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Leases
 9 Months Ended
Sep. 29, 2019
Leases [Abstract]  
Leases Leases
The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, warehouses, and packaging centers), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.
As the implicit rate in the Company's leases is not readily determinable, the Company calculates its right of use lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. See Note 2 for further information regarding the Company's adoption of ASU 2016-02, "Leases."
The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at September 29, 2019:

ClassificationBalance Sheet LocationSeptember 29, 2019
Lease Assets
Operating lease assetsRight of Use Asset - Operating Leases$296,499  
Finance lease assetsOther Assets18,402  
Total lease assets314,901  
Lease Liabilities
Current operating lease liabilitiesAccrued expenses and other53,256  
Current finance lease liabilitiesNotes payable and current portion of debt9,059  
Total current lease liabilities62,315  
Noncurrent operating lease liabilitiesNoncurrent Operating Lease Liabilities252,460  
Noncurrent finance lease liabilitiesLong-term Debt, Net of Current Portion8,559  
Total noncurrent lease liabilities261,019  
Total lease liabilities$323,334  

As of September 29, 2019, the Company has entered into additional leases that have not yet commenced. The associated contracts include payments over the respective lease terms totaling $2,100, which are not reflected in the Company's liabilities recorded as of September 29, 2019. These leases will commence during fiscal year 2020 with lease terms of approximately 5 years.
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.
The following table sets forth the components of the Company's total lease cost for the three- and nine-month periods ended September 29, 2019:
Lease CostThree Months Ended September 29, 2019Nine Months Ended September 29, 2019
Operating lease cost(a)$15,502  $46,818  
Finance lease cost:
     Amortization of lease asset(a) (b)2,036  6,158  
     Interest on lease liabilities(c)214  735  
Variable lease cost(a) (d)10,657  27,626  
Total lease cost$28,409  $81,337  

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.
(b) Included in depreciation and amortization.

(c) Included in interest expense.

(d) Also includes short term lease costs, which are deemed immaterial.

In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance (ASC 840) for comparative periods presented herein. Rental expense under operating leases for the three- and nine-month periods ended September 30, 2018 was $19,953 and $58,253, respectively.

The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of September 29, 2019:
Maturity of Lease LiabilitiesOperating LeasesFinance LeasesTotal
2019 (excluding nine months ended September 29, 2019)$21,383  $3,026  $24,409  
202054,382  8,215  62,597  
202147,033  3,238  50,271  
202240,953  1,679  42,632  
202337,072  1,079  38,151  
Beyond 2023188,816  1,390  190,206  
Total lease payments$389,639  $18,627  $408,266  
     Less: Interest83,923  1,009  84,932  
Lease Liabilities$305,716  $17,618  $323,334  
As presented in our 2018 Form 10-K (under ASC 840), the future minimum rentals under noncancellable operating leases with terms of more than one year, payable over the remaining lives of the leases at December 31, 2018, were as follows:
PeriodMinimum Future Rental Commitments
2019$48,200  
202041,700  
202132,500  
202227,300  
202321,400  
Beyond 202392,300  

The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities at September 29, 2019, along with other lease-related information for the three months ended September 29, 2019:
Lease Term and Discount RateAs of September 29, 2019
Weighted-average remaining lease term (years):
     Operating leases11.2
     Finance leases2.7
Weighted-average discount rate:
     Operating leases 4.89%  
     Finance leases4.91%  
Other InformationNine Months Ended September 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used by operating leases $46,374  
     Operating cash flows used by finance leases735  
     Financing cash flows used by finance leases7,593  
Leased assets obtained in exchange for new operating lease liabilities18,053  
Leased assets obtained in exchange for new finance lease liabilities1,186  
Leases Leases
The Company routinely enters into leasing arrangements for real estate (including manufacturing facilities, office space, warehouses, and packaging centers), transportation equipment (automobiles, forklifts, and trailers), and office equipment (copiers and postage machines). The assessment of the certainty associated with the exercise of various lease renewal, termination, and purchase options included in the Company's lease contracts is at the Company's sole discretion. Most real estate leases, in particular, include one or more options to renew, with renewal terms that can extend the lease term from one to 50 years. The Company's leases do not have any significant residual value guarantees or restrictive covenants.
As the implicit rate in the Company's leases is not readily determinable, the Company calculates its right of use lease liabilities using discount rates based upon the Company’s incremental secured borrowing rate, which contemplates and reflects a particular geographical region’s interest rate for the leases active within that region of the Company’s global operations. The Company further utilizes a portfolio approach by assigning a “short” rate to contracts with lease terms of 10 years or less and a “long” rate for contracts greater than 10 years. See Note 2 for further information regarding the Company's adoption of ASU 2016-02, "Leases."
The following table sets forth the balance sheet location and values of the Company’s lease assets and lease liabilities at September 29, 2019:

ClassificationBalance Sheet LocationSeptember 29, 2019
Lease Assets
Operating lease assetsRight of Use Asset - Operating Leases$296,499  
Finance lease assetsOther Assets18,402  
Total lease assets314,901  
Lease Liabilities
Current operating lease liabilitiesAccrued expenses and other53,256  
Current finance lease liabilitiesNotes payable and current portion of debt9,059  
Total current lease liabilities62,315  
Noncurrent operating lease liabilitiesNoncurrent Operating Lease Liabilities252,460  
Noncurrent finance lease liabilitiesLong-term Debt, Net of Current Portion8,559  
Total noncurrent lease liabilities261,019  
Total lease liabilities$323,334  

As of September 29, 2019, the Company has entered into additional leases that have not yet commenced. The associated contracts include payments over the respective lease terms totaling $2,100, which are not reflected in the Company's liabilities recorded as of September 29, 2019. These leases will commence during fiscal year 2020 with lease terms of approximately 5 years.
Certain of the Company’s leases include variable costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, and also non-lease components that were incurred based upon actual terms rather than contractually fixed amounts. In addition, variable costs are incurred for lease payments that are indexed to a change in rate or index. Because the right of use asset recorded on the balance sheet was determined based upon factors considered at the commencement date, subsequent changes in the rate or index that were not contemplated in the right of use asset balances recorded on the balance sheet result in variable expenses being incurred when paid during the lease term.
The following table sets forth the components of the Company's total lease cost for the three- and nine-month periods ended September 29, 2019:
Lease CostThree Months Ended September 29, 2019Nine Months Ended September 29, 2019
Operating lease cost(a)$15,502  $46,818  
Finance lease cost:
     Amortization of lease asset(a) (b)2,036  6,158  
     Interest on lease liabilities(c)214  735  
Variable lease cost(a) (d)10,657  27,626  
Total lease cost$28,409  $81,337  

(a) Production-related and administrative amounts are included in cost of sales and selling, general and administrative expenses, respectively.
(b) Included in depreciation and amortization.

(c) Included in interest expense.

(d) Also includes short term lease costs, which are deemed immaterial.

In compliance with ASC 842, the Company must provide the prior year disclosures required under the previous lease guidance (ASC 840) for comparative periods presented herein. Rental expense under operating leases for the three- and nine-month periods ended September 30, 2018 was $19,953 and $58,253, respectively.

The following table sets forth the five-year maturity schedule of the Company's lease liabilities as of September 29, 2019:
Maturity of Lease LiabilitiesOperating LeasesFinance LeasesTotal
2019 (excluding nine months ended September 29, 2019)$21,383  $3,026  $24,409  
202054,382  8,215  62,597  
202147,033  3,238  50,271  
202240,953  1,679  42,632  
202337,072  1,079  38,151  
Beyond 2023188,816  1,390  190,206  
Total lease payments$389,639  $18,627  $408,266  
     Less: Interest83,923  1,009  84,932  
Lease Liabilities$305,716  $17,618  $323,334  
As presented in our 2018 Form 10-K (under ASC 840), the future minimum rentals under noncancellable operating leases with terms of more than one year, payable over the remaining lives of the leases at December 31, 2018, were as follows:
PeriodMinimum Future Rental Commitments
2019$48,200  
202041,700  
202132,500  
202227,300  
202321,400  
Beyond 202392,300  

The following tables set forth the Company's weighted average remaining lease term and discount rates used in the calculation of its outstanding lease liabilities at September 29, 2019, along with other lease-related information for the three months ended September 29, 2019:
Lease Term and Discount RateAs of September 29, 2019
Weighted-average remaining lease term (years):
     Operating leases11.2
     Finance leases2.7
Weighted-average discount rate:
     Operating leases 4.89%  
     Finance leases4.91%  
Other InformationNine Months Ended September 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows used by operating leases $46,374  
     Operating cash flows used by finance leases735  
     Financing cash flows used by finance leases7,593  
Leased assets obtained in exchange for new operating lease liabilities18,053  
Leased assets obtained in exchange for new finance lease liabilities1,186