LEASES

12 Months Ended

Jun. 28, 2025

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 6 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 4.07%. The weighted average discount rate is disclosed in the tables below.

The components of lease cost were as follows as of June 28, 2025 and June 29, 2024 (in thousands):

		Year Ended		Year Ended
Lease cost	Classification	June 28, 2025		June 29, 2024
Operating lease cost	Cost of sales	$	5,135	$	4,814
Operating lease cost	Selling, general and administrative expenses	$	732	$	734
Financing lease cost	Cost of sales	$	3,369	$	4,865
Financing lease cost	Selling, general and administrative expenses	$	171	$	206
Total lease cost		$	9,407	$	10,619
Fixed lease cost		$	6,335	$	6,169
Short-term lease cost		3,072		4,450
Total lease cost		$	9,407	$	10,619

Amounts reported in the Consolidated Balance Sheet as of June 28, 2025 and June 29, 2024 were (in thousands, except weighted average lease term and discount rate):

	June 28, 2025		June 29, 2024
Operating Leases:
Operating lease right of use assets	$	11,347	$	15,416
Operating lease liabilities (1)	$	11,347	$	15,416
Weighted-average remaining lease term (in years)
Operating leases	3.29		3.97
Weighted-average discount rate
Operating leases	4.07%		4.00%
Financing Leases (2):
Financing lease right of use assets	$	2,244	$	3,569
Financing lease liabilities	$	1,912	$	2,128
Weighted-average remaining lease term (in years)
Financing leases	2.35		1.06
Weighted-average discount rate
Financing leases	10.11%		11.18%

(1) The current portion of the total operating lease liabilities of $4.5 million is classified under Other Current Liabilities, resulting in $6.9 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 $2.2 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $1.0 million is classified under Other Current Liabilities, resulting in $1.0 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Future lease payments under non-cancellable leases as of June 28, 2025 are as follows (in thousands):

Fiscal Years Ending	Operating Leases		Finance Leases
2026	$	4,488	$	983
2027	3,404		519
2028	2,324		606
2029	1,051		—
2030	470		—
Thereafter	352		—
Total undiscounted lease payments	12,089		2,108
Less: present value discount	(742)		(196)
Total lease liabilities	$	11,347	$	1,912

As of June 28, 2025, we have additional operating and finance leases for commercial properties and equipment that have not yet commenced with future lease payments of approximately $28.6 million and $5.1 million, respectively.

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 6 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 4.07%. The weighted average discount rate is disclosed in the tables below.

The components of lease cost were as follows as of June 28, 2025 and June 29, 2024 (in thousands):

		Year Ended		Year Ended
Lease cost	Classification	June 28, 2025		June 29, 2024
Operating lease cost	Cost of sales	$	5,135	$	4,814
Operating lease cost	Selling, general and administrative expenses	$	732	$	734
Financing lease cost	Cost of sales	$	3,369	$	4,865
Financing lease cost	Selling, general and administrative expenses	$	171	$	206
Total lease cost		$	9,407	$	10,619
Fixed lease cost		$	6,335	$	6,169
Short-term lease cost		3,072		4,450
Total lease cost		$	9,407	$	10,619

Amounts reported in the Consolidated Balance Sheet as of June 28, 2025 and June 29, 2024 were (in thousands, except weighted average lease term and discount rate):

	June 28, 2025		June 29, 2024
Operating Leases:
Operating lease right of use assets	$	11,347	$	15,416
Operating lease liabilities (1)	$	11,347	$	15,416
Weighted-average remaining lease term (in years)
Operating leases	3.29		3.97
Weighted-average discount rate
Operating leases	4.07%		4.00%
Financing Leases (2):
Financing lease right of use assets	$	2,244	$	3,569
Financing lease liabilities	$	1,912	$	2,128
Weighted-average remaining lease term (in years)
Financing leases	2.35		1.06
Weighted-average discount rate
Financing leases	10.11%		11.18%

(1) The current portion of the total operating lease liabilities of $4.5 million is classified under Other Current Liabilities, resulting in $6.9 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 $2.2 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $1.0 million is classified under Other Current Liabilities, resulting in $1.0 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Future lease payments under non-cancellable leases as of June 28, 2025 are as follows (in thousands):

Fiscal Years Ending	Operating Leases		Finance Leases
2026	$	4,488	$	983
2027	3,404		519
2028	2,324		606
2029	1,051		—
2030	470		—
Thereafter	352		—
Total undiscounted lease payments	12,089		2,108
Less: present value discount	(742)		(196)
Total lease liabilities	$	11,347	$	1,912

As of June 28, 2025, we have additional operating and finance leases for commercial properties and equipment that have not yet commenced with future lease payments of approximately $28.6 million and $5.1 million, respectively.