As discussed in Note 2, we adopted ASU No. 2016-02, Leases, on December 30, 2018, the beginning of our fiscal 2019, using the modified retrospective approach. We determine whether an arrangement is a lease at inception. This determination generally depends on whether the arrangement conveys the right to control the use of an identified fixed asset explicitly or implicitly for a period of time in exchange for consideration. Control of an underlying asset is conveyed if we obtain the rights to direct the use of and to obtain substantially all of the economic benefit from the use of the underlying asset. We have operating leases for distribution centers, sales offices and certain warehouse and office equipment. Our operating leases have remaining lease terms of 1 to 12 years, many of which include one or more renewal options. We consider these renewal options in determining the lease term used to establish our right-of-use assets and lease liabilities when it is determined that it is reasonably certain that the renewal option will be exercised. Substantially all of our equipment leases and some of our real estate leases have terms of less than one year. Some of our operating lease agreements include variable lease costs, primarily taxes, insurance, common area maintenance or increases in rental costs related to inflation.

Operating leases are included in the right-of-use lease assets, other current liabilities and long-term lease liabilities on the Consolidated Balance Sheet. Right-of-use assets and lease liabilities are recognized at each lease’s commencement date based on the present values of its lease payments over its respective lease term. When a borrowing rate is not explicitly available for a lease, our incremental borrowing rate is used based on information available at the lease’s commencement date to determine the present value of its lease payments. The incremental borrowing rate is not a commonly quoted rate and is derived through a combination of inputs including our credit rating and the impact of full collateralization. The incremental borrowing rate is based on our collateralized borrowing capabilities over a similar term of the lease payments. We utilized the consolidated group borrowing rate for all leases as we operate a centralized treasury operation. Operating lease payments are recognized on a straight-line basis over the lease term. We had no finance leases as of December 28, 2019.

In accordance with the guidance on leases and as permitted by the FASB, we have elected to use certain practical expedients and policy elections.

- We have elected to include both lease and non-lease components as a single lease component, as non-lease components of contracts have not historically been material.

- We have elected to account for leases with terms of one year or less as short-term leases and, as such, lease with terms of less than one year are not included in the right-of-use assets or lease liabilities.

As of December 28, 2019, there was no material variable lease costs or sublease income. Cash paid for operating leases was $6.0 million during the year ended December 28, 2019, which is classified in operating

activities on the Consolidated Statements of Cash Flows. The following table summarizes the lease expense for the year ended December 28, 2019:

(in thousands)	December 28, 2019
Operating lease expense	$	7,362
Short-term lease expense		4,547
Total lease expense	$	11,909

Supplemental balance sheet information related to our operating leases is as follows:

(in thousands)	December 28, 2019
Operating lease right-of-use assets	$	32,198

Other accrued liabilities	$	5,348
Long-term operating lease liabilities		29,730
Total operating lease liabilities	$	35,078

Weighted average remaining lease term (years)		10.83
Weighted average discount rate		6.32	%

The following table summarizes the maturities of our lease liabilities for all operating leases as of December 28, 2019:

(in thousands)	December 28, 2019
2020	$	6,935
2021		4,977
2022		4,904
2023		3,388
2024		3,452
2025 and thereafter		21,514
Total lease payments		45,170
Less: Imputed interest		(10,092	)
Present value of lease liabilities	$	35,078

For the year ended December 29, 2018, minimum rental payments under operating leases were recognized on a straight-line basis over the term of the lease including any periods of free rent. Rent expense for operating leases, including payments for short-term equipment and storage rentals, was $6.9 million in fiscal 2018 and $5.7 million in fiscal 2017. Minimum future rental payments required under operating leases in effect as of December 29, 2018 were as follows:

(in thousands)	December 29, 2018
2019	$	5,489
2020		5,416
2021		4,972
2022		4,599
2023		3,013
2024 and thereafter		24,297
Total rental payments	$	47,786