Leases

9 Months Ended

Mar. 26, 2021

LeasesThe Company leases facilities under non-cancelable operating lease agreements. The Company leases a portion of its capital equipment and vehicles, certain land and buildings for its facilities in Thailand, the Cayman Islands, the PRC, the U.S., the U.K. and Israel under operating lease arrangements that expire at various dates through 2025. Certain of these lease arrangements provide the Company the ability to extend the lease from one to five years following the expiration of the current term. However, the Company has excluded all lease extension options from its ROU assets and lease liabilities as the Company is not reasonably assured that it will exercise these options. None of the lease agreements contain residual value guarantees provided by the lessee. The Company also has one intercompany lease transaction in the form of a lease of office and manufacturing space between Fabritek and Fabrinet West.

Operating leases

As of March 26, 2021, the maturities of the Company’s operating lease liabilities were as follows:


(amount in thousands)	As of March 26, 2021
2021 (remaining three months)	$	650
2022	2,585
2023	2,468
2024	1,092
2025	41
Total undiscounted lease payments	6,836
Less imputed interest	(348)
Total present value of lease liabilities	$	6,488	(1)

(1)Included current portion of operating lease liabilities for the period ended March 26, 2021.

Rental expense related to the Company’s operating leases is recognized on a straight-line basis over the lease term. Rental expense for long-term leases for the three and nine months ended March 26, 2021 was $0.7 million and $1.9 million, respectively, and for the three and nine months ended March 27, 2020 was $0.5 million and $1.5 million, respectively. Rental expense for short-term leases for the three and nine months ended March 26, 2021 was $0.1 million and $0.3 million, respectively, and for the three and nine months ended March 27, 2020 was immaterial.

The following summarizes additional information related to the Company’s operating leases:


	As of March 26, 2021		As of June 26, 2020
Weighted-average remaining lease term (in years)	2.9		3.3
Weighted-average discount rate	3.7	%	3.7	%

The following table presents supplemental disclosure for the unaudited condensed consolidated statement of cash flows related to operating and finance leases for the three and nine months ended March 26, 2021 and March 27, 2020:


	Three Months Ended				Nine Months Ended
(amount in thousands)	March 26, 2021		March 27, 2020		March 26, 2021		March 27, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	628	$	770	$	1,889	$	1,794
Financing cash flows from finance leases	$	—	$	115	$	100	$	304
ROU assets obtained in exchange for lease liabilities	$	60	$	55	$	1,916	$	7,175