Leases

12 Months Ended

Jun. 28, 2024

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., Israel and Singapore under operating lease arrangements that expire at various dates through 2034. Certain of these lease arrangements provide the Company the ability to extend the lease term 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 transaction in the form of a lease of office and manufacturing space.

Operating leases

As of June 28, 2024, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2025	$	1,609
2026	1,554
2027	783
2028	343
2029	327
Thereafter	1,305
Total undiscounted lease payments	5,921
Less: imputed interest	(931)
Total present value of lease liabilities	$	4,990	(1)

(1)Includes current portion of operating lease liabilities of $1.4 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 years ended June 28, 2024, June 30, 2023 and June 24, 2022 was $2.4 million, $2.4 million and $2.2 million, respectively.

Rental expense for short-term leases for the years ended June 28, 2024, June 30, 2023 and June 24, 2022 was $0.9 million, $0.8 million and $0.2 million, respectively.

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


	As of June 28, 2024		As of June 30, 2023
Weighted-average remaining lease term (in years)
Operating leases	5.6		1.2
Weighted-average discount rate
Operating leases	5.6	%	3.4	%

The following information represents supplemental disclosure for the statement of cash flows related to operating leases:


(in thousands)	Year Ended June 28, 2024		Year Ended June 30, 2023		Year Ended June 24, 2022
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,027	$	2,477	$	2,533
Financing cash flows from finance leases	$	—	$	9	$	7
ROU assets obtained in exchange for lease liabilities	$	5,797	$	312	$	38