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 January 1, 2022. 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 January 1, 2022 and January 2, 2021, the Company’s lease assets and lease liabilities were as follows:

	January 1, 2022		January 2, 2021
Assets:
Operating lease assets	$	89,902	$	119,102
Finance lease assets		127		207
Total leased assets	$	90,029	$	119,309

Liabilities:
Current
Operating	$	20,297	$	28,551
Finance		75		88
Noncurrent
Operating	$	78,157	$	101,561
Finance		29		93
Total lease liabilities	$	98,558	$	130,293

For the fiscal years ended January 1, 2022, January 2, 2021 and December 28, 2019, the components of the Company’s lease expense were as follows:

	Fiscal Year Ended
	January 1,		January 2,			December 28,
	2022		2021			2019
Operating lease cost:
Fixed lease cost	$	37,688	$	48,674		$	51,246
Lease termination cost		8,542		6,109			10
Variable lease cost		21		(30	)		—
Total operating lease cost	$	46,251	$	54,753		$	51,256
Finance lease cost:
Amortization of leased assets		151		192			487
Interest on lease liabilities		8		12			20
Total finance lease cost	$	159	$	204		$	507
Total lease cost	$	46,410	$	54,957		$	51,763

At January 1, 2022 and January 2, 2021, the Company’s weighted average remaining lease term and weighted average discount rates were as follows:

	January 1, 2022		January 2, 2021
Weighted Average Remaining Lease Term (years)
Operating leases		7.29		7.08
Finance leases		1.54		2.35

Weighted Average Discount Rate
Operating leases		7.15		6.95
Finance leases		5.31		5.51

The Company’s leases have remaining lease terms of 0 to 11 years with a weighted average lease term of 7.28 years as of January 1, 2022.

At January 1, 2022, 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 2022	$	26,611	$	79	$	26,690
Fiscal 2023		20,594		25		20,619
Fiscal 2024		15,708		5		15,713
Fiscal 2025		11,547		—		11,547
Fiscal 2026		9,195		—		9,195
Thereafter		45,345		—		45,345
Total lease payments	$	129,000	$	109	$	129,109
Less imputed interest		30,546		5		30,551
Present value of lease liabilities	$	98,454	$	104	$	98,558

Supplemental cash flow information related to leases for the fiscal years ended January 1, 2022, January 2, 2021 and December 28, 2019 were as follows:

	Fiscal Year Ended
	January 1,		January 2,		December 28,
	2022		2021		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	39,747	$	49,043	$	51,326
Operating cash flows from finance leases	$	8	$	12	$	20
Financing cash flows from finance leases	$	151	$	192	$	487

Leased assets obtained in exchange for new operating lease liabilities	$	1,057	$	5,113	$	41,693
Leased assets obtained in exchange for new finance lease liabilities	$	81	$	132	$	105