Note 7 - Leases

9 Months Ended

Sep. 26, 2020

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

We have operating leases for corporate offices, sales offices, research and development facilities, storage facilities, and a data center, the terms of which are described in our 2019 10-K. All of our facilities are leased under operating leases, which expire at various times through 2027, with a weighted-average remaining lease term of 5.1 years and a weighted-average discount rate of 7.0% as of September 26, 2020. We recorded fixed operating lease expenses of $1.9 million for the third quarter of both fiscal 2020 and fiscal 2019, and $5.7 million and $5.8 million for the first nine months of fiscal 2020 and 2019, respectively. 

The following table presents the lease balance classifications within the Consolidated Balance Sheets and summarizes their activity during the first nine months of fiscal 2020:

Operating lease right-of-use assets	(in thousands)
Balance as of December 28, 2019	$	23,591
Right-of-use assets obtained for new lease contracts during the period		2,274
Reduction in the carrying amount of right-of-use assets during the period		(4,464	)
Adjustments for present value and foreign currency effects		213
Balance as of September 26, 2020	$	21,614

Operating lease liabilities	(in thousands)
Balance as of December 28, 2019	$	26,124
Lease liabilities incurred for new lease contracts during the period		2,274
Accretion of lease liabilities		1,247
Operating cash used by payments on lease liabilities		(5,786	)
Adjustments for present value, foreign currency, and restructuring liability effects		208
Balance as of September 26, 2020		24,067
Less: Current portion of operating lease liabilities		(4,562	)
Long-term operating lease liabilities, net of current portion	$	19,505

Maturities of operating lease liabilities as of September 26, 2020 are as follows:

Fiscal year	(in thousands)
2020 (remaining 3 months)	$	1,086
2021		6,313
2022		5,121
2023		5,030
2024		4,848
Thereafter		6,774
Total lease payments		29,172
Less: amount representing interest		(4,966	)
Less: amount representing restructuring liability adjustments		(139	)
Total lease liabilities	$	24,067

Prior to 2020, the reporting of future minimum lease commitments included the lease obligations associated with previously restructured facilities. Lease obligations for facilities restructured prior to the adoption of Topic 842 totaled approximately $7.4 million at September 26, 2020 and continued to be recorded in Other long-term liabilities on our Consolidated Balance Sheets.