The Company determines if an arrangement is a lease at its inception. Operating lease arrangements are comprised primarily of real estate and equipment agreements for which the right-of-use assets are included in “Other assets” and the corresponding lease liabilities, depending on their maturity, are included in “Other current liabilities” or “Other non-current liabilities” in the Consolidated Balance Sheets.

Right-of-use assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The lease term includes options to extend the lease when it is reasonably certain that the option will be exercised. Lease agreements frequently require the Company to pay real estate taxes, insurance and maintenance costs. Leases with a term of one year or less are not recorded on the Consolidated Balance Sheets and lease expense for these leases is recognized on a straight-line basis over the lease term.

The Company uses its estimated incremental borrowing rate in determining the present value of lease payments considering the term of the lease, which is derived from information available at the lease commencement date, giving consideration to publicly available data for instruments with similar characteristics. The Company accounts for the lease and non-lease components as a single lease component.

Lease costs for operating leases were $5,964 and $6,756 for the years ended January 1, 2022 and December 26, 2020, respectively. Operating lease costs are generally recognized over the lease term. The Company elected the practical expedient to not provide comparable presentation for periods prior to adoption.

	Year Ended
Cash Flow Information	January 1, 2022		December 26, 2020
Cash paid for operating lease liabilities	$	6,247	$	6,700
Right-of-use assets obtained in exchange for operating lease liabilities	$	304	$	725

	January 1,			December 26,
Operating Lease Information	2022			2020
Weighted average remaining lease term		5.3			6.0
Weighted average discount rate		4.5	%		4.7	%

As of January 1, 2022, there was an insignificant amount of commitments for operating leases that have not yet commenced. The reconciliation of the maturities of operating leases to the lease liabilities recorded on the Consolidated Balance Sheet as of January 1, 2022 is as follows:

Fiscal Year
2022	$	5,029
2023		4,058
2024		3,457
2025		3,342
2026		1,919
Thereafter		3,299
Total undiscounted operating lease payments		21,104
Less: imputed interest		2,402
Present value of operating lease liabilities	$	18,702