|12 Months Ended|
Jan. 02, 2021
Note 10: Leases
We account for leases in accordance with ASC 842. The amount recorded is the present value of all remaining lease payments for leases with terms greater than 12 months. The right of use asset is offset by a corresponding liability. The discount rate is based on an estimate of our incremental borrowing rate for terms similar to our lease terms at the time of lease commencement. The asset will be amortized over remaining lease terms. See Lease Accounting in Note 2.
Total present value of future lease payments as of January 2, 2021:
During the years ended January 2, 2021 and December 28, 2019, $1,250 and $1,284, respectively, was included in operating cash flow for amounts paid for operating leases.
Additionally, we obtained right-of-use assets in exchange for lease liabilities of approximately $1,367 upon commencement of operating leases during the year ended January 2, 2021. Additionally, we exercised an early termination clause in one our leases which reduces our right of use assets by $234.
The weighted average lease term for operating leases is 2.7 years and the weighted average discount rate is 8%.
The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef