Note 13 - Leases

12 Months Ended

Oct. 03, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

(13) Leases

We have operating leases for certain equipment, office space and vehicles. We determine whether an arrangement is a lease at its inception if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheet. Lease expense for operating leases with original terms of more than twelve months was $1.3 million in 2020, $1.6 million in 2019 and $1.5 million in 2018.

Most of our leases include options to extend or terminate the leases which are exercised at our sole discretion. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate as of the commencement date in determining the present value of lease payments, which represents an estimate of the interest rate we would incur at the lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term.

Supplemental cash flow and non-cash information related to leases is as follows:

	Year Ended
(In thousands)	October 3, 2020
Cash paid for operating leases included in operating cash flows	$	1,301
Right-of-use assets obtained in exchange for new lease obligations		1,771

Supplemental balance sheet information related to leases is as follows:

(In thousands)	October 3, 2020
Right-of-use assets:
Other assets	$	2,522
Lease liabilities:
Accrued expenses		1,230
Other liabilities		1,300
Total operating lease liabilities	$	2,530

As of October 3, 2020, our operating leases had a weighted average remaining lease term of 2.3 years and a weighted average discount rate of 4.4%. Aggregate future operating lease payments as of October 3, 2020 are as follows:

(In thousands)
2021	$	1,290
2022		874
2023		408
2024		59
2025		2
Thereafter		-
Total future operating lease payments		2,633
Less: imputed interest		(103	)
Present value of lease liabilities	$	2,530