Leases

6 Months Ended

Jul. 03, 2020

The Company has operating lease agreements for administrative, research and development, manufacturing, and sales and marketing facilities. These leases have remaining lease terms ranging from 1 to 8 years, some of which include options to extend the lease term for up to 5 years, and some of which include options to terminate the leases within 1 year. Certain leases are subject to annual escalations as specified in the lease agreements. The Company considered these options in determining the lease term used to establish its right-of-use assets and lease liabilities. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.

As most of the Company's leases do not provide an interest rate, the Company used the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The weighted-average remaining lease term for the Company's operating leases was 4.29 years and the weighted-average incremental borrowing rate was 3.54% as of July 3, 2020.

Operating lease costs consisted of the following:


	For the three months ended						For the six months ended
	July 3, 2020		June 28, 2019		July 3, 2020		June 28, 2019
Operating lease cost	$	1,798	$	1,549	$	3,374	$	2,969
Other lease costs (1)	245		242		519		425
Total	$	2,043	$	1,791	$	3,893	$	3,394

(1) Includes short-term leases and variable lease costs. The Company elected a policy permitting leases with an original lease term of less than one year to be excluded from the right-of-use assets and lease liabilities.

Supplemental balance sheet information related to the Company's operating leases is as follows:


	Balance Sheet Classification	July 3, 2020
Operating lease right-of-use assets	Lease right-of-use assets	$	19,221
Current lease liabilities	Accrued expenses	$	6,485
Non-current lease liabilities	Other liabilities	$	12,543

Maturities of lease liabilities by fiscal year for the Company's operating leases are as follows:


For fiscal year	Total future payments
2020 (excluding the 6 months ended July 3, 2020)	$	3,476
2021	5,427
2022	3,783
2023	3,392
2024	1,737
Thereafter	2,766
Total lease payments	20,581
Less: imputed interest	(1,553)
Present value of lease liabilities	19,028
Less: current portion	(6,485)
Lease liabilities less current portion	$	12,543