XML 14 R20.htm IDEA: XBRL DOCUMENT
v3.19.3

LEASES | 9 Months Ended
--- | ---
Sep. 28, 2019
Leases [Abstract] |
LEASES | LEASES The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain leases agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements. The components of lease expense were as follows (in thousands):
Lease Cost |  | Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location |  | For the 13 Weeks Ended September 28, 2019 |  | For the 39 Weeks Ended September 28, 2019
Operating lease cost(1) |  | SG&A |  | $ | 28,997 |  |  | $ | 89,240 |
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  | SG&A |  | $ | 114 |  |  | $ | 354 |
Interest on lease liabilities |  | Interest expense |  | $ | 9 |  |  | $ | 29 |
Short-term lease cost |  | SG&A |  | $ | 206 |  |  | $ | 1,019 |
Variable lease cost |  | SG&A |  | $ | 9,492 |  |  | $ | 26,834 |
_______________________________________________ (1)Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases |  | Condensed Consolidated Balance Sheets Location |  | September 28, 2019
Assets |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 292,064 |
Finance |  | Property, plant and equipment - net of accumulated depreciation of $3,825 |  | $ | 5,917 |
Liabilities |  |  |  |
Current: |  |  |  |
Operating |  | Current operating lease liabilities |  | $ | 68,483 |
Finance |  | Short-term and current portion of long-term debt |  | $ | 986 |
Noncurrent: |  |  |  |
Operating |  | Long-term operating lease liabilities |  | $ | 288,626 |
Finance |  | Long-term debt |  | $ | 1,689 |
The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount Rate |  | September 28, 2019
Weighted-average remaining lease term: |  |
Operating leases |  | 6.2 years |
Finance leases |  | 2.5 years |
Weighted-average discount rate: |  |
Operating leases |  | 13.9 | %
Finance leases |  | 1.2 | %
Future minimum lease payments by year as of September 28, 2019 were as follows (in thousands):
Fiscal Year |  | Operating Leases |  | Finance Leases
2019 (remaining) |  | $ | 31,690 |  |  | $ | 241 |
2020 |  | 112,606 |  |  | 1,034 |
2021 |  | 90,484 |  |  | 959 |
2022 |  | 77,245 |  |  | 479 |
2023 |  | 62,260 |  |  | — |
2024 |  | 43,223 |  |  | — |
Thereafter |  | 146,869 |  |  | — |
Total lease payments |  | $ | 564,377 |  |  | $ | 2,713 |
Less: Interest |  | 207,268 |  |  | 38 |
Total lease obligations |  | $ | 357,109 |  |  | $ | 2,675 |
Future minimum lease payments by year as of December 29, 2018 were as follows (in thousands):
Fiscal Year |  | Operating Leases |  | Finance Leases
2019 |  | $ | 135,025 |  |  | $ | 951 |
2020 |  | 105,668 |  |  | 947 |
2021 |  | 84,230 |  |  | 947 |
2022 |  | 73,928 |  |  | 696 |
2023 |  | 61,710 |  |  | — |
Thereafter |  | 186,201 |  |  | — |
Total lease payments |  | $ | 646,762 |  |  | $ | 3,541 |
Less: Interest |  |  |  | 84 |
Finance lease obligations |  |  |  | $ | 3,457 |
Supplemental cash flow information related to leases was as follows (in thousands):
| For the 39 Weeks Ended September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 83,695 |
Operating cash flows from finance leases | 29 |
Financing cash flows from finance leases | 693 |
Leased assets obtained in exchange for new operating lease liabilities | 25,854 |
As of September 28, 2019, the Company did not have any material operating or finance leases that have been signed but not commenced.
LEASES | LEASES The Company's leases consist primarily of retail space, offices, warehouses, distribution centers, equipment and vehicles. The Company determines if an agreement contains a lease at inception based on the Company's right to the economic benefits of the leased assets and its right to direct the use of the leased asset. ROU assets represent the Company's right to use an underlying asset, and ROU liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of the lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its estimated incremental borrowing rate based on the information available at the commencement date adjusted for the lease term and lease country to determine the present value of the lease payments. Some leases include one or more options to renew at the Company's discretion, with renewal terms that can extend the lease from one to ten additional years. The renewal options are not included in the measurement of ROU assets and ROU liabilities unless the Company is reasonably certain to exercise the optional renewal periods. Short-term leases are leases having a term of twelve months or less. The Company does not record a related lease asset or liability for short-term leases. The Company has certain leases containing lease and non-lease components which are accounted for as a single lease component. The Company has certain leases agreements where lease payments are based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. The variable portion of these lease payments is not included in the Company's lease liabilities. The Company's lease agreements do not contain any significant restrictions or covenants other than those that are customary in such arrangements. The components of lease expense were as follows (in thousands):
Lease Cost |  | Condensed Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) Location |  | For the 13 Weeks Ended September 28, 2019 |  | For the 39 Weeks Ended September 28, 2019
Operating lease cost(1) |  | SG&A |  | $ | 28,997 |  |  | $ | 89,240 |
Finance lease cost: |  |  |  |  |  |
Amortization of ROU assets |  | SG&A |  | $ | 114 |  |  | $ | 354 |
Interest on lease liabilities |  | Interest expense |  | $ | 9 |  |  | $ | 29 |
Short-term lease cost |  | SG&A |  | $ | 206 |  |  | $ | 1,019 |
Variable lease cost |  | SG&A |  | $ | 9,492 |  |  | $ | 26,834 |
_______________________________________________ (1)Includes sublease income, which was immaterial. The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases |  | Condensed Consolidated Balance Sheets Location |  | September 28, 2019
Assets |  |  |  |
Operating |  | Operating lease right-of-use assets |  | $ | 292,064 |
Finance |  | Property, plant and equipment - net of accumulated depreciation of $3,825 |  | $ | 5,917 |
Liabilities |  |  |  |
Current: |  |  |  |
Operating |  | Current operating lease liabilities |  | $ | 68,483 |
Finance |  | Short-term and current portion of long-term debt |  | $ | 986 |
Noncurrent: |  |  |  |
Operating |  | Long-term operating lease liabilities |  | $ | 288,626 |
Finance |  | Long-term debt |  | $ | 1,689 |
The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount Rate |  | September 28, 2019
Weighted-average remaining lease term: |  |
Operating leases |  | 6.2 years |
Finance leases |  | 2.5 years |
Weighted-average discount rate: |  |
Operating leases |  | 13.9 | %
Finance leases |  | 1.2 | %
Future minimum lease payments by year as of September 28, 2019 were as follows (in thousands):
Fiscal Year |  | Operating Leases |  | Finance Leases
2019 (remaining) |  | $ | 31,690 |  |  | $ | 241 |
2020 |  | 112,606 |  |  | 1,034 |
2021 |  | 90,484 |  |  | 959 |
2022 |  | 77,245 |  |  | 479 |
2023 |  | 62,260 |  |  | — |
2024 |  | 43,223 |  |  | — |
Thereafter |  | 146,869 |  |  | — |
Total lease payments |  | $ | 564,377 |  |  | $ | 2,713 |
Less: Interest |  | 207,268 |  |  | 38 |
Total lease obligations |  | $ | 357,109 |  |  | $ | 2,675 |
Future minimum lease payments by year as of December 29, 2018 were as follows (in thousands):
Fiscal Year |  | Operating Leases |  | Finance Leases
2019 |  | $ | 135,025 |  |  | $ | 951 |
2020 |  | 105,668 |  |  | 947 |
2021 |  | 84,230 |  |  | 947 |
2022 |  | 73,928 |  |  | 696 |
2023 |  | 61,710 |  |  | — |
Thereafter |  | 186,201 |  |  | — |
Total lease payments |  | $ | 646,762 |  |  | $ | 3,541 |
Less: Interest |  |  |  | 84 |
Finance lease obligations |  |  |  | $ | 3,457 |
Supplemental cash flow information related to leases was as follows (in thousands):
| For the 39 Weeks Ended September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases | $ | 83,695 |
Operating cash flows from finance leases | 29 |
Financing cash flows from finance leases | 693 |
Leased assets obtained in exchange for new operating lease liabilities | 25,854 |
As of September 28, 2019, the Company did not have any material operating or finance leases that have been signed but not commenced.

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