Leases (Tables)

6 Months Ended

Jun. 28, 2019

Balance Sheet Classification of Lease Liabilities

The balance sheet classification of our lease liabilities were as follows (in thousands):



	June 30, 2019		December 31, 2018
Operating lease liabilities:
Current portion included in Other current liabilities	$	2,696	$	2,738
Long-term portion of lease liabilities	22,487		12,099
Total operating lease liabilities	25,183		14,837
Financing lease liabilities:
Current portion included in Other current liabilities	50		49
Long-term portion of lease liabilities	56		79
Total financing lease liabilities	106		128
Total lease liabilities	$	25,289	$	14,965

Components of Lease Expense

The components of lease costs, which were included in Selling, general and administrative expenses in our Condensed Consolidated Statements of Income, were as follows (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Operating lease cost	$	660	$	952	$	1,100	$	1,973
Variable lease cost	131		531		380		1,003
Total lease costs	$	791	$	1,483	$	1,480	$	2,976

Maturities of Operating Lease Liabilities

As of June 30, 2019, the maturities of our operating lease liabilities were as follows (in thousands):



Remainder of 2019	$	1,415
Years ending December 31,
2020	3,339
2021	3,436
2022	3,548
2023	3,646
Thereafter	16,066
Total lease payments	31,450
Less:
Present value adjustment	(5,106		)
Tenant improvement reimbursements⁽¹⁾	(1,161		)
Operating lease liabilities	$	25,183

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(1) Represents anticipated tenant improvement reimbursements applicable to the portion of the 1601 Expansion Space we have taken possession of as of June 30, 2019.