Leases

3 Months Ended

Mar. 30, 2019

Disclosure Text Block [Abstract]

Lessee, Operating Leases [Text Block]

10. Leases

Intevac leases certain manufacturing facilities, warehouses, office space, and equipment under non-cancelable operating leases that expire at various times up to March 2024 and has options to renew most leases, with rentals to be negotiated. Certain of Intevac’s leases contain provisions for rental adjustments. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the date we take possession of the property. At lease inception, we determine the lease term by assuming the exercise of those renewal options that are reasonably assured. The exercise of lease renewal options is at our sole discretion. The lease term is used to determine whether a lease is financing or operating and is used to calculate straight-line rent expense. Additionally, the depreciable life of leasehold improvements is limited by the expected lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

The following table reflects our lease assets and our lease liabilities at March 30, 2019 and December 30, 2018.

	March 30, 2019		December 30, 2018
	(In thousands)
Assets:
Operating lease right-of-use assets	$	11,076	$	11,635
Liabilities:
Current operating lease liabilities	$	2,569	$	2,581
Noncurrent operating lease liabilities		10,491		11,120
	$	13,060	$	13,701

Lease Costs:

The components of lease costs were as follows:

	Three Months Ended
	March 30, 2019		March 31, 2018
	(In thousands)
Operating lease cost	$	782	$	759
Short-term lease cost		19		21
Total lease cost	$	801	$	780

As of March 30, 2019, the maturity of operating lease liabilities was as follows:

(In thousands)
2019	$	2,543
2020		2,992
2021		2,989
2022		3,074
2023		3,161
2024		529
Total lease payments		15,288
Less: Interest		(2,228	)
Present value of lease liabilities	$	13,060

Lease Term and Discount Rate:

	March 30, 2019
Weighted-average remaining lease term (in years)		4.8
Weighted-average discount rate		6.48	%

Other information:

Supplemental cash flow information related to leases was as follows:

	Three Months Ended
	March 30, 2019
Operating cash outflows from operating leases	$	886
Right-of-use assets obtained in exchange for new operating lease liabilities	$	—