Note 7 - Leases

3 Months Ended

Mar. 28, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, the terms of which are more fully described in our 2019 10-K. All of our facilities are leased under operating leases, which expire at various times through 2027, with a weighted-average remaining lease term of 5.6 years and a weighted-average discount rate of 7.0% as of March 28, 2020. We recorded fixed operating lease expenses of $1.9 million and $2.0 million for the first quarter of fiscal 2020 and 2019, respectively. 

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first three months of fiscal 2020:

Operating lease right-of-use assets	(in thousands)
Balance as of December 28, 2019	$	23,591
Right-of-use assets obtained in exchange for new lease obligations during the period		49
Reduction in the carrying amount of right-of-use assets during the period		(1,494	)
Adjustments for present value and foreign currency effects		66
Balance as of March 28, 2020	$	22,212

Operating lease liabilities	(in thousands)
Balance as of December 28, 2019	$	26,124
Lease liabilities incurred for new lease obligations during the period		49
Accretion of lease liabilities		431
Operating cash used by payments on lease liabilities		(1,934	)
Adjustments for present value, foreign currency, and restructuring liability effects		66
Balance as of March 28, 2020		24,736
Less: Current portion of operating lease liabilities		(4,564	)
Long-term operating lease liabilities, net of current portion	$	20,172

Maturities of operating lease liabilities as of March 28, 2020 are as follows:

Fiscal year	(in thousands)
2020 (remaining 9 months)	$	4,531
2021		5,480
2022		4,464
2023		4,592
2024		4,711
Thereafter		6,703
Total lease payments		30,481
Less: amount representing interest		(5,610	)
Less: amount representing restructuring liability adjustments		(135	)
Total lease liabilities	$	24,736

Prior to 2020, the reporting of future minimum lease commitments included the lease obligations associated with previously restructured facilities. Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $6.2 million at March 28, 2020 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.