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LEASES
 12 Months Ended
Dec. 27, 2020
Leases [Abstract]  
LEASES LEASES
The Company is party to operating lease agreements for warehouses, office space, vehicle maintenance facilities and livestock growing farms in the U.S., distribution centers, hatcheries and office space in Mexico and farms, processing facilities and office space in the U.K. and Europe. Additionally, the Company leases equipment, over-the-road transportation vehicles and other assets in all three reportable segments. The Company is also party to a limited number of finance lease agreements in the U.S.
The Company’s leases have remaining lease terms of one year to 15 years, some of which may include options to extend the lease for up to one year and some of which may include options to terminate the lease within one year. The exercise of options to extend lease terms is at the Company’s sole discretion. Certain leases also include options to purchase the leased property.
Certain lease agreements include rental payment increases over the lease term that can be either fixed or variable. Fixed payment increases and variable payment increases based on an index or rate are included in the initial lease liability using the index or rate at commencement date. Variable payment increases not based on an index are recognized as incurred. Certain lease agreements contain residual value guarantees, primarily vehicle and transportation equipment leases.
The following table presents components of lease expense (in thousands). Operating lease cost, finance lease amortization and finance lease interest are respectively included in Cost of sales, Selling, general and administrative expense and Interest expense, net of capitalized interest in the Consolidated Statements of Income.
December 27, 2020December 29, 2019
Operating lease cost(a)
$90,887 $99,242 
Amortization of finance lease assets436 167 
Interest on finance leases99 32 
Short-term lease cost64,410 59,225 
Variable lease cost3,839 3,031 
Net lease cost$159,671 $161,697 
(a)Sublease income is immaterial and not included in operating lease costs.
The weighted-average remaining lease term and discount rate for lease liabilities included in our Consolidated Balance Sheets are as follows:
December 27, 2020December 29, 2019
Weighted-average remaining lease term (years):
Operating leases5.445.77
Finance leases3.694.54
Weighted-average discount rate:
Operating leases4.53%4.80%
Finance leases5.08%5.21%
Supplemental cash flow information related to leases is as follows (in thousands):
Year Ended
December 27, 2020December 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$91,254 $100,473 
Operating cash flow from finance leases99 32 
Financing cash flows from finance leases486 167 
Operating lease assets obtained in exchange for operating lease liabilities$60,776 $34,648 
Finance lease assets obtained in exchange for finance lease liabilities— 2,182 
Future minimum lease payments under noncancelable leases as of December 27, 2020 are as follows (in thousands):
Operating LeasesFinance Leases
For the fiscal years ending December:
2021$83,116 $494 
202268,373 494 
202356,235 494 
202442,328 347 
202529,261 — 
Thereafter46,890 — 
Total future minimum lease payments326,203 1,829 
Less: imputed interest(37,179)(165)
Present value of lease liabilities$289,024 $1,664 
Lease liabilities as of December 27, 2020 are included in our Consolidated Balance Sheets as follows (in thousands):
Operating Leases
Finance Leases(a)
Accrued expenses and other current liabilities$71,592 $— 
Current maturities of long-term debt— 420 
Noncurrent operating lease liability, less current maturities217,432 — 
Long-term debt, less current maturities— 1,244 
Total lease liabilities$289,024 $1,664 
(a)Additional information regarding finance lease assets is included in “Note 10. Property, Plant and Equipment.”
As of December 27, 2020, the Company had $1.7 million operating leases and no finance leases that have not yet commenced.
LEASES LEASES
The Company is party to operating lease agreements for warehouses, office space, vehicle maintenance facilities and livestock growing farms in the U.S., distribution centers, hatcheries and office space in Mexico and farms, processing facilities and office space in the U.K. and Europe. Additionally, the Company leases equipment, over-the-road transportation vehicles and other assets in all three reportable segments. The Company is also party to a limited number of finance lease agreements in the U.S.
The Company’s leases have remaining lease terms of one year to 15 years, some of which may include options to extend the lease for up to one year and some of which may include options to terminate the lease within one year. The exercise of options to extend lease terms is at the Company’s sole discretion. Certain leases also include options to purchase the leased property.
Certain lease agreements include rental payment increases over the lease term that can be either fixed or variable. Fixed payment increases and variable payment increases based on an index or rate are included in the initial lease liability using the index or rate at commencement date. Variable payment increases not based on an index are recognized as incurred. Certain lease agreements contain residual value guarantees, primarily vehicle and transportation equipment leases.
The following table presents components of lease expense (in thousands). Operating lease cost, finance lease amortization and finance lease interest are respectively included in Cost of sales, Selling, general and administrative expense and Interest expense, net of capitalized interest in the Consolidated Statements of Income.
December 27, 2020December 29, 2019
Operating lease cost(a)
$90,887 $99,242 
Amortization of finance lease assets436 167 
Interest on finance leases99 32 
Short-term lease cost64,410 59,225 
Variable lease cost3,839 3,031 
Net lease cost$159,671 $161,697 
(a)Sublease income is immaterial and not included in operating lease costs.
The weighted-average remaining lease term and discount rate for lease liabilities included in our Consolidated Balance Sheets are as follows:
December 27, 2020December 29, 2019
Weighted-average remaining lease term (years):
Operating leases5.445.77
Finance leases3.694.54
Weighted-average discount rate:
Operating leases4.53%4.80%
Finance leases5.08%5.21%
Supplemental cash flow information related to leases is as follows (in thousands):
Year Ended
December 27, 2020December 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$91,254 $100,473 
Operating cash flow from finance leases99 32 
Financing cash flows from finance leases486 167 
Operating lease assets obtained in exchange for operating lease liabilities$60,776 $34,648 
Finance lease assets obtained in exchange for finance lease liabilities— 2,182 
Future minimum lease payments under noncancelable leases as of December 27, 2020 are as follows (in thousands):
Operating LeasesFinance Leases
For the fiscal years ending December:
2021$83,116 $494 
202268,373 494 
202356,235 494 
202442,328 347 
202529,261 — 
Thereafter46,890 — 
Total future minimum lease payments326,203 1,829 
Less: imputed interest(37,179)(165)
Present value of lease liabilities$289,024 $1,664 
Lease liabilities as of December 27, 2020 are included in our Consolidated Balance Sheets as follows (in thousands):
Operating Leases
Finance Leases(a)
Accrued expenses and other current liabilities$71,592 $— 
Current maturities of long-term debt— 420 
Noncurrent operating lease liability, less current maturities217,432 — 
Long-term debt, less current maturities— 1,244 
Total lease liabilities$289,024 $1,664 
(a)Additional information regarding finance lease assets is included in “Note 10. Property, Plant and Equipment.”
As of December 27, 2020, the Company had $1.7 million operating leases and no finance leases that have not yet commenced.