13. The Company adopted ASU No. 2016-02 “Leases (Topic 842)” on December 30, 2018 (the beginning of fiscal 2019), resulting in the recognition of operating right-of-use assets of $5,353,000 and operating lease liabilities of $5,427,000. The Company has entered into lease arrangements for office space, manufacturing facilities, water rights and certain equipment. A number of the leases include one or more options to renew the lease terms, purchase the leased property or terminate the lease. The exercise of these options is at the Company’s discretion and is therefore recognized on the balance sheet when it is reasonably certain the Company will exercise such options.

Substantially all of the Company’s leases are considered operating leases. Finance leases were not material as of March 30, 2019 or for the three months ended March 30, 2019. The following table displays the undiscounted cash flows related to operating leases as of March 30, 2019, along with a reconciliation to the discounted amount recorded on the March 30, 2019 Consolidated Balance Sheet (amounts in thousands):


	OPERATING
	LEASE
	LIABILITIES
2019	$	932
2020		1,209
2021		1,196
2022		1,156
2023		694
Thereafter		899
Total lease payments		6,086
Less: interest		(913)
Present value of operating lease liabilities	$	5,173

Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and are not reflected on the Company’s Consolidated Balance Sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. For the three months ended March 30, 2019 operating lease cost was $529,000 including $203,000 of short-term lease costs.

New leases entered into during the three month period ended March 30, 2019 were not material. At March 30, 2019 the weighted-average remaining lease term and discount rate for operating leases was 5.5 years and 6.1%, respectively.