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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.