Leases (Tables)
|
9 Months Ended |
Oct. 06, 2019 |
|---|
| Leases [Abstract] |
|
| Asset and Balance Sheet effects of adoption of 2016-02 |
The effect of the changes made to our consolidated December 31, 2018 balance sheet as a result of the adoption of Topic 842 was as follows (in thousands):
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 30, 2018 |
|
Adjustments due to Topic 842 |
|
Balance at December 31, 2018 |
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|
|
|
Balance sheet |
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|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Right of use assets, net |
|
$ |
— |
|
|
$ |
478,268 |
|
|
$ |
478,268 |
|
Prepaid expenses and other current assets |
|
27,576 |
|
|
(6,592 |
) |
|
20,984 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Short-term portion of lease obligations |
|
786 |
|
|
40,606 |
|
|
41,392 |
|
Non-current liabilities |
|
|
|
|
|
|
Deferred Rent |
|
75,675 |
|
|
(75,675 |
) |
|
— |
|
Long-term portion of lease obligations |
|
9,414 |
|
|
506,745 |
|
|
516,159 |
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Retained earnings |
|
$ |
376,341 |
|
|
$ |
(15,172 |
) |
|
$ |
361,169 |
|
Leases are included in right-of-use assets, net, short-term portion of lease obligations, and long-term portion of lease liabilities on our condensed consolidated balance sheet as of October 6, 2019 as follows (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
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Finance |
|
Operating |
|
Total |
Right of use assets, net |
|
$ |
8,675 |
|
|
$ |
433,026 |
|
|
$ |
441,701 |
|
Short-term portion of lease obligations |
|
947 |
|
|
42,356 |
|
|
43,303 |
|
Long-term portion of lease obligations |
|
10,214 |
|
|
471,081 |
|
|
481,295 |
|
Total |
|
$ |
11,161 |
|
|
$ |
513,437 |
|
|
$ |
524,598 |
|
|
| Lease cost |
The components of lease expense, including variable lease costs primarily consisting of common area maintenance charges and real estate taxes, are included in occupancy on our condensed consolidated statement of operations as follows (in thousands):
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Twelve Weeks Ended |
|
Forty Weeks Ended |
|
|
October 6, 2019 |
|
October 6, 2019 |
Operating lease cost |
|
$ |
17,298 |
|
|
$ |
58,412 |
|
Finance lease cost: |
|
|
|
|
Amortization of right of use assets |
|
193 |
|
|
635 |
|
Interest on lease liabilities |
|
122 |
|
|
415 |
|
Total finance lease cost |
|
315 |
|
|
1,050 |
|
Variable lease cost |
|
6,653 |
|
|
22,186 |
|
Total |
|
$ |
24,267 |
|
|
$ |
81,648 |
|
Supplemental cash flow information related to leases is as follows:
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|
|
|
|
|
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Forty Weeks Ended |
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|
October 6, 2019 |
Cash paid for amounts included in the measurement of lease liabilities (in thousands): |
|
$ |
60 |
|
Right of use assets obtained in exchange for operating lease obligations following the adoption of Topic 842 (in thousands): |
|
$ |
10 |
|
Right of use assets obtained in exchange for finance lease obligations following the adoption of Topic 842 (in thousands): |
|
$ |
2 |
|
|
|
|
Other information related to operating leases as follows: |
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|
Weighted average remaining lease term |
|
11 years |
|
Weighted average discount rate |
|
7.33 |
% |
|
|
|
Other information related to financing leases as follows: |
|
|
Weighted average remaining lease term |
|
12 years |
|
Weighted average discount rate |
|
4.71 |
% |
|
| Schedule of operating lease maturities |
Maturities of our lease liabilities as of October 6, 2019 were as follows (in thousands):
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|
|
|
|
|
|
|
|
|
|
|
|
Finance Leases |
|
Operating Leases |
|
Total |
Remainder of 2019 |
$ |
280 |
|
|
$ |
12,997 |
|
|
$ |
13,277 |
|
2020 |
1,396 |
|
|
78,135 |
|
|
79,531 |
|
2021 |
1,437 |
|
|
77,392 |
|
|
78,829 |
|
2022 |
1,283 |
|
|
74,865 |
|
|
76,148 |
|
2023 |
1,220 |
|
|
72,339 |
|
|
73,559 |
|
Thereafter |
8,824 |
|
|
451,232 |
|
|
460,056 |
|
Total future lease liability |
14,440 |
|
|
766,960 |
|
|
781,400 |
|
Less imputed interest |
3,279 |
|
|
253,523 |
|
|
256,802 |
|
Fair value of lease liability |
$ |
11,161 |
|
|
$ |
513,437 |
|
|
$ |
524,598 |
|
|
| Schedule of finance lease maturities |
Maturities of our lease liabilities as of October 6, 2019 were as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Finance Leases |
|
Operating Leases |
|
Total |
Remainder of 2019 |
$ |
280 |
|
|
$ |
12,997 |
|
|
$ |
13,277 |
|
2020 |
1,396 |
|
|
78,135 |
|
|
79,531 |
|
2021 |
1,437 |
|
|
77,392 |
|
|
78,829 |
|
2022 |
1,283 |
|
|
74,865 |
|
|
76,148 |
|
2023 |
1,220 |
|
|
72,339 |
|
|
73,559 |
|
Thereafter |
8,824 |
|
|
451,232 |
|
|
460,056 |
|
Total future lease liability |
14,440 |
|
|
766,960 |
|
|
781,400 |
|
Less imputed interest |
3,279 |
|
|
253,523 |
|
|
256,802 |
|
Fair value of lease liability |
$ |
11,161 |
|
|
$ |
513,437 |
|
|
$ |
524,598 |
|
|
| Schedule of lease payments under previous guidance |
As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting guidance, maturities of lease liabilities were as follows as of December 30, 2018 (in thousands):
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Capital
Leases
|
|
Operating
Leases
|
2019 |
|
$ |
1,234 |
|
|
$ |
80,367 |
|
2020 |
|
1,242 |
|
|
76,936 |
|
2021 |
|
1,240 |
|
|
70,419 |
|
2022 |
|
1,063 |
|
|
61,649 |
|
2023 |
|
1,019 |
|
|
54,121 |
|
Thereafter |
|
7,552 |
|
|
206,879 |
|
Total |
|
13,350 |
|
|
$ |
550,371 |
|
Less amount representing interest |
|
(3,150 |
) |
|
|
|
Present value of future minimum lease payments |
|
10,200 |
|
|
|
|
Less current portion |
|
(786 |
) |
|
|
|
Long-term capital lease obligations |
|
$ |
9,414 |
|
|
|
|
|