Leases

6 Months Ended

Jun. 28, 2019

Leases [Abstract]

Leases

9. Leases

The Company leases offices, facilities and equipment in locations throughout the U.S., Asia and Europe. Leases with an initial term of 12 months or less are not recorded on the balance sheet.

Right-of-use ("ROU") assets represent right to use an underlying asset for the lease term and lease liabilities represent obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date.

The Company’s leases do not provide an implicit rate, thus the Company uses an estimated incremental borrowing rate in determining the present value of lease payments. The Company used an estimated incremental borrowing rate of 7.0%, which is derived from information available at the lease commencement date.

The components of lease expense were as follows (in thousands, except lease term and discount rate):

	For the Three Months Ended June 28, 2019			For the Six Months Ended June 28, 2019
Finance lease cost:
Amortization of right-of-use assets	$	33		$	66
Interest on lease liabilities		19			79
Operating lease cost		3,265			6,685
Short-term lease cost		394			639
Sublease income		(23	)		(64	)
Total lease cost	$	3,688		$	7,405
Other information
Cash paid for amounts included in the measurement    of lease liabilities:
Operating cash flows from finance leases	$	19		$	79
Operating cash flows from operating leases	$	3,670		$	7,108
Financing cash flows from finance leases	$	156		$	312
				As of June 28, 2019
Finance leases:
Property and equipment				$	3,636
Accumulated amortization					80
Property and equipment, net				$	3,556
Finance lease liabilities, current				$	486
Finance lease liabilities, non-current					2,667
Total finance lease liabilities				$	3,153
Weighted-average remaining lease term – finance leases				4.9 years
Weighted-average remaining lease term – operating leases				2.3 years
Weighted-average discount rate – finance leases					7	%
Weighted-average discount rate – operating leases					7	%

Future annual minimum lease payments and capital lease commitments as of June 28, 2019were as follows (in thousands):

	Operating Leases		Finance Leases
2019  (remaining in year)	$	7,057	$	312
2020		12,409		623
2021		10,010		623
2022		7,640		616
2023		3,118		569
Thereafter		2,458		840
Total minimum lease payments		42,692		3,583
Less: imputed interest		5,742		430
Lease liability	$	36,950	$	3,153