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 do 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 July 1, 2022 and July 2, 2021 were as follows:

	For the Quarter Ended				For the Two Quarters Ended
(amounts in thousands)	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Operating lease costs	$	1,625	$	2,080	$	3,447	$	3,883
Variable lease costs		84		80		173		210
Short-term lease costs		111		85		212		219

Maturities for the Company’s lease liabilities for all operating leases as of July 1, 2022 are as follows:

	Total
Year	Operating Leases
(amounts in thousands)
2022 (remaining)	$	3,184
2023		4,978
2024		3,507
2025		2,384
2026		1,695
2027 & thereafter		4,386
Total undiscounted operating lease payments		20,134
Less: Interest		(1,266	)
Total present value of operating lease liabilities	$	18,868

The weighted average remaining lease terms and discount rates for all operating leases as of July 1, 2022 and July 2, 2021 were as follows:

	July 1, 2022			July 2, 2021
Weighted average remaining lease term (years)		5.79			6.23
Weighted average remaining discount rate		2.34	%		2.12	%

Supplemental cash flow information related to the Company’s operating leases for the 2022 year-to-date period is as follows:

(amounts in thousands)	July 1, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases	$	3,447
Right-of-use assets obtained in exchange for new operating lease liabilities		1,013