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LEASES | 9 Months Ended
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Sep. 29, 2019
Leases [Abstract] |
LEASES | LEASES The Company is party to operating lease agreements for warehouses, office space, vehicle maintenance facilities and livestock growing farms in the U.S., distribution centers, hatcheries and office space in Mexico and farms, processing facilities and office space in the U.K. and Europe. Additionally, the Company leases equipment, over-the-road transportation vehicles and other assets in all three geographic business segments. The Company is also party to a limited number of finance lease agreements in the U.S. Our leases have remaining lease terms of one year to 16 years, some of which may include options to extend the lease for up to one year and some of which may include options to terminate the lease within one year. The exercise of options to extend lease terms is at our sole discretion. Certain leases also include options to purchase the leased property. Certain lease agreements include rental payment increases over the lease term that can be either fixed or variable. Fixed payment increases and variable payment increases based on an index or rate are included in the initial lease liability using the index or rate at commencement date. Variable payment increases not based on an index are recognized as incurred. Certain lease agreements contain residual value guarantees, primarily vehicle and transportation equipment leases. The following table presents components of lease expense. Operating lease cost, finance lease amortization and finance lease interest are respectively included in Cost of sales, Selling, general and administrative expense and Interest expense, net of capitalized interest in the Condensed Consolidated Statements of Income.
| Thirteen Weeks Ended |  | Thirty-Nine Weeks Ended
| September 29, 2019 |  | September 29, 2019
| (In thousands)
Operating lease cost(a) | $ | 25,885 |  |  | $ | 77,352 |
Amortization of finance lease assets | 64 |  |  | 111 |
Interest on finance leases | 15 |  |  | 22 |
Short-term and variable lease cost | 13,826 |  |  | 39,936 |
Net lease cost | $ | 39,790 |  |  | $ | 117,421 |
(a) Sublease income is immaterial and not included in operating lease costs. The weighted-average remaining lease term and discount rate for lease liabilities included in our Condensed Consolidated Balance Sheet are as follows:
| September 29, 2019
Weighted-average remaining lease term (years): |
Operating leases | 5.82 |
Finance leases | 4.54 |
Weighted-average discount rate: |
Operating leases | 4.86 | %
Finance leases | 5.31 | %
Supplemental cash flow information related to leases is as follows (in thousands):
| Thirty-Nine Weeks Ended
| September 29, 2019
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 74,988 |
Operating cash flow from finance leases | 22 |
Financing cash flows from finance leases | 111 |
Operating lease assets obtained in exchange for operating lease liabilities | $ | 24,290 |
Finance lease assets obtained in exchange for finance lease liabilities | 1,435 |
Future minimum lease payments under noncancellable leases at September 29, 2019 are as follows (in thousands):
| Operating Leases |  | Finance Leases
For the fiscal years ending December: |  |  |
Year 1 | $ | 82,269 |  |  | $ | 423 |
Year 2 | 64,688 |  |  | 343 |
Year 3 | 55,830 |  |  | 326 |
Year 4 | 46,138 |  |  | 325 |
Year 5 | 35,043 |  |  | 271 |
Thereafter | 62,278 |  |  | — |
Total future minimum lease payments | 346,246 |  |  | 1,688 |
Less: imputed interest | (45,115 | ) |  | (187 | )
Present value of lease liabilities | $ | 301,131 |  |  | $ | 1,501 |
Future minimum lease payments under capital and noncancellable operating leases with terms exceeding one year at December 30, 2018 were as follows (in thousands):
| Capital Lease Obligations |  | Noncancellable Operating Lease Obligations
For the fiscal years ending December: |  |  |
Year 1 | $ | 2,971 |  |  | $ | 84,220 |
Year 2 | 1,033 |  |  | 63,196 |
Year 3 | 36 |  |  | 53,908 |
Year 4 | 3 |  |  | 45,557 |
Year 5 | — |  |  | 36,136 |
Thereafter | — |  |  | 66,637 |
Net minimum lease payments | 4,043 |  |  | $ | 349,654 |
Amount representing interest | (337 | ) |  |
Present value of net minimum lease payments | $ | 3,706 |  |  |
Lease liabilities as of September 29, 2019 are included in our Condensed Consolidated Balance Sheet as follows (in thousands):
| Operating Leases |  | Finance Leases
Accrued expenses and other current liabilities | $ | 70,113 |  |  | $ | — |
Current maturities of long-term debt | — |  |  | 352 |
Noncurrent operating lease liability, less current maturities | 231,018 |  |  | — |
Long-term debt, less current maturities | — |  |  | 1,149 |
Total lease liabilities | $ | 301,131 |  |  | $ | 1,501 |
As of September 29, 2019, the Company did not have any operating and finance leases that have not commenced.

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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + 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 + Details
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