Leases

9 Months Ended

Sep. 27, 2020

The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its operations. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. There were no options to extend or terminate that were included in the determination of the lease term for the leases outstanding as of September 27, 2020. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for the leases outstanding as of September 27, 2020.

The total operating lease expense for the three-month periods ended September 27, 2020 and September 29, 2019 was $2,047,000 and $1,749,000, respectively. The total operating lease cash payments for the three-month periods ended September 27, 2020 and September 29, 2019 were $2,041,000 and $1,708,000, respectively. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability was $22,000 for both of the three-month periods ended September 27, 2020 and September 29, 2019.

The total operating lease expense for the nine-month periods ended September 27, 2020 and September 29, 2019 was $6,100,000 and $4,976,000, respectively. The total operating lease cash payments for the nine-month periods ended September 27, 2020 and September 29, 2019 were $5,995,000 and $4,778,000, respectively. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability was $84,000 and $255,000 for the nine-month periods ended September 27, 2020 and September 29, 2019, respectively.

Future operating lease cash payments are as follows (in thousands):


Year Ended December 31,	Amount
Remainder of fiscal 2020	$	2,228
2021	8,641
2022	6,363
2023	5,080
2024	2,445
2025	1,359
Thereafter	4,641
	$	30,757

The discounted present value of the future lease cash payments resulted in a lease liability of $27,916,000 and $17,973,000 as of September 27, 2020 and December 31, 2019, respectively. The Company did not have any leases that had not yet commenced but that created significant rights and obligations as of September 27, 2020 or September 29, 2019.

The weighted-average discount rate was 4.1% and 4.6% for the leases outstanding as of September 27, 2020 and December 31, 2019, respectively. The weighted-average remaining lease term was 5.2 and 3.7 years for the leases outstanding as of September 27, 2020 and December 31, 2019, respectively.

As part of the Company's restructuring plan (refer to Note 16), management closed ten leased offices as of the end of the second quarter of 2020, prior to the end of their lease terms. The carrying value of the lease assets associated with these ten offices was reduced to zero, resulting in operating lease asset impairment charges of $2,534,000 in the second quarter of 2020 that are included in "Restructuring charges" on the Consolidated Statements of Operations. Management is currently negotiating early contract terminations for the remaining lease liability obligations associated with these abandoned offices.

The Company owns a building adjacent to its corporate headquarters that was partially occupied by a tenant for a portion of the current year. This lease was terminated prior to the end of its lease term during the second quarter of 2020. Rental income was $0 and $76,000 for the three-month periods ended September 27, 2020 and September 29, 2019, respectively, and $77,000 and $234,000 for the nine-month periods ended September 27, 2020 and September 29, 2019, respectively. The Company is now fully occupying this building for its operations.