A lease is defined as an arrangement that contractually specifies the right to use and control an identified asset for a specific period of time in exchange for consideration. Operating leases are included in operating lease assets, portion of operating lease liabilities due within one year, and long-term operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment, net, other accrued liabilities, and other long-term liabilities in the Company’s consolidated balance sheets. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, using the Company’s incremental borrowing rate commensurate with the lease term, since the Company’s lessors do not provide an implicit rate, nor is one readily available. The incremental borrowing rate is calculated based on the Company’s credit yield curve and adjusted for collateralization, credit quality and economic environment impact, all where applicable. The lease asset includes scheduled lease payments and excludes lease incentives, such as free rent periods and tenant improvement allowances. The Company has certain leases that may include an option to renew and when it is reasonably probable to exercise such option, the Company will include the renewal option terms in determining the lease asset and lease liability. The Company does not have any renewal options that would have a material impact on the terms of the leases and that are also reasonably expected to be exercised as of December 30, 2023. A lease may contain both fixed and variable payments. Variable lease payments that are linked to an index or rate are measured based on the current index or rate at the implementation of the lease accounting standard, or lease commencement date for new leases, with the impact of future changes in the index or rate being recorded as a period expense. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company has lease agreements with lease and non-lease components and has elected not to separate non-lease components from lease components and instead to account for each separate lease component and non-lease component as a single lease component.

The Company has elected the short-term lease exception accounting policy, whereby the recognition requirements of the updated guidance is not applied and lease expense is recorded on a straight-line basis with respect to leases with an initial term of 12 months or less.

The Company’s operating leases are primarily for its studios and corporate offices.

At December 30, 2023 and December 31, 2022, the Company’s lease assets and lease liabilities were as follows:


	December 30, 2023		December 31, 2022
Assets:
Operating leases	$	52,272	$	75,696
Finance leases		5		54
Total lease assets	$	52,277	$	75,750

Liabilities:
Current
Operating leases	$	9,613	$	17,955
Finance leases		4		31
Noncurrent
Operating leases		53,461		68,099
Finance leases		—		7
Total lease liabilities	$	63,078	$	86,092

For the fiscal years ended December 30, 2023, December 31, 2022 and January 1, 2022, the components of the Company’s lease expense were as follows:


	Fiscal Year Ended
	December 30,		December 31,		January 1,
	2023		2022		2022
Operating lease cost:
Fixed lease cost	$	21,259	$	33,227	$	37,688
Lease termination cost		12,718		2,726		8,542
Variable lease cost		62		27		21
Total operating lease cost	$	34,039	$	35,980	$	46,251
Finance lease cost:
Amortization of leased assets	$	48	$	112	$	151
Interest on lease liabilities		1		6		8
Total finance lease cost	$	49	$	118	$	159
Total lease cost	$	34,088	$	36,098	$	46,410

As previously disclosed, in conjunction with the continued rationalization of its real estate portfolio, the Company entered into subleases with commencement dates in the first quarter of fiscal 2023, which resulted in lease asset impairment charges of $2,680 in the aggregate that were recognized in general and administrative expenses in the Company's consolidated statements of operations for the fiscal year ended December 31, 2022. The Company recorded $3,375 of sublease income for the fiscal year ended December 30, 2023 as an offset to general and administrative expenses.

At December 30, 2023 and December 31, 2022, the Company’s weighted average remaining lease term and weighted average discount rates were as follows:


	December 30, 2023		December 31, 2022
Weighted Average Remaining Lease Term (years)
Operating leases		7.31		6.90
Finance leases		0.48		1.00

Weighted Average Discount Rate
Operating leases		7.54		7.03
Finance leases		4.10		3.52

The Company’s leases have remaining lease terms of 0 to 9 years with a weighted average lease term of 7.31 years as of December 30, 2023.

At December 30, 2023, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows:


	Operating Leases		Finance Leases		Total
Fiscal 2024	$	14,031	$	4	$	14,035
Fiscal 2025		12,852		—		12,852
Fiscal 2026		10,130		—		10,130
Fiscal 2027		9,391		—		9,391
Fiscal 2028		9,042		—		9,042
Thereafter		26,811		—		26,811
Total lease payments	$	82,257	$	4	$	82,261
Less imputed interest		19,183		0		19,183
Present value of lease liabilities	$	63,074	$	4	$	63,078

Supplemental cash flow information related to leases for the fiscal years ended December 30, 2023, December 31, 2022 and January 1, 2022 were as follows:


	Fiscal Year Ended
	December 30,			December 31,		January 1,
	2023			2022		2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	22,013		$	31,580	$	39,747
Operating cash flows from finance leases	$	1		$	6	$	8
Financing cash flows from finance leases	$	48		$	112	$	151

Lease assets (modified) obtained in exchange for (modified) new operating lease liabilities	$	(7,086	)	$	13,297	$	1,057
Lease assets obtained in exchange for new finance lease liabilities	$	—		$	49	$	81