XML 25 R15.htm IDEA: XBRL DOCUMENT v3.19.2
Leases
6 Months Ended
Jun. 29, 2019
Leases [Abstract]  
Leases [Text Block]
8.

Leases

The Company has operating leases for manufacturing plants, warehouses, offices, machinery and equipment, and farmland. The Company subleases the farmland to third-party growers under operating leases. The Company’s operating leases have remaining noncancelable lease terms of less than one year  to approximately 15 years, and typically require monthly rental payments that may be adjusted annually to give effect to inflation. Real estate operating leases typically include options to extend the leases for up to 10 years. Machinery and equipment operating leases typically include purchase options for the fair market value of the underlying asset at the end of the lease term. Certain other leases for machinery and equipment include nominal purchase options at the end of the lease term that are reasonably certain of being exercised. These leases are classified as finance leases and have remaining lease terms of less than one year to approximately four years.

The following tables present supplemental information related to leases recognized in the consolidated financial statements:

    Quarter ended     Two quarters ended  
    June 29, 2019     June 29, 2019  
    $     $  
Lease Costs            
Operating lease cost   4,748     9,951  
Finance lease cost            
Depreciation of right-of-use assets   294     591  
Interest on lease liabilities   32     68  
Sublease income   (114 )   (234 )
Net lease cost   4,960     10,376  

June 29, 2019
$
Balance Sheet Classification
     Operating leases
           Operating lease right-of-use assets 72,788
           Current portion of operating lease liabilities 17,402
           Operating lease liabilities 56,111
           Total operating lease liabilities 73,513
 
     Finance leases
           Property, plant and equipment, gross 9,997
           Accumulated depreciation ( 5,176 )
           Property, plant and equipment, net 4,821
           Current portion of long-term debt 1,028
           Long-term debt 1,781
           Total finance lease liabilities 2,809

Quarter ended Two quarters ended
June 29, 2019 June 29, 2019
$ $
Cash Flow Information
      Cash paid for amounts included in measurement of lease liabilities
           Operating cash flows from operating leases 4,862 10,240  
           Operating cash flows from finance leases 32 68
           Financing cash flows from finance leases 391 783
      Right-of-use assets obtained in exchange for lease liabilities
           Operating leases 647 647
           Finance Leases

June 29, 2019
Other Information
      Weighted-average remaining lease term (years)
           Operating leases 5.2
           Finance leases 1.8
      Weighted-average discount rate(1)
           Operating leases 9.0 %
           Finance leases 4.1 %  

(1)

In determining the present value of lease payments, the Company uses the implicit rate in the lease when that rate is readily determinable, which is the case for most of the Company’s machinery and equipment leases. In all other cases, including real estate leases, the Company uses its incremental borrowing rate. The Company applied the incremental borrowing rate as at December 30, 2018 (the first day of fiscal 2019) to leases that commenced prior to that date. Discount rates are determined on a lease-by-lease basis


Operating leases Finance leases
$ $
Maturities of Lease Liabilities
    Remainder of 2019 9,114 688
    2020 17,573 715
    2021 14,638 715
    2022 12,689 715
    2023 8,407 179
    Thereafter 47,855
    Total lease payments 110,276 3,012
    Less: imputed interest (36,763 ) (203 )
    Total lease liabilities 73,513 2,809

As at June 29, 2019, the Company had commitments for approximately $15 million of right-of-use assets for which the leases had not commenced.