LEASES (Tables)

6 Months Ended

Jul. 03, 2021

Leases [Abstract]

Summary of Balance Sheet

The following table presents the assets and liabilities related to operating and finance leases (in thousands):

	Balance Sheet Location	July 3, 2021
Assets:
Operating lease assets	Operating lease right-of-use assets	$	51,672
Finance lease assets	Property and equipment	10,311
Total lease assets		$	61,983
Liabilities:
Current
Operating lease liabilities	Operating lease liabilities	$	11,142
Finance lease liabilities	Current maturities of long-term debt	1,978
Non-current
Operating lease liabilities	Operating lease liabilities, non-current	50,881
Finance lease liabilities	Long-term debt, net of current portion	8,392
Total lease liabilities		$	72,393

Summary of Lease Cost

The following table presents the components of lease costs (in thousands):

	Three Months Ended				Six Months Ended
	July 3, 2021		June 27, 2020		July 3, 2021		June 27, 2020
Operating lease costs	$	2,612	$	2,314	$	5,076	$	4,611
Finance lease cost - amortization of right-of-use assets	62		53		115		106
Finance lease cost - interest on lease liabilities	15		17		29		34
Short-term lease cost	97		49		155		104
Variable lease cost	1,116		816		1,848		1,654
Sublease income	(185)		(185)		(371)		(371)
Total lease cost	$	3,717	$	3,064	$	6,852	$	6,138

The following table presents lease terms and discount rates:

	July 3, 2021		June 27, 2020
Weighted average remaining lease term:
Operating leases	5.70 years		6.63 years
Finance leases	4.84 years		4.18 years
Weighted average discount rate:
Operating leases	5.04	%	6.62	%
Finance leases	2.25	%	6.24	%

The following table presents supplemental cash flow information related to our leases (in thousands):

	Six Months Ended July 3, 2021		Six Months Ended June 27, 2020
Cash paid for amounts included in measurement of liabilities:
Operating cash flows used in operating leases	$	5,439	$	5,100
Operating cash flows used in finance leases	29		34
Financing cash flows used in finance leases	95		91
Right-of-use assets obtained in exchange for new lease liabilities:
Finance leases	$	9,517	$	—
Operating leases	21,246		231

Schedule of Operating Lease Liability, Maturity

The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of July 3, 2021 (in thousands):

	Operating Leases		Finance Leases		Total
2021	$	7,517	$	1,122	$	8,639
2022	12,022		2,244		14,266
2023	11,995		2,078		14,073
2024	12,058		2,325		14,383
2025	11,339		1,995		13,334
Thereafter	16,832		1,164		17,996
Total lease payments	71,763		10,928		82,691
Less: Effect of discounting to net present value	9,740		558		10,298
Present value of lease liabilities	$	62,023	$	10,370	$	72,393

Schedule of Finance Lease Liability, Maturity

The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of July 3, 2021 (in thousands):

	Operating Leases		Finance Leases		Total
2021	$	7,517	$	1,122	$	8,639
2022	12,022		2,244		14,266
2023	11,995		2,078		14,073
2024	12,058		2,325		14,383
2025	11,339		1,995		13,334
Thereafter	16,832		1,164		17,996
Total lease payments	71,763		10,928		82,691
Less: Effect of discounting to net present value	9,740		558		10,298
Present value of lease liabilities	$	62,023	$	10,370	$	72,393