As discussed in Note 2, the Company adopted the provisions of ASC 842 on January 1, 2019 using the modified retrospective approach as of the effective date of ASC 842 (the effective date method). Under the effective date method, financial results in periods reported prior to 2019 are unchanged.

As a result of the adoption of ASC 842, operating leases for certain warehouses, buildings, forklifts, trucks, trailers and other equipment are now recognized as right-of-use assets and corresponding short-term and long-term lease liabilities. The Company utilized a package of available practical expedients in the adoption of ASC 842, which, among them, does not require the reassessment of operating versus capital lease classification.

Leases with an initial term of 12 months or less are not recorded on the balance sheet and expense related to these short term leases is immaterial. Lease and non-lease components in the fixed base rent of facility and equipment leases are included as a single component and accounted for as a lease. Pursuant to ASC 842, the Company elected to use the remaining non-cancellable lease term as of January 1, 2019 in determining the lease term at the date of adoption and the corresponding incremental borrowing rate for such leases. Variable lease expense, principally related to trucks, forklifts, and index-related facility rent escalators, was immaterial for the third quarter and nine months ended September 29, 2019. Leases have remaining lease terms of one year to eleven years. Certain leases include options to renew for an additional term. Where there is reasonable certainty to utilize a renewal option, we include the renewal option in the lease term used to calculate operating lease right-of-use assets and lease liabilities.



(thousands)	Third Quarter Ended		Nine Months Ended
	September 29, 2019		September 29, 2019
Operating lease cost	$	7,848	$	23,536

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	6,946	$	20,545

Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,522	$	14,767



(thousands, except lease term and discount rate)	September 29, 2019
Assets
Operating lease right-of-use assets	$	81,064
Liabilities
Operating lease liabilities, current portion	$	25,990
Long-term operating lease liabilities	55,553
Total lease liabilities	$	81,543



(thousands)
2019 (excluding the nine months ended September 29, 2019)	$	8,150
2020	26,916
2021	20,512
2022	13,556
2023	8,954
Thereafter	10,158
Total lease payments	88,246
Less imputed interest	(6,703		)
Total	$	81,543