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Leases
3 Months Ended
Nov. 26, 2021
Leases [Abstract]  
Leases

Leases

 

As of November 26, 2021 and August 27, 2021, we had operating leases through which we utilize facilities, offices and equipment in our manufacturing operations, research and development activities and selling, general and administrative functions. Sublease income was not significant in the first quarters of 2022 or 2021. The components of operating lease expense were as follows:

 

Three months ended

 

November 26,

2021

 

 

November 27,

2020

 

 

 

 

 

 

 

 

 

 

Fixed lease cost

 

$

3,303

 

 

$

1,539

 

Variable lease cost

 

 

368

 

 

 

272

 

Short-term lease cost

 

 

76

 

 

 

58

 

 

 

$

3,747

 

 

$

1,869

 

 

Cash flows used for operating activities in the first quarters of 2022 and 2021 included payments for operating leases of $2.9 million and $1.6 million, respectively. Noncash acquisitions of right-of-use assets were not significant in the first quarters of 2022 and 2021.

 

As of November 26, 2021 and August 27, 2021, the weighted-average remaining lease term for our operating leases was 6.0 years and 6.1 years, respectively. Certain of our operating leases include one or more options to extend the lease term for periods from two to five years. In determining the present value of our operating lease liabilities, we have assumed we will not extend any lease terms. As of November 26, 2021 and August 27, 2021, the weighted-average discount rate for our operating leases was 6.8% and 6.7%, respectively.

 

Minimum payments of lease liabilities as of November 26, 2021 were as follows:

 

 

 

 

 

 

Remainder of 2022

 

$

9,679

 

2023

 

 

10,560

 

2024

 

 

7,249

 

2025

 

 

4,665

 

2026

 

 

3,584

 

2027 and thereafter

 

 

15,671

 

 

 

 

51,408

 

Less imputed interest

 

 

(11,473

)

Present value of total lease liabilities

 

$

39,935

 

 

The table above excludes lease liabilities for leases that have been executed but not yet commenced. As of November 26, 2021, we had such lease commitments relating to operating lease payment obligations of $51.8 million for a building lease with a term of 16 years. We will recognize a right-of-use asset and an associated lease liability at the time such asset becomes available for our use. Such lease is currently expected to commence in the second half of calendar 2022.