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Leases
 3 Months Ended
Oct. 01, 2022
Leases [Abstract]  
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 Company has some 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%. The weighted average discount rate is disclosed in the tables below.
The components of lease cost for the three months ended October 1, 2022 and October 2, 2021 were (in thousands): 
Lease costClassificationOctober 1, 2022October 2, 2021
Operating lease costCost of sales$1,334 $1,433 
Operating lease costSelling, general and administrative expenses$184 $308 
Financing lease costCost of sales$900 $434 
Financing lease costSelling, general and administrative expenses$38 $10 
Total lease cost$2,456 $2,185 
Fixed lease cost$2,221 $1,777 
Short-term lease cost $235 $408 
Total lease cost$2,456 $2,185 

Amounts reported in the Consolidated Balance Sheet as of October 1, 2022 were (in thousands, except weighted average lease term and discount rate):
October 1, 2022
Operating Leases:
Operating lease right of use assets$19,497 
Operating lease liabilities (1)
$19,497 
Weighted-average remaining lease term (in years)
Operating leases5.08
Weighted-average discount rate
Operating leases4.0 %
Financing Leases (2):
Financing lease right of use assets$11,373 
Financing lease liabilities$10,120 
Weighted-average remaining lease term (in years)
Financing leases2.31
Weighted-average discount rate
Financing leases8.8 %
(1) The current portion of the total operating lease liabilities of $5.4 million is classified under Other Current Liabilities, resulting in $14.1 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 $11.4 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $4.4 million is classified under Current portion of debt, net, resulting in $5.7 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
October 1, 2022October 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,847 $1,446 
Financing cash flows used in financing leases$1,022 $401 
Future lease payments under non-cancellable leases as of October 1, 2022 are as follows (in thousands):
Fiscal Years EndingOperating LeasesFinance Leases
2023 (1)
$4,125 $3,910 
20244,826 3,960 
20253,987 2,539 
20263,365 107 
20272,464 71 
Thereafter3,240 — 
Total undiscounted lease payments22,007 10,587 
Less: present value discount(2,510)(467)
Total lease liabilities$19,497 $10,120 
(1) Represents estimated lease payments for the remaining nine-month period ending July 1, 2023.
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 Company has some 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%. The weighted average discount rate is disclosed in the tables below.
The components of lease cost for the three months ended October 1, 2022 and October 2, 2021 were (in thousands): 
Lease costClassificationOctober 1, 2022October 2, 2021
Operating lease costCost of sales$1,334 $1,433 
Operating lease costSelling, general and administrative expenses$184 $308 
Financing lease costCost of sales$900 $434 
Financing lease costSelling, general and administrative expenses$38 $10 
Total lease cost$2,456 $2,185 
Fixed lease cost$2,221 $1,777 
Short-term lease cost $235 $408 
Total lease cost$2,456 $2,185 

Amounts reported in the Consolidated Balance Sheet as of October 1, 2022 were (in thousands, except weighted average lease term and discount rate):
October 1, 2022
Operating Leases:
Operating lease right of use assets$19,497 
Operating lease liabilities (1)
$19,497 
Weighted-average remaining lease term (in years)
Operating leases5.08
Weighted-average discount rate
Operating leases4.0 %
Financing Leases (2):
Financing lease right of use assets$11,373 
Financing lease liabilities$10,120 
Weighted-average remaining lease term (in years)
Financing leases2.31
Weighted-average discount rate
Financing leases8.8 %
(1) The current portion of the total operating lease liabilities of $5.4 million is classified under Other Current Liabilities, resulting in $14.1 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 $11.4 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $4.4 million is classified under Current portion of debt, net, resulting in $5.7 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
October 1, 2022October 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,847 $1,446 
Financing cash flows used in financing leases$1,022 $401 
Future lease payments under non-cancellable leases as of October 1, 2022 are as follows (in thousands):
Fiscal Years EndingOperating LeasesFinance Leases
2023 (1)
$4,125 $3,910 
20244,826 3,960 
20253,987 2,539 
20263,365 107 
20272,464 71 
Thereafter3,240 — 
Total undiscounted lease payments22,007 10,587 
Less: present value discount(2,510)(467)
Total lease liabilities$19,497 $10,120 
(1) Represents estimated lease payments for the remaining nine-month period ending July 1, 2023.