Leases

3 Months Ended

Mar. 29, 2019

Note 8 – Leases

Finance Leases

The Company entered into finance leases primarily related to purchases of equipment used for manufacturing or computer-related equipment. These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term. Supplemental balance sheet information related to finance leases was as follows (dollars in thousands):

	March 29, 2019
Machinery and equipment	$	2,121
Furniture and fixtures		1,123
Leasehold improvements		27
Finance lease right-of-use assets, gross		3,271
Less accumulated depreciation		826
Finance lease right-of-use assets, net	$	2,445

Total finance lease liability	$	1,814
Weighted-average remaining lease term (in years)		1.5
Weighted-average discount rate		6.63	%

Supplemental cash flow information related to finance leases was as follows (dollars in thousands):

	Three Months Ended
	March 29, 2019
Amortization of finance lease right-of-use asset	$	161
Interest on finance lease liabilities		19
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows		19
Financing cash flows		365
Right-of-use assets obtained in exchange for new finance lease liabilities		642

Operating Leases

The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers. These operating leases are two to five years in length with options to extend. The Company did not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease. Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator. For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases was as follows (dollars in thousands):

Note 8 – Leases (Continued)

Operating Leases (Continued)

	March 29, 2019
Machinery and equipment	$	734
Furniture and fixtures		462
Real property		9,370
Operating lease right-of-use assets, gross		10,566
Less accumulated depreciation		3,937
Operating lease right-of-use assets, net	$	6,629

Total operating lease liability	$	6,765
Weighted-average remaining lease term (in years)		2.5
Weighted-average discount rate		1.83	%

Supplemental cash flow information related to operating leases was as follows (dollars in thousands):

	Three Months Ended
	March 29, 2019
Operating lease cost	$	611
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows		601
Right-of-use assets obtained in exchange for new operating lease liabilities		1,464

Future Minimum Lease Commitments

Estimated future minimum lease payments under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of March 29, 2019 and December 28, 2018 are as follows (in thousands):

As of March 29, 2019 12 Months Ended	Operating Leases		Finance Leases
March 2020	$	2,663	$	1,221
March 2021		2,237		572
March 2022		1,042		110
March 2023		779		—
March 2024		349		—
Thereafter		7		—
Total minimum lease payments, including interest	$	7,077	$	1,903
Less amounts representing interest		312		89
Total minimum lease payments	$	6,765	$	1,814

As of December 28, 2018 12 Months Ended	Operating Leases		Finance Leases
December 2019	$	2,606	$	1,153
December 2020		2,202		332
December 2021		980		143
December 2022		507		4
December 2023		202		—
Thereafter		12		—
Total minimum lease payments, including interest		6,509		1,632
Less amounts representing interest		—		75
Total minimum lease payments	$	6,509	$	1,557