Leases

6 Months Ended

Jun. 29, 2019

Leases [Abstract]

Leases

NOTE 8 – 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 its consolidated financial statements.

The components of lease expense were as follows:

	Six months ended June 29, 2019
Operating leases:
Operating costs	$	418
Selling, general and administrative expenses		922
		1,340
Short-term leases:
Operating costs		—
Selling, general and administrative expenses		255
		255
Total lease expense	$	1,595

Supplemental balance sheet information related to leases was as follows:

	Financial Statement Classification	June 29, 2019
Operating ROU assets	Right of Use asset	$	2,619
Operating lease liabilities:
Current operating lease liabilities	Other current liabilities	$	933
Noncurrent operating lease liabilities	Long Term Leases		1,718
Total operating lease liabilities		$	2,651

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

	At June 29, 2019
Weighted average remaining lease term of operating leases		2.7 years
Weighted average discount rate of operating leases		4.0	%

Maturities of operating lease liabilities as of June 29, 2019 are as follows:

Year ending:	Amount
2019 (remaining months)	$	504
2020		1,012
2021		958
2022		288
Total lease payments	$	2,762
Less: imputed interest		(111	)
Total lease liabilities	$	2,651

The aggregate amount of future minimum annual rental payments applicable to non-cancelable 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