Leases

12 Months Ended

Dec. 26, 2020

Leases [Abstract]

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 components of lease expense were as follows (amounts in thousands):

	Financial Statement Classification	Year ended December 26, 2020		Year ended December 28, 2019
Finance leases:
Amortization expense	SG&A Expense	$	92	$	33
Interest expense	Interest expense, net		20		7
		$	112	$	40
Operating leases:
Operating costs	Operating costs		633		1,214
Selling, general and administrative expenses	SG&A Expense		1,830		1,857
		$	2,463	$	3,071
Total lease expense		$	2,575	$	3,111

Supplemental balance sheet information related to leases was as follows (amounts in thousands):

	Financial Statement Classification	December 26, 2020		December 28, 2019
ROU Assets:
Operating leases	Right of Use asset	$	1,628	$	2,133
Finance leases	Property and equipment, net		442		318
Total ROU Assets:		$	2,070	$	2,451
Lease liabilities:
Current liabilities
Operating leases	Current portion of leases	$	1,421	$	961
Finance leases	Current portion of leases		120		80
Noncurrent Liabilities:
Operating leases	Long Term Leases		286		1,220
Finance leases	Long Term Leases		322		238
Total lease liabilities		$	2,149	$	2,499

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

	December 26, 2020			December 28, 2019
Weighted average remaining lease term (years)
Operating leases		1.2			2.2
Finance leases		4.2			3.3
Weighted average discount rate
Operating leases		1.7	%		3.3	%
Finance leases		5.8	%		11.0	%

Maturities of operating lease liabilities as of December 26, 2020 are as follows (dollars in thousands):

Years ending:		Operating leases			Finance leases			Total
	2021		1,448			133			1,581
	2022		288			113			401
	2023		—			93			93
	2024		—			73			73
	2025 and thereafter		—			57			57
	Total lease payments		1,736			469			2,205
	Less: imputed interest		(29	)		(27	)		(56	)
	Total lease liabilities	$	1,707		$	442		$	2,149