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Lease Obligations and Other Commitments
6 Months Ended
Dec. 02, 2023
Commitments and Contingencies Disclosure [Abstract]  
Lease Obligations and Other Commitments

6. LEASE OBLIGATIONS AND OTHER COMMITMENTS

The Company leases real and personal property in the normal course of business under various operating leases. The Company uses operating leases for facility space and automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company.

Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company determines it is reasonably certain of renewal.

The gross amounts of assets and liabilities related to operating leases were as follows (in thousands):

 

Lease Type

 

December 2, 2023

 

 

May 27, 2023

 

Operating lease right of use asset

 

$

2,145

 

 

$

2,457

 

Operating lease liability current

 

 

1,033

 

 

 

1,028

 

Operating lease liability non-current

 

 

1,112

 

 

 

1,429

 

 

The components of lease costs were as follows (in thousands):

 

 

 

 

Three Months Ended

 

 

 

 

 

December 2, 2023

 

 

November 26, 2022

 

Consolidated operating lease expense

 

Operating expenses

 

$

417

 

 

$

411

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

December 2, 2023

 

 

November 26, 2022

 

Consolidated operating lease expense

 

Operating expenses

 

$

871

 

 

$

865

 

The approximate future minimum lease payments under operating leases at December 2, 2023 were as follows (in thousands):

 

Fiscal Year

 

Operating Leases

 

Remaining 2024

 

$

572

 

2025

 

 

936

 

2026

 

 

543

 

2027

 

 

151

 

2028

 

 

29

 

Thereafter

 

 

13

 

     Total lease payments

 

 

2,244

 

Less imputed interest

 

 

99

 

     Net minimum lease payments

 

$

2,145

 

The weighted average remaining lease terms and interest rates of leases held by the Company as of December 2, 2023 were as follows:

 

Lease Type

 

Weighted Average Remaining
Lease Term in Years

 

Weighted Average Interest Rate

Operating leases

 

2.3

 

4.2%

The cash outflows of the leasing activity of the Company as lessee for the six months ending December 2, 2023 and November 26, 2022 were as follows (in thousands):

 

 

 

 

Six Months Ended

 

Cash Flow Source

 

Classification

 

December 2, 2023

 

 

November 26, 2022

 

Operating cash flows from operating leases

 

Operating activities

 

$

312

 

 

$

496