Operating leases are included in operating lease right-of-use (“ROU”) assets, current operating lease liabilities, and long-term operating lease liabilities in our consolidated balance sheets. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized based on the present value of lease payments over the lease term. Because our leases do not provide an implicit rate, we use our incremental borrowing rate to determine the present value of lease payments. Lease expense is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components (e.g., common-area or other maintenance costs) which are generally accounted for separately and expensed monthly.

In February 2020, we finalized an extension to our lease for our existing 19,805 square foot mixed office and warehouse facility in Singapore, which serves as a sales, development and final assembly and integration facility for our inspection and metrology system products. The lease runs from the expiration date of our old lease in July 2020 through July 24, 2023. The new lease does not contain any incentives or renewal options. Rent and facility operating costs under the new lease are expected to remain unchanged from the old lease that expired in July 2020.


Twelve months ending June 30,	(In thousands)
2021	$	968
2022	985
2023	993
2024	704
2025	666
2026 and thereafter	740
Total lease payments		5,056
Less: amount representing interest	688
Present value of operating lease liabilities	$	4,368

At June 30, 2020, the weighted average remaining term for our operating leases is 5.33 years, and the weighted average discount rate applied to our operating leases was 5.17%.

Operating lease liabilities were increased by $920,000 in the six months ended June 30, 2020 for ROU assets related to the extended lease for our Singapore facility and a new small leased facility in Taiwan. Incentives from the landlord recorded as leasehold improvements in the six months ended June 30, 2019 were $691,000.