LEASES (Tables)

6 Months Ended

Jun. 29, 2019

Schedule of Cumulative Effect of Adoption of ASC 842

The cumulative effect of applying ASC 842 to all leases that had commenced as of December 30, 2018 was as follows:



Balance sheet captions impacted by ASC 842	December 30, 2018 (Prior to adoption of ASC 842)		Effect of the adoption of ASC 842				December 30, 2018 (As adjusted)
	(in thousands)
Prepaid assets	$	53,447	$	(4,413	)	⁽¹⁾	$	49,034
Property, plant and equipment, net	932,877		(23,448		)	⁽²⁾	909,429
Operating lease right-of-use assets, net	—		134,172			⁽³⁾	134,172
Other assets	143,759		(4,989		)	⁽⁴⁾	138,770
Other current liabilities	71,280		15,935			⁽⁵⁾	87,215
Operating lease right-of-use liabilities	—		111,570			⁽⁶⁾	111,570
Long-term debt, net and finance leases	1,636,598		(26,183		)	⁽⁷⁾	1,610,415
ASC 842 adoption adjustments:
⁽¹⁾ Short term prepaid rent reclassified from Prepaid assets to the Operating lease right-of-use asset.
⁽²⁾ Derecognition of approximately $26 million of leased properties, recorded in Property, plant and equipment, specifically Construction-in-process, that were recognized under the previously existing build-to-suit accounting rules; partially offset by Prepaid assets related to finance leases reclassified from Prepaid assets.
⁽³⁾ Recognition of Operating lease right-to-use asset and adjusted for prepaid rent and deferred rent liability reclassification adjustments identified in adjustments ⁽¹⁾ ⁽⁴⁾ ⁽⁵⁾.
⁽⁴⁾ Long-term prepaid rent reclassified from Other assets to the Operating lease right-of-use asset.
⁽⁵⁾ Recognition of short-term portion of the Operating lease right-of-use liabilities offset by reclassification of deferred rent liability to Operating lease right-of-use asset.
⁽⁶⁾ Recognition of long-term portion of the Operating lease right-of-use liabilities.
⁽⁷⁾ Derecognition of approximately $26 million of Other debt associated with leased properties that were recognized under the previously existing build-to-suit accounting rules.

Schedule of Right-of-Use Lease Assets and Lease Liabilities in Condensed Financial Statements

Right-of-use lease assets and lease liabilities are reported in the Company’s unaudited condensed consolidated balance sheets as follows:



	June 29, 2019
	(in thousands)
Operating leases
Operating lease right-of-use assets, net	$	131,880

Other current liabilities	$	19,405
Operating lease right-of-use liabilities	108,311
Total operating lease liabilities	$	127,716

Finance leases
Property, plant and equipment, net	$	32,780

Current portion of long-term debt and finance leases	$	3,247
Long-term debt, net and finance leases	28,264
Total finance lease liabilities	$	31,511

Schedule of Operating and Finance Lease Costs and Supplemental Cash Flow Information

The components of operating and finance lease costs for the three and six months ended June 29, 2019 were as follows:



	June 29, 2019
	Three Months Ended			Six Months Ended
	(in thousands)
Operating lease costs	$	7,887		$	15,594
Finance lease costs:
Amortization of right-of-use assets	931			1,852
Interest on lease liabilities	345			641
Short-term lease costs	204			396
Variable lease costs	930			1,265
Sublease income	(45		)	(91		)
Total lease costs	$	10,252		$	19,657

Supplemental cash flow information



	Six Months Ended
	June 29, 2019
	(in thousands)
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	13,214
Operating cash flows from finance leases	715
Finance cash flows from finance leases	1,842

Non-cash leases activity:
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	5,028
Right-of-use lease assets obtained in exchange for new finance lease liabilities	4,508

Lease term and discount rate



		As of
		June 29, 2019
Weighted-average remaining lease term (in years)
Operating lease		7.49
Finance lease		12.94
Weighted-average discount rate
Operating lease		4.48
Finance lease		4.60

Schedule of Future Minimum Lease Payments Under Non-Cancellable Operating Leases After Adoption

As of June 29, 2019, minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows:



	Operating Leases		Finance Leases
	(in thousands)
2019 (excluding the six months ended June 29, 2019)	$	11,180	$	2,119
2020	24,038		4,800
2021	22,418		3,786
2022	18,740		3,754
2023	14,740		2,857
Thereafter	59,675		25,038
Total minimum future lease payments	150,791		42,354
Less: Imputed interest	23,075		10,843
Total lease liabilities	$	127,716	$	31,511

Schedule of Future Minimum Lease Payments Under Non-Cancellable Finance Leases After Adoption

As of June 29, 2019, minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows:



	Operating Leases		Finance Leases
	(in thousands)
2019 (excluding the six months ended June 29, 2019)	$	11,180	$	2,119
2020	24,038		4,800
2021	22,418		3,786
2022	18,740		3,754
2023	14,740		2,857
Thereafter	59,675		25,038
Total minimum future lease payments	150,791		42,354
Less: Imputed interest	23,075		10,843
Total lease liabilities	$	127,716	$	31,511

Schedule of Future Minimum Lease Payments, Non-Cancellable Operating Leases Before Adoption

As of December 29, 2018, minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows:



	Operating Leases ⁽¹⁾		Finance Leases ⁽¹⁾
	(in thousands)
2019	$	25,411	$	3,972
2020	22,400		3,759
2021	21,544		2,869
2022	18,535		2,967
2023	15,398		2,209
Thereafter	66,870		24,304
Total minimum future lease payments	$	170,158	$	40,080
⁽¹⁾ Lease commitments are presented under the guidance of ASC 840 and includes approximately $14 million of minimum future lease payments for leases that had not commenced as of December 29, 2018. These commitments relate to existing leases for which the Company does not yet control certain expansion space.

Schedule of Future Minimum Lease Payments, Non-Cancellable Capital Leases Before Adoption

As of December 29, 2018, minimum future lease payments under non-cancellable leases for each of the following five years and a total thereafter were as follows:



	Operating Leases ⁽¹⁾		Finance Leases ⁽¹⁾
	(in thousands)
2019	$	25,411	$	3,972
2020	22,400		3,759
2021	21,544		2,869
2022	18,535		2,967
2023	15,398		2,209
Thereafter	66,870		24,304
Total minimum future lease payments	$	170,158	$	40,080
⁽¹⁾ Lease commitments are presented under the guidance of ASC 840 and includes approximately $14 million of minimum future lease payments for leases that had not commenced as of December 29, 2018. These commitments relate to existing leases for which the Company does not yet control certain expansion space.