as of March 29, 2020 (in thousands):

2020	$	14,579
2021	17,866
2022	15,067
2023	11,854
2024	9,032
Thereafter	16,573
Total	$	84,971

The following table summarizes maturities of lease liabilities as of December 31, 2019 (in thousands):

2020	$	19,086
2021	16,988
2022	14,128
2023	11,598
2024	9,032
Thereafter	16,655
Total	$	87,487