Leases

3 Months Ended

Sep. 27, 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 September 27, 2024, the maturities of the Company’s operating lease liabilities were as follows:


(in thousands)
2025 (remaining nine months)	$	1,266
2026	1,651
2027	814
2028	363
2029	330
Thereafter	1,305
Total undiscounted lease payments	5,729
Less imputed interest	(879)
Total present value of lease liabilities	$	4,850	(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 three months ended September 27, 2024 and September 29, 2023 was $0.5 million, for both periods.

Rental expense for short-term leases for the three months ended September 27, 2024 and September 29, 2023 was de minimis, and $0.4 million, respectively.

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


	As of September 27, 2024		As of June 28, 2024
Weighted-average remaining lease term (in years)	5.5		5.6
Weighted-average discount rate	5.6	%	5.6	%

The following table presents supplemental disclosure for the unaudited condensed consolidated statements of cash flows related to operating and finance leases for the three months ended September 27, 2024 and September 29, 2023:


	Three Months Ended
(in thousands)		September 27, 2024		September 29, 2023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases		$	745	$	959

ROU assets obtained in exchange for lease liabilities		$	159	$	4,936