5. Leases

The Company currently leases office space, vehicles and certain equipment under operating leases expiring through 2028. Operating leases include fixed payments plus, in some cases, scheduled base rent increases over the term of the lease. Certain leases require variable payments of common area maintenance, operating expenses and real estate taxes applicable to the property. Variable payments are excluded from the measurements of lease liabilities and are expensed as incurred. Any tenant improvement allowances received from the lessor are recorded as a reduction to rent expense over the term of the lease. No lease agreements contain any residual value guarantees or material restrictive covenants.

Certain of the Company's leases include one or more options to renew or terminate the lease at the Company’s discretion. Generally, the renewal and termination options are not included in the right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates lease renewal and termination options and, when they are reasonably certain of exercise, includes the renewal or termination option in the lease term.

The Company measures the lease liability for each leased asset at the present value of lease payments, as defined in ASC 842, discounted using an incremental borrowing rate. As most of the Company’s leases do not provide an implicit interest rate, the Company utilizes its incremental borrowing rate based on the information available at the commencement date of the lease in determining the present value of lease payments. The Company has a centrally managed treasury function; therefore, a portfolio approach is applied in determining the incremental borrowing rate. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a fully collateralized basis over a similar term in an amount equal to the total lease payments in a similar economic environment. The Company’s right-of-use assets are equal to the lease liabilities, adjusted for lease incentives received, including tenant improvement allowances, deferred rent, and prepayments made to the lessor.

In some instances, the Company sublease excess office space to third party tenants. The Company does not recognize liabilities or right-of-use assets for leases with an initial term of 12 months or less.

Lease cost components included within selling, general and administrative expenses in the Consolidated Statements of Operations were as follows (in thousands):


	Three Months Ended		Nine Months Ended
	February 22, 2020		February 22, 2020
Operating lease cost	$	3,159	$	9,275
Short-term lease cost		124		322
Variable lease cost		562		1,762
Sublease income		(230)		(536)
Total lease cost	$	3,615	$	10,823

Supplemental cash flow information related to the Company's operating leases were as follows (in thousands):


	Nine Months Ended
	February 22, 2020
Cash paid for amounts included in the measurement of operating lease liabilities	$	9,783
Right-of-use assets obtained in exchange for lease obligations	$	5,101

The weighted average remaining lease term and weighted average discount rate for our operating leases were as follows:


	As of
	February 22, 2020
Weighted average remaining lease term		4.5 years
Weighted average discount rate		4.12%

The maturities of operating lease liabilities were as follows as of February 22, 2020 (in thousands):


Years Ending:	Operating Lease Maturity
May 30, 2020 (excluding the nine months ended February 22, 2020)	$	3,299
May 29, 2021		12,696
May 28, 2022		10,955
May 27, 2023		8,561
May 25, 2024		7,057
Thereafter		6,570
Total operating lease payments	$	49,138
Less: Imputed interest		(4,361)
Present value of operating lease liabilities	$	44,777