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Leases
12 Months Ended
Dec. 28, 2019
Leases [Abstract]  
Leases

 

Note 14.

Leases

Qualitative disclosures about our leases, including the significant policy elections, can be found in Note 2, Summary of Significant Accounting Policies.  The quantitative disclosures are presented below.

Lease costs incurred by lease type, and/or type of payment for fiscal 2019 were as follows (in thousands):

 

 

 

Fiscal 2019

 

Lease cost:

 

 

 

 

Amortization of right-of-use assets

 

$

7,014

 

Interest on lease liabilities

 

 

994

 

Operating lease cost

 

 

69,525

 

Short-term lease cost

 

 

2,630

 

Variable lease cost

 

 

26,359

 

Total lease cost

 

$

106,522

 

 

Other supplemental quantitative disclosures as of, and for, fiscal 2019 were as follows (in thousands):

 

 

 

Fiscal 2019

 

Cash paid for amounts included in the measurement of lease

   liabilities:

 

 

 

 

Operating cash flows from financing leases

 

$

994

 

Operating cash flows from operating leases

 

$

67,694

 

Financing cash flows from financing leases

 

$

5,937

 

Right-of-use assets obtained in exchange for new financing

   lease liabilities

 

$

9,854

 

Right-of-use assets obtained in exchange for new operating

   lease liabilities

 

$

44,585

 

Weighted-average remaining lease term (years):

 

 

 

 

Financing leases

 

 

3.6

 

Operating leases

 

 

9.9

 

Weighted-average IBR (percentage):

 

 

 

 

Financing leases

 

 

3.6

 

Operating leases

 

 

4.2

 

 

Estimated undiscounted future lease payments under non-cancelable operating leases and financing leases, along with a reconciliation of the undiscounted cash flows to operating and financing lease liabilities, respectively, as of December 28, 2019 (in thousands) were as follows:

 

 

 

Operating lease

liabilities

 

 

Financing lease

liabilities

 

2020

 

$

67,885

 

 

$

9,032

 

2021

 

 

59,529

 

 

 

6,687

 

2022

 

 

48,784

 

 

 

5,390

 

2023

 

 

43,703

 

 

 

6,412

 

2024

 

 

36,179

 

 

 

1,415

 

Thereafter

 

 

210,229

 

 

 

689

 

Total minimum lease payments

 

 

466,309

 

 

 

29,625

 

Less: amount of lease payments representing interest

 

 

(89,372

)

 

 

(2,059

)

Present value of future minimum lease payments

 

 

376,937

 

 

 

27,566

 

Less: current obligations under leases

 

 

(52,806

)

 

 

(8,176

)

Long-term lease obligations

 

$

324,131

 

 

$

19,390

 

 

Lease disclosures prior to adoption of the new standard

The company leases certain property and equipment under various operating and capital lease arrangements that expire over the next 18 years. The property leases include distribution facilities, thrift store locations, and two manufacturing facilities. The equipment leases include production, sales, distribution, transportation, and office equipment. Initial lease terms range from two to 26 years. Many of the operating leases provide the company with the option, after the initial lease term, either to purchase the property at the then fair value or renew its lease at fair value rents for periods from one month to 10 years. Rent escalations vary in these leases, from no escalation over the initial lease term, to escalations linked to changes in economic variables such as the consumer price index. Rental expense is recognized on a straight-line basis over the terms of the leases. The capital leases are primarily used for distribution vehicle financing and are discussed in Note 16, Variable Interest Entities. Future minimum lease payments under scheduled capital leases that have initial or remaining non-cancelable terms of more than one year as of December 29, 2018 were as follows (amounts in thousands):

 

 

 

Capital Leases

 

2019

 

$

6,392

 

2020

 

 

3,511

 

2021

 

 

4,191

 

2022

 

 

2,620

 

2023

 

 

2,263

 

Thereafter

 

 

4,631

 

Total minimum payments

 

 

23,608

 

Amount representing interest

 

 

(1,666

)

Obligations under capital leases

 

 

21,942

 

Obligations due within one year

 

 

(5,896

)

Long-term obligations under capital leases

 

$

16,046

 

 

The table below presents the total future minimum lease payments under scheduled operating leases that had initial or remaining non-cancelable terms more than one year as of December 29, 2018 (amounts in thousands):

 

 

 

Operating Leases

 

2019

 

$

65,071

 

2020

 

 

60,378

 

2021

 

 

50,744

 

2022

 

 

44,798

 

2023

 

 

36,308

 

Thereafter

 

 

232,423

 

Total minimum payments

 

$

489,722

 

 

Rent expense for all operating leases for fiscal 2018 and fiscal 2017 was as follows (amounts in thousands):

 

 

 

Rent expense

 

Fiscal 2018

 

$

90,660

 

Fiscal 2017

 

$

95,014