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Leases
6 Months Ended
Jun. 28, 2019
Leases [Abstract]  
Leases

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 consisted of the following (dollars in thousands):

 

 

 

June 28, 2019

 

Machinery and equipment

 

$

2,158

 

Furniture and fixtures

 

 

1,042

 

Leasehold improvements

 

 

27

 

Finance lease right-of-use assets, gross

 

 

3,227

 

Less accumulated depreciation

 

 

889

 

Finance lease right-of-use assets, net

 

$

2,338

 

 

 

 

 

 

Total finance lease liability

 

$

1,540

 

Weighted-average remaining lease term (in years)

 

 

1.4

 

Weighted-average discount rate

 

 

6.47

%

 

Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands):

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 28,

2019

 

June 28,

2019

 

Amortization of finance lease right-of-use asset

 

$

145

 

$

306

 

Interest on finance lease liabilities

 

 

22

 

 

41

 

Cash paid for amounts included in the measurement of finance lease liabilities:

 

 

 

 

 

 

 

Operating cash flows

 

 

22

 

 

41

 

Financing cash flows

 

 

316

 

 

681

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

 

37

 

 

679

 

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 consisted of the following (dollars in thousands):

Note 8 – Leases (Continued)

Operating Leases (Continued)

 

 

June 28, 2019

 

Machinery and equipment

$

757

 

Furniture and fixtures

 

462

 

Real property

 

10,552

 

Operating lease right-of-use assets, gross

 

11,771

 

Less accumulated depreciation

 

4,552

 

Operating lease right-of-use assets, net

$

7,219

 

 

 

 

 

Total operating lease liability

$

7,346

 

Weighted-average remaining lease term (in years)

 

2.6

 

Weighted-average discount rate

 

1.84

%

 

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

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 28,

2019

 

 

June 28,

2019

 

Operating lease cost

 

$

683

 

 

$

1,294

 

Cash paid for amounts included in the measurement of operating lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows

 

 

691

 

 

 

1,292

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

1,193

 

 

 

2,657

 

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 June 28, 2019 and December 28, 2018 are as follows (in thousands):

 

As of June 28, 2019

12 Months Ended

 

Operating Leases

 

 

Finance Leases

 

June 2020

 

$

2,916

 

 

$

1,009

 

June 2021

 

 

2,201

 

 

 

506

 

June 2022

 

 

1,115

 

 

 

78

 

June 2023

 

 

942

 

 

 

8

 

June 2024

 

 

440

 

 

 

6

 

Thereafter

 

 

2

 

 

 

 

Total minimum lease payments, including interest

 

$

7,616

 

 

$

1,607

 

Less amounts representing interest

 

 

270

 

 

 

67

 

Total minimum lease payments

 

$

7,346

 

 

$

1,540

 

 

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