XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.19.1

Leases | 3 Months Ended
--- | ---
Mar. 30, 2019
Leases [Abstract] |
Leases | Leases Effective December 30, 2018, we adopted ASU No. 2016-02, “Leases (Topic 842)” using the modified retrospective method, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. We have elected the package of practical expedients permitted under the transition guidance within the new standard. This election allowed us to carry forward our historical lease classification. The adoption of this standard resulted in the recording of operating lease right-of-use (ROU) assets and corresponding operating lease liabilities of $57.5 million on the condensed consolidated balance sheet as of December 30, 2018, which amortizes over the lease term. Our operating and finance (formerly capital) lease portfolio includes leases for real estate, certain logistics equipment and vehicles. The majority of our leases have remaining lease terms of 1 year to 15 years, some of which include one or more options to extend the leases for 5 years. Operating lease ROU assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheet. A portion of our real estate lease cost is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our vehicle lease cost is considered variable. The components of lease expense were as follows:
| (In thousands) | Three Months Ended March 30, 2019
| Operating lease cost | $ | 3,144 |
| Finance lease cost: |
| Amortization of right-of-use assets | $ | 2,896 |
| Interest on lease liabilities | 3,248 |
| Total finance lease costs | $ | 6,144 |
Supplemental cash flow information related to leases was as follows:
| (In thousands) | Three Months Ended March 30, 2019
| Cash paid for amounts included in the measurement of lease liabilities |
| Operating cash flows from operating leases | $ | 2,903 |
| Operating cash flows from finance leases | 3,248 |
| Financing cash flows from finance leases | 2,187 |
| Right-of-use assets obtained in exchange for lease obligations |
| Operating leases | — |
| Finance leases | 787 |
Supplemental balance sheet information related to leases was as follows:
| (In thousands) | Three Months Ended March 30, 2019
| Finance leases |
| Property and equipment | $ | 152,355 |
| Accumulated depreciation | (16,691 | )
| Property and equipment, net | $ | 135,664 |
| Weighted Average Remaining Lease Term (in years) |
| Operating leases | 12.22 |
| Finance leases | 21.64 |
| Weighted Average Discount Rate |
| Operating leases | 9.42 | %
| Finance leases | 10.60 | %
As of March 30, 2019, maturities of lease liabilities were as follows:
(In thousands) | Operating leases |  | Finance leases
2019 | $ | 9,709 |  |  | $ | 15,911 |
2020 | 8,550 |  |  | 20,313 |
2021 | 7,076 |  |  | 17,664 |
2022 | 6,193 |  |  | 16,678 |
2023 | 5,402 |  |  | 16,095 |
Thereafter | 50,860 |  |  | 295,927 |
Total lease payments | $ | 87,790 |  |  | $ | 382,588 |
Less: imputed interest | (32,173 | ) |  | (232,724 | )
Total | $ | 55,617 |  |  | $ | 149,864 |
At December 29, 2018, our total operating lease commitments were as follows:
| (In thousands)
2019 | $ | 11,980 |
2020 | 9,928 |
2021 | 8,435 |
2022 | 8,066 |
2023 | 7,539 |
Thereafter | 60,847 |
Total | $ | 106,795 |
Leases | Leases Effective December 30, 2018, we adopted ASU No. 2016-02, “Leases (Topic 842)” using the modified retrospective method, which applies the provisions of the new guidance at the effective date without adjusting the comparative periods presented. We have elected the package of practical expedients permitted under the transition guidance within the new standard. This election allowed us to carry forward our historical lease classification. The adoption of this standard resulted in the recording of operating lease right-of-use (ROU) assets and corresponding operating lease liabilities of $57.5 million on the condensed consolidated balance sheet as of December 30, 2018, which amortizes over the lease term. Our operating and finance (formerly capital) lease portfolio includes leases for real estate, certain logistics equipment and vehicles. The majority of our leases have remaining lease terms of 1 year to 15 years, some of which include one or more options to extend the leases for 5 years. Operating lease ROU assets and liabilities are presented separately on the condensed consolidated balance sheets. Finance lease assets are included in property and equipment and the finance lease obligations are presented separately in the condensed consolidated balance sheet. A portion of our real estate lease cost is generally subject to annual changes in the Consumer Price Index (CPI). The changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments was incurred. In addition, a subset of our vehicle lease cost is considered variable. The components of lease expense were as follows:
| (In thousands) | Three Months Ended March 30, 2019
| Operating lease cost | $ | 3,144 |
| Finance lease cost: |
| Amortization of right-of-use assets | $ | 2,896 |
| Interest on lease liabilities | 3,248 |
| Total finance lease costs | $ | 6,144 |
Supplemental cash flow information related to leases was as follows:
| (In thousands) | Three Months Ended March 30, 2019
| Cash paid for amounts included in the measurement of lease liabilities |
| Operating cash flows from operating leases | $ | 2,903 |
| Operating cash flows from finance leases | 3,248 |
| Financing cash flows from finance leases | 2,187 |
| Right-of-use assets obtained in exchange for lease obligations |
| Operating leases | — |
| Finance leases | 787 |
Supplemental balance sheet information related to leases was as follows:
| (In thousands) | Three Months Ended March 30, 2019
| Finance leases |
| Property and equipment | $ | 152,355 |
| Accumulated depreciation | (16,691 | )
| Property and equipment, net | $ | 135,664 |
| Weighted Average Remaining Lease Term (in years) |
| Operating leases | 12.22 |
| Finance leases | 21.64 |
| Weighted Average Discount Rate |
| Operating leases | 9.42 | %
| Finance leases | 10.60 | %
As of March 30, 2019, maturities of lease liabilities were as follows:
(In thousands) | Operating leases |  | Finance leases
2019 | $ | 9,709 |  |  | $ | 15,911 |
2020 | 8,550 |  |  | 20,313 |
2021 | 7,076 |  |  | 17,664 |
2022 | 6,193 |  |  | 16,678 |
2023 | 5,402 |  |  | 16,095 |
Thereafter | 50,860 |  |  | 295,927 |
Total lease payments | $ | 87,790 |  |  | $ | 382,588 |
Less: imputed interest | (32,173 | ) |  | (232,724 | )
Total | $ | 55,617 |  |  | $ | 149,864 |
At December 29, 2018, our total operating lease commitments were as follows:
| (In thousands)
2019 | $ | 11,980 |
2020 | 9,928 |
2021 | 8,435 |
2022 | 8,066 |
2023 | 7,539 |
Thereafter | 60,847 |
Total | $ | 106,795 |

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: | nonnum: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: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration