Leases

3 Months Ended

Mar. 30, 2019

Leases [Abstract]

Leases

NOTE 7 – LEASES

The Company leases land, office space and equipment. Arrangements are assessed at inception to determine if a lease exists and, with the adoption of ASC 842, “Leases,” right-of-use (“ROU”) assets and lease liabilities are recognized based on the present value of lease payments over the lease term. Because the Company’s leases do not provide an implicit rate of return, the Company uses its incremental borrowing rate at the inception of a lease to calculate the present value of lease payments. The Company has elected to apply the short-term lease exception for all asset classes, excluding lease liabilities from the balance sheet and recognizing the lease payments in the period they are incurred.

The Company’s finance leases are immaterial to our consolidated financial statements.

The components of lease expense were as follows:

	Three months ended March 30, 2019
Operating leases:
Operating costs	$	213
Selling, general and administrative expenses		487
		700
Short-term leases:
Operating costs		—
Selling, general and administrative expenses		119
		119
Total lease expense	$	819

Supplemental balance sheet information related to leases was as follows:

	Financial Statement Classification	March 30, 2019
Operating ROU assets	Right of Use asset	$	1,378
Operating lease liabilities:
Current operating lease liabilities	Other current liabilities	$	498
Noncurrent operating lease liabilities	Long Term Leases		892
Total operating lease liabilities		$	1,390

The weighted average remaining lease term and weighted average discount rate were as follows:

	Three months ended March 30, 2019
Weighted average remaining lease term of operating leases		2.7 years
Weighted average discount rate of operating leases		4.1	%

Maturities of operating lease liabilities as of March 30, 2019 are as follows:

Year ending:	Amount
2019 (remaining months)	$	396
2020		555
2021		434
2022		64
Total lease payments	$	1,449
Less: imputed interest		(59	)
Total lease liabilities	$	1,390

The aggregate amount of future minimum annual rental payments applicable to noncancelable leases as of December 29, 2018 were as follows:

Year ending:	Minimal Rental Payments
2019	$	445
2020		445
2021		387
2022		64
Total	$	1,341