Note 15 - Leases

6 Months Ended

Apr. 02, 2022

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(15) Leases

We have operating leases for certain equipment, office space and vehicles. We determine whether an arrangement is a lease at its inception if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheets. Lease expense for operating leases with original terms of more than twelve months was $350,000 and $361,000 for the three-month periods ended April 2, 2022 and April 3, 2021, respectively, and $717,000 and $721,000 for the six-month periods ended April 2, 2022 and April 3, 2021, respectively.

Most of our leases include options to extend or terminate the leases which are exercised at our sole discretion. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate, which approximates the rate to borrow on a collateralized basis, as of the commencement date in determining the present value of lease payments.

Supplemental cash flow and non-cash information related to leases is as follows:

	Six Months Ended
(In thousands)	April 2, 2022		April 3, 2021
Cash paid for operating leases included in operating cash flows	$	717	$	724
Right-of-use assets obtained in exchange for new lease obligations		1,124		303

Supplemental balance sheet information related to leases is as follows:

(In thousands)	April 2, 2022		October 2, 2021
Right-of-use assets:
Other assets	$	2,135	$	1,717
Lease liabilities:
Accrued expenses		1,191		1,030
Other liabilities		948		695
Total operating lease liabilities	$	2,139	$	1,725

The weighted average remaining lease terms and discount rates for operating leases are as follows:

	April 2, 2022			October 2, 2021
Weighted average lease term (years)		2.0			1.8
Weighted average discount rate		3.7	%		4.1	%

Aggregate future operating lease payments as of April 2, 2022 are as follows:

(In thousands)
2022	$	675
2023		989
2024		489
2025		68
Total future operating lease payments		2,221
Less: imputed interest		(82	)
Present value of lease liabilities	$	2,139