Leases

6 Months Ended

Jun. 28, 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 quarter and six months ended June 28, 2020, the Company's operating lease and other rental expenses were $22,386 and $45,283, respectively. For the quarter and six months ended June 30, 2019, operating lease and other rental expenses were $9,133 and $18,075, respectively. Expense related to short-term leases (expected terms less than 12 months) and variable lease payments was not material in the quarter or six months ended June 28, 2020 or June 30, 2019.

Information related to the Company’s leases for the quarter and six months ended June 28, 2020 and June 30, 2019 are as follows:


	Quarter Ended								Six Months Ended
	June 28, 2020			June 30, 2019		June 28, 2020			June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	14,014		9,240		$	25,616		18,814
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	36,210		579		$	100,424		24,259

Weighted Average Remaining Lease Term
Operating leases	6.4 years			6.5 years		6.4 years			6.5 years
Weighted Average Discount Rate
Operating leases	3.1		%	4.4	%	3.1		%	4.4	%

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 June 28, 2020:


	June 28, 2020
2020 (excluding the six months ended June 28,2020)	$	24,719
2021	46,383
2022	42,980
2023	35,261
2024	24,220
2025 and thereafter	65,208
Total future lease payments	238,771
Less imputed interest	26,840
Present value of future operating lease payments	211,931
Less current portion of operating lease liabilities ⁽¹⁾	42,371
Non-current operating lease liability ⁽²⁾	169,560
Operating lease right-of-use assets, net ⁽³⁾	$	195,011

⁽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.