We determine if a contract contains a lease at inception. The Company leases retail shops, warehouse and office space under operating leases. For leases with renewal periods at the Company’s option, the Company determines the expected lease period based on whether the renewal of any options are reasonably assured at the inception of the lease.

Operating lease assets and liabilities are recognized at the lease commencement date. Operating lease liabilities represent the present value of lease payments not yet paid. Operating lease assets represent our right to use an underlying asset and are based upon the operating lease liabilities adjusted for prepayments or accrued lease payments, initial direct costs, lease incentives, and impairment of operating lease assets. To determine the present value of lease payments not yet paid, we estimate incremental secured borrowing rates corresponding to the maturities of the leases. As we have no outstanding debt nor committed credit facilities, secured or otherwise, we estimate this rate based on prevailing financial market conditions, comparable company and credit analysis, and management judgment.

We recognize expense for these leases on a straight-line basis over the lease term. Additionally, tenant incentives used to fund leasehold improvements are recognized when earned and reduce our right-of-use asset related to the lease. These are amortized through the right-of-use asset as reductions of expense over the lease term.

Separation of lease and non-lease components		We elected this expedient to account for lease and non-lease components as a single component for our entire population of operating lease assets.
Short-term policy		We have elected the short-term lease recognition exemption for all applicable classes of underlying assets. Short-term disclosures include only those leases with a term greater than one month and 12 months or less, and expense is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less, that do not include an option to purchase the underlying asset that we are reasonably certain to exercise, are not recorded on the balance sheet.

		March 31,
Operating Leases	Classification	2019
Right-of-use assets	Right-of-use assets for operating leases	$	222,177
Short-term lease liabilities	Short-term operating lease liabilities		28,768
Long-term lease liabilities	Long-term operating lease liabilities		217,008
Total lease liabilities			245,776

	March 31,
	2019
Weighted average remaining lease term (years)	8.90
Weighted average discount rate		8.01	%

Certain of the Company’s operating lease agreements include variable payments that are passed through by the landlord, such as common area maintenance and real estate taxes, as well as variable payments based on percentage rent for certain of our shops. Pass-through charges and payments based on percentage rent are included within variable lease cost. The components of lease cost were as follows:

		13 weeks ending
		March 31,
	Classification	2019
Operating lease cost	Occupancy and General and administrative expenses		10,995
Variable lease cost	Occupancy		3,504
Total lease cost		$	14,499

Supplemental disclosures of cash flow information related to leases were as follows:

	13 weeks ending
	March 31,
	2019
Operating cash flows rent paid for operating lease liabilities		11,938
Operating right-of-use assets obtained in exchange for new operating lease liabilities		922

As of March 31, 2019, the Company has additional operating leases related to shops not yet open of $1.6 million. These operating leases will commence during fiscal year 2019 with lease terms of 7 years.

	Operating Leases
Remainder of 2019		35,277
2020		45,402
2021		41,183
2022		36,002
2023		31,111
Thereafter		164,475
Total lease payments		353,450
Less: imputed interest		(107,674	)
Present value of lease liabilities	$	245,776

As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting, maturities of lease liabilities were as follows as of December 30, 2018:

	Operating Leases
2019		47,918
2020		45,828
2021		41,497
2022		36,120
2023		31,060
Thereafter		138,928
Total minimum lease payments		341,351