We lease our retail, office and manufacturing space under operating leases which, in addition to the minimum lease payments, may require payment of a proportionate share of the real estate taxes and certain building operating expenses. While our local market development approach generally results in long-term participation in given markets, our retail store leases generally provide for an initial lease term of five to 10 years. Our office and manufacturing leases provide for an initial lease term of up to 15 years. In addition, our mall-based retail store leases may require payment of variable rent based on net sales in excess of certain thresholds. Certain leases may contain options to extend the term of the original lease. The exercise of lease renewal options is at our sole discretion. Lease options are included in the lease term only if exercise is reasonably certain at lease commencement. Our lease agreements do not contain any material residual value guarantees. We also lease vehicles and certain equipment under operating leases with an initial lease term of three to five years.

Our operating lease costs include facility, vehicle and equipment lease costs, but exclude variable lease costs. Operating lease costs are recognized on a straight-line basis over the lease term, after consideration of rent escalations and rent holidays. The lease term for purposes of the calculation begins on the earlier of the lease commencement date or the date we take possession of the property. During lease renewal negotiations that extend beyond the original lease term, we estimate straight-line rent expense based on current market conditions. Variable lease costs are recorded when it is probable the cost has been incurred and the amount can be reasonably estimated. Future payments for real estate taxes and certain building operating expenses for which we are obligated are not included in operating lease costs.

We adopted ASC Topic 842, Leases, using the modified-retrospective approach effective December 30, 2018 (beginning of fiscal 2019). See Note 1, Leases and Recently Adopted Accounting Guidance, which discusses our accounting policies and the impact of our initial adoption of the new lease standard.

	2019
Operating lease costs⁽¹⁾	$	86,026
Variable lease costs	$	1,809

The maturities of operating lease liabilities as of December 28, 2019, were as follows (in thousands):

2020	$	83,232
2021		76,199
2022		67,953
2023		58,038
2024		46,113
Thereafter		120,727
Total operating lease payments⁽¹⁾		452,262
Less: Interest		94,611
Present value of operating lease liabilities⁽²⁾	$	357,651

December 28,

2019

Weighted-average remaining lease term (years)

6.6

Weighted-average discount rate

7.2

(in thousands)

December 28,

2019

Cash paid for amounts included in present value of operating lease liabilities

81,718

Right-of-use assets obtained in exchange for operating lease liabilities⁽¹⁾

75,384

Facility Rents:	2018		2017
Minimum rents	$	71,851	$	66,239
Contingent rents		1,847		2,845
Total	$	73,698	$	69,084
Equipment Rents	$	5,692	$	4,935

The aggregate minimum rental commitments under operating leases as of December 29, 2018, were expected to be as follows (in thousands):

2019	$	78,337
2020		73,331
2021		66,491
2022		59,515
2023		51,076
Thereafter		149,318
Total future minimum lease payments	$	478,068