We have an operating lease for our El Paso, Texas finished goods and service parts distribution warehouse that has a current lease term through October 2023. This lease includes renewal terms that can extend the lease term for five additional years. For purposes of calculating operating lease obligations, we included the option to extend the lease as it is reasonably certain that we will exercise such option. The lease does not contain material residual value guarantees or restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease term.

As the lease does not provide an implicit rate, we used our incremental borrowing rate at lease commencement to determine the present value of our lease payments. The incremental borrowing rate is an entity-specific rate which represents the rate of interest we would pay to borrow over a similar term with similar payments.

The operating lease asset and obligation related to our El Paso warehouse lease included in the accompanying Condensed Consolidated Balance Sheets are presented below (in thousands):

	March 27, 2022
Right-of Use Asset Under Operating Lease:
Other Long-Term Assets	$	3,118
Lease Obligation Under Operating Lease:
Current Liabilities: Accrued Liabilities: Other	$	389
Other Long-Term Liabilities		2,729
	$	3,118

Future minimum lease payments, by our fiscal year, including options to extend that are reasonably certain to be exercised, under this non-cancelable lease are as follows as of March 27, 2022 (in thousands):

2022 (for the remaining three months)	$	122
2023		497
2024		509
2025		522
2026		535
Thereafter		1,299
Total Future Minimum Lease Payments		3,484
Less: Imputed Interest		(366	)
Total Lease Obligations	$	3,118

Cash flow information related to the operating lease is shown below (in thousands):

	Nine Months Ended
	March 27, 2022		March 28, 2021
Operating Cash Flows:
Cash Paid Related to Operating Lease Obligation	$	362	$	354

The weighted average lease term and discount rate for the El Paso, Texas operating lease are shown below:

March 27,

2022

Weighted Average Remaining Lease Term (in years)

6.6

Weighted Average Discount Rate

3.3

Operating lease expense for the three and nine month periods ended March 27, 2022 totaled $122,000 and $362,000, respectively. Operating lease expense for the three and nine month periods ended March 28, 2021 totaled $119,000 and $354,000, respectively.