XML 27 R12.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 12 Months Ended
--- | ---
Jun. 24, 2021
Leases [Abstract] |
Leases | NOTE 3 — LEASES On June 28, 2019 we adopted ASU No. 2016-02, Leases (“Topic 842”) using the alternative transition method under ASU No. 2018-11, which permitted application of the new guidance at the beginning of the period of adoption, with comparative periods continuing to be reported under the previous lease accounting guidance in Topic 840. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification. We did not elect the practical expedients regarding hindsight or land easements. Upon adoption of the new standard, we recognized operating lease right-of-use assets and liabilities on our Consolidated Balance Sheet of $5,361 and $5,320 respectively. We utilized a portfolio approach to establish discount rates for leases that are similar. Discount rates ranging from 4.2% to 5.8% were used when determining the present value of future lease payments. All of our lessee arrangements that were classified as operating leases under Topic 840 continue to be classified as operating leases since the adoption of Topic 842, and the pattern of lease expense recognition is unchanged. The adoption of Topic 842 did not materially impact our consolidated net earnings and had no impact on cash flows. Description of Leases We lease equipment used in the transportation of goods in our warehouses, as well as a limited number of automobiles and a small warehouse near our Bainbridge, Georgia facility. Our leases generally do not contain non-lease components and do not contain any explicit guarantees of residual value. Our leases for warehouse transportation equipment generally require the equipment to be returned to the lessor in good working order. We determine if an arrangement is a lease at inception and analyze the lease to determine if it is operating or finance. Operating lease right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental collateralized borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Implicit rates are used when readily determinable. None of our leases currently contain options to extend the term. In the event of an option to extend the term of a lease, the lease term used in measuring the liability would include options to extend or terminate the lease if it is reasonably certain that the Company will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the respective lease term. Our leases have remaining terms of up to 5.2 years. It is our accounting policy to not apply lease recognition requirements to short term leases, defined as leases with an initial term of 12 months or less. As such, leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet. We have also made the policy election to not separate lease and non-lease components for all leases. The following table provides supplemental information related to operating lease right-of-use assets and liabilities:
|  | June 24, 2021 |  |  | June 25, 2020 |  |  | Affected Line Item in Consolidated Balance Sheet
Assets |  |  |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 3,484 |  |  | $ | 4,351 |  |  | Operating lease right-of-use assets
Total lease right-of-use assets |  | $ | 3,484 |  |  | $ | 4,351 |  |  |
Liabilities |  |  |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |  |  |
Operating leases |  | $ | 1,430 |  |  | $ | 1,376 |  |  | Other accrued expenses
Noncurrent: |  |  |  |  |  |  |  |  |  |
Operating leases |  |  | 2,103 |  |  |  | 2,990 |  |  | Long-term operating lease liabilities
Total lease liabilities |  | $ | 3,533 |  |  | $ | 4,366 |  |  |
The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions:
|  | For the Year Ended June 24, 2021 |  |  | For the Year Ended June 25, 2020 |
Operating lease costs (a) |  | $ | 1,841 |  |  | $ | 1,701 |
Variable lease costs (b) |  |  | 71 |  |  |  | 63 |
Total Lease Cost |  | $ | 1,912 |  |  | $ | 1,764 |
(a) | Includes short-term leases which are immaterial.
(b) | Variable lease costs consist of sales tax.
Rental expense under operating leases agreements was $1,981 in fiscal year 2019. Supplemental cash flow and other information related to leases was as follows:
|  | For the Year Ended June 24, 2021 |  |  | For the Year Ended June 25, 2020 |
Operating cash flows information: |  |  |  |  |  |  |  |
Cash paid for amounts included in measurements for lease liabilities |  | $ | 1,562 |  |  | $ | 1,545 |
Non-cash activity: |  |  |  |  |  |  |  |
Right-of-use assets obtained in exchange for new operating lease obligations |  | $ | 574 |  |  | $ | 393 |
|  | June 24, 2021 |  |  | June 25, 2020 |
Weighted Average Remaining Lease Term (in years) |  |  | 2.8 |  |  |  | 3.4 |
Weighted Average Discount Rate |  |  | 4.3 | % |  |  | 4.4 | %
Maturities of operating lease liabilities as of June 24, 2021 are as follows:
Fiscal year ending |  |  |  |
June 30, 2022 |  | $ | 1,545 |
June 29, 2023 |  |  | 1,254 |
June 27, 2024 |  |  | 611 |
June 26, 2025 |  |  | 248 |
June 25, 2026 |  |  | 77 |
Thereafter |  |  | 4 |
Total lease payments |  |  | 3,739 |
Less imputed interest |  |  | (206 | )
Present value of operating lease liabilities |  | $ | 3,533 |
Lessor Accounting We lease office space in our four-story office building located in Elgin, Illinois. As a lessor, we retain substantially all of the risks and benefits of ownership of the investment property and under Topic 842 we continue to account for all of our leases as operating leases. Lease agreements may include options to renew. We accrue fixed lease income on a straight-line basis over the terms of the leases. There is generally no variable lease consideration and an immaterial amount of non-lease components such as recurring utility and storage fees. Leases between related parties are immaterial. Leasing revenue is as follows:
|  | For the Year Ended June 24, 2021 |  |  | For the Year Ended June 25, 2020 |
Lease income related to lease payments |  | $ | 1,827 |  |  | $ | 1,967 |
Gross rental income was $1,978 in fiscal year 2019. The future minimum, undiscounted fixed cash flows under non-cancelable tenant operating leases for each of the next five years and thereafter is presented below.
Fiscal year ending |  |  |  |
June 30, 2022 |  | $ | 1,750 |
June 29, 2023 |  |  | 1,794 |
June 27, 2024 |  |  | 1,818 |
June 26, 2025 |  |  | 1,228 |
June 25, 2026 |  |  | 670 |
Thereafter |  |  | 614 |
|  | $ | 7,874 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for leasing arrangement entered into by lessee. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123408670&loc=SL77918666-209980 + Details
Name: | us-gaap_LesseeLeasesPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration