Note 5 - Leases

3 Months Ended

Jun. 02, 2024

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

5.  LEASES

The Company has operating leases related to land, office space, warehouse space and equipment. All of the Company’s leases have been assessed to be operating leases. Renewal options are included in the lease terms to the extent the Company is reasonably certain to exercise the options. The exercise of lease renewal options is at the Company’s sole discretion. The incremental borrowing rate represents the Company’s ability to borrow on a collateralized basis over a term similar to the lease term. The leases typically contain renewal options for periods ranging from one year to ten years and require the Company to pay real estate taxes and other operating costs. The latest land lease expiration is 2068 assuming exercise of all applicable renewal options by the Company. The Company’s existing leases are not subject to any restrictions or covenants which preclude its ability to pay dividends, obtain financing or exercise its available renewal options.

Future minimum lease payments under non-cancellable operating leases as of June 2, 2024 are as follows:

Fiscal Year:
2025	$	22
2026		-
2027		-
2028		-
2029		3
Thereafter		159
Total undiscounted operating lease payments		184
Less imputed interest		(60	)
Present value of operating lease payments	$	124

The above payment schedule includes renewal options that the Company is reasonably likely to exercise. Leases with an initial term of 12 months or less are not recorded on the Company’s condensed consolidated balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the terms of the leases.

For the 13 weeks ended June 2, 2024, the Company’s operating lease expenses were $15. Cash payments of $13, pertaining to operating leases, are reflected in the cash flow statement under cash flows from operating activities.

The following table sets forth the right-of-use assets and operating lease liabilities as of June 2, 2024:

Operating right-of-use assets	$	81
Operating lease liabilities	$	17
Long-term operating lease liabilities		107
Total operating lease liabilities	$	124

The Company’s weighted average remaining lease term for its operating leases is 10.6 years.