13. Leases

The Company adopted ASU No. 2016-02 “Leases (Topic 842)” on December 30, 2018 (the beginning of fiscal 2019), resulting in the recognition of operating right-of-use assets of $5,353,000 and operating lease liabilities of $5,427,000. The Company has entered into lease arrangements for office space, manufacturing facilities, water rights and certain equipment. A number of the leases include one or more options to renew the lease terms, purchase the leased property or terminate the lease. The exercise of these options is at the Company’s discretion and is therefore recognized on the balance sheet when it is reasonably certain the Company will exercise such options.

Substantially all of the Company’s leases are considered operating leases. Finance leases were not material for any of the periods presented. The following table displays the undiscounted cash flows related to operating leases along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets (amounts in thousands) as of March 28, 2020:


	OPERATING
	LEASE
	LIABILITIES
2020	$	1,062
2021		1,389
2022		1,307
2023		761
2024		255
Thereafter		655
Total lease payments		5,429
Less: interest		(552)
Present value of operating lease liabilities	$	4,877

Short-term lease cost represents the Company’s cost with respect to leases with a duration of 12 months or less and are not reflected on the Company’s Consolidated Balance Sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Components of lease expense and other information is as follows:


	Three Months ended
	MARCH 28,		MARCH 30,
	2020		2019
Operating lease expense	$	356	$	529
Short-term lease expense	$	215	$	203

Weighted-average remaining lease term (years)		4.5		5.5
Weighted-average discount rate		6.0%		6.1%

New leases entered into during the three month periods ended March 28, 2020 and March 30, 2019 were not material.