Leases

9 Months Ended

Sep. 26, 2020

Leases [Abstract]

Leases

Leases

We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our finance leases range from 1 year to 8 years while our operating leases range from 1 year to 21 years, some of which may include options to extend the leases generally between 1 year and 10 years, and some of which may include options to terminate the leases within 1 year.

The components of lease expense for the three and nine months ended September 26, 2020 and September 28, 2019, respectively, is shown in the table below:

	For the Three Months Ended				For the Nine Months Ended
(in millions of U.S. dollars)	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Operating lease cost	$	12.2	$	12.9	$	36.2	$	35.8
Short-term lease cost	2.6		1.4		6.6		2.7
Finance lease cost
Amortization of right-of-use assets	$	3.1	$	0.7	$	7.4	$	3.4
Interest on lease liabilities	0.7		0.6		2.5		0.9
Total finance lease cost	$	3.8	$	1.3	$	9.9	$	4.3
Sublease income	$	0.1	$	0.2	$	0.5	$	0.7

Supplemental cash flow information related to leases for the three and nine months ended September 26, 2020 and September 28, 2019, respectively, is shown in the tables below:

	For the Three Months Ended
(in millions of U.S. dollars)	September 26, 2020		September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11.8	$	10.9
Operating cash flows from finance leases	0.9		0.5
Financing cash flows from finance leases	2.5		1.0
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4.9	$	3.2
Finance leases	8.5		2.6

	For the Nine Months Ended
(in millions of U.S. dollars)	September 26, 2020		September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	35.7	$	35.1
Operating cash flows from finance leases	2.6		0.8
Financing cash flows from finance leases	6.3		2.8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	19.8	$	11.2
Finance leases	32.5		16.0

    Supplemental balance sheet information related to leases as of September 26, 2020 and December 28, 2019, respectively, is shown in the table below:

(in millions of U.S. dollars, except lease term and discount rate)	September 26, 2020		December 28, 2019
Operating leases
Operating lease right-of-use assets	$	177.1	$	185.7
Current operating lease obligations	38.3		36.5
Operating lease obligations	144.9		155.2
Total operating lease obligations	$	183.2	$	191.7
Financing leases
Property, plant and equipment, net	$	55.0	$	30.4
Current maturities of long-term debt	10.7		5.7
Long-term debt	44.3		23.7
Total finance lease obligations	$	55.0	$	29.4

Weighted Average Remaining Lease Term	September 26, 2020		December 28, 2019
Operating leases	8.2		8.7
Finance leases	5.5		5.6
Weighted Average Discount Rate
Operating leases	6.6	%	6.2	%
Finance leases	5.3	%	6.3	%

Maturities of operating lease obligations were as follows:

(in millions of U.S. dollars)	September 26, 2020		December 28, 2019
Remainder of 2020	$	15.8	$	47.8
2021	43.5		38.4
2022	33.9		29.6
2023	29.3		25.3
2024	23.8		20.6
Thereafter	88.6		93.5
Total lease payments	234.9		255.2
Less imputed interest	(51.7)		(63.5)
Present value of lease obligations	$	183.2	$	191.7

Maturities of finance lease obligations were as follows:

(in millions of U.S. dollars)	September 26, 2020		December 28, 2019
Remainder of 2020	$	3.8	$	6.8
2021	12.9		6.1
2022	11.9		5.7
2023	10.9		5.4
2024	9.3		4.6
Thereafter	13.3		6.4
Total lease payments	62.1		35.0
Less imputed interest	(7.1)		(5.6)
Present value of lease obligations	$	55.0	$	29.4

Leases

Leases

We have operating and finance leases for manufacturing and production facilities, branch distribution and warehouse facilities, vehicles and machinery and equipment. The remaining terms on our finance leases range from 1 year to 8 years while our operating leases range from 1 year to 21 years, some of which may include options to extend the leases generally between 1 year and 10 years, and some of which may include options to terminate the leases within 1 year.

The components of lease expense for the three and nine months ended September 26, 2020 and September 28, 2019, respectively, is shown in the table below:

	For the Three Months Ended				For the Nine Months Ended
(in millions of U.S. dollars)	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Operating lease cost	$	12.2	$	12.9	$	36.2	$	35.8
Short-term lease cost	2.6		1.4		6.6		2.7
Finance lease cost
Amortization of right-of-use assets	$	3.1	$	0.7	$	7.4	$	3.4
Interest on lease liabilities	0.7		0.6		2.5		0.9
Total finance lease cost	$	3.8	$	1.3	$	9.9	$	4.3
Sublease income	$	0.1	$	0.2	$	0.5	$	0.7

Supplemental cash flow information related to leases for the three and nine months ended September 26, 2020 and September 28, 2019, respectively, is shown in the tables below:

	For the Three Months Ended
(in millions of U.S. dollars)	September 26, 2020		September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11.8	$	10.9
Operating cash flows from finance leases	0.9		0.5
Financing cash flows from finance leases	2.5		1.0
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	4.9	$	3.2
Finance leases	8.5		2.6

	For the Nine Months Ended
(in millions of U.S. dollars)	September 26, 2020		September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	35.7	$	35.1
Operating cash flows from finance leases	2.6		0.8
Financing cash flows from finance leases	6.3		2.8
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	19.8	$	11.2
Finance leases	32.5		16.0

    Supplemental balance sheet information related to leases as of September 26, 2020 and December 28, 2019, respectively, is shown in the table below:

(in millions of U.S. dollars, except lease term and discount rate)	September 26, 2020		December 28, 2019
Operating leases
Operating lease right-of-use assets	$	177.1	$	185.7
Current operating lease obligations	38.3		36.5
Operating lease obligations	144.9		155.2
Total operating lease obligations	$	183.2	$	191.7
Financing leases
Property, plant and equipment, net	$	55.0	$	30.4
Current maturities of long-term debt	10.7		5.7
Long-term debt	44.3		23.7
Total finance lease obligations	$	55.0	$	29.4

Weighted Average Remaining Lease Term	September 26, 2020		December 28, 2019
Operating leases	8.2		8.7
Finance leases	5.5		5.6
Weighted Average Discount Rate
Operating leases	6.6	%	6.2	%
Finance leases	5.3	%	6.3	%

Maturities of operating lease obligations were as follows:

(in millions of U.S. dollars)	September 26, 2020		December 28, 2019
Remainder of 2020	$	15.8	$	47.8
2021	43.5		38.4
2022	33.9		29.6
2023	29.3		25.3
2024	23.8		20.6
Thereafter	88.6		93.5
Total lease payments	234.9		255.2
Less imputed interest	(51.7)		(63.5)
Present value of lease obligations	$	183.2	$	191.7

Maturities of finance lease obligations were as follows:

(in millions of U.S. dollars)	September 26, 2020		December 28, 2019
Remainder of 2020	$	3.8	$	6.8
2021	12.9		6.1
2022	11.9		5.7
2023	10.9		5.4
2024	9.3		4.6
Thereafter	13.3		6.4
Total lease payments	62.1		35.0
Less imputed interest	(7.1)		(5.6)
Present value of lease obligations	$	55.0	$	29.4