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Leases
9 Months Ended
Sep. 27, 2019
Leases [Abstract]  
Leases

Note 8 – Leases

Finance Leases

The Company entered into finance leases primarily related to purchases of equipment used for manufacturing or computer-related equipment.  These finance leases are two to five years in length and have fixed payment amounts for the term of the contract and have options to purchase the assets at the end of the lease term.  Supplemental balance sheet information related to finance leases consisted of the following (dollars in thousands):

 

 

 

September 27, 2019

 

Machinery and equipment

 

$

1,885

 

Computer equipment and software

 

 

923

 

Furniture and fixtures

 

 

102

 

Leasehold improvements

 

 

27

 

Finance lease right-of-use assets, gross

 

 

2,937

 

Less accumulated depreciation

 

 

931

 

Finance lease right-of-use assets, net

 

$

2,006

 

 

 

 

 

 

Total finance lease liability

 

$

1,223

 

Weighted-average remaining lease term (in years)

 

 

1.4

 

Weighted-average discount rate

 

 

6.27

%

 

Note 8Leases (Continued)

Finance Leases (Continued)

Supplemental cash flow information related to finance leases consisted of the following (dollars in thousands):

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 27,

2019

 

September 27,

2019

 

Amortization of finance lease right-of-use asset

 

$

141

 

$

447

 

Interest on finance lease liabilities

 

 

17

 

 

58

 

Cash paid for amounts included in the measurement of finance lease liabilities:

 

 

 

 

 

 

 

Operating cash flows

 

 

17

 

 

58

 

Financing cash flows

 

 

317

 

 

998

 

Right-of-use assets obtained in exchange for new finance lease liabilities

 

 

 

 

679

 

Operating Leases

The Company entered into operating leases primarily related to real property (office, manufacturing and warehouse facilities), automobiles and copiers.  These operating leases are two to five years in length with options to extend.  The Company did not include any lease extensions in the initial valuation unless the Company was reasonably certain to extend the lease.  Depending on the lease, there are those with fixed payment amounts for the entire length of the contract or payments which increase periodically as noted in the contract or increased at an inflation rate indicator.  For operating leases that increase using an inflation rate indicator, the Company used the inflation rate at the time the lease was entered into for the length of the lease term. Supplemental balance sheet information related to operating leases consisted of the following (dollars in thousands):

 

 

September 27, 2019

 

Machinery and equipment

$

813

 

Computer equipment and software

 

462

 

Real property

 

10,634

 

Operating lease right-of-use assets, gross

 

11,909

 

Less accumulated depreciation

 

5,232

 

Operating lease right-of-use assets, net

$

6,677

 

 

 

 

 

Total operating lease liability

$

6,792

 

Weighted-average remaining lease term (in years)

 

2.4

 

Weighted-average discount rate

 

1.79

%

 

Supplemental cash flow information related to operating leases was as follows (dollars in thousands):

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 27,

2019

 

 

September 27,

2019

 

Operating lease cost

 

$

726

 

 

$

2,020

 

Cash paid for amounts included in the measurement of operating lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows

 

 

739

 

 

 

2,031

 

Right-of-use assets obtained in exchange for new operating lease liabilities

 

 

140

 

 

 

2,797

 

Note 8Leases (Continued)

Future Minimum Lease Commitments

Estimated future minimum lease payments under operating and finance leases having initial or remaining non-cancelable lease terms more than one year as of September 27, 2019 and December 28, 2018 are as follows (in thousands):

 

As of September 27, 2019

12 Months Ended

 

Operating Leases

 

 

Finance Leases

 

September 2020

 

$

2,920

 

 

$

790

 

September 2021

 

 

1,833

 

 

 

426

 

September 2022

 

 

1,082

 

 

 

45

 

September 2023

 

 

867

 

 

 

8

 

September 2024

 

 

319

 

 

 

4

 

Thereafter

 

 

 

 

 

 

Total minimum lease payments, including interest

 

$

7,021

 

 

$

1,273

 

Less amounts representing interest

 

 

229

 

 

 

50

 

Total minimum lease payments

 

$

6,792

 

 

$

1,223

 

 

As of December 28, 2018

12 Months Ended

 

Operating Leases

 

 

Finance Leases

 

December 2019

 

$

2,606

 

 

$

1,153

 

December 2020

 

 

2,202

 

 

 

332

 

December 2021

 

 

980

 

 

 

143

 

December 2022

 

 

507

 

 

 

4

 

December 2023

 

 

202

 

 

 

 

Thereafter

 

 

12

 

 

 

 

Total minimum lease payments, including interest

 

 

6,509

 

 

 

1,632

 

Less amounts representing interest

 

 

 

 

 

75

 

Total minimum lease payments

 

$

6,509

 

 

$

1,557