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LEASES (Tables)

6 Months Ended

Jul. 04, 2021

The components of lease expense for the three months ended July 4, 2021 and June 28, 2020 were as follows:


		Three Months Ended
Lease expense	Classification	July 4, 2021		June 28, 2020
Operating lease cost	Cost of sales or SM&A (1)	$	11,088	$	10,673
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	1,999		1,949
Interest on lease liabilities	Interest expense, net	1,109		1,112
Net lease cost (2)		$	14,196	$	13,734

The components of lease expense for the six months ended July 4, 2021 and June 28, 2020 were as follows:


		Six Months Ended
Lease expense	Classification	July 4, 2021		June 28, 2020
Operating lease cost	Cost of sales or SM&A (1)	$	22,554	$	21,217
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	4,061		3,979
Interest on lease liabilities	Interest expense, net	2,221		2,234
Net lease cost (2)		$	28,836	$	27,430

(1)Supply chain-related amounts were included in cost of sales.

(2)Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Information regarding our lease terms and discount rates were as follows:


	July 4, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	12.8		12.5
Finance leases	30.3		30.1

Weighted-average discount rate
Operating leases	3.7	%	3.8	%
Finance leases	5.9	%	5.9	%

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases were as follows:


Leases	Classification	July 4, 2021		December 31, 2020
Assets
Operating lease ROU assets	Other non-current assets	$	206,068	$	224,268

Finance lease ROU assets, at cost	Property, plant and equipment, gross	99,939		101,426
Accumulated amortization	Accumulated depreciation	(16,287)		(13,361)
Finance lease ROU assets, net	Property, plant and equipment, net	83,652		88,065

Total leased assets		$	289,720	$	312,333

Liabilities
Current
Operating	Accrued liabilities	$	28,559	$	36,578
Finance	Current portion of long-term debt	4,188		4,868
Non-current
Operating	Other long-term liabilities	172,352		181,871
Finance	Long-term debt	75,415		75,887
Total lease liabilities		$	280,514	$	299,204

The components of certain Consolidated Balance Sheet accounts are as follows:


	July 4, 2021		December 31, 2020
Inventories:
Raw materials	$	412,728	$	388,600
Goods in process	140,868		104,841
Finished goods	677,254		645,664
Inventories at First In First Out	1,230,850		1,139,105
Adjustment to Last In First Out	(170,428)		(174,898)
Total inventories	$	1,060,422	$	964,207

Prepaid expenses and other:
Prepaid expenses	$	64,153	$	95,669

Other current assets	136,004		158,809
Total prepaid expenses and other	$	200,157	$	254,478

Property, plant and equipment:
Land	$	132,515	$	131,513
Buildings	1,412,232		1,387,106
Machinery and equipment	3,271,692		3,169,754
Construction in progress	278,057		276,514
Property, plant and equipment, gross	5,094,496		4,964,887
Accumulated depreciation	(2,752,671)		(2,679,632)
Property, plant and equipment, net	$	2,341,825	$	2,285,255

Other non-current assets:

Capitalized software, net	$	215,264	$	187,673

Operating lease ROU assets	206,068		224,268
Investments in unconsolidated affiliates	81,606		52,351
Other non-current assets	109,676		91,595
Total other non-current assets	$	612,614	$	555,887

Accrued liabilities:
Payroll, compensation and benefits	$	195,224	$	237,342
Advertising, promotion and product allowances	309,437		309,537
Operating lease liabilities	28,559		36,578

Other	175,072		198,309
Total accrued liabilities	$	708,292	$	781,766

Other long-term liabilities:
Post-retirement benefits liabilities	$	217,776	$	223,507
Pension benefits liabilities	55,615		70,727
Operating lease liabilities	172,352		181,871
Other	225,858		207,329
Total other long-term liabilities	$	671,601	$	683,434

Accumulated other comprehensive loss:
Foreign currency translation adjustments	$	(84,375)	$	(98,525)
Pension and post-retirement benefit plans, net of tax	(166,707)		(194,205)
Cash flow hedges, net of tax	(45,054)		(45,352)
Total accumulated other comprehensive loss	$	(296,136)	$	(338,082)

Schedule of Maturity of Operating Lease Liabilities

The maturity of our lease liabilities as of July 4, 2021 were as follows:


	Operating leases		Finance leases		Total
2021 (rest of year)	$	20,512	$	4,349	$	24,861
2022	28,643		7,391		36,034
2023	20,818		5,285		26,103
2024	15,748		4,709		20,457
2025	14,200		4,741		18,941
Thereafter	160,392		161,625		322,017
Total lease payments	260,313		188,100		448,413
Less: Imputed interest	59,402		108,497		167,899
Total lease liabilities	$	200,911	$	79,603	$	280,514

Schedule of Maturity of Finance Lease Liabilities

The maturity of our lease liabilities as of July 4, 2021 were as follows:


	Operating leases		Finance leases		Total
2021 (rest of year)	$	20,512	$	4,349	$	24,861
2022	28,643		7,391		36,034
2023	20,818		5,285		26,103
2024	15,748		4,709		20,457
2025	14,200		4,741		18,941
Thereafter	160,392		161,625		322,017
Total lease payments	260,313		188,100		448,413
Less: Imputed interest	59,402		108,497		167,899
Total lease liabilities	$	200,911	$	79,603	$	280,514

Schedule of Supplemental Cash Flow Information Related To Leases

Supplemental cash flow and other information related to leases were as follows:


	Six Months Ended
	July 4, 2021		June 28, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	21,773	$	21,335
Operating cash flows from finance leases	2,221		2,234
Financing cash flows from finance leases	2,240		2,105

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	6,190	$	20,814
Finance leases	436		2,076