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Leases | 12 Months Ended
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Dec. 29, 2019
Leases [Abstract] |
Lease Disclosures |
(5) | Leases
The Company leases certain retail store and supply chain center locations, supply chain vehicles and its corporate headquarters with expiration dates through 2041. The components of operating and finance lease cost for 2019 were as follows (in thousands):
|  | Fiscal Year Ended December 29, 2019 |
Operating lease cost |  | $ | 42,903 |
Finance lease cost: |  |  |  |
Amortization of right-of-use assets |  |  | 1,167 |
Interest on lease liabilities |  |  | 1,952 |
Total finance lease cost |  | $ | 3,119 |
Rent expense totaled $69.7 million, $67.4 million and $62.0 million in 2019, 2018 and 2017, 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. The inclusion of the variable rate per mile driven for the Company’s supply chain center tractors and trailers in rent expense following the adoption of ASC 842 resulted in the inclusion of an additional $ 4.9 million and $ 4.1 million in rent expense in 2018 and 2017, respectively, for comparability purposes. Variable rent expense and rent expense for short-term leases were immaterial for 2019. Supplemental balance sheet information related to the Company’s leases as of December 29, 2019 and December 30, 2018 was as follows (in thousands):
|  | December 29, 2019 |  |  | December 30, 2018 |
Land and buildings |  | $ | 25,476 |  |  | $ | 22,171 |
Accumulated depreciation and amortization |  |  | (7,846 | ) |  |  | (6,678 | )
Finance lease assets, net |  | $ | 17,630 |  |  | $ | 15,493 |
Current portion of long-term debt |  | $ | 1,394 |  |  | $ | 643 |
Long-term debt, less current portion |  |  | 18,263 |  |  |  | 16,363 |
Total principal payable on finance leases |  | $ | 19,657 |  |  | $ | 17,006 |
As of December 29, 2019, the weighted average remaining lease term and weighted average discount rate for the Company’s operating and finance leases were as follows:
|  | Operating Leases |  |  | Finance Leases |
Weighted average remaining lease term |  |  | 8 years |  |  |  | 14 years |
Weighted average discount rate |  |  | 3.8 | % |  |  | 11.7 | %
Supplemental cash flow information related to leases for 2019 was as follows (in thousands):
|  | Fiscal Year Ended December 29, 2019 |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |
Operating cash flows from operating leases |  | $ | 43,608 |
Operating cash flows from finance leases |  |  | 1,952 |
Financing cash flows from finance leases |  |  | 647 |
Right-of-use assets obtained in exchange for new lease obligations: |  |  |  |
Operating leases |  |  | 63,685 |
Finance leases |  |  | 3,255 |
During 2018, the Company renewed the leases of four supply chain center buildings and extended the terms of the leases. As a result, the Company recorded non-cash financing activities of $12.0 million for the increase in capital lease assets and liabilities during 2018. During 2018, the Company also recorded $1.9 million in non-cash financing activities related to a build-to-suit arrangement, which was derecognized in connection with the Company’s adoption of ASC 842 in 2019. Maturities of lease liabilities as of December 29, 2019 were as follows (in thousands):
|  | Operating Leases |  |  | Finance Leases |
2020 |  | $ | 39,925 |  |  | $ | 3,302 |
2021 |  |  | 40,070 |  |  |  | 2,816 |
2022 |  |  | 36,928 |  |  |  | 2,834 |
2023 |  |  | 34,381 |  |  |  | 2,858 |
2024 |  |  | 29,987 |  |  |  | 2,882 |
Thereafter |  |  | 92,849 |  |  |  | 25,813 |
Total future minimum rental commitments |  |  | 274,140 |  |  |  | 40,505 |
Less – amounts representing interest |  |  | (38,091 | ) |  |  | (20,848 | )
Total lease liabilities |  | $ | 236,049 |  |  | $ | 19,657 |
Future minimum rental commitments as of December 30, 2018 were as follows (in thousands):
|  | Operating Leases |  |  | Finance 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 December 29, 2019, the Company has additional leases for two supply chain centers and certain supply chain tractors and trailers that had not yet commenced with estimated future minimum rental commitments of approximately $76.2 million. These leases are expected to commence in 2020 with lease terms of up to 21 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 wa s $16.7 million and $2.4 million as of December 29, 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://fasb.org/us-gaap/role/ref/otherTransitionRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 + Details
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