Leases

On January 1, 2019, the Company adopted Accounting Standards Codification (ASC) 842, “Leases,” using the transition method of adoption, which allowed the Company to apply the standard on a prospective basis with a cumulative-effect adjustment to the opening balance sheet as of the adoption date. Accordingly, the Company recorded lease assets of $17,522,000, current lease liabilities of $4,736,000, and non-current lease liabilities of $12,669,000 on its Consolidated Balance Sheet as of January 1, 2019.

As part of the adoption, the Company elected a practical expedient package to be applied to all of its leases upon transition, and as a result, the Company did not reassess: 1) whether any expired or existing contracts contain leases; 2) the lease classification for any expired or existing leases; and 3) the accounting for initial direct costs for any existing leases.

The Company's leases are primarily leased properties across different worldwide locations where the Company conducts its operations. All of these leases are classified as operating leases. Certain leases may contain options to extend or terminate the lease at the Company's sole discretion. There were no options to extend or terminate that were included in the determination of the lease term for the leases outstanding as of March 31, 2019. Certain leases contain leasehold improvement incentives, retirement obligations, escalating clauses, rent holidays, and variable payments tied to a consumer price index. There were no restrictions or covenants for the leases outstanding as of March 31, 2019.

The total operating lease expense for the three-month period ended March 31, 2019 was $1,485,000. The total operating lease cash payments for the three-month period ended March 31, 2019 was $1,401,000. The total lease expense for leases with a term of twelve months or less for which the Company elected not to recognize a lease asset or lease liability was $169,000 for the three-month period ended March 31, 2019.

Future operating lease cash payments are as follows (in thousands):



Year Ended December 31,	Amount
Remainder of fiscal 2019	$	4,527
2020	4,929
2021	3,788
2022	2,596
2023	2,027
2024	839
Thereafter	310
	$	19,016

The discounted present value of the future lease cash payments resulted in a lease liability of $17,336,000 as of March 31, 2019.

The weighted-average discount rate was 4.8% for the leases outstanding as of March 31, 2019. The weighted-average remaining lease term was 4.1 years for the leases outstanding as of March 31, 2019. The Company did not have any leases that have not yet commenced but that create significant rights and obligations as of March 31, 2019.

The Company owns a building adjacent to its corporate headquarters that is partially occupied with a tenant who has a lease agreement that will expire in 2022. Rental income was $77,000 and $76,000 for the three-month period ended March 31, 2019 and April 1, 2018, respectively.

Future minimum rental receipts under non-cancelable lease agreements are as follows (in thousands):



Year Ended December 31,	Amount
Remainder of fiscal 2019	$	230
2020	307
2021	307
2022	307
	$	1,151