LEASES

9 Months Ended

Apr. 02, 2022

Leases [Abstract]

LESSEE, OPERATING LEASES

Leases

The Company has several commitments under operating and financing leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years.

The components of lease cost for the three and nine months ended April 2, 2022 were (in thousands): 

Lease cost	Classification	Three Months Ended		Nine Months Ended
Operating lease cost	Cost of sales	$	1,645	$	4,676
Operating lease cost	Selling, general and administrative expenses	$	184	742
Financing lease cost	Cost of sales	$	271	$	1,322
Financing lease cost	Selling, general and administrative expenses	$	7	$	34
Total lease cost		$	2,107	$	6,774
Fixed lease cost		$	1,717	$	5,575
Short-term lease cost		$	390	$	1,199
Total lease cost		$	2,107	$	6,774

Amounts reported in the Consolidated Balance Sheet as of April 2, 2022 were (in thousands, except weighted average lease term and discount rate):

	April 2, 2022
Operating Leases:
Operating lease right of use assets	$	17,838
Operating lease liabilities (1)	$	17,796
Weighted-average remaining lease term (in years)
Operating leases	5.39
Weighted-average discount rate
Operating leases	4.0		%
Financing Leases (2):
Financing lease right of use assets	$	9,698
Financing lease liabilities	$	8,757
Weighted-average remaining lease term (in years)
Financing leases	2.69
Weighted-average discount rate
Financing leases	8.5		%

(1) The current portion of the total operating lease liabilities of $5.4 million is classified under Other Current Liabilities, resulting in $12.4 million classified under Operating Lease Liabilities in the Long-term Liabilities section of the condensed consolidated balance sheet.

(2) The total finance lease right of use assets of $9.7 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $3.9 million is classified under Current portion of debt, net, resulting in $4.8 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Other information related to leases was as follows (in thousands):

	Three Months Ended		Nine Months Ended
	April 2, 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,230	$	3,154
Financing cash flows used in financing leases	$	1,484	$	2,561

Future lease payments under non-cancellable leases as of April 2, 2022 are as follows (in thousands):

Fiscal Years Ending	Operating Leases		Finance Leases
2022 (1)	$	1,419	$	991
2023	4,666		3,965
2024	3,811		3,637
2025	3,462		630
2026	2,667		107
Thereafter	4,521		72
Total undiscounted lease payments	20,546		9,402
Less: present value discount	(2,750)		(645)
Total lease liabilities	$	17,796	$	8,757

(1) Represents estimated lease payments for the remaining three-month period ending July 2, 2022.