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Note 7 - Leases

3 Months Ended

Apr. 03, 2021

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, the terms of which are described in our 2020 10-K. In the first quarter of fiscal 2021, we extended the leases for our Hillsboro, Oregon and Shanghai, China facilities, which resulted in approximately $7.2 million of the increase in right-of-use assets and operating lease liabilities. All of our facilities are leased under operating leases, which expire at various times through 2028, with a weighted-average remaining lease term of 4.8 years and a weighted-average discount rate of 5.3% as of April 3, 2021.

We recorded fixed operating lease expenses of $2.0 million and $1.9 million for the first quarter of fiscal 2021 and 2020, respectively.

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first three months of fiscal 2021:

Operating lease right-of-use assets	(in thousands)
Balance as of January 2, 2021	$	22,178
Right-of-use assets obtained for new and modified lease contracts during the period		7,440
Amortization of right-of-use assets during the period		(1,628	)
Adjustments for present value and foreign currency effects		16
Balance as of April 3, 2021	$	28,006

Operating lease liabilities	(in thousands)
Balance as of January 2, 2021	$	23,055
Lease liabilities incurred for new lease contracts during the period		7,440
Accretion of lease liabilities		349
Operating cash used by payments on lease liabilities		(1,731	)
Adjustments for present value and foreign currency effects		10
Balance as of April 3, 2021		29,123
Less: Current portion of operating lease liabilities (included in Accrued expenses)		(5,584	)
Long-term operating lease liabilities, net of current portion	$	23,539

Maturities of operating lease liabilities as of April 3, 2021 are as follows:

Fiscal year	(in thousands)
2021 (remaining 3 quarters)	$	4,783
2022		7,104
2023		7,173
2024		5,882
2025		3,669
Thereafter		4,611
Total lease payments		33,222
Less: amount representing interest		(4,099	)
Total lease liabilities	$	29,123

Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $8.0 million at April 3, 2021 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.