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 the asset and to obtain substantially all of the economic benefit from its use. 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 10 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 commonly quoted 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 material finance leases as of December 25, 2021 or December 26, 2020.

We have made certain accounting policy elections and are using certain practical expedients permitted under GAAP, as follows:

As of December 25, 2021 and December 26, 2020 there were no material variable lease costs or sublease income. Cash paid for operating leases was $9.2 million, $7.7 million and $6.0 million during

fiscal 2021, fiscal 2020 and fiscal 2019, respectively, which are classified in operating activities on the Consolidated Statements of Cash Flows. The following table summarizes the lease expense:

	For the Year Ended
(in thousands)	December 25, 2021		December 26, 2020		December 28, 2019
Operating lease expense	$	9,549	$	7,732	$	7,362
Short-term lease expense		3,172		3,647		4,547
Total lease expense	$	12,721	$	11,379	$	11,909

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

(in thousands)	December 25, 2021			December 26, 2020
Operating lease right-of-use assets	$	59,029		$	39,002

Other accrued liabilities	$	10,065		$	5,470
Long-term operating lease liabilities		52,443			37,083
Total operating lease liabilities	$	62,508		$	42,553

Weighted average remaining lease term (years)		7.55			8.94
Weighted average discount rate		3.73	%		5.55	%

The following table summarizes the maturities of our lease liabilities for all operating leases as of December 25, 2021:

(in thousands)	December 25, 2021
2022	$	12,097
2023		10,388
2024		8,933
2025		7,374
2026		7,293
Thereafter		26,867
Total lease payments		72,952
Less: Imputed interest		(10,444	)
Present value of lease liabilities	$	62,508

In February of 2022, we signed a binding letter of intent for warehouse and distribution services that increases future lease payments for operating leases by a total of approximately $53 million over 12 years.