Leases

9 Months Ended

Sep. 28, 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)	September 28, 2019
Operating lease right-of-use assets	$	25,855
Current portion of operating lease liabilities	3,832
Noncurrent operating lease liabilities	22,712
Total operating lease liabilities	$	26,544
Weighted average discount rate	5.83		%
Weighted average remaining lease term (in years)	8.62

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 September 28, 2019		For the Nine Months Ended September 28, 2019
Operating lease costs	$	1,930	$	5,134
Short term lease costs	777		3,782
Total lease costs	$	2,707	$	8,916
Cash paid for amounts included in the measurement of lease liabilities	$	1,862	$	4,980

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

(In thousands)	September 28, 2019
2019	$	1,575
2020	6,061
2021	5,085
2022	4,373
2023	2,876
2024 and thereafter	15,688
Total lease payments	35,658
Less imputed interest	(9,114		)
Total lease obligations	26,544
Less current obligations	(3,832		)
Noncurrent lease obligations	$	22,712