9. Lessee ROU Assets and Lease Liabilities

The Company adopted ASC 842, the new lease accounting standard, effective as of December 30, 2018. Among other things, the Company’s adoption of ASC 842 resulted in: (a) the recognition of lessee ROU assets for the right to use assets subject to operating leases; and (b) the recognition of lessee lease liabilities for its obligation to make operating lease payments. See “Recently Adopted Accounting Pronouncements” under Note 2 to these condensed consolidated financial statements for additional information related to the Company’s adoption of ASC 842.

The Company leases certain facilities in North and South America, Europe, the Middle East and Asia-Pacific regions under operating lease agreements expiring at various dates through November 2026. In addition, the Company leases equipment in the U.S. and Europe that are classified as operating leases and expire at various dates through September 2023. The majority of these leases are non-cancellable and generally do not contain any material residual value guarantees or material restrictive covenants. The Company recognizes lease costs under these agreements using a straight-line method based on total lease payments. Certain facility leases contain predetermined price escalations and in some cases renewal options, the longest of which is for 5 years.

The Company generally estimates the applicable discount rate used to determine the net present value of lease payments based on available information at the lease commencement date. As of March 30, 2019, the weighted average discount rate used by the Company for all operating leases was approximately 3.8%.

Balance sheet classifications related to the Company’s operating leases for the period ended March 30, 2019 are as follows:



	Balance sheet classification	March 30, 2019
Lessee ROU assets	Other non-current assets	$	20,032

Lessee current lease liabilities	Other current liabilities	5,075
Lessee non-current lease liabilities	Other non-current liabilities	16,345
Total operating lease liabilities		$	21,420

The weighted average remaining lease term for the Company’s operating leases was 8.2 years as of March 30, 2019.

As of March 30, 2019, estimated future operating lease payments for each of the following fiscal years were as follows (in thousands):



Fiscal year	Total Operating Leases
2019 (balance of year)	$	4,991
2020	4,130
2021	2,358
2022	1,663
2023	1,487
Thereafter⁽¹⁾	10,567
Total	25,196
Imputed Interest	(3,776		)
Present Value	$	21,420

______________

⁽¹⁾ Includes optional renewal period for certain leases.

As of December 29, 2018, the estimated future minimum lease payments, including interest, under operating leases for each of the following fiscal years ending on or about December 31 were as follows (in thousands):



Fiscal year	Total Operating Leases
2019	$	6,926
2020	4,422
2021	2,384
2022	1,701
2023	1,568
Thereafter⁽¹⁾	9,921
Total	$	26,922

______________

⁽¹⁾ Includes optional renewal period for certain leases.

Lease costs for the three months ended March 30, 2019 were as follows (in thousands):



	March 30, 2019
Operating lease costs	$	1,765
Short-term lease costs	9
Sublease income	(52		)
Total lease cost	$	1,722

For the three months ended March 31, 2018, rental expense related to operating leases was $1.8 million.