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LEASES
 9 Months Ended
Oct. 03, 2020
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 at inception. 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.
As a result of the COVID-19 pandemic, the Company received lease concessions from landlords in the form of rent deferrals and rent forgiveness. The Company chose the policy election provided by the FASB in April 2020 to record rent concessions as if no modifications to leases contracts were made, and thus no changes to the ROU assets and ROU liabilities were recorded in respect to these concessions. This guidance is only applicable to COVID-19 related lease concessions that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. As of October 3, 2020, the Company had outstanding deferred rent payments of $8.8 million, and the Company received rent forgiveness of $4.0 million and $7.6 million in the Third Quarter and Year To Date Period, respectively.
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 October 3, 2020For the 13 Weeks Ended September 28, 2019For the 40 Weeks Ended October 3, 2020For the 39 Weeks Ended September 28, 2019
Operating lease cost(1)(2)
SG&A$26,579 $28,997 $81,088 $89,240 
Finance lease cost:
Amortization of ROU assetsSG&A$134 $114 $370 $354 
Interest on lease liabilitiesInterest expense$2 $9 $19 $29 
Short-term lease costSG&A$78 $206 $418 $1,019 
Variable lease costSG&A$4,140 $9,492 $15,318 $26,834 
_______________________________________________
(1)Includes sublease income, which was immaterial.
(2)Excludes the impact of deferred or abated rent amounts

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases Condensed
Consolidated
Balance Sheets
Location		October 3, 2020December 28, 2019
Assets
OperatingOperating lease ROU assets $244,483 $288,166 
Finance
Property, plant and equipment - net of accumulated depreciation of $4,616 and $4,015, respectively
$5,928 $5,918 
Liabilities
Current:
OperatingCurrent operating lease liabilities$63,606 $68,838 
Finance Short-term and current portion of long-term debt$966 $1,011 
Noncurrent:
OperatingLong-term operating lease liabilities$260,692 $288,689 
Finance Long-term debt$808 $1,468 

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount RateOctober 3, 2020December 28, 2019
Weighted-average remaining lease term:
Operating leases 6.3 years6.1 years
Finance leases1.5 years2.3 years
Weighted-average discount rate:
Operating leases 14.0 %13.9 %
Finance leases1.2 %1.2 %
Future minimum lease payments by year as of October 3, 2020 were as follows (in thousands):
Fiscal Year
Operating Leases (1)
Finance Leases
2020 (remaining)$29,494 $242 
2021101,168 1,028 
202287,133 513 
202369,416 — 
202449,592 — 
202536,381 — 
Thereafter132,603 — 
Total lease payments$505,787 $1,783 
Less: Interest181,489 9 
Total lease obligations$324,298 $1,774 
________________________________________________________________________
(1) Future minimum lease payments exclude the impact of deferred or abated rent amounts


Future minimum lease payments by year as of December 28, 2019 were as follows (in thousands):
Fiscal Year Operating LeasesFinance Leases
2020$116,778 $1,042 
202194,795 978 
202281,536 488 
202364,582 — 
202445,846 — 
Thereafter153,255 — 
Total lease payments$556,792 $2,508 
Less: Interest 199,265 30 
Finance lease obligations$357,527 $2,478 

Supplemental cash flow information related to leases was as follows (in thousands):
For the 40 Weeks Ended October 3, 2020For the 39 Weeks Ended September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases(1)
$96,722 $83,695 
Operating cash flows from finance leases19 29 
Financing cash flows from finance leases840 693 
Leased assets obtained in exchange for new operating lease liabilities30,151 25,854 
________________________________________________________________________________
(1) Cash flows for the 40 weeks ended October 3, 2020 exclude the impact of deferred or abated rent amounts
As of October 3, 2020, 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 at inception. 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.
As a result of the COVID-19 pandemic, the Company received lease concessions from landlords in the form of rent deferrals and rent forgiveness. The Company chose the policy election provided by the FASB in April 2020 to record rent concessions as if no modifications to leases contracts were made, and thus no changes to the ROU assets and ROU liabilities were recorded in respect to these concessions. This guidance is only applicable to COVID-19 related lease concessions that do not result in a substantial increase in the rights of the lessor or the obligations of the lessee. As of October 3, 2020, the Company had outstanding deferred rent payments of $8.8 million, and the Company received rent forgiveness of $4.0 million and $7.6 million in the Third Quarter and Year To Date Period, respectively.
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 October 3, 2020For the 13 Weeks Ended September 28, 2019For the 40 Weeks Ended October 3, 2020For the 39 Weeks Ended September 28, 2019
Operating lease cost(1)(2)
SG&A$26,579 $28,997 $81,088 $89,240 
Finance lease cost:
Amortization of ROU assetsSG&A$134 $114 $370 $354 
Interest on lease liabilitiesInterest expense$2 $9 $19 $29 
Short-term lease costSG&A$78 $206 $418 $1,019 
Variable lease costSG&A$4,140 $9,492 $15,318 $26,834 
_______________________________________________
(1)Includes sublease income, which was immaterial.
(2)Excludes the impact of deferred or abated rent amounts

The following table discloses supplemental balance sheet information for the Company’s leases (in thousands):
Leases Condensed
Consolidated
Balance Sheets
Location		October 3, 2020December 28, 2019
Assets
OperatingOperating lease ROU assets $244,483 $288,166 
Finance
Property, plant and equipment - net of accumulated depreciation of $4,616 and $4,015, respectively
$5,928 $5,918 
Liabilities
Current:
OperatingCurrent operating lease liabilities$63,606 $68,838 
Finance Short-term and current portion of long-term debt$966 $1,011 
Noncurrent:
OperatingLong-term operating lease liabilities$260,692 $288,689 
Finance Long-term debt$808 $1,468 

The following table discloses the weighted-average remaining lease term and weighted-average discount rate for the Company's leases:
Lease Term and Discount RateOctober 3, 2020December 28, 2019
Weighted-average remaining lease term:
Operating leases 6.3 years6.1 years
Finance leases1.5 years2.3 years
Weighted-average discount rate:
Operating leases 14.0 %13.9 %
Finance leases1.2 %1.2 %
Future minimum lease payments by year as of October 3, 2020 were as follows (in thousands):
Fiscal Year
Operating Leases (1)
Finance Leases
2020 (remaining)$29,494 $242 
2021101,168 1,028 
202287,133 513 
202369,416 — 
202449,592 — 
202536,381 — 
Thereafter132,603 — 
Total lease payments$505,787 $1,783 
Less: Interest181,489 9 
Total lease obligations$324,298 $1,774 
________________________________________________________________________
(1) Future minimum lease payments exclude the impact of deferred or abated rent amounts


Future minimum lease payments by year as of December 28, 2019 were as follows (in thousands):
Fiscal Year Operating LeasesFinance Leases
2020$116,778 $1,042 
202194,795 978 
202281,536 488 
202364,582 — 
202445,846 — 
Thereafter153,255 — 
Total lease payments$556,792 $2,508 
Less: Interest 199,265 30 
Finance lease obligations$357,527 $2,478 

Supplemental cash flow information related to leases was as follows (in thousands):
For the 40 Weeks Ended October 3, 2020For the 39 Weeks Ended September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases(1)
$96,722 $83,695 
Operating cash flows from finance leases19 29 
Financing cash flows from finance leases840 693 
Leased assets obtained in exchange for new operating lease liabilities30,151 25,854 
________________________________________________________________________________
(1) Cash flows for the 40 weeks ended October 3, 2020 exclude the impact of deferred or abated rent amounts
As of October 3, 2020, the Company did not have any material operating or finance leases that have been signed but not commenced.