Leases

12 Months Ended

Jan. 01, 2022

Leases [Abstract]

Leases

LEASES

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. In addition, the Company's other variable lease payments are not significant.

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):

	Year Ended
	January 1, 2022		January 2, 2021		December 28, 2019
Operating lease expense	$	48,049	$	45,362	$	48,858
Short-term lease costs	25,141		25,868		18,163
Total lease cost	$	73,190	$	71,230	$	67,021

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

	Year Ended
	January 1, 2022			January 2, 2021			December 28, 2019
Cash paid for amounts included in the measurement lease liabilities:
Operating cash flows from operating leases	$	50,258		$	52,055		$	47,691
Operating right-of-use assets, net	$	155,464		$	146,563
Operating lease liabilities, current	$	38,168		$	39,459
Operating lease liabilities, non-current	120,314			109,707
Total operating lease liabilities	$	158,482		$	149,166
Weighted average remaining lease term - operating leases	6.20 years			6.30 years
Weighted average discount rate - operating leases	3.57		%	4.22		%

Future annual minimum lease payments and finance lease commitments as of January 1, 2022 were as follows (in thousands):

Period Ending Fiscal	Operating Leases		Finance Leases
2022	$	42,431	$	852
2023	37,823		638
2024	30,406		458
2025	21,735		320
2026	12,783		319
Thereafter	27,609		235
	172,787		2,822
Less amounts representing interest	(14,305)		(88)
Lease obligations included in current and long-term liabilities	158,482		2,734

As of January 1, 2022, the Company also has additional operating leases that have not yet commenced, primarily for machinery and equipment, with fixed payments over their noncancellable terms of approximately $0.3 million. These operating leases will commence in 2022 with noncancellable terms of 7 years.

The Company's finance lease assets are included in property, plant and equipment and the finance lease obligations are included in the Company's current and long-term debt obligations on the consolidated balance sheet.

Leases

LEASES

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. In addition, the Company's other variable lease payments are not significant.

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):

	Year Ended
	January 1, 2022		January 2, 2021		December 28, 2019
Operating lease expense	$	48,049	$	45,362	$	48,858
Short-term lease costs	25,141		25,868		18,163
Total lease cost	$	73,190	$	71,230	$	67,021

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

	Year Ended
	January 1, 2022			January 2, 2021			December 28, 2019
Cash paid for amounts included in the measurement lease liabilities:
Operating cash flows from operating leases	$	50,258		$	52,055		$	47,691
Operating right-of-use assets, net	$	155,464		$	146,563
Operating lease liabilities, current	$	38,168		$	39,459
Operating lease liabilities, non-current	120,314			109,707
Total operating lease liabilities	$	158,482		$	149,166
Weighted average remaining lease term - operating leases	6.20 years			6.30 years
Weighted average discount rate - operating leases	3.57		%	4.22		%

Future annual minimum lease payments and finance lease commitments as of January 1, 2022 were as follows (in thousands):

Period Ending Fiscal	Operating Leases		Finance Leases
2022	$	42,431	$	852
2023	37,823		638
2024	30,406		458
2025	21,735		320
2026	12,783		319
Thereafter	27,609		235
	172,787		2,822
Less amounts representing interest	(14,305)		(88)
Lease obligations included in current and long-term liabilities	158,482		2,734

As of January 1, 2022, the Company also has additional operating leases that have not yet commenced, primarily for machinery and equipment, with fixed payments over their noncancellable terms of approximately $0.3 million. These operating leases will commence in 2022 with noncancellable terms of 7 years.

The Company's finance lease assets are included in property, plant and equipment and the finance lease obligations are included in the Company's current and long-term debt obligations on the consolidated balance sheet.