Quarterly report pursuant to Section 13 or 15(d)

Leases

v3.20.2
Leases
6 Months Ended
Jun. 27, 2020
Leases [Abstract]  
Leases Leases
The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain facilities and office equipment under finance leases, and we lease certain production facilities, office equipment and vehicles under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised.
The weighted-average remaining term for the Company's operating and financing leases are approximately 7 years and 2 years, respectively. The weighted-average discount rates for the Company's operating and financing leases are approximately 3.3% and 5.3%, respectively.
The following is a summary of the Company's ROU assets and liabilities:
(In thousands) June 27, 2020 December 31, 2019
Operating Leases:
Operating Right-of-Use Assets, Gross $ 29,784    $ 28,788   
Less Accumulated Right-of-Use Asset Impairment 1,710    1,019   
Less Accumulated Amortization 6,292    4,167   
Operating Right-of-Use Assets, Net $ 21,782    $ 23,602   
Short-term Operating Lease Liabilities $ 4,818    $ 4,517   
Long-term Operating Lease Liabilities 19,749    21,039   
Operating Lease Liabilities $ 24,567    $ 25,556   
Finance Leases:
Finance Right-of-Use Assets, Gross $ 3,484    $ 3,484   
Less Accumulated Amortization 1,529    1,020   
Finance Right-of-Use Assets, Net — Included in Other Assets $ 1,955    $ 2,464   
Short-term Finance Lease Liabilities — Included in Accrued Expenses and Other Current Liabilities
$ 2,001    $ 1,922   
Long-term Finance Lease Liabilities — Included in Other Liabilities
1,798    2,815   
Finance Lease Liabilities $ 3,799    $ 4,737   
The following is a summary of the Company's total lease costs:
Six Months Ended Three Months Ended
(In thousands) June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019
Finance Lease Cost:
Amortization of Right-of-Use Assets $ 510    $ 510    $ 255    $ 255   
Interest on Lease Liabilities 120    167    57 81
Total Finance Lease Cost 630    677    312    336   
Operating Lease Cost 2,643    2,406    1,195 1,201   
Right-of-Use Asset Impairment 691    —    —    —   
Variable Lease Cost 633    679    361 309
Short-term Lease Cost (excluding month-to-month) 114    85    47 38
Less Sublease and Rental (Income) Expense (737)   (517)   (406)   (305)  
Total Operating Lease Cost 3,344    2,653    1,197    1,243   
Total Net Lease Cost $ 3,974    $ 3,330    $ 1,509    $ 1,579   

The following is a summary of the Company's maturity of lease liabilities:
(In thousands) Operating Leases Finance Leases
2020 $ 2,690    $ 1,073   
2021 5,579    2,181   
2022 5,427    743   
2023 4,060    —   
2024 2,995    —   
Thereafter 6,293    —   
Total Lease Payments 27,044    3,997   
Less: Interest 2,477    198   
Total Lease Liability $ 24,567    $ 3,799   
Leases Leases
The Company has operating and finance leases for leased office and manufacturing facilities and equipment leases. We have concluded that when an agreement grants us the right to substantially all of the economic benefits associated with an identified asset, and we are able to direct the use of that asset throughout the term of the agreement, we have a lease. We lease certain facilities and office equipment under finance leases, and we lease certain production facilities, office equipment and vehicles under operating leases. Some of our leases include options to extend or terminate the leases and these options have been included in the relevant lease term to the extent that they are reasonably certain to be exercised.
The weighted-average remaining term for the Company's operating and financing leases are approximately 7 years and 2 years, respectively. The weighted-average discount rates for the Company's operating and financing leases are approximately 3.3% and 5.3%, respectively.
The following is a summary of the Company's ROU assets and liabilities:
(In thousands) June 27, 2020 December 31, 2019
Operating Leases:
Operating Right-of-Use Assets, Gross $ 29,784    $ 28,788   
Less Accumulated Right-of-Use Asset Impairment 1,710    1,019   
Less Accumulated Amortization 6,292    4,167   
Operating Right-of-Use Assets, Net $ 21,782    $ 23,602   
Short-term Operating Lease Liabilities $ 4,818    $ 4,517   
Long-term Operating Lease Liabilities 19,749    21,039   
Operating Lease Liabilities $ 24,567    $ 25,556   
Finance Leases:
Finance Right-of-Use Assets, Gross $ 3,484    $ 3,484   
Less Accumulated Amortization 1,529    1,020   
Finance Right-of-Use Assets, Net — Included in Other Assets $ 1,955    $ 2,464   
Short-term Finance Lease Liabilities — Included in Accrued Expenses and Other Current Liabilities
$ 2,001    $ 1,922   
Long-term Finance Lease Liabilities — Included in Other Liabilities
1,798    2,815   
Finance Lease Liabilities $ 3,799    $ 4,737   
The following is a summary of the Company's total lease costs:
Six Months Ended Three Months Ended
(In thousands) June 27, 2020 June 29, 2019 June 27, 2020 June 29, 2019
Finance Lease Cost:
Amortization of Right-of-Use Assets $ 510    $ 510    $ 255    $ 255   
Interest on Lease Liabilities 120    167    57 81
Total Finance Lease Cost 630    677    312    336   
Operating Lease Cost 2,643    2,406    1,195 1,201   
Right-of-Use Asset Impairment 691    —    —    —   
Variable Lease Cost 633    679    361 309
Short-term Lease Cost (excluding month-to-month) 114    85    47 38
Less Sublease and Rental (Income) Expense (737)   (517)   (406)   (305)  
Total Operating Lease Cost 3,344    2,653    1,197    1,243   
Total Net Lease Cost $ 3,974    $ 3,330    $ 1,509    $ 1,579   

The following is a summary of the Company's maturity of lease liabilities:
(In thousands) Operating Leases Finance Leases
2020 $ 2,690    $ 1,073   
2021 5,579    2,181   
2022 5,427    743   
2023 4,060    —   
2024 2,995    —   
Thereafter 6,293    —   
Total Lease Payments 27,044    3,997   
Less: Interest 2,477    198   
Total Lease Liability $ 24,567    $ 3,799