Leases Leases Text Block (Notes)
|3 Months Ended|
Mar. 30, 2019
|Lessor, Operating Leases [Text Block]||
The Company has certain arrangements for key duplication equipment under which we are the lessor. These leases meet the criteria for operating lease classification. Lease income associated with these leases is not material.
|Leases of Lessee Disclosure [Text Block]||
The Company determines if a contract is or contains a lease at inception or modification of a contract. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. Control over the use of the identified asset means the lessee has both (a) the right to obtain substantially all of the economic benefits from the use of the asset and (b) the right to direct the use of the asset. The Company leases certain distribution center locations, vehicles, forklifts, computer equipment, and its corporate headquarters with expiration dates through 2032. Certain lease arrangements include escalating rent payments and options to extend the lease term. Expected lease terms include these options to extend or terminate the lease when it is reasonably certain the Company will exercise the option. The Company's leasing arrangements do not contain material residual value guarantees nor material restrictive covenants.
The components of operating and finance lease cost for the first quarter of 2019 were as follows:
Rent expense is recognized on a straight-line basis over the expected lease term. Rent expense totaled $6,144 and $4,395 in the first quarter of 2019 and 2018, respectively. Rent expense includes operating lease cost as well as expense for non-lease components such as common area maintenance, real estate taxes, real estate insurance, variable costs related to our leased vehicles and also short-term rental expenses.
The implicit rate is not determinable in most of the Company’s leases, as such management uses the Company’s incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The weighted average remaining lease terms and discount rates for all of our operating leases were as follows as of March 30, 2019:
(1) Upon adoption of the new lease standard, discount rates used for existing operating leases were established on January 1, 2019.
Supplemental balance sheet information related to the Company's finance leases as of March 30, 2019:
Supplemental cash flow information related to our operating leases was as follows for the period ended March 30, 2019:
Maturities of our lease liabilities for all operating and finance leases are as follows as of March 30, 2019:
As of March 30, 2019, the Company has additional operating leases for warehouse equipment and a new office building being constructed by the Company’s landlord that had not yet commenced with estimated future minimum rental commitments of approximately $22,013.
As of December 29, 2018, minimum lease payments under non-cancellable operating leases by period were expected to be as follows:
The entire disclosure for lessee entity's leasing arrangements including, but not limited to, all of the following: (a.) The basis on which contingent rental payments are determined, (b.) The existence and terms of renewal or purchase options and escalation clauses, (c.) Restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.
Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef
The entire disclosure for lessor's operating leases.
Reference 1: http://www.xbrl.org/2003/role/exampleRef