Leases

3 Months Ended

Mar. 29, 2020

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 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. Lease expense under such leases is recorded straight line over the life of the lease. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate leases.

For the quarters ended March 29, 2020 and March 31, 2019, operating lease expense was $22,897 and $16,561, respectively. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments was not material in the quarters ended March 29, 2020 or March 31, 2019.

Information related to the Company’s leases for the quarters ended March 29, 2020 and March 31, 2019 are as follows:



	Quarter Ended
	March 29, 2020			March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	11,602		$	9,574
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	64,214		$	23,680

Weighted Average Remaining Lease Term
Operating leases	6.0 years			6.7 years
Weighted Average Discount Rate
Operating leases	4.2		%	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 March 29, 2020:



	March 29, 2020
2020 (excluding the three months ended March 29, 2020)	$	35,280
2021	45,207
2022	41,609
2023	33,842
2024	22,266
2025 and thereafter	66,743
Total future lease payments	244,947
Less imputed interest	49,151
Present value of future operating lease payments	195,796
Less current portion of operating lease liabilities ⁽¹⁾	43,263
Non-current operating lease liability ⁽²⁾	152,533
Operating lease right-of-use assets, net ⁽³⁾	$	168,805

⁽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.