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 lease payments as of June 27, 2020:

During the 26 weeks ended June 27, 2020 and June 29, 2019, $542 and $586, 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 $1,164 upon commencement of operating leases during the 26 weeks ended June 27, 2020. Additionally, we exercised an early termination clause in one our leases which reduces our right of use assets by $234.