The Company records a right-of-use asset and liability for substantially all leases for which it is a lessee, in accordance with Topic 842 “Leases.” The Company is obligated under a number of long-term operating leases for office space and office equipment, and for automobiles leased in Europe.

Most leases contain both lease components (fixed payments for rent) and non-lease components (common-area maintenance and other services). The Company has elected the practical expedient to separate lease and non-lease components for its office leases and has elected to group lease and non-lease components for its vehicle leases. Some leases contain renewal options with escalation clauses commensurate with local market fluctuations, however, generally limiting an annual increase to no more than 5.0% of the existing lease payment. The exercise of lease renewal options is at the Company’s sole discretion. The Company has excluded renewal options in the measurement of right-of-use assets and lease liabilities if they are not reasonably certain of exercise.

Operating leases are included in the right-of-use lease assets, short-term lease liabilities, and long-term lease liabilities on the condensed consolidated balance sheets. The Company measures the operating lease liabilities at lease commencement date based on the present value of remaining lease payments using the rate implicit in the lease when readily determinable, or the Company’s secured incremental borrowing rate. The Company has made an accounting policy election not to recognize a lease liability or right-of-use asset for leases with a lease term of twelve months or less and does not include an option to purchase the underlying asset. The Company recognizes lease expense on a straight-line basis over the lease term and variable lease expense in the period incurred. Variable lease cost consists primarily of common-area maintenance, insurance, and taxes, which are paid based on actual costs incurred by the lessor.

Lease costs for the quarter and two quarters ended June 30, 2023 and July 1, 2022 were as follows:


	For the Quarter Ended				For the Two Quarters Ended
(amounts in thousands)	June 30, 2023		July 1, 2022		June 30, 2023		July 1, 2022
Operating lease costs	$	1,835	$	1,625	$	3,650	$	3,447
Variable lease costs		108		84		212		173
Short-term lease costs		135		111		259		212

Maturities for the Company’s lease liabilities for all operating leases as of June 30, 2023 are as follows:


	Total
Year	Operating Leases
(amounts in thousands)
2023 (remaining)	$	3,235
2024		5,129
2025		3,888
2026		2,727
2027		1,545
2028 & thereafter		3,843
Total undiscounted operating lease payments		20,367
Less: Interest		(1,097	)
Total present value of operating lease liabilities	$	19,270

Operating lease payments exclude $1.3 million of legally binding lease payments for leases signed, but not yet commenced. The weighted average remaining lease terms and discount rates for all operating leases as of June 30, 2023 and July 1, 2022 were as follows:


	June 30, 2023			July 1, 2022
Weighted average remaining lease term (years)		5.39			5.79
Weighted average remaining discount rate		2.39	%		2.34	%

Supplemental cash flow information related to the Company’s operating leases for the 2023 year-to-date period is as follows:


(amounts in thousands)	June 30, 2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	3,650
Right-of-use assets obtained in exchange for new operating lease liabilities		2,127