Leases

6 Months Ended

Jun. 29, 2019

Leases [Abstract]

Leases

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)	June 29, 2019
Operating lease right-of-use assets	$	28,590
Current portion of operating lease liabilities	4,754
Noncurrent operating lease liabilities	24,491
Total operating lease liabilities	$	29,245
Weighted average discount rate	4.13		%
Weighted average remaining lease term (in years)	9.42

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 period.

(In thousands)	For the Quarter Ended June 29, 2019		For the Six Months Ended June 29, 2019
Operating lease costs	$	1,577	$	3,204
Short term lease costs	1,515		3,005
Total lease costs	$	3,092	$	6,209
Cash paid for amounts included in the measurement of lease liabilities	$	1,533	$	3,118

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

(In thousands)	June 29, 2019
2019	$	3,017
2020	5,645
2021	4,657
2022	3,938
2023	2,841
2024 and thereafter	15,675
Total lease payments	35,773
Less imputed interest	(6,528		)
Total lease obligations	29,245
Less current obligations	(4,754		)
Noncurrent lease obligations	$	24,491