Leases

The Company leases warehouse and manufacturing real estate, and manufacturing and computer equipment under operating leases with lease terms ranging up to 25 years. Several operating lease agreements contain options to extend the lease term and/or options for early termination. The lease term consists of the non-cancelable period of the lease, periods covered by options to extend the lease if the Company is reasonably certain to exercise the option, and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise the option. The weighted average remaining lease term for the Company's operating and finance leases as of March 29, 2019 was 5.12 years and 19.75 years, respectively.

The discount rate implicit within the leases is generally not determinable, and, therefore, the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for leases is determined based on the lease term in which lease payments are made, adjusted for impacts of collateral. The weighted average discount rate used to measure the Company's operating and finance lease liabilities as of March 29, 2019 was 5.38% and 5.31%, respectively.

The components of operating and finance lease cost for the first quarter of 2019 were as follows:



	First Quarter Ended
	March 29,
(Thousands)	2019
Components of lease expense
Operating lease cost	$	2,712

Finance lease cost
Amortization of right-of-use assets	356
Interest on lease liabilities	263
Total lease cost	$	3,331

Operating lease expense amounted to $2.7 million and $3.0 million during the first quarter of 2019 and 2018, respectively. The Company straight-lines its expense of fixed payments for operating leases over the lease term and expenses the variable lease payments in the period incurred. These variable lease payments are not included in the calculation of right-of-use assets or lease liabilities.

Supplemental balance sheet information related to the Company's operating and finance leases as of March 29, 2019 was as follows:



	March 29,
(Thousands)	2019
Supplemental balance sheet information

Operating Leases
Operating lease right-of-use assets	$	28,327
Other liabilities and accrued items	7,190
Operating lease liabilities	22,575

Finance Leases
Property, plant, and equipment	$	26,185
Allowances for depreciation, depletion, and amortization	(2,906		)
Finance lease assets, net	$	23,279
Other liabilities and accrued items	$	1,218
Finance lease liabilities	18,502
Total principal payable on finance leases	$	19,720

Future maturities of the Company's lease liabilities as of March 29, 2019 are as follows:



	Finance		Operating
(Thousands)	Leases		Leases
2019	$	1,675	$	6,296
2020	2,234		7,614
2021	2,234		6,629
2022	2,234		4,737
2023	1,524		3,825
2024 and thereafter	22,212		5,153
Total lease payments	32,113		34,254
Less amount of lease payment representing interest	12,393		4,489
Total present value of lease payments	$	19,720	$	29,765

Supplemental cash flow information related to leases for the first quarter of 2019 was as follows:



	First Quarter Ended
	March 29,
(Thousands)	2019
Supplemental cash flow information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	3,779
Operating cash flows from finance leases	263
Financing cash flows from finance leases	298