Leases

3 Months Ended

Jun. 28, 2020

Leases [Abstract]

Leases

Leases

We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and certain equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms of less than 1 year to 16 years; some of which include extension and termination options for an additional 15 years or within 1 year, respectively. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. Our lease agreements do not contain any material residual value guarantees or material variable lease payments.

We have entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on our balance sheet, and for the three and six months ended June 28, 2020 and June 30, 2019, the rent expense for short-term leases was not material.

We have certain property and equipment lease contracts that may contain lease and non-lease components, and we have elected to utilize the practical expedient to account for these components together as a single combined lease component.

As the rate implicit in most of our leases is not readily determinable, we use the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

The components of lease expense were as follows:

	Three Months Ended				Six Months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
	(In thousands)
Operating lease cost	$	3,344	$	2,567	$	6,941	$	7,440
Finance lease cost
Amortization of right-of-use asset	$	33	$	41	$	66	$	67
Interest on lease liabilities	4		6		9		10
Total finance lease cost	$	37	$	47	$	75	$	77

Supplemental cash flow information related to leases was as follows:

	Three Months Ended				Six Months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,670	$	2,154	$	7,461	$	7,242
Operating cash flows from finance leases	4		5		9		14
Financing cash flows from finance leases	41		76		87		146

Supplemental balance sheet information related to leases was as follows:

	June 28, 2020		December 31, 2019
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	56,613	$	62,251
Accrued liabilities	$	13,528	$	13,900
Long-term operating lease liabilities	49,772		55,652
Total operating lease liabilities	$	63,300	$	69,552
Finance leases:
Other long-lived assets, at cost	$	757	$	823
Accumulated depreciation	(427)		(391)
Other long-lived assets, net	$	330	$	432

Weighted Average Remaining Lease Term
Operating leases	5 years		6 years
Finance leases	2 years		3 years
Weighted Average Discount Rate
Operating leases	6.8	%	6.9	%
Finance leases	6.2	%	6.2	%

The following table summarizes maturities of lease liabilities as of June 28, 2020 (in thousands):

2020	$	9,371
2021	17,373
2022	14,764
2023	11,854
2024	9,107
Thereafter	17,016
Total	$	79,485

The following table summarizes maturities of lease liabilities as of December 31, 2019 (in thousands):

2020	$	19,086
2021	16,988
2022	14,128
2023	11,598
2024	9,032
Thereafter	16,655
Total	$	87,487

Leases

Leases

We have operating and finance leases for properties, including manufacturing facilities, warehouses, and office space; as well as vehicles and certain equipment. We make certain judgments in determining whether a contract contains a lease in accordance with ASU 2016-02. Our leases have remaining lease terms of less than 1 year to 16 years; some of which include extension and termination options for an additional 15 years or within 1 year, respectively. We do not assume renewals in our determination of the lease term unless the renewals are deemed to be reasonably certain as of the commencement date of the lease. Our lease agreements do not contain any material residual value guarantees or material variable lease payments.

We have entered into various short-term operating leases with an initial term of twelve months or less. These leases are not recorded on our balance sheet, and for the three and six months ended June 28, 2020 and June 30, 2019, the rent expense for short-term leases was not material.

We have certain property and equipment lease contracts that may contain lease and non-lease components, and we have elected to utilize the practical expedient to account for these components together as a single combined lease component.

As the rate implicit in most of our leases is not readily determinable, we use the incremental borrowing rate to determine the present value of the lease payments, which is unique to each leased asset, and is based upon the term of the lease, commencement date of the lease, local currency of the leased asset, and the credit rating of the legal entity leasing the asset.

The components of lease expense were as follows:

	Three Months Ended				Six Months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
	(In thousands)
Operating lease cost	$	3,344	$	2,567	$	6,941	$	7,440
Finance lease cost
Amortization of right-of-use asset	$	33	$	41	$	66	$	67
Interest on lease liabilities	4		6		9		10
Total finance lease cost	$	37	$	47	$	75	$	77

Supplemental cash flow information related to leases was as follows:

	Three Months Ended				Six Months Ended
	June 28, 2020		June 30, 2019		June 28, 2020		June 30, 2019
	(In thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,670	$	2,154	$	7,461	$	7,242
Operating cash flows from finance leases	4		5		9		14
Financing cash flows from finance leases	41		76		87		146

Supplemental balance sheet information related to leases was as follows:

	June 28, 2020		December 31, 2019
	(In thousands, except lease term and discount rate)
Operating leases:
Total operating lease right-of-use assets	$	56,613	$	62,251
Accrued liabilities	$	13,528	$	13,900
Long-term operating lease liabilities	49,772		55,652
Total operating lease liabilities	$	63,300	$	69,552
Finance leases:
Other long-lived assets, at cost	$	757	$	823
Accumulated depreciation	(427)		(391)
Other long-lived assets, net	$	330	$	432

Weighted Average Remaining Lease Term
Operating leases	5 years		6 years
Finance leases	2 years		3 years
Weighted Average Discount Rate
Operating leases	6.8	%	6.9	%
Finance leases	6.2	%	6.2	%

The following table summarizes maturities of lease liabilities as of June 28, 2020 (in thousands):

2020	$	9,371
2021	17,373
2022	14,764
2023	11,854
2024	9,107
Thereafter	17,016
Total	$	79,485

The following table summarizes maturities of lease liabilities as of December 31, 2019 (in thousands):

2020	$	19,086
2021	16,988
2022	14,128
2023	11,598
2024	9,032
Thereafter	16,655
Total	$	87,487