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LEASES (Tables)

9 Months Ended

Oct. 03, 2021

The components of lease expense for the three months ended October 3, 2021 and September 27, 2020 were as follows:


		Three Months Ended
Lease expense	Classification	October 3, 2021		September 27, 2020
Operating lease cost	Cost of sales or SM&A (1)	$	10,764	$	11,485
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	1,971		1,959
Interest on lease liabilities	Interest expense, net	1,100		1,106
Net lease cost (2)		$	13,835	$	14,550

The components of lease expense for the nine months ended October 3, 2021 and September 27, 2020 were as follows:


		Nine Months Ended
Lease expense	Classification	October 3, 2021		September 27, 2020
Operating lease cost	Cost of sales or SM&A (1)	$	33,318	$	32,702
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	6,032		5,938
Interest on lease liabilities	Interest expense, net	3,321		3,340
Net lease cost (2)		$	42,671	$	41,980

(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:


	October 3, 2021		December 31, 2020
Weighted-average remaining lease term (years)
Operating leases	13.0		12.5
Finance leases	30.6		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	October 3, 2021		December 31, 2020
Assets
Operating lease ROU assets	Other non-current assets	$	196,746	$	224,268

Finance lease ROU assets, at cost	Property, plant and equipment, gross	98,967		101,426
Accumulated amortization	Accumulated depreciation	(18,097)		(13,361)
Finance lease ROU assets, net	Property, plant and equipment, net	80,870		88,065

Total leased assets		$	277,616	$	312,333

Liabilities
Current
Operating	Accrued liabilities	$	25,156	$	36,578
Finance	Current portion of long-term debt	3,533		4,868
Non-current
Operating	Other long-term liabilities	166,827		181,871
Finance	Long-term debt	74,713		75,887
Total lease liabilities		$	270,229	$	299,204

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


	October 3, 2021		December 31, 2020
Inventories:
Raw materials	$	403,374	$	388,600
Goods in process	131,523		104,841
Finished goods	662,073		645,664
Inventories at First In First Out	1,196,970		1,139,105
Adjustment to Last In First Out	(170,429)		(174,898)
Total inventories	$	1,026,541	$	964,207

Prepaid expenses and other:
Prepaid expenses	$	68,242	$	95,669

Other current assets	130,418		158,809
Total prepaid expenses and other	$	198,660	$	254,478

Property, plant and equipment:
Land	$	148,283	$	131,513
Buildings	1,466,156		1,387,106
Machinery and equipment	3,267,233		3,169,754
Construction in progress	254,879		276,514
Property, plant and equipment, gross	5,136,551		4,964,887
Accumulated depreciation	(2,766,358)		(2,679,632)
Property, plant and equipment, net	$	2,370,193	$	2,285,255

Other non-current assets:

Capitalized software, net	$	232,367	$	187,673

Operating lease ROU assets	196,746		224,268
Investments in unconsolidated affiliates	77,865		52,351
Other non-current assets	121,708		91,595
Total other non-current assets	$	628,686	$	555,887

Accrued liabilities:
Payroll, compensation and benefits	$	237,934	$	237,342
Advertising, promotion and product allowances	323,903		309,537
Operating lease liabilities	25,156		36,578

Other	164,979		198,309
Total accrued liabilities	$	751,972	$	781,766

Other long-term liabilities:
Post-retirement benefits liabilities	$	214,954	$	223,507
Pension benefits liabilities	46,183		70,727
Operating lease liabilities	166,827		181,871
Other	211,932		207,329
Total other long-term liabilities	$	639,896	$	683,434

Accumulated other comprehensive loss:
Foreign currency translation adjustments	$	(95,941)	$	(98,525)
Pension and post-retirement benefit plans, net of tax	(165,621)		(194,205)
Cash flow hedges, net of tax	(36,838)		(45,352)
Total accumulated other comprehensive loss	$	(298,400)	$	(338,082)

Schedule of Maturity of Operating Lease Liabilities

The maturity of our lease liabilities as of October 3, 2021 were as follows:


	Operating leases		Finance leases		Total
2021 (rest of year)	$	9,959	$	2,165	$	12,124
2022	28,404		7,352		35,756
2023	20,759		5,255		26,014
2024	15,737		4,687		20,424
2025	14,210		4,720		18,930
Thereafter	160,556		161,336		321,892
Total lease payments	249,625		185,515		435,140
Less: Imputed interest	57,642		107,269		164,911
Total lease liabilities	$	191,983	$	78,246	$	270,229

Schedule of Maturity of Finance Lease Liabilities

The maturity of our lease liabilities as of October 3, 2021 were as follows:


	Operating leases		Finance leases		Total
2021 (rest of year)	$	9,959	$	2,165	$	12,124
2022	28,404		7,352		35,756
2023	20,759		5,255		26,014
2024	15,737		4,687		20,424
2025	14,210		4,720		18,930
Thereafter	160,556		161,336		321,892
Total lease payments	249,625		185,515		435,140
Less: Imputed interest	57,642		107,269		164,911
Total lease liabilities	$	191,983	$	78,246	$	270,229

Schedule of Supplemental Cash Flow Information Related To Leases

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


	Nine Months Ended
	October 3, 2021		September 27, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	32,243	$	32,010
Operating cash flows from finance leases	3,321		3,341
Financing cash flows from finance leases	3,313		3,136

ROU assets obtained in exchange for lease liabilities:
Operating leases	$	7,013	$	36,629
Finance leases	436		2,076