Leases

12 Months Ended

Dec. 28, 2019

Leases

G. Leases

The Company has various lease agreements in place for facilities and equipment. Terms of these leases include, in some instances, scheduled rent increases, renewals, purchase options and maintenance costs, and vary by lease. These lease obligations expire at various dates through 2031. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at commencement to determine the present value of the lease payments. Based on the present value of the lease payments for the remaining lease term of the Company’s existing leases, the Company recognized ROU assets of $27.0 million and lease liabilities of $31.5 million upon adoption of ASU No. 2016-02 on December 30, 2018. ROU assets and lease liabilities commencing after December 30, 2018 are recognized at commencement date based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less (“short-term leases”) are not recorded on the balance sheet and are recognized on a straight-line basis over the lease term. As of December 28, 2019, total ROU assets and lease liabilities were as follows:

	Classification	Leases
Right-of-use assets		(in thousands)
Operating lease assets	Operating right-of-use assets	$	53,758
Finance lease assets	Property, plant and equipment, net		2,531
Lease Liabilities
Current
Operating lease liabilities	Current operating lease liabilities		5,168
Finance lease liabilities	Accrued expenses and other current liabilities		546
Non-current
Operating lease liabilities	Non-current operating lease liabilities		53,940
Finance lease liabilities	Other liabilities		2,042

The gross value and accumulated depreciation of ROU assets related to finance leases as of December 28, 2019 were as follows:

	Finance Leases
	(in thousands)
Gross value	$	2,837
Accumulated amortization		(306	)
Carrying value	$	2,531

Components of lease cost for the fiscal year-ended are as follows:

	Lease Cost
	(in thousands)
Operating lease cost	$	5,625
Variable lease costs not included in liability		1,064
Finance lease cost:
Amortization of right-of-use asset	$	306
Interest on lease liabilities		56
Total finance lease cost	$	362

Maturities of lease liabilities as of December 28, 2019 are as follows:

	Operating Leases			Finance Leases			Weighted-Average  Remaining Term in Years
							Operating Leases		Finance Leases
	(in thousands)
2020	$	5,755		$	626
2021		9,241			626
2022		9,036			626
2023		8,995			626
2024		8,729			265
Thereafter		27,567			23
Total lease payments		69,323			2,792
Less imputed interest (based on 3.5% weighted-average discount rate)		(10,215	)		(204	)
Present value of lease liability	$	59,108		$	2,588			8.3		4.4