Leases

12 Months Ended

Dec. 31, 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
	December 31, 2022		January 1, 2022		January 2, 2021
Operating lease expense	$	49,377	$	48,049	$	45,362
Short-term lease costs	31,133		25,141		25,868
Total lease cost	$	80,510	$	73,190	$	71,230

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

	Year Ended
	December 31, 2022			January 1, 2022			January 2, 2021
Cash paid for amounts included in the measurement lease liabilities:
Operating cash flows from operating leases	$	53,359		$	50,258		$	52,055
Operating right-of-use assets, net	$	186,141		$	155,464
Operating lease liabilities, current	$	49,232		$	38,168
Operating lease liabilities, non-current	141,703			120,314
Total operating lease liabilities	$	190,935		$	158,482
Weighted average remaining lease term - operating leases	6.34 years			6.20 years
Weighted average discount rate - operating leases	3.89		%	3.57		%

Future annual minimum lease payments and finance lease commitments as of December 31, 2022 were as follows (in thousands):

Period Ending Fiscal	Operating Leases		Finance Leases
2023	$	54,171	$	3,839
2024	45,047		3,276
2025	35,184		3,215
2026	23,123		1,788
2027	15,846		1,318
Thereafter	31,629		1,806
	205,000		15,242
Less amounts representing interest	(14,065)		(804)
Lease obligations included in current and long-term liabilities	190,935		14,438

As of December 31, 2022, the Company also has additional operating leases that have not yet commenced, primarily for machinery and equipment and storage, with fixed payments over their noncancellable terms of approximately $1.6 million. These operating leases will commence in 2023 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
	December 31, 2022		January 1, 2022		January 2, 2021
Operating lease expense	$	49,377	$	48,049	$	45,362
Short-term lease costs	31,133		25,141		25,868
Total lease cost	$	80,510	$	73,190	$	71,230

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

	Year Ended
	December 31, 2022			January 1, 2022			January 2, 2021
Cash paid for amounts included in the measurement lease liabilities:
Operating cash flows from operating leases	$	53,359		$	50,258		$	52,055
Operating right-of-use assets, net	$	186,141		$	155,464
Operating lease liabilities, current	$	49,232		$	38,168
Operating lease liabilities, non-current	141,703			120,314
Total operating lease liabilities	$	190,935		$	158,482
Weighted average remaining lease term - operating leases	6.34 years			6.20 years
Weighted average discount rate - operating leases	3.89		%	3.57		%

Future annual minimum lease payments and finance lease commitments as of December 31, 2022 were as follows (in thousands):

Period Ending Fiscal	Operating Leases		Finance Leases
2023	$	54,171	$	3,839
2024	45,047		3,276
2025	35,184		3,215
2026	23,123		1,788
2027	15,846		1,318
Thereafter	31,629		1,806
	205,000		15,242
Less amounts representing interest	(14,065)		(804)
Lease obligations included in current and long-term liabilities	190,935		14,438

As of December 31, 2022, the Company also has additional operating leases that have not yet commenced, primarily for machinery and equipment and storage, with fixed payments over their noncancellable terms of approximately $1.6 million. These operating leases will commence in 2023 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.