The Company has several commitments under operating leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 11 years.

The Company has some operating leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability.

For operating leases, management assumed a discount rate of 4% - 5.9%. The weighted average discount rate is disclosed in the tables below.


		Year Ended
Lease cost	Classification	June 27, 2020
Operating lease cost	Cost of sales	$	4,511
Operating lease cost	Selling, general and administrative expenses	1,266
Total lease cost		$	5,777

Amounts reported in the Consolidated Balance Sheet as of June 27, 2020 were (in thousands, except weighted average lease term and discount rate):


	June 27, 2020
Operating Leases:
Operating lease right of use assets	$	17,568
Operating lease liabilities⁽¹⁾	17,173

Weighted-average remaining lease term (in years)
Operating leases	6.46

Weighted-average discount rate
Operating leases	4.07		%

(1) The current portion of the total operating lease liabilities of $4.5 million is classified under Other Current Liabilities, resulting in $12.6 million classified under Operating Lease Liabilities in the Long-term Liabilities section of the consolidated balance sheet.



						June 27, 2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases						4,237

The Company entered into one new lease during the fiscal year, resulting in a non-cash impact of $0.4 million.

Future lease payments under non-cancellable leases as of June 27, 2020 are as follows (in thousands):


Fiscal Years Ending	Operating Leases
2021	$	4,250
2022	3,373
2023	2,598
2024	2,004
2025	1,894
Thereafter	5,674
Total undiscounted lease payments	19,793
Less: present value discount	2,620
Total lease liabilities	$	17,173

As previously disclosed in our Annual Report on Form 10-K for the fiscal year ended June 29, 2019 and under the previous lease accounting standard ASC 840, the aggregate future minimum payments under non-cancellable operating leases, as of June 29, 2019, are as follows (in thousands):


Fiscal Years Ending	Operating Leases
2020	$	4,777
2021	3,563
2022	2,641
2023	1,866
2024	1,271
Thereafter	4,121
Total minimum lease payments	$	18,239