Leases

6 Months Ended

Jun. 25, 2021

14. LEASES

The Company leases offices, facilities and equipment in locations throughout the Americas, Asia Pacific and EMEA.

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 components of lease expense were summarized as follows:

	Three Months Ended				Six Months Ended
	June 25,		June 26,		June 25,			June 26,
(Dollars in millions)	2021		2020		2021			2020
Operating lease cost	$	4.8	$	3.4	$	8.5		$	6.6
Short-term lease cost		0.5		0.3		0.9			0.6
Total lease cost	$	5.3	$	3.7	$	9.4		$	7.2

Operating cash flows from operating leases	$	5.5	$	4.4	$	9.2		$	8.8
Weighted-average remaining lease term – operating leases						1.8			2.2
Weighted-average discount rate – operating leases						5.1	%		5.5	%

Future minimum payments under operating leases as of June 25, 2021 were summarized as follows:

(In millions)	Operating Leases
2021 remaining	$	9.3
2022		17.4
2023		14.4
2024		11.0
2025		8.1
Thereafter		22.3
Total minimum lease payments		82.5
Less: imputed interest		12.2
Lease liability	$	70.3

The Company assumed $23.8 million of facility leases as part of the acquisition of Ham-Let. The Company also entered into two new lease agreements in fiscal year 2020 with commencement dates in fiscal year 2021. The total minimum lease payments for these two new lease agreements is $22.1 million, which was included in the total contractual obligations.