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Leases | 3 Months Ended
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Mar. 30, 2019
Leases [Abstract] |
Leases | Note 3 – Leases The Company leases buildings and machinery and equipment used for manufacturing and/or sales and administrative purposes. The Company is also party to various service, warehousing, and other agreements that it evaluates for potential embedded leases. Substantially all of the Company’s leases are structured and classified as operating leases. As of January 1, 2019, the Company accounts for its leases in accordance with ASC Topic 842. The Company leases assets in each region in which it operates. The Company’s leases are generally denominated in the currency of the leased assets' location, which may not be the functional currency of the subsidiary lessee. Accordingly, the Company remeasures its lease liability and recognizes a transactional gain/loss for leases denominated in currencies other than the functional currency of the subsidiary lessee. The Company recognizes right of use assets and lease liabilities for leases greater than twelve months in duration based on the contract consideration for lease components through the term of the lease and the applicable discount rate. Leases with a duration less than or equal to twelve months are considered short-term leases. The Company does not recognize right of use assets or lease liabilities for short-term leases and classifies the expense as short-term lease expense. Variable lease payments based on an index or rate are included in the right of use assets and lease liabilities based on the effective rates at lease commencement. Changes in the rates or indices do not impact the right of use asset or lease liability and are recognized as a component of lease expense in the statement of operations. Variable lease payments not based on an index or rate are not included in the initial right of use asset and lease liability and are recognized when incurred as a component of lease expense in the statement of operations. The Company has elected to not separate contract consideration for lease and non-lease components for its building leases. In addition to the noncancellable period of a lease, the Company includes periods covered by extension options it is reasonably certain to exercise, termination options that it is reasonably certain not to exercise, and extension and termination options controlled by the lessor in its determination of the lease term. The Company uses the rate implicit in the contract whenever possible when determining the applicable discount rate. When the implicit rate is not used, the Company employs a portfolio approach based on the duration of the lease. The portfolio lease rates are calculated monthly. No individual lease is considered significant and there are no leases that have not yet commenced that are considered significant. The net right of use assets and lease liabilities recognized on the consolidated condensed balance sheet for the Company's operating leases as of March 30, 2019 and the net right of use assets and lease liabilities recognized upon the adoption of ASC Topic 842 on January 1, 2019 are presented below:
|  | March 30, 2019 |  |  | January 1, 2019 |
Right of use assets |  |  |  |  |  |
Operating Leases |  |  |  |  |  |
Buildings and improvements |  | $ | 91,106 |  |  | $ | 86,058 |
Machinery and equipment |  |  | 5,175 |  |  |  | 5,404 |
Total |  | $ | 96,281 |  |  | $ | 91,462 |
Current lease liabilities |  |  |  |  |  |  |  |
Operating Leases |  |  |  |  |  |  |  |
Buildings and improvements |  | $ | 12,076 |  |  | $ | 10,644 |
Machinery and equipment |  |  | 2,684 |  |  |  | 3,317 |
Total |  | $ | 14,760 |  |  | $ | 13,961 |
Long-term lease liabilities |  |  |  |  |  |  |  |
Operating Leases |  |  |  |  |  |  |  |
Buildings and improvements |  | $ | 84,202 |  |  | $ | 79,000 |
Machinery and equipment |  |  | 2,482 |  |  |  | 2,823 |
Total |  | $ | 86,684 |  |  | $ | 81,823 |
Total lease liabilities |  | $ | 101,444 |  |  | $ | 95,784 |
Lease expense is classified in the statement of operations based on asset use. Total lease cost recognized on the consolidated condensed statement of operations is as follows:
|  | Fiscal quarter ended |
|  | March 30, 2019 |
Lease expense |  |  |
Operating lease expense |  | $ | 5,536 |
Short-term lease expense |  |  | 833 |
Variable lease expense |  |  | 12 |
Total lease expense |  | $ | 6,381 |
The Company paid $5,050 for its operating leases in the fiscal quarter ended March 31, 2019, which are included in operating cash flows on the consolidated condensed statement of cash flows. The weighted-average remaining lease term for the Company's operating leases is 9.3 years and the weighted-average discount rate is 6.1% as of March 30, 2019. The undiscounted future lease payments for the Company's operating lease liabilities are as follows:
|  | March 30, 2019 |
2019 (excluding the three fiscal months ended March 30, 2019) |  | $ | 15,916 |
2020 |  |  | 18,527 |
2021 |  |  | 15,502 |
2022 |  |  | 13,036 |
2023 |  |  | 12,215 |
Thereafter |  |  | 60,661 |
The undiscounted future lease payments presented in the table above include payments through the term of the lease, which may include periods beyond the noncancellable term. The difference between the total payments above and the lease liability balance is due to the discount rate used to calculate lease liabilities. The Company elected to use the package of practical expedients available in ASC Topic 842; and accordingly, did not reassess existing contracts for leases, the classification of existing leases, or initial direct costs for any existing leases. The Company also elected to use the practical expedient available in ASC Topic 842 for land easements. The Company did not elect the practical expedient available in ASC Topic 842 to use hindsight in determining the lease term. Accordingly, the remaining lease term as of January 1, 2019 was used to calculate the initial right of use asset and lease liability.

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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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