Lease Obligations and Other Commitments

3 Months Ended

Aug. 27, 2022

Commitments And Contingencies Disclosure [Abstract]

Lease Obligations and Other Commitments

4.  LEASE OBLIGATIONS AND OTHER COMMITMENTS

The Company leases real and personal property in the normal course of business under various operating and financing 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. Financing leases are used for computer servers.

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 both operating and financing leases were as follows (in thousands):

Lease Type	August 27, 2022		May 28, 2022
Operating lease ROU asset	$	2,788	$	3,024
Financing lease ROU asset		—		215
Total lease ROU asset	$	2,788	$	3,239
Operating lease liability current	$	1,076	$	1,109
Operating lease liability non-current	$	1,713	$	1,915

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

		Three Months Ended
		August 27, 2022		August 28, 2021
Consolidated operating lease expense	Operating expenses	$	455	$	455
Consolidated financing lease amortization	Operating expenses		—		23
Consolidated financing lease interest	Interest expense		—		2
Consolidated financing lease expense			—		25
Net lease cost		$	455	$	480

The approximate future minimum lease payments under operating leases at August 27, 2022 were as follows (in thousands):

Fiscal Year	Operating Leases
Remaining 2023	$	927
2024		897
2025		631
2026		397
2027		74
Thereafter		15
Total lease payments		2,941
Less imputed interest		153
Net minimum lease payments	$	2,788

The weighted average remaining lease terms and interest rates of leases held by the Company as of August 27, 2022 were as follows:

Lease Type	Weighted Average Remaining Lease Term in Years	Weighted Average Interest Rate
Operating leases	3.0	4.3%

The cash outflows of the leasing activity of the Company as lessee for the three months ending August 27, 2022 and August 28, 2021 were as follows (in thousands):

		Three Months Ended
Cash Flow Source	Classification	August 27, 2022		August 28, 2021
Operating cash flows from operating leases	Operating activities	$	235	$	1,554
Operating cash flows from financing leases	Operating activities		—		44
Finance cash flows from financing leases	Financing activities		—		45