LEASED ASSETS

3 Months Ended

Apr. 03, 2021

Leases [Abstract]

LEASED ASSETS

NOTE 5 — LEASED ASSETS

The Company leases certain of its real estate and equipment. The Company has evaluated all its leases and determined that all are operating leases under the definitions of the guidance of ASU 2016-02 Leases (Topic 842). The Company’s lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants.

Under the provisions of ASU 2016-02, the Company records right-of-use assets equal to the present value of the contractual liability for future lease payments. The table below presents the right-of-use assets and related lease liabilities recognized on the Condensed Consolidated Balance Sheet as of April 3, 2021:

	Balance Sheet Line Item	April 3, 2021
Right-of-use assets	Other assets	$2,013
Operating lease liabilities
Current portion	Trade accounts payable and accrued expenses	$411
Noncurrent portion	Lease liabilities	1,654
Total operating lease liabilities		$2,065

The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight line basis over the life of the lease.

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The Company’s leases generally do not provide an implicit interest rate, and therefore the Company calculates an incremental borrowing rate to determine the present value of its operating lease liabilities. The following table reconciles the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the Condensed Consolidated Balance Sheet as of April 3, 2021:

Remainder of 2021	$419
2022	244
2023	213
2024	215
2025	160
Thereafter	1,440
Total undiscounted future minimum lease payments	2,691
Less: Difference between undiscounted lease payments & the present value of future lease payments	(626)
Total operating lease liabilities	$2,065

Certain of the Company’s lease agreements contain renewal options at the Company’s discretion. The Company does not recognize right-of-use assets or lease liabilities for leases of one year or less or for renewal periods unless it is reasonably certain that the Company will exercise the renewal option at the inception of the lease or when a triggering event occurs. The Company’s weighted average remaining lease term for operating leases as of April 3, 2021 is 11.61 years.