Leases

6 Months Ended

Jul. 02, 2019

Leases

Leases

5. Leases

Components of lease expense were as follows (in thousands):

	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	July 2, 2019		July 2, 2019
Operating	$	25,842	$	51,604
Variable		16,426		32,761
Short-term		76		153
Total	$	42,344	$	84,518

Rent expense on all operating leases (under ASC 840) was as follows (in thousands):

	Thirteen Weeks Ended		Twenty-Six Weeks Ended
	July 3, 2018		July 3, 2018
Straight-lined minimum base rent	$	20,514	$	41,261
Contingent rent		5,113		10,207
Common area maintenance and taxes		9,909		19,838
Total	$	35,536	$	71,306

Supplemental cash flow information related to leases (in thousands, except percentages):

	Twenty-Six Weeks Ended
	July 2, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	48,634
Right-of-use assets obtained in exchange for new operating lease liabilities		8,580
Weighted-average remaining lease term — operating leases (in years)		17.1
Weighted-average discount rate — operating leases		5.2	%

As of July 2, 2019, the maturities of our operating lease liabilities are as follows (in thousands):

2019	$	42,258
2020		97,994
2021		95,964
2022		94,896
2023		93,815
Thereafter		1,182,989
Total future lease payments	$	1,607,916
Less: Interest		579,661
Present value of lease liabilities	$	1,028,255

As of January 1, 2019, the aggregate minimum annual lease payments under operating leases (under ASC 840), including amounts characterized as deemed landlord financing payments, were as follows (in thousands):

2019	$	93,792
2020		91,808
2021		88,829
2022		86,925
2023		81,929
Thereafter		495,091
Total	$	938,374

During the first two quarters of fiscal 2019, four leases were executed; three have initial terms of 20 years plus two five-year renewal options and one has an initial term of 10 years and four five-year renewal options. All but one include allowances for tenant improvements. The leases are expected to commence in the fourth quarter of fiscal 2019. The undiscounted fixed payments over the initial terms are $30.5 million. We will assess the reasonably certain lease term at lease commencement date.