Leases

3 Months Ended

Mar. 28, 2020

Leases

Leases

(11) Leases

Operating Leases. Operating leases are included in the accompanying unaudited consolidated balance sheets in the following line items:

	March 28,		December 28,
	2020		2019
Right-of-use assets:
Operating lease right-of-use assets, net	$	38,313	$	38,698
Operating lease liabilities:
Current portion of operating lease liabilities	$	10,806	$	9,813
Long-term operating lease liabilities, net of current portion		30,513		31,997
Total operating lease liabilities	$	41,319	$	41,810

We determine whether an arrangement is a lease at inception. We have operating leases for certain of our manufacturing facilities, distribution centers, warehouse and storage facilities, machinery and equipment, and office equipment. Our leases have remaining lease terms of one year to seven years, some of which include options to extend

the lease term for up to five years, and some of which include options to terminate the lease within one year. We consider these options in determining the lease term used to establish our right-of use assets and lease liabilities.

Supplemental information related to leases:

	Thirteen Weeks Ended
	March 28,		March 30,
	2020		2019
Operating cash flow information:
Cash paid for amounts included in the measurement of operating lease liabilities	$	3,087	$	2,702
The components of lease costs were as follows:
Cost of goods sold	$	1,004	$	668
Selling, general and administrative expenses		1,977		1,970
Total lease costs	$	2,981	$	2,638

Total rent expense for the first quarter of 2020 was $3.5 million, including the operating lease costs of $3.0 million stated above. Total rent expense for the first quarter of 2019 was $3.2 million, including the operating lease costs of $2.6 million stated above.

Because our operating leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We have lease agreements that contain both lease and non-lease components. With the exception of our real estate leases, we account for our leases as a single lease component.

The following table shows the lease term and discount rate for our ROU assets:

	March 28,		March 30,
	2020		2019
Weighted average remaining lease term (years)		5.2		5.2
Weighted average discount rate		4.04%		4.05%

As of March 28, 2020, the maturities of operating lease liabilities were as follows (in thousands):

	Maturities of Operating Lease Liabilities
Fiscal year:
2020 remaining	$	9,199
2021		11,536
2022		5,890
2023		5,683
2024		5,058
Thereafter		8,516
Total undiscounted future minimum lease payments		45,882
Less: Imputed interest		(4,563)
Total present value of future operating lease liabilities	$	41,319