Leases

The Company leases certain manufacturing facilities, distribution centers, office space, and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet; expense for these leases is recognized on a straight line-basis over the term of the lease. Most of the Company’s leases include one or more options to renew up to five years and have remaining terms of one to fifteen years. These options are not included in the Company’s valuation of the right-of-use assets as the Company is not reasonably certain to exercise the options.

The Company has certain vehicle leases that are financing; however, these leases are deemed immaterial for disclosure.

The following table includes supplemental information with regards to the Company’s operating leases:



(In thousands, except lease term and discount rate)	March 30, 2019

Operating lease right-of-use assets	$	29,515

Current portion of operating lease liabilities	4,737
Noncurrent operating lease liabilities	25,437

Total operating lease liabilities	$	30,174

Weighted average discount rate	4.13		%
Weighted average remaining lease term (in years)	9.32

As of the adoption date of ASC 842, discount rates for existing leases were based on an estimate of the Company’s incremental borrowing rate, adjusted for the term of the lease.

Some of the Company’s leases include variable lease costs such as taxes, insurance, etc. These costs are immaterial for disclosure. The following table presents certain information related to operating lease costs and cash paid during the quarter.



(In thousands)	March 30, 2019

Operating lease costs	$	1,627
Short term lease costs	1,490

Total lease costs	$	3,117

Cash paid for amounts included in the measurement of lease liabilities	$	1,585

Maturities of the Company’s operating leases are as follows:



(In thousands)	March 30, 2019

2019	$	5,976
2020	5,343
2021	4,383
2022	3,661
2023	2,635
2024 and thereafter	15,361

Total lease payments	37,359
Less imputed interest	(7,185		)

Total lease obligations	30,174
Less current obligations	(4,737		)

Noncurrent lease obligations	$	25,437