LEASES

12 Months Ended

Dec. 25, 2021

Leases [Abstract]

LEASES

LEASES

Operating and Finance Leases

Right-of-use lease assets and lease liabilities are reported in the Company’s consolidated balance sheets as follows:

	Fiscal Year
	December 25, 2021		December 26, 2020
	(in thousands)
Operating leases
Operating lease right-of-use assets, net	$	292,941	$	178,220
Other current liabilities	$	33,267	$	24,674
Operating lease right-of-use liabilities	252,972		155,595
Total operating lease liabilities	$	286,239	$	180,269
Finance leases
Property, plant and equipment, net	$	29,437	$	31,614
Current portion of long-term debt and finance leases	$	2,694	$	3,018
Long-term debt, net and finance leases	24,529		26,029
Total finance lease liabilities	$	27,223	$	29,047

The components of operating and finance lease costs were as follows:

	Fiscal Year
	December 25, 2021		December 26, 2020		December 28, 2019
	(in thousands)
Operating lease costs	$	45,728	$	32,965	$	30,885
Finance lease costs:
Amortization of right-of-use assets	3,337		3,723		4,007
Interest on lease liabilities	1,280		1,306		1,349
Short-term lease costs	2,441		2,349		1,056
Variable lease costs	4,623		5,122		3,161
Sublease income	(2,008)		(1,673)		(994)
Total lease costs	$	55,401	$	43,792	$	39,464

Other information related to leases was as follows:

Supplemental Cash Flow Information

	Fiscal Year
	December 25, 2021		December 26, 2020		December 28, 2019
	(in thousands)
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	42,576	$	29,961	$	27,153
Operating cash flows from finance leases	1,282		1,306		1,406
Finance cash flows from finance leases	3,202		4,350		3,766
Non-cash leases activity:
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	142,764	$	63,499	$	24,382
Right-of-use lease assets obtained in exchange for new finance lease liabilities	1,567		1,571		4,819

Lease Term and Discount Rate

	As of		As of		As of
	December 25, 2021		December 26, 2020		December 28, 2019
Weighted-average remaining lease term (in years)
Operating lease	9.0		8.5		8.2
Finance lease	11.7		12.4		13.0
Weighted-average discount rate
Operating lease	3.6	%	4.5	%	4.4	%
Finance lease	4.4	%	4.1	%	4.6	%

At the lease commencement date, the discount rate implicit in the lease is used to discount the lease liability if readily determinable. If not readily determinable or leases do not contain an implicit rate, the Company’s incremental borrowing rate is used as the discount rate, which is based on the information available at the lease commencement date and represents a rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment.

As of December 25, 2021, maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows:

	Operating Leases		Finance Leases
	(in thousands)
2022	$	43,420	$	3,865
2023	40,959		3,524
2024	39,080		3,288
2025	37,177		2,955
2026	32,072		2,460
Thereafter	146,151		19,157
Total minimum future lease payments	338,859		35,249
Less: Imputed interest	52,620		8,026
Total lease liabilities	$	286,239	$	27,223

Total minimum future lease payments (predominantly operating leases) of approximately $111 million for leases that have not commenced as of December 25, 2021, as the Company does not yet control the underlying assets, are not included in the consolidated financial statements. These leases are expected to commence between fiscal years 2022 and 2024 with lease terms of approximately 6 to 15 years.

LEASES

LEASES

Operating and Finance Leases

Right-of-use lease assets and lease liabilities are reported in the Company’s consolidated balance sheets as follows:

	Fiscal Year
	December 25, 2021		December 26, 2020
	(in thousands)
Operating leases
Operating lease right-of-use assets, net	$	292,941	$	178,220
Other current liabilities	$	33,267	$	24,674
Operating lease right-of-use liabilities	252,972		155,595
Total operating lease liabilities	$	286,239	$	180,269
Finance leases
Property, plant and equipment, net	$	29,437	$	31,614
Current portion of long-term debt and finance leases	$	2,694	$	3,018
Long-term debt, net and finance leases	24,529		26,029
Total finance lease liabilities	$	27,223	$	29,047

The components of operating and finance lease costs were as follows:

	Fiscal Year
	December 25, 2021		December 26, 2020		December 28, 2019
	(in thousands)
Operating lease costs	$	45,728	$	32,965	$	30,885
Finance lease costs:
Amortization of right-of-use assets	3,337		3,723		4,007
Interest on lease liabilities	1,280		1,306		1,349
Short-term lease costs	2,441		2,349		1,056
Variable lease costs	4,623		5,122		3,161
Sublease income	(2,008)		(1,673)		(994)
Total lease costs	$	55,401	$	43,792	$	39,464

Other information related to leases was as follows:

Supplemental Cash Flow Information

	Fiscal Year
	December 25, 2021		December 26, 2020		December 28, 2019
	(in thousands)
Cash flows included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	42,576	$	29,961	$	27,153
Operating cash flows from finance leases	1,282		1,306		1,406
Finance cash flows from finance leases	3,202		4,350		3,766
Non-cash leases activity:
Right-of-use lease assets obtained in exchange for new operating lease liabilities	$	142,764	$	63,499	$	24,382
Right-of-use lease assets obtained in exchange for new finance lease liabilities	1,567		1,571		4,819

Lease Term and Discount Rate

	As of		As of		As of
	December 25, 2021		December 26, 2020		December 28, 2019
Weighted-average remaining lease term (in years)
Operating lease	9.0		8.5		8.2
Finance lease	11.7		12.4		13.0
Weighted-average discount rate
Operating lease	3.6	%	4.5	%	4.4	%
Finance lease	4.4	%	4.1	%	4.6	%

At the lease commencement date, the discount rate implicit in the lease is used to discount the lease liability if readily determinable. If not readily determinable or leases do not contain an implicit rate, the Company’s incremental borrowing rate is used as the discount rate, which is based on the information available at the lease commencement date and represents a rate that would be incurred to borrow, on a collateralized basis, over a similar term, an amount equal to the lease payments in a similar economic environment.

As of December 25, 2021, maturities of operating and finance lease liabilities for each of the following five years and a total thereafter were as follows:

	Operating Leases		Finance Leases
	(in thousands)
2022	$	43,420	$	3,865
2023	40,959		3,524
2024	39,080		3,288
2025	37,177		2,955
2026	32,072		2,460
Thereafter	146,151		19,157
Total minimum future lease payments	338,859		35,249
Less: Imputed interest	52,620		8,026
Total lease liabilities	$	286,239	$	27,223

Total minimum future lease payments (predominantly operating leases) of approximately $111 million for leases that have not commenced as of December 25, 2021, as the Company does not yet control the underlying assets, are not included in the consolidated financial statements. These leases are expected to commence between fiscal years 2022 and 2024 with lease terms of approximately 6 to 15 years.