Leases

3 Months Ended

Apr. 03, 2020

Leases [Abstract]

Leases

Note 8 – Leases

Finance Leases

The Company entered into finance leases primarily related to purchases of equipment used for manufacturing or computer-related equipment.  These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term.  Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands):

	April 3, 2020			January 3, 2020
Machinery and equipment	$	568		$	1,885
Computer equipment and software		883			912
Furniture and fixtures		—			102
Leasehold improvements		—			27
Finance lease right-of-use assets, gross		1,451			2,926
Less accumulated depreciation		734			1,059
Finance lease right-of-use assets, net	$	717		$	1,867
Total finance lease liability	$	689		$	926
Weighted-average remaining lease term (in years)		1.0			1.1
Weighted-average discount rate		6.02	%		6.17	%

Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands):

	Three Months Ended
	April 3, 2020		March 29, 2019
Amortization of finance lease right-of-use asset	$	117	$	161
Interest on finance lease liabilities		10		19
Cash paid for amounts included in the measurement of finance lease liabilities:
Operating cash flows		10		19
Financing cash flows		236		365
Right-of-use assets obtained in exchange for new finance lease liabilities		—		642

Operating Leases

The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers.  These operating leases are two to five years in length with options to extend.  The Company did not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease.  Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator.  For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands):

Note 8 – Leases (Continued)

Operating Leases (Continued)

	April 3, 2020			January 3, 2020
Machinery and equipment	$	781		$	765
Computer equipment and software		462			462
Real property		11,089			11,116
Operating lease right-of-use assets, gross		12,332			12,343
Less accumulated depreciation		6,294			5,659
Operating lease right-of-use assets, net	$	6,038		$	6,684
Total operating lease liability	$	6,143		$	6,786
Weighted-average remaining lease term (in years)		2.1			2.3
Weighted-average discount rate		1.63	%		1.82	%

Supplemental cash flow information related to operating leases was as follows (dollars in thousands):

	Three Months Ended
	April 3, 2020		March 29, 2019
Operating lease cost	$	740	$	611
Cash paid for amounts included in the measurement of operating lease liabilities:
Operating cash flows		738		601
Right-of-use assets obtained in exchange for new operating lease liabilities		69		1,464

Future Minimum Lease Commitments

Estimated future minimum lease payments under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of April 3, 2020 is as follows (in thousands):

As of April 3, 2020 12 Months Ended	Operating Leases		Finance Leases
March 2021	$	2,660	$	580
March 2022		1,480		119
March 2023		1,219		8
March 2024		792		8
March 2025		236		—
Thereafter		29		—
Total minimum lease payments, including interest	$	6,416	$	715
Less amounts representing interest		273		26
Total minimum lease payments	$	6,143	$	689