XML 30 R19.htm IDEA: XBRL DOCUMENT v3.21.2

Leases

9 Months Ended

Sep. 25, 2021

Leases [Abstract]

Finance Leases

Lessee

The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2032. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees nor material restrictive covenants.

The components of operating and finance lease cost for the thirteen and thirty-nine weeks ended September 25, 2021 and thirteen and thirty-nine weeks ended September 26, 2020 were as follows:

						Thirteen Weeks Ended September 25, 2021						Thirty-nine Weeks Ended September 25, 2021						Thirteen Weeks Ended September 26, 2020						Thirty-nine Weeks Ended September 26, 2020
Operating lease cost						$	5,482					$	15,724					$	4,989					$	14,283
Short term lease costs						834						2,820						633						1,682
Variable lease costs						576						1,334						104						775
Finance lease cost:
Amortization of right of use assets						230						668						206						608
Interest on lease liabilities						29						96						34						106

Rent expense totaled $6,892 and $19,878 in the thirteen and thirty-nine weeks ended September 25, 2021, respectively, and $5,726 and $16,740 in the thirteen and thirty-nine weeks ended September 26, 2020, respectively. Rent expense includes operating lease cost as well as expense for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles and also short-term rental expenses.

The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The weighted average remaining lease terms and discount rates for all of our operating and finance leases were as follows as of September 25, 2021 and December 26, 2020:

						September 25, 2021												December 26, 2020
						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted average remaining lease term						6.81						2.55						7.19						2.61
Weighted average discount rate						7.91%						6.52%						8.28%						7.14%

Supplemental balance sheet information related to the Company's finance leases was as follows as of September 25, 2021 and December 26, 2020:

						September 25, 2021						December 26, 2020
Finance lease assets, net, included in property plant and equipment						$	1,629					$	1,919
Current portion of long-term debt						791						872
Long-term debt, less current portion						924						1,172
Total principal payable on finance leases						1,715						2,044

Supplemental cash flow information related to the Company's operating leases was as follows for the thirty-nine weeks ended September 25, 2021 and thirty-nine weeks ended September 26, 2020:

						Thirty-nine Weeks Ended September 25, 2021						Thirty-nine Weeks Ended September 26, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases						$	14,854					$	13,821
Operating cash outflow from finance leases						99						106
Financing cash outflow from finance leases						697						624

Maturities of our lease liabilities for all operating and finance leases are as follows as of September 25, 2021:

						Operating Leases						Finance Leases
Less than one year						$	19,078					$	882
1 to 2 years						17,362						561
2 to 3 years						16,174						300
3 to 4 years						15,562						69
4 to 5 years						14,680						45
After 5 years						33,339						—
Total future minimum rental commitments						116,195						1,857
Less - amounts representing interest						(26,277)						(142)
Present value of lease liabilities						$	89,918					$	1,715

Lessor

The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.

Operating Leases

Lessee

The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2032. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees nor material restrictive covenants.

The components of operating and finance lease cost for the thirteen and thirty-nine weeks ended September 25, 2021 and thirteen and thirty-nine weeks ended September 26, 2020 were as follows:

						Thirteen Weeks Ended September 25, 2021						Thirty-nine Weeks Ended September 25, 2021						Thirteen Weeks Ended September 26, 2020						Thirty-nine Weeks Ended September 26, 2020
Operating lease cost						$	5,482					$	15,724					$	4,989					$	14,283
Short term lease costs						834						2,820						633						1,682
Variable lease costs						576						1,334						104						775
Finance lease cost:
Amortization of right of use assets						230						668						206						608
Interest on lease liabilities						29						96						34						106

Rent expense totaled $6,892 and $19,878 in the thirteen and thirty-nine weeks ended September 25, 2021, respectively, and $5,726 and $16,740 in the thirteen and thirty-nine weeks ended September 26, 2020, respectively. Rent expense includes operating lease cost as well as expense for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles and also short-term rental expenses.

The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The weighted average remaining lease terms and discount rates for all of our operating and finance leases were as follows as of September 25, 2021 and December 26, 2020:

						September 25, 2021												December 26, 2020
						Operating Leases						Finance Leases						Operating Leases						Finance Leases
Weighted average remaining lease term						6.81						2.55						7.19						2.61
Weighted average discount rate						7.91%						6.52%						8.28%						7.14%

Supplemental balance sheet information related to the Company's finance leases was as follows as of September 25, 2021 and December 26, 2020:

						September 25, 2021						December 26, 2020
Finance lease assets, net, included in property plant and equipment						$	1,629					$	1,919
Current portion of long-term debt						791						872
Long-term debt, less current portion						924						1,172
Total principal payable on finance leases						1,715						2,044

Supplemental cash flow information related to the Company's operating leases was as follows for the thirty-nine weeks ended September 25, 2021 and thirty-nine weeks ended September 26, 2020:

						Thirty-nine Weeks Ended September 25, 2021						Thirty-nine Weeks Ended September 26, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases						$	14,854					$	13,821
Operating cash outflow from finance leases						99						106
Financing cash outflow from finance leases						697						624

Maturities of our lease liabilities for all operating and finance leases are as follows as of September 25, 2021:

						Operating Leases						Finance Leases
Less than one year						$	19,078					$	882
1 to 2 years						17,362						561
2 to 3 years						16,174						300
3 to 4 years						15,562						69
4 to 5 years						14,680						45
After 5 years						33,339						—
Total future minimum rental commitments						116,195						1,857
Less - amounts representing interest						(26,277)						(142)
Present value of lease liabilities						$	89,918					$	1,715

Lessor

The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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

Name:	us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- 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

Name:	us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration