Leases

12 Months Ended

Jul. 01, 2022

The Company enters into lease arrangements to facilitate its operations, including manufacturing, storage, as well as engineering, sales, marketing and administration resources. The Company measures its lease obligations in accordance with ASC 842, which requires lessees to record a ROU asset and lease liability for most lease arrangements. The Company adopted ASC 842 as of July 1, 2019 using the optional transition method and, as a result, there have been no reclassifications of prior comparable periods due to this adoption. Finance leases are not material to the Company's consolidated financial statements and therefore are excluded from the following disclosures.

SUPPLEMENTAL BALANCE SHEET INFORMATION

Supplemental operating lease balance sheet information is summarized as follows:


	As of		As of
	July 1, 2022		July 2, 2021
Operating lease right-of-use assets, net	$	66,366	$	66,373

Accrued expenses(1)	$	11,246	$	10,020
Operating lease liabilities	69,888		71,508
Total operating lease liabilities	$	81,134	$	81,528

(1) The short term portion of the Operating lease liabilities is included within Accrued expenses on the Consolidated Balance Sheet.

OTHER SUPPLEMENTAL INFORMATION

Other supplemental operating lease information is summarized as follows:


	For the Fiscal Year Ended			For the Fiscal Year Ended
	July 1, 2022			July 2, 2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	11,119		$	7,923
Right-of-use assets obtained in exchange for new lease liabilities	$	10,502		$	15,076
Weighted average remaining lease term	7.6 years			8.2 years
Weighted average discount rate	4.58		%	4.66		%

MATURITIES OF LEASE COMMITMENTS

Maturities of operating lease commitments as of July 1, 2022 were as follows:


Fiscal Year	Totals
2023	$	14,757
2024	13,696
2025	13,142
2026	11,127
2027	10,467
Thereafter	34,315
Total lease payments	97,504
Less: imputed interest	(16,370)

Present value of operating lease liabilities	$	81,134

As previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended July 2, 2021, maturities of operating lease commitments were as follows:


Fiscal Year	Totals
2022	$	13,626
2023	12,997
2024	12,137
2025	11,571
2026	9,682
Thereafter	40,017
Total lease payments	100,030
Less: imputed interest	(18,502)
Present value of operating lease liabilities	$	81,528

During fiscal 2022, 2021 and 2020 the Company recognized operating lease expense of $14,332, $11,714 and $10,029 respectively. There were no material restrictions, covenants, sale and leaseback transactions, variable lease payments or residual value guarantees imposed by the Company's leases at July 1, 2022.