Leases

3 Months Ended

Mar. 28, 2020

Leases [Abstract]

Leases Disclosure

Leases

The Company leases certain equipment, vehicles, office space, and manufacturing and distribution facilities, and recognizes the associated lease expense on a straight-line basis over the lease term.

Some leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years, or more. The exercise of lease renewal options is at the Company's discretion and renewal options that are reasonably certain to be exercised have been included in the lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Certain lease agreements held by the Company include rental payments adjusted periodically for inflation. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The components of lease expense in the first quarters of 2020 and 2019 were as follows:

	13 weeks ended
(In millions)	March 28, 2020		March 30, 2019
Operating lease cost (a) (c)	$	11.8	$	13.0
Finance lease cost
Amortization of right-of-use assets (a)	0.2		0.2
Interest on lease liabilities (b)	—		0.1
Total finance lease cost	$	0.2	$	0.3

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^(a)  Included in DS&A and cost of products sold.

^(b) Included in interest expense.

^(c) Includes immaterial amounts related to short-term rent expense and variable rent expense.

Supplemental cash flow information related to leases is as follows:

	13 weeks ended
(In millions)	March 28, 2020			March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(11.7	)	$	(12.6	)
Operating cash flows from finance leases	—			(0.1		)
Financing cash flows from finance leases	(0.3		)	(0.3		)
Leased assets obtained in exchange for new operating lease liabilities	$	7.5		$	7.7

Supplemental balance sheet information related to leases is as follows:

(In millions, except lease term and discount rate)	March 28, 2020			December 28, 2019
Operating Leases
Operating lease right-of-use assets	$	80.4		$	84.1
Accrued liabilities	$	27.8		$	29.2
Operating lease liabilities	53.7			56.0
Total Operating lease liabilities	$	81.5		$	85.2
Finance Leases
Property, plant and equipment, at cost	$	17.5		$	17.9
Accumulated amortization	(10.3		)	(10.3		)
Property, plant and equipment, net	$	7.2		$	7.6
Current portion of finance lease obligations	$	1.3		$	1.3
Long-term finance lease obligations	2.0			2.3
Total Finance lease liabilities	$	3.3		$	3.6
Weighted Average Remaining Lease Term
Operating Leases	4.3 years			4.5 years
Finance Leases	2.4 years			2.8 years
Weighted Average Discount Rate (a)
Operating Leases	4.9		%	5.2		%
Finance Leases	5.1		%	5.1		%

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^(a) Calculated using Company's incremental borrowing rate.

Maturities of lease liabilities as of March 28, 2020 and December 28, 2019 were as follows:

	March 28, 2020				December 28, 2019
(In millions)	Operating Leases		Finance Leases		Operating Leases		Finance Leases
2020	$	24.5	$	1.1	$	32.8	$	1.4
2021	24.0		1.4		22.6		1.4
2022	14.0		1.0		13.0		1.0
2023	8.6		—		7.5		—
2024	5.8		—		5.6		—
Thereafter	12.8		—		13.0		—
Total lease payments	$	89.7	$	3.5	$	94.5	$	3.8
Less imputed interest	8.2		0.2		9.3		0.2
Total	$	81.5	$	3.3	$	85.2	$	3.6

As of March 28, 2020, the Company had an immaterial amount of operating leases that had not yet commenced.