Leases (Tables)

6 Months Ended

Jun. 30, 2019

Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Population of Leases

Following is a summary of the weighted average remaining lease term and weighted average discount rate for the Company’s population of leases as of June 30, 2019:

	Operating Leases			Financing Leases
Weighted average remaining lease term	8.8 years			5.0 years
Weighted average discount rate		4.0	%		5.8	%

Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Operations

Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statement of operations for the second quarter and first half of 2019:

(in thousands)	Second Quarter 2019		First Half 2019
Cost of sales impact:
Operating leases costs	$	1,342	$	2,683
Short-term and variable leases		2,317		4,579
Depreciation expense from financing leases⁽¹⁾		354		707
Total cost of sales impact	$	4,013	$	7,969

Selling, delivery and administrative expenses impact:
Operating leases costs	$	3,026	$	5,922
Short-term and variable leases		779		1,838
Depreciation expense from financing leases⁽¹⁾		1,137		2,276
Total selling, delivery and administrative expenses impact	$	4,942	$	10,036

Interest expense, net impact:
Interest payments on financing lease obligations⁽²⁾	$	715	$	1,417
Total interest expense, net impact	$	715	$	1,417

Total lease cost	$	9,670	$	19,422

(1)

During the second quarter of 2018, the Company had depreciation expense from capital leases of $0.3 million and $1.2 million in cost of sales and SD&A expenses, respectively. During the first half of 2018, the Company had depreciation expense from capital leases of $0.7 million and $2.3 million in cost of sales and SD&A expenses, respectively.

(2)	The Company had interest payments on capital lease obligations of $0.9 million during the second quarter of 2018 and $1.8 million during the first half of 2018.

Summary of Future Minimum Lease Payments For Noncancelable Operating And Financing Leases

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of June 30, 2019:

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2019	$	8,751	$	5,222	$	13,973
2020		18,652		10,611		29,263
2021		16,658		6,215		22,873
2022		13,551		2,694		16,245
2023		11,698		2,750		14,448
Thereafter		54,384		8,214		62,598
Total minimum lease payments including interest	$	123,694	$	35,706	$	159,400
Less: Amounts representing interest		21,119		4,505		25,624
Present value of minimum lease principal payments		102,575		31,201		133,776
Less: Current portion of lease liabilities - operating and financing leases		14,771		9,019		23,790
Noncurrent portion of lease liabilities - operating and financing leases	$	87,804	$	22,182	$	109,986

Summary of Future Minimum Lease Payments For Noncancelable Operating And Capital Leases

Following is a summary of future minimum lease payments for all noncancelable operating leases and capital leases as of December 30, 2018:

(in thousands)	Operating Leases		Capital Leases		Total
2019	$	14,146	$	10,434	$	24,580
2020		13,526		10,613		24,139
2021		12,568		6,218		18,786
2022		11,161		2,697		13,858
2023		10,055		2,753		12,808
Thereafter		33,805		8,106		41,911
Total minimum lease payments including interest	$	95,261	$	40,821	$	136,082
Less: Amounts representing interest				5,573
Present value of minimum lease principal payments				35,248
Less: Current portion of lease liabilities - capital leases				8,617
Noncurrent portion of lease liabilities - capital leases			$	26,631

Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Cash Flow

Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statements of cash flows for the first half of 2019:

(in thousands)	First Half 2019
Cash flows from operating activities impact:
Operating leases	$	8,515
Interest payments on financing lease obligations⁽¹⁾		1,417
Total cash flows from operating activities impact	$	9,932

Cash flows from financing activities:
Principal payments on financing lease obligations⁽¹⁾	$	4,261
Total cash flows from financing activities impact	$	4,261

(1)	During the first half of 2018, the Company had principal payments on capital lease obligations of $4.0 million and interest payments on capital lease obligations of $1.8 million.