A lease is defined as an arrangement that contractually specifies the right to use and control an identified asset for a specific period of time in exchange for consideration. Operating leases are included in operating lease assets, portion of operating lease liabilities due within one year, and long-term operating lease liabilities in the Company’s consolidated balance sheets. Finance leases are included in property and equipment, net, other accrued liabilities, and other long-term liabilities in the Company’s consolidated balance sheets. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term, using the Company’s incremental borrowing rate commensurate with the lease term, since the Company’s lessors do not provide an implicit rate, nor is one readily available. The incremental borrowing rate is calculated based on the Company’s credit yield curve and adjusted for collateralization, credit quality and economic environment impact, all where applicable. The lease asset includes scheduled lease payments and excludes lease incentives, such as free rent periods and tenant improvement allowances. The Company has certain leases that may include an option to renew and when it is reasonably probable to exercise such option, the Company will include the renewal option terms in determining the lease asset and lease liability. The Company does not have any renewal options that would have a material impact on the terms of the leases and that are also reasonably expected to be exercised as of September 26, 2020. A lease may contain both fixed and variable payments. Variable lease payments that are linked to an index or rate are measured based on the current index or rate at the implementation of the lease accounting standard, or lease commencement date for new leases, with the impact of future changes in the index or rate being recorded as a period expense. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

The Company’s operating and finance leases are primarily for its studios, corporate offices, data centers and certain equipment, including automobiles.

At September 26, 2020 and December 28, 2019, the Company’s lease assets and lease liabilities were as follows:

	September 26, 2020		December 28, 2019
Assets:
Operating lease assets	$	131,777	$	151,983
Finance lease assets		240		259
Total leased assets	$	132,017	$	152,242

Liabilities:
Current
Operating	$	35,101	$	33,236
Finance		112		126
Noncurrent
Operating	$	110,034	$	128,464
Finance		92		96
Total lease liabilities	$	145,339	$	161,922

For the three and nine months ended September 26, 2020 and September 28, 2019, the components of the Company’s lease expense were as follows:

	Three Months Ended				Nine Months Ended
	September 26,		September 28,		September 26,			September 28,
	2020		2019		2020			2019
Operating lease cost:
Fixed lease cost	$	12,040	$	12,906	$	37,181		$	38,641
Variable lease cost		0		0		(4	)		0
Total operating lease cost	$	12,040	$	12,906	$	37,177		$	38,641
Finance lease cost:
Amortization of leased assets		42		132		148			350
Interest on lease liabilities		3		4		9			17
Total finance lease cost	$	45	$	136	$	157		$	367
Total lease cost	$	12,085	$	13,042	$	37,334		$	39,008

At September 26, 2020 and December 28, 2019, the Company’s weighted average remaining lease term and weighted average discount rates were as follows:

	September 26, 2020		December 28, 2019
Weighted Average Remaining Lease Term (years)
Operating leases		6.91		7.06
Finance leases		2.36		2.43

Weighted Average Discount Rate
Operating leases		6.90		7.02
Finance leases		5.56		5.97

The Company’s leases have remaining lease terms of 0 to 12 years with a weighted average lease term of 6.91 years as of September 26, 2020.

At September 26, 2020, the maturity of the Company’s lease liabilities in each of the next five fiscal years and thereafter were as follows:

	Operating Leases		Finance Leases		Total
Remainder of fiscal 2020	$	11,670	$	38	$	11,708
2021		41,296		90		41,386
2022		29,884		59		29,943
2023		21,577		26		21,603
2024		16,165		5		16,170
Thereafter		65,922		0		65,922
Total lease payments	$	186,514	$	218	$	186,732
Less imputed interest		41,379		14		41,393
Present value of lease liabilities	$	145,135	$	204	$	145,339

Supplemental cash flow information related to leases for the nine months ended September 26, 2020 and September 28, 2019 were as follows:

	Nine Months Ended
	September 26,		September 28,
	2020		2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	37,123	$	38,664
Operating cash flows from finance leases	$	9	$	17
Financing cash flows from finance leases	$	148	$	350

Leased assets obtained in exchange for new operating lease liabilities	$	9,281	$	26,270
Leased assets obtained in exchange for new finance lease liabilities	$	127	$	105