Leases (Notes)

9 Months Ended

Sep. 28, 2019

Leases

We lease certain office and parking facilities, warehouse space, equipment, vehicles and information technology equipment under operating leases. Lease expense for these leases is recognized within the Condensed Consolidated Statements of Operations on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The following table summarizes the amounts recognized in our Condensed Consolidated Balance Sheet related to leases:


	Condensed Consolidated Balance Sheet Classification	September 26, 2020		December 31, 2019
Assets
Operating lease assets	Right-of-use assets - operating leases	$	53,315	$	40,033
Finance lease assets	Property and equipment, net	9,118		3,183
Total lease assets		$	62,433	$	43,216
Liabilities
Current operating lease liabilities	Other current liabilities	$	17,933	$	14,665
Non-current operating lease liabilities	Lease liabilities - operating leases	35,197		25,200
Total operating lease liabilities		53,130		39,865
Current portion of finance lease liabilities	Current portion of long-term debt and finance lease liabilities	2,290		1,348
Non-current finance lease liabilities	Lease liabilities - finance leases	6,667		1,795
Total finance lease liabilities		8,957		3,143
Total lease liabilities		$	62,087	$	43,008

The components of lease cost recognized within our Condensed Consolidated Statements of Operations were as follows:


		Three Months Ended				Nine Months Ended
	Condensed Consolidated Statements of Operations Classification	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019

Operating lease cost	Operating expense	$	2,877	$	1,845	$	7,776	$	4,912
Operating lease cost	Selling expense	2,322		2,188		7,127		6,513
Operating lease cost	General and administrative expense	389		214		844		617
Finance lease cost:
Amortization of right-of-use assets	Depreciation and amortization	570		339		1,404		1,024
Interest expense on lease liabilities	Interest expense	45		28		103		91
Other lease cost (1)	Operating expense	1,216		855		3,895		2,585
Other lease cost (1)	Selling expense	284		195		953		811
Other lease cost (1)	General and administrative expense	13		12		31		15
Total lease cost		$	7,716	$	5,676	$	22,133	$	16,568

(1) Other lease cost includes short-term lease costs and variable lease costs.

We often have options to renew lease terms for buildings and other assets. The exercise of lease renewal options is generally at our sole discretion. In addition, certain lease agreements may be terminated prior to their original expiration date at our discretion. We evaluate each renewal and termination option at the lease commencement date to determine if we are reasonably certain to exercise the option on the basis of economic factors. The table below summarizes the weighted average remaining lease term as of September 26, 2020.


Operating leases			3.9 years
Finance leases			5.7 years

The discount rate implicit within our leases is generally not determinable and therefore the Company determines the discount rate based on its incremental borrowing rate. The incremental borrowing rate for each lease is determined based on its term and the currency in which lease payments are made, adjusted for the impacts of collateral. The table below summarizes the weighted average discount rate used to measure our lease liabilities as of September 26, 2020.


Operating leases	3.12	%
Finance leases	1.90	%

Supplemental Cash Flow Information Related to Leases


	Nine Months Ended
	September 26, 2020		September 28, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(15,222)	$	(12,524)
Operating cash flows from finance leases	(103)		(91)
Financing cash flows from finance leases	(1,525)		(1,061)
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	28,246		52,889
Finance leases	7,339		—

Maturity Analysis of Lease Liabilities


	As of September 26, 2020
	Operating Leases		Finance Leases
Remaining three months of 2020	$	5,383	$	506
2021	18,060		2,357
2022	14,213		1,446
2023	7,995		1,246
2024	4,581		1,175
Thereafter	5,955		2,672
Total lease payments	56,187		9,402
Less interest	3,057		445
Total	$	53,130	$	8,957