Leases (Tables)

9 Months Ended

Sep. 29, 2019

Summary of Weighted Average Remaining Lease Term and Weighted Average Discount Rate for Population of Leases

Following is a summary of the weighted average remaining lease term and weighted average discount rate for the Company’s population of leases as of September 29, 2019:

	Operating Leases			Financing Leases
Weighted average remaining lease term	10.2 years			4.9 years
Weighted average discount rate		4.1	%		5.7	%

Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Operations

Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statements of operations for the third quarter and the first nine months of 2019:

(in thousands)	Third Quarter 2019		First Nine Months 2019
Cost of sales impact:
Operating leases costs	$	1,356	$	4,039
Short-term and variable leases		2,814		7,393
Depreciation expense from financing leases⁽¹⁾		353		1,060
Total cost of sales impact	$	4,523	$	12,492

Selling, delivery and administrative expenses impact:
Operating leases costs	$	3,717	$	9,639
Short-term and variable leases		838		2,676
Depreciation expense from financing leases⁽¹⁾		1,139		3,415
Total selling, delivery and administrative expenses impact	$	5,694	$	15,730

Interest expense, net impact:
Interest expense on financing lease obligations⁽²⁾	$	666	$	2,083
Total interest expense, net impact	$	666	$	2,083

Total lease cost	$	10,883	$	30,305

(1)

During the third quarter of 2018, the Company had depreciation expense from capital leases of $0.3 million and $1.1 million in cost of sales and SD&A expenses, respectively. During the first nine months of 2018, the Company had depreciation expense from capital leases of $1.0 million and $3.4 million in cost of sales and SD&A expenses, respectively.

(2)	The Company had interest expense on capital lease obligations of $0.8 million during the third quarter of 2018 and $2.6 million during the first nine months of 2018.

Summary of Future Minimum Lease Payments For Noncancelable Operating And Financing Leases

Following is a summary of future minimum lease payments for all noncancelable operating leases and financing leases as of September 29, 2019:

(in thousands)	Operating Leases		Financing Leases		Total
Remainder of 2019	$	4,556	$	2,612	$	7,168
2020		19,387		10,611		29,998
2021		17,386		6,215		23,601
2022		13,965		2,694		16,659
2023		11,702		2,750		14,452
Thereafter		78,543		8,213		86,756
Total minimum lease payments including interest	$	145,539	$	33,095	$	178,634
Less: Amounts representing interest		28,726		4,074		32,800
Present value of minimum lease principal payments		116,813		29,021		145,834
Less: Current portion of lease liabilities - operating and financing leases		14,929		9,209		24,138
Noncurrent portion of lease liabilities - operating and financing leases	$	101,884	$	19,812	$	121,696

Summary of Future Minimum Lease Payments For Noncancelable Operating And Capital Leases

Following is a summary of future minimum lease payments for all noncancelable operating leases and capital leases as of December 30, 2018:

(in thousands)	Operating Leases		Capital Leases		Total
2019	$	14,146	$	10,434	$	24,580
2020		13,526		10,613		24,139
2021		12,568		6,218		18,786
2022		11,161		2,697		13,858
2023		10,055		2,753		12,808
Thereafter		33,805		8,106		41,911
Total minimum lease payments including interest	$	95,261	$	40,821	$	136,082
Less: Amounts representing interest				5,573
Present value of minimum lease principal payments				35,248
Less: Current portion of lease liabilities - capital leases				8,617
Noncurrent portion of lease liabilities - capital leases			$	26,631

Summary of Balances Related to Lease Portfolio within Condensed Consolidated Statement of Cash Flow

Following is a summary of balances related to the Company’s lease portfolio within the Company’s condensed consolidated statement of cash flows for the first nine months of 2019:

(in thousands)	First Nine Months 2019
Cash flows from operating activities impact:
Operating leases	$	13,576
Interest payments on financing lease obligations⁽¹⁾		2,083
Total cash flows from operating activities impact	$	15,659

Cash flows from financing activities impact:
Principal payments on financing lease obligations⁽¹⁾	$	6,441
Total cash flows from financing activities impact	$	6,441

(1)	During the first nine months of 2018, the Company had interest payments on capital lease obligations of $2.6 million and principal payments on capital lease obligations of $6.0 million.