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LEASES
 12 Months Ended
Dec. 29, 2024
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 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 less than one year to 17 years, some of which may include options to extend the lease for up to five years 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, SG&A expense and Interest expense, net of capitalized interest in the Consolidated Statements of Income.
Year Ended
December 29, 2024December 31, 2023
Operating lease cost(a)
$86,684 $92,877 
Amortization of finance lease assets650 921 
Interest on finance leases58 95 
Short-term lease cost103,364 93,739 
Variable lease cost2,577 2,751 
Net lease cost$193,333 $190,383 
(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 29, 2024December 31, 2023
Weighted-average remaining lease term:
Operating leases6.11 years5.73 years
Finance leases3.35 years4.34 years
Weighted-average discount rate:
Operating leases4.53 %4.24 %
Finance leases2.66 %2.81 %
Supplemental cash flow information related to leases is as follows (in thousands):
Year Ended
December 29, 2024December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$84,806 $94,087 
Operating cash flows - finance leases40 96 
Financing cash flows - finance leases616 979 
Operating lease assets obtained in exchange for operating lease liabilities66,060 36,967 
Future minimum lease payments under noncancelable leases as of December 29, 2024 are as follows (in thousands):
Operating LeasesFinance Leases
For the fiscal years ending December:
2025$73,332 $577 
202658,905 553 
202745,318 526 
202831,595 219 
202921,879 — 
Thereafter63,155 — 
Total future minimum lease payments294,184 1,875 
Less: imputed interest(34,913)(83)
Present value of lease liabilities$259,271 $1,792 
Lease liabilities are included in our Consolidated Balance Sheets as follows (in thousands):
December 29, 2024December 31, 2023
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Accrued expenses and other current liabilities$63,327 $— $67,440 $— 
Current maturities of long-term debt— 536 — 674 
Noncurrent operating lease liability, less current maturities195,944 — 203,348 — 
Long-term debt, less current maturities— 1,256 — 1,812 
Total lease liabilities$259,271 $1,792 $270,788 $2,486 
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 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 less than one year to 17 years, some of which may include options to extend the lease for up to five years 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, SG&A expense and Interest expense, net of capitalized interest in the Consolidated Statements of Income.
Year Ended
December 29, 2024December 31, 2023
Operating lease cost(a)
$86,684 $92,877 
Amortization of finance lease assets650 921 
Interest on finance leases58 95 
Short-term lease cost103,364 93,739 
Variable lease cost2,577 2,751 
Net lease cost$193,333 $190,383 
(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 29, 2024December 31, 2023
Weighted-average remaining lease term:
Operating leases6.11 years5.73 years
Finance leases3.35 years4.34 years
Weighted-average discount rate:
Operating leases4.53 %4.24 %
Finance leases2.66 %2.81 %
Supplemental cash flow information related to leases is as follows (in thousands):
Year Ended
December 29, 2024December 31, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows - operating leases$84,806 $94,087 
Operating cash flows - finance leases40 96 
Financing cash flows - finance leases616 979 
Operating lease assets obtained in exchange for operating lease liabilities66,060 36,967 
Future minimum lease payments under noncancelable leases as of December 29, 2024 are as follows (in thousands):
Operating LeasesFinance Leases
For the fiscal years ending December:
2025$73,332 $577 
202658,905 553 
202745,318 526 
202831,595 219 
202921,879 — 
Thereafter63,155 — 
Total future minimum lease payments294,184 1,875 
Less: imputed interest(34,913)(83)
Present value of lease liabilities$259,271 $1,792 
Lease liabilities are included in our Consolidated Balance Sheets as follows (in thousands):
December 29, 2024December 31, 2023
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Accrued expenses and other current liabilities$63,327 $— $67,440 $— 
Current maturities of long-term debt— 536 — 674 
Noncurrent operating lease liability, less current maturities195,944 — 203,348 — 
Long-term debt, less current maturities— 1,256 — 1,812 
Total lease liabilities$259,271 $1,792 $270,788 $2,486