Leases

9 Months Ended

Sep. 29, 2019

The Company occupies offices and uses certain equipment under various operating lease arrangements. The Company has no finance leases. These leases have remaining lease terms of 1 to 18 years, some of which include either, options to extend lease terms, or options to terminate current lease terms at certain times, subject to notice requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. The lease liability for such lease agreements as of the adoption date, was based on fixed payments as of the adoption date. Any adjustments to these payments based on the related indices will be recorded to expense as incurred. Leases with an expected term of 12 months or less are not capitalized. Payments under such leases are expensed as incurred. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases.

For the quarter and nine months ended September 29, 2019, operating lease expense was $8,907 and $26,982, respectively. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments was not material in the quarter or nine months ended September 29, 2019.

Information related to the Company’s leases for the quarter and nine months ended September 29, 2019 is as follows:



	Quarter Ended		Nine Months Ended
	September 29, 2019		September 29, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	9,003	$	27,817
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	1,363	$	25,622

Weighted Average Remaining Lease Term
Operating leases			6.4 years
Weighted Average Discount Rate
Operating leases			4.5		%

The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right of use assets, included in our Consolidated Balance Sheets as of September 29, 2019:



	September 29, 2019
2019 (excluding the nine months ended September 29, 2019)	$	8,969
2020	33,876
2021	29,248
2022	27,012
2023	21,918
2024 and thereafter	45,288
Total future lease payments	166,311
Less imputed interest	21,856
Present value of future operating lease payments	144,455
Less current portion of operating lease liabilities ⁽¹⁾	29,489
Non-current operating lease liability ⁽²⁾	114,966
Operating lease right-of-use assets, net ⁽³⁾	$	127,005

⁽¹⁾ Included in Accrued liabilities on the consolidated balance sheets.

⁽²⁾ Included in Other liabilities on the consolidated balance sheets.

⁽³⁾ Included in Property, plant, and equipment on the consolidated balance sheets.