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LEASES | 3 Months Ended
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Mar. 30, 2019
Leases [Abstract] |
LEASES | LEASES The Company has operating leases for plant locations, corporate offices, sales offices, and certain equipment. Outstanding leases at March 30, 2019 have remaining lease terms of one year to fifteen years, some of which include options to extend leases for up to five years. The Company does not have any financing leases. The Company elected practical expedients not to reassess whether existing contracts are or contain leases, to not reassess the lease classification of any existing leases, to not reassess initial direct costs for any existing leases, to use hindsight in determining the lease term and in assessing impairment of the right-of-use asset, and to not separate lease and non-lease components for all classes of underlying assets. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") assets, accrued expenses, and operating lease liabilities in our condensed consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make future lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of the leases do not provide an implicit rate, the Company used its incremental borrowing rate based on information available at the date of adoption in determining the present value of future lease payments. The operating lease ROU asset also includes any lease payments made and excludes any lease incentives and impairments. Some of the Company's facility leases include options to extend the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. Lease cost and other information related to the Company's operating leases are as follows:
| Thirteen weeks ended March 30, 2019
Operating lease cost | $ | 5,296 |
Short-term lease cost | 600 |
Total lease cost | $ | 5,896 |
Operating cash outflows from operating leases | $ | 6,046 |
ROU assets obtained in exchange for lease obligations | $ | 1,236 |
Weighted average remaining lease term | 10 years |
Weighted average discount rate | 3.9 | %
As part of the adoption of ASC 842, the Company evaluated at the historical and projected cash flow generation of the operations at each of its long-term leased facilities. One of those facilities, a galvanizing operation in Melbourne, Australia, will not generate sufficient cash flows on an undiscounted cash flow basis to recover the carrying value of the right of use asset. The Company then estimated a value for this operation using a discounted cash flow model. The result was an impairment of the right-of-use lease asset of approximately $12,063. The after-tax balance of $8,444 was recorded as a reduction to retained earnings for the transition adjustment of adoption. (9) LEASES (Continued) Supplemental balance sheet information related to operating leases for the first quarter of 2019 is as follows:
| Classification | March 30, 2019
Operating lease assets | Other assets | $ | 93,871 |
Operating lease short-term liabilities | Accrued expenses | 15,145 |
Operating lease long-term liabilities | Operating lease liabilities | 88,492 |
Total lease liabilities |  | $ | 103,637 |
Minimum lease payments under operating leases expiring subsequent to March 30, 2019 are as follows:
Fiscal year ending |
2019 (excluding the three months ended March 30, 2019) | $ | 14,443 |
2020 | 17,190 |
2021 | 14,333 |
2022 | 11,894 |
2023 | 9,183 |
Subsequent | 59,860 |
Total minimum lease payments | $ | 126,903 |
The below table as of December 29, 2018 is carried forward, including certain amounts that were historically included in the table as a result of the historical lease term conclusions but were not included in the initial ROU asset and lease liability measurement as of December 30, 2018 due to the Company's election of the hindsight practical expedient. The Company also determined one of its leases with escalating rent payments should be expensed using the straight-line method over a longer-term and the result was an additional reduction to retained earnings of $442 for a transition adjustment. Minimum lease payments for operating leases under ASC 840 expiring subsequent to December 29, 2018 are as follows:
Fiscal year ending |
2019 | $ | 18,757 |
2020 | 16,830 |
2021 | 13,992 |
2022 | 11,932 |
2023 | 8,866 |
Subsequent | 76,438 |
Total minimum lease payments | $ | 146,815 |

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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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