Leases

6 Months Ended

Jun. 27, 2020

Leases [Abstract]

Leases

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted the new standard on December 30, 2018 and is using the effective date as the Company's date of initial application and consequently, financial information will not be updated and the disclosures required under the this ASU will not be provided for dates and periods before December 30, 2018. The Company has elected the package of expedients, which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company.

The Company leases certain real and personal property under non-cancelable operating leases. In addition, the Company leases a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail.

The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Operating lease expense	$	11,785	$	12,511	$	23,294	$	24,828
Short-term lease costs	5,581		2,697		11,826		5,750
Total lease cost	$	17,366	$	15,208	35,120		30,578

Other information (in thousands, except lease terms and discount rates):

	Six Months Ended
	June 27, 2020			June 29, 2019
Cash paid for amounts included in the measurement lease liabilities
Operating cash flows from operating leases	$	25,282		$	24,980
	June 27, 2020			December 28, 2019
Operating right-of-use assets, net	$	134,901		$	124,726
Operating lease liability, current	$	39,532		$	37,805
Operating lease liability, non-current	99,482			91,424
Total operating lease liabilities	$	139,014		$	129,229
Weighted average remaining lease term - operating leases	6.27 years			6.50 years
Weighted average discount rate - operating leases	4.45		%	4.71		%

Future annual minimum lease payments and capital lease commitments as of June 27, 2020 are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2020 (excluding the six months ended June 27, 2020)	$	23,791	$	73
2021	37,458		16
2022	26,870		16
2023	22,183		10
2024	16,170		8
Thereafter	27,160		1
	$	153,632	$	124
Less amounts representing interest	$	(14,618)	(6)
Lease obligations included in current and long-term liabilities	$	139,014	$	118

Leases

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842). The Company adopted the new standard on December 30, 2018 and is using the effective date as the Company's date of initial application and consequently, financial information will not be updated and the disclosures required under the this ASU will not be provided for dates and periods before December 30, 2018. The Company has elected the package of expedients, which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company did not elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company.

The Company leases certain real and personal property under non-cancelable operating leases. In addition, the Company leases a large portion of the Company's fleet of tractors, all of its rail cars, some IT equipment and other transportation equipment. The Company's office leases include certain lease and non-lease components, where the Company has elected to exclude the non-lease components from the calculation of the lease liability and ROU asset. The Company has finance leases, which are not significant to the Company and not separately disclosed in detail.

The components of operating lease expense included in cost of sales and operating expenses and selling, general and administrative expenses were as follows (in thousands):

	Three Months Ended				Six Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Operating lease expense	$	11,785	$	12,511	$	23,294	$	24,828
Short-term lease costs	5,581		2,697		11,826		5,750
Total lease cost	$	17,366	$	15,208	35,120		30,578

Other information (in thousands, except lease terms and discount rates):

	Six Months Ended
	June 27, 2020			June 29, 2019
Cash paid for amounts included in the measurement lease liabilities
Operating cash flows from operating leases	$	25,282		$	24,980
	June 27, 2020			December 28, 2019
Operating right-of-use assets, net	$	134,901		$	124,726
Operating lease liability, current	$	39,532		$	37,805
Operating lease liability, non-current	99,482			91,424
Total operating lease liabilities	$	139,014		$	129,229
Weighted average remaining lease term - operating leases	6.27 years			6.50 years
Weighted average discount rate - operating leases	4.45		%	4.71		%

Future annual minimum lease payments and capital lease commitments as of June 27, 2020 are as follows (in thousands):

Period Ending Fiscal	Operating Leases		Capital Leases
2020 (excluding the six months ended June 27, 2020)	$	23,791	$	73
2021	37,458		16
2022	26,870		16
2023	22,183		10
2024	16,170		8
Thereafter	27,160		1
	$	153,632	$	124
Less amounts representing interest	$	(14,618)	(6)
Lease obligations included in current and long-term liabilities	$	139,014	$	118