Leases

9 Months Ended

Mar. 25, 2022

The Company leases facilities under non-cancelable operating lease agreements. The Company leases a portion of its capital equipment and vehicles, certain land and buildings for its facilities in Thailand, the Cayman Islands, the PRC, the U.S., the U.K., Israel and Singapore under operating lease arrangements that expire at various dates through 2025. Certain of these lease arrangements provide the Company the ability to extend the lease from one to five years following the expiration of the current term. However, the Company has excluded all lease extension options from its right of use (“ROU”) assets and lease liabilities as the Company is not reasonably assured that it will exercise these options. None of the lease agreements contain residual value guarantees provided by the lessee. The Company also has one intercompany lease of office and manufacturing space.

Operating leases

As of March 25, 2022, the maturities of the Company’s operating lease liabilities were as follows:


(amount in thousands)
2022 (remaining three months)	$	687
2023	2,675
2024	1,258
2025	41

Total undiscounted lease payments	4,661
Less imputed interest	(146)
Total present value of lease liabilities	$	4,515	(1)

(1)Included current portion of operating lease liabilities of $2.6 million.

Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term. Rental expense for long-term leases for the three and nine months ended March 25, 2022 was $0.7 million and $2.1 million, respectively, and for the three and nine months ended March 26, 2021 was $0.7 million and $1.9 million, respectively. Rental expense for short-term leases for the three and nine months ended March 25, 2022 was $0.1 million and $0.2 million, respectively, and for the three and nine months ended March 26, 2021 was $0.1 million and $0.3 million, respectively.

The following summarizes additional information related to the Company’s operating leases:


	As of March 25, 2022		As of June 25, 2021
Weighted-average remaining lease term (in years)	2.0		2.7
Weighted-average discount rate	3.5	%	3.5	%

The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three and nine months ended March 25, 2022 and March 26, 2021:


	Three Months Ended				Nine Months Ended
(amount in thousands)	March 25, 2022		March 26, 2021		March 25, 2022		March 26, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	678	$	628	$	2,076	$	1,889
Financing cash flows from finance leases	$	—	$	—	$	—	$	100
ROU assets obtained in exchange for lease liabilities	$	—	$	76	$	38	$	443