10.

Leases

We lease certain of our facilities, equipment and vehicles under non-cancelable operating and finance leases. Leases with initial terms with

months or less are

not

recorded in the consolidated balance sheet, but we recognized those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. Lease and non-lease components are included in the calculation of the ROU asset and lease liabilities.

Our leases have remaining lease terms ranging from

year to

years, some of which include

one

or more options to extend the lease for up to

years. Our lease term includes renewal terms when we are reasonably certain that we will exercise the renewal options. We sublease certain leased assets to

third

parties, mainly as a result of unused space in our facilities.

Supplemental balance sheet information related to leases was as follows:

		December 28,
(in thousands)	Classification	2019
Assets
Operating lease assets	Operating lease right-of-use assets	$	33,269
Finance lease assets	Property, plant and equipment, net (1)		2,515
Total lease assets		$	35,784
Liabilities
Current
Operating	Other accrued liabilities	$	5,458
Finance	Other accrued liabilities		2,574
Noncurrent
Operating	Long-term lease liabilities		28,877
Total lease liabilities		$	36,909

Weighted-average remaining lease term (years)
Operating leases			7.9
Finance leases			0.5

Weighted-average discount rate
Operating leases			6.3	%
Finance leases			4.5	%

(

)

Finance lease assets are recorded net of accumulated amortization of

$0.1

million.

The components of lease expense were as follows:

	December 28,
(in thousands)	2019
Operating leases (1)	$	8,525
Variable lease expense		2,318
Short-term operating leases		256
Finance leases
Amortization of leased assets		102
Interest on lease liabilities		146
Sublease income		(133	)
Net lease cost	$	11,214

(

)

Operating lease cost excludes impairment expense of

$0.2

million related to the write-down of the Fontana facility right-of-use asset.

Prior to adoption of ASC ASU

2016

02,

Leases

, rental expense was

$4.8

million and

$3.6

million in

2018

and

2017.

The increase in rental expense was a result of the acquisition of Xcerra on

October 1, 2018.

Future minimum lease payments at

December 28, 2019,

are as follows:

	Operating			Finance
(in thousands)	leases (1)			leases			Total
2020	$	7,383		$	2,631		$	10,014
2021		6,090			-			6,090
2022		5,535			-			5,535
2023		4,987			-			4,987
2024		4,692			-			4,692
Thereafter		16,314			-			16,314
Total lease payments		45,001			2,631			47,632
Less: Interest		(10,666	)		(57	)		(10,723	)
Present value of lease liabilities	$	34,335		$	2,574		$	36,909

(

)

Excludes sublease income of

$0.1

million in both

2020

and

2021

and also excludes

$0.1

million of legally binding minimum lease payments for lease signed but

not

yet commenced.

Supplemental cash flow information related to leases was as follows:

	December 28,
(in thousands)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	6,932
Operating cash flows from finance leases	$	117
Financing cash flows from finance leases	$	34
Leased assets obtained in exchange for new operating lease liabilities	$	40,488