| Lessee, Operating and Finance Leases [Text Block] |
The Company leases certain office and warehouse space, as well as production and office equipment.
The Company determines if an arrangement is a lease at contract inception. The lease term begins upon lease commencement, which is when the Company takes possession of the asset, and may include options to extend or terminate the lease when it is reasonably certain that such options will be exercised. As its lease agreements typically do not provide an implicit rate, the Company primarily uses an incremental borrowing rate based upon the information available at lease commencement. In determining the incremental borrowing rate, the Company considers its current borrowing rate, the term of the lease, and the economic environments where the lease activity is concentrated.
The following table provides a summary of leases recorded on the condensed consolidated balance sheet.
| |
Balance Sheet Location |
|
September 30, 2022 |
|
|
June 30, 2022 |
|
| Lease Assets |
|
|
|
|
|
|
|
|
|
| Operating lease right-of-use assets |
Right-of-use assets operating leases |
|
$ |
11,492 |
|
|
$ |
12,685 |
|
| Finance lease right-of-use assets |
Property, plant and equipment, net |
|
|
4,626 |
|
|
|
4,805 |
|
| |
|
|
|
|
|
|
|
|
|
| Lease Liabilities |
|
|
|
|
|
|
|
|
|
| Operating lease liabilities |
Accrued liabilities |
|
$ |
2,039 |
|
|
$ |
2,127 |
|
| Operating lease liabilities |
Lease obligations |
|
|
9,483 |
|
|
|
10,575 |
|
| Finance lease liabilities |
Accrued liabilities |
|
|
607 |
|
|
|
576 |
|
| Finance lease liabilities |
Other long-term liabilities |
|
|
4,236 |
|
|
|
4,440 |
|
The components of lease expense were as follows:
| |
|
For the Quarter Ended |
|
| |
|
September 30, 2022 |
|
|
September 24, 2021 |
|
| Finance lease cost: |
|
|
|
|
|
|
|
|
| Amortization of right-of-use assets |
|
$ |
155 |
|
|
$ |
163 |
|
| Interest on lease liabilities |
|
|
64 |
|
|
|
72 |
|
| Operating lease cost |
|
|
711 |
|
|
|
693 |
|
| Short-term lease cost |
|
|
13 |
|
|
|
2 |
|
| Variable lease cost |
|
|
40 |
|
|
|
39 |
|
| Total lease cost |
|
|
983 |
|
|
|
969 |
|
| Less: Sublease income |
|
|
(17 |
) |
|
|
(20 |
) |
| Net lease cost |
|
$ |
966 |
|
|
$ |
949 |
|
Other information related to leases was as follows:
| |
|
For the Quarter Ended |
|
| |
|
September 30, 2022 |
|
|
September 24, 2021 |
|
| Cash paid for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
|
|
| Operating cash flows from operating leases |
|
$ |
748 |
|
|
$ |
742 |
|
| Operating cash flows from finance leases |
|
|
201 |
|
|
|
136 |
|
| Financing cash flows from finance leases |
|
|
64 |
|
|
|
72 |
|
| Right-of-use-assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
|
|
| Operating leases |
|
|
528 |
|
|
|
165 |
|
| Finance leases |
|
|
51 |
|
|
|
174 |
|
| Weighted average remaining lease term (years): |
|
|
|
|
|
|
|
|
| Operating leases |
|
|
8.8 |
|
|
|
9.6 |
|
| Finance lease |
|
|
11.4 |
|
|
|
11.7 |
|
| Weighted average discount rate: |
|
|
|
|
|
|
|
|
| Operating leases |
|
|
7.2 |
% |
|
|
7.2 |
% |
| Finance leases |
|
|
5.2 |
% |
|
|
5.2 |
% |
Approximate future minimum rental commitments under non-cancellable leases as of September 30, 2022 were as follows:
| |
|
Operating Leases |
|
|
Finance Leases |
|
| 2023 |
|
$ |
2,297 |
|
|
$ |
864 |
|
| 2024 |
|
|
2,411 |
|
|
|
834 |
|
| 2025 |
|
|
1,460 |
|
|
|
591 |
|
| 2026 |
|
|
1,317 |
|
|
|
525 |
|
| 2027 |
|
|
1,312 |
|
|
|
466 |
|
| Thereafter |
|
|
7,005 |
|
|
|
3,465 |
|
| Total future lease payments |
|
|
15,802 |
|
|
|
6,744 |
|
| Less: Amount representing interest |
|
|
(4,280 |
) |
|
|
(1,901 |
) |
| Present value of future payments |
|
$ |
11,522 |
|
|
$ |
4,843 |
|
|