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Leases
 12 Months Ended
Aug. 28, 2021
Leases [Abstract]  
Leases Leases
Our leases primarily include operating leases for equipment and real estate, including office space and manufacturing space. Financing leases are primarily for real estate. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement when it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. We recognize lease expense for these leases on a straight-line basis over the lease term. When the terms of multiple lease agreements are materially consistent, we have elected the portfolio approach for our asset and liability calculations.

Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We generally use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The assumed lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised.

Some of our real estate operating leases require payment of real estate taxes, common area maintenance, and insurance. In addition, some of the leases are subject to annual changes in the consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of the lease obligations. Fixed payments may contain predetermined fixed rent escalations. For operating leases, we recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The supplemental balance sheet information related to our leases is as follows:
ClassificationAugust 28, 2021August 29, 2020
Assets
Operating leasesOperating lease assets$28,379 $29,463 
Finance leasesOther long-term assets4,971 4,398 
Total lease assets$33,350 $33,861 
Liabilities
Current: Operating leasesAccrued expenses: Other$2,596 $2,660 
Current: Finance leasesAccrued expenses: Other700 539 
Non-Current: Operating leasesOperating lease liabilities26,745 27,048 
Non-Current: Finance leasesOther long-term liabilities5,313 4,868 
Total lease liabilities$35,354 $35,115 
Operating lease costs incurred are as follows:
Year EndedYear Ended
ClassificationAugust 28, 2021August 29, 2020
Operating lease expense(1)
Costs of goods sold and SG&A$5,785 $6,962 
Finance lease cost:
Depreciation of lease assetsCosts of goods sold and SG&A609 474 
Interest on lease liabilitiesInterest expense327 289 
Total lease cost$6,721 $7,725 
(1) Operating lease expense includes short-term leases and variable lease payments, which are immaterial.

Our future lease commitments as of August 28, 2021 included the following related party and non-related party leases:
Operating Leases as of August 28, 2021
Financing Leases
Related Party AmountNon-Related Party AmountTotalNon-Related Party Amount
Fiscal 2022$900 $1,162 $2,062 $1,051 
Fiscal 20231,500 3,594 5,094 1,040 
Fiscal 20241,800 3,187 4,987 1,013 
Fiscal 20251,800 2,879 4,679 1,035 
Fiscal 20261,800 2,782 4,582 1,056 
Thereafter6,000 11,214 17,214 2,243 
Total future undiscounted lease payments13,800 24,818 38,618 7,438 
Less: Interest3,216 6,061 9,277 1,425 
Total reported lease liabilities$10,584 $18,757 $29,341 $6,013 
Additional information related to our leases is as follows:
August 28, 2021August 29, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$2,589 $2,463 
Operating cash flows from financing leases327 289 
Financing cash flows from financing leases572 362 
Lease assets obtained in exchange for new lease liabilities:
Operating leases2,626 1,179 
Finance leases (1)
1,210 5,664 
August 28, 2021August 29, 2020
Weighted average remaining lease term:
Operating leases8.18.7
Finance leases6.87.8
Weighted average discount rate:
Operating leases6.2 %6.2 %
Finance leases6.3 %6.2 %
(1)    Lease assets as of August 29, 2020 are offset by a $965 unfavorable lease liability created by the acquisition of Newmar.
Leases Leases
Our leases primarily include operating leases for equipment and real estate, including office space and manufacturing space. Financing leases are primarily for real estate. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement when it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. We recognize lease expense for these leases on a straight-line basis over the lease term. When the terms of multiple lease agreements are materially consistent, we have elected the portfolio approach for our asset and liability calculations.

Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We generally use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The assumed lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised.

Some of our real estate operating leases require payment of real estate taxes, common area maintenance, and insurance. In addition, some of the leases are subject to annual changes in the consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of the lease obligations. Fixed payments may contain predetermined fixed rent escalations. For operating leases, we recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The supplemental balance sheet information related to our leases is as follows:
ClassificationAugust 28, 2021August 29, 2020
Assets
Operating leasesOperating lease assets$28,379 $29,463 
Finance leasesOther long-term assets4,971 4,398 
Total lease assets$33,350 $33,861 
Liabilities
Current: Operating leasesAccrued expenses: Other$2,596 $2,660 
Current: Finance leasesAccrued expenses: Other700 539 
Non-Current: Operating leasesOperating lease liabilities26,745 27,048 
Non-Current: Finance leasesOther long-term liabilities5,313 4,868 
Total lease liabilities$35,354 $35,115 
Operating lease costs incurred are as follows:
Year EndedYear Ended
ClassificationAugust 28, 2021August 29, 2020
Operating lease expense(1)
Costs of goods sold and SG&A$5,785 $6,962 
Finance lease cost:
Depreciation of lease assetsCosts of goods sold and SG&A609 474 
Interest on lease liabilitiesInterest expense327 289 
Total lease cost$6,721 $7,725 
(1) Operating lease expense includes short-term leases and variable lease payments, which are immaterial.

Our future lease commitments as of August 28, 2021 included the following related party and non-related party leases:
Operating Leases as of August 28, 2021
Financing Leases
Related Party AmountNon-Related Party AmountTotalNon-Related Party Amount
Fiscal 2022$900 $1,162 $2,062 $1,051 
Fiscal 20231,500 3,594 5,094 1,040 
Fiscal 20241,800 3,187 4,987 1,013 
Fiscal 20251,800 2,879 4,679 1,035 
Fiscal 20261,800 2,782 4,582 1,056 
Thereafter6,000 11,214 17,214 2,243 
Total future undiscounted lease payments13,800 24,818 38,618 7,438 
Less: Interest3,216 6,061 9,277 1,425 
Total reported lease liabilities$10,584 $18,757 $29,341 $6,013 
Additional information related to our leases is as follows:
August 28, 2021August 29, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$2,589 $2,463 
Operating cash flows from financing leases327 289 
Financing cash flows from financing leases572 362 
Lease assets obtained in exchange for new lease liabilities:
Operating leases2,626 1,179 
Finance leases (1)
1,210 5,664 
August 28, 2021August 29, 2020
Weighted average remaining lease term:
Operating leases8.18.7
Finance leases6.87.8
Weighted average discount rate:
Operating leases6.2 %6.2 %
Finance leases6.3 %6.2 %
(1)    Lease assets as of August 29, 2020 are offset by a $965 unfavorable lease liability created by the acquisition of Newmar.