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Lease Disclosures | 6 Months Ended
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Jun. 16, 2019
Leases [Abstract] |
Lease Disclosures | 7. Lease Disclosures The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters with expiration dates through 2034. The components of operating and finance lease cost for the second quarter and two fiscal quarters of 2019 were as follows:
|  | Fiscal Quarter Ended |  |  | Two Fiscal Quarters Ended |
|  | June 16, |  |  | June 16, |
|  | 2019 |  |  | 2019 |
Operating lease cost |  | $ | 9,518 |  |  | $ | 20,314 |
Finance lease cost: |  |  |  |  |  |  |  |
Amortization of right-of-use assets |  |  | 255 |  |  |  | 509 |
Interest on lease liabilities |  |  | 317 |  |  |  | 796 |
Total finance lease cost |  | $ | 572 |  |  | $ | 1,305 |
Rent expense totaled $ 15.9 million and $ 32.3 million in the second quarter and two fiscal quarters of 2019, respectively, and totaled $ 15.2 million and $ 30.6 million in the second quarter and two fiscal quarters of 2018, respectively. Rent expense includes operating lease cost, as well as expense for non-lease components including common area maintenance, real estate taxes and insurance for the Company’s real estate leases. Rent expense also includes the variable rate per mile driven and fixed maintenance charges for the Company’s supply chain center tractors and trailers and expense for short-term rentals. Supplemental balance sheet information related to the Company’s leases as of June 16, 2019 and December 30, 2018 was as follows:
|  | June 16, |  |  | December 30, |
|  | 2019 |  |  | 2018 |
Land and buildings |  | $ | 22,183 |  |  | $ | 22,171 |
Accumulated depreciation and amortization |  |  | (7,187 | ) |  |  | (6,678 | )
Finance lease assets, net |  | $ | 14,996 |  |  | $ | 15,493 |
Current portion of long-term debt |  | $ | 669 |  |  | $ | 643 |
Long-term debt, less current portion |  |  | 16,087 |  |  |  | 16,363 |
Total principal payable on finance leases |  | $ | 16,756 |  |  | $ | 17,006 |
As of June 16, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows:
|  | Operating |  |  | Finance |
|  | Leases |  |  | Leases |
Weighted average remaining lease term |  |  | 8 years |  |  | 14 years |  |
Weighted average discount rate |  |  | 3.9 | % |  | 11.3 |  | %
Supplemental cash flow information related to leases for the second quarter and two fiscal quarters of 2019 was as follows:
|  | Fiscal Quarter Ended |  |  | Two Fiscal Quarters Ended |
|  | June 16, 2019 |  |  | June 16, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 9,398 |  |  | $ | 20,088 |
Operating cash flows from finance leases |  |  | 317 |  |  |  | 796 |
Financing cash flows from finance leases |  |  | 106 |  |  |  | 261 |
Right-of-use assets obtained in exchange for new lease obligations: |  |  |  |  |  |  |  |
Operating leases |  |  | 13,391 |  |  |  | 26,368 |
Finance leases |  |  | — |  |  |  | — |
During the first quarter of 2018, the Company renewed the lease of a supply chain center building and extended the term of the lease through 2033. As a result of the lease renewal, the Company recorded non-cash financing activities of $2.6 million for the increase in capital lease assets and liabilities during the two fiscal quarters of 2018. Maturities of lease liabilities as of June 16, 2019 were as follows:
|  | Operating |  |  | Finance |
|  | Leases |  |  | Leases |
2019 |  | $ | 19,825 |  |  | $ | 1,389 |
2020 |  |  | 36,827 |  |  |  | 2,416 |
2021 |  |  | 34,323 |  |  |  | 2,434 |
2022 |  |  | 31,191 |  |  |  | 2,452 |
2023 |  |  | 28,591 |  |  |  | 2,475 |
Thereafter |  |  | 105,474 |  |  |  | 23,796 |
Total future minimum rental commitments |  |  | 256,231 |  |  |  | 34,962 |
Less – amounts representing interest |  |  | (37,770 | ) |  |  | (18,206 | )
Total lease liabilities |  | $ | 218,461 |  |  | $ | 16,756 |
Maturities of lease liabilities as of December 30, 2018 were as follows:
|  | Operating |  |  | Finance |
|  | Leases |  |  | Leases |
2019 |  | $ | 40,752 |  |  | $ | 2,396 |
2020 |  |  | 37,519 |  |  |  | 2,415 |
2021 |  |  | 34,538 |  |  |  | 2,433 |
2022 |  |  | 30,763 |  |  |  | 2,451 |
2023 |  |  | 27,388 |  |  |  | 2,474 |
Thereafter |  |  | 100,310 |  |  |  | 23,781 |
Total future minimum rental commitments |  | $ | 271,270 |  |  |  | 35,950 |
Less – amounts representing interest |  |  |  |  |  |  | (18,944 | )
Total principal payable on finance leases |  |  |  |  |  | $ | 17,006 |
As of June 16, 2019, the Company has additional operating leases for supply chain center tractors and trailers and a new office building being constructed by the Company’s landlord that had not yet commenced with estimated future minimum rental commitments of approximately $36.4 million. The Company has also entered into an additional finance lease for a supply chain center that had not yet commenced with estimated future minimum rental commitments of approximately $28.7 million. These leases are expected to commence in 2019 with lease terms of up to 15 years. These undiscounted amounts are not included in the tables above. The Company has guaranteed lease payments related to certain franchisees’ lease arrangements. The maximum amount of potential future payments under these guarantees is $18.2 million and $2.4 million as of June 16, 2019 and December 30, 2018, respectively. The Company does not believe these arrangements have or are likely to have a material effect on its results of operations, financial condition, revenues or expenses, capital expenditures or liquidity.

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- Definition The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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