LEASES (Tables)

6 Months Ended

Jul. 03, 2022

Leases [Abstract]

Schedule of Components of Lease Expense

The components of lease expense for the three months ended July 3, 2022 and July 4, 2021 were as follows:  

		Three Months Ended
Lease expense	Classification	July 3, 2022		July 4, 2021
Operating lease cost	Cost of sales or SM&A (1)	$	12,710	$	11,088
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	1,768		1,999
Interest on lease liabilities	Interest expense, net	1,036		1,109
Net lease cost (2)		$	15,514	$	14,196

The components of lease expense for the six months ended July 3, 2022 and July 4, 2021 were as follows:

		Six Months Ended
Lease expense	Classification	July 3, 2022		July 4, 2021
Operating lease cost	Cost of sales or SM&A (1)	$	25,497	$	22,554
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization (1)	3,450		4,061
Interest on lease liabilities	Interest expense, net	2,053		2,221
Net lease cost (2)		$	31,000	$	28,836

(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 3, 2022		December 31, 2021
Weighted-average remaining lease term (years)
Operating leases	15.2		15.4
Finance leases	29.1		30.0
Weighted-average discount rate
Operating leases	3.1	%	3.1	%
Finance leases	6.1	%	6.1	%

Schedule of Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases were as follows:

Leases	Classification	July 3, 2022		December 31, 2021
Assets
Operating lease ROU assets	Other non-current assets	$	337,311	$	351,712
Finance lease ROU assets, at cost	Property, plant and equipment, gross	85,347		89,190
Accumulated amortization	Accumulated depreciation	(13,512)		(16,694)
Finance lease ROU assets, net	Property, plant and equipment, net	71,835		72,496
Total leased assets		$	409,146	$	424,208
Liabilities
Current
Operating	Accrued liabilities	$	32,468	$	36,292
Finance	Current portion of long-term debt	3,272		3,564
Non-current
Operating	Other long-term liabilities	302,954		310,899
Finance	Long-term debt	67,350		65,582
Total lease liabilities		$	406,044	$	416,337

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

	July 3, 2022		December 31, 2021
Inventories:
Raw materials	$	390,557	$	395,358
Goods in process	164,444		110,008
Finished goods	841,036		649,082
Inventories at First In First Out	1,396,037		1,154,448
Adjustment to Last In First Out	(187,798)		(165,937)
Total inventories	$	1,208,239	$	988,511
Prepaid expenses and other:
Prepaid expenses	$	95,761	$	129,287
Other current assets	130,344		127,678
Total prepaid expenses and other	$	226,105	$	256,965
Property, plant and equipment:
Land	$	156,706	$	154,494
Buildings	1,523,736		1,508,139
Machinery and equipment	3,547,096		3,443,500
Construction in progress	245,159		294,824
Property, plant and equipment, gross	5,472,697		5,400,957
Accumulated depreciation	(2,881,871)		(2,814,770)
Property, plant and equipment, net	$	2,590,826	$	2,586,187
Other non-current assets:
Pension	$	36,743	$	71,618
Capitalized software, net	296,021		260,656
Operating lease ROU assets	337,311		351,712
Investments in unconsolidated affiliates	139,731		93,089
Other non-current assets	95,016		91,128
Total other non-current assets	$	904,822	$	868,203
Accrued liabilities:
Payroll, compensation and benefits	$	213,224	$	291,446
Advertising, promotion and product allowances	310,713		305,050
Operating lease liabilities	32,468		36,292
Other	180,280		222,850
Total accrued liabilities	$	736,685	$	855,638
Other long-term liabilities:
Post-retirement benefits liabilities	$	185,214	$	193,604
Pension benefits liabilities	33,030		37,023
Operating lease liabilities	302,954		310,899
Other	242,843		245,532
Total other long-term liabilities	$	764,041	$	787,058
Accumulated other comprehensive loss:
Foreign currency translation adjustments	$	(102,365)	$	(100,025)
Pension and post-retirement benefit plans, net of tax	(137,786)		(116,381)
Cash flow hedges, net of tax	(28,230)		(32,809)
Total accumulated other comprehensive loss	$	(268,381)	$	(249,215)

Schedule of Maturity of Operating Lease Liabilities

The maturity of our lease liabilities as of July 3, 2022 were as follows:

	Operating leases		Finance leases		Total
2022 (rest of year)	$	21,113	$	3,758	$	24,871
2023	40,199		6,495		46,694
2024	37,171		5,560		42,731
2025	26,070		4,397		30,467
2026	22,271		4,025		26,296
Thereafter	284,609		146,085		430,694
Total lease payments	431,433		170,320		601,753
Less: Imputed interest	96,011		99,698		195,709
Total lease liabilities	$	335,422	$	70,622	$	406,044

Schedule of Maturity of Finance Lease Liabilities

The maturity of our lease liabilities as of July 3, 2022 were as follows:

	Operating leases		Finance leases		Total
2022 (rest of year)	$	21,113	$	3,758	$	24,871
2023	40,199		6,495		46,694
2024	37,171		5,560		42,731
2025	26,070		4,397		30,467
2026	22,271		4,025		26,296
Thereafter	284,609		146,085		430,694
Total lease payments	431,433		170,320		601,753
Less: Imputed interest	96,011		99,698		195,709
Total lease liabilities	$	335,422	$	70,622	$	406,044

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 3, 2022		July 4, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	23,783	$	21,773
Operating cash flows from finance leases	2,053		2,221
Financing cash flows from finance leases	2,473		2,240
ROU assets obtained in exchange for lease liabilities:
Operating leases	$	6,317	$	6,190
Finance leases	4,192		436