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Leases | 12 Months Ended
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Jun. 26, 2025
Leases [Abstract] |
Leases | NOTE 4 — LEASES We lease warehouse space, equipment used in the transportation of goods in our warehouses and a limited number of automobiles and semi-trailers. Our leases generally do not contain any explicit guarantees of residual value and, with the exception of the Huntley facility, generally do not contain non-lease components. Our leases for warehouse transportation equipment generally require the equipment to be returned to the lessor in good working order. Through a review of our contracts, 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 6.6 years. It is our accounting policy not to 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 Sheets. 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 26, 2025 |  |  | June 27, 2024 |  |  | Affected Line Item in Consolidated Balance Sheet
Assets |  |  |  |  |  |  |  |
Operating lease right-of-use assets |  | $ | 27,824 |  |  | $ | 27,404 |  |  | Operating lease right-of-use assets
Total lease right-of-use assets |  | $ | 27,824 |  |  | $ | 27,404 |  |  |
Liabilities |  |  |  |  |  |  |  |
Current: |  |  |  |  |  |  |  |
Operating leases |  | $ | 4,515 |  |  | $ | 2,623 |  |  | Other accrued expenses
Noncurrent: |  |  |  |  |  |  |  |
Operating leases |  |  | 24,224 |  |  |  | 24,877 |  |  | Long-term operating lease liabilities
Total lease liabilities |  | $ | 28,739 |  |  | $ | 27,500 |  |  |
The following tables summarize the Company’s total lease costs and other information arising from operating lease transactions:
|  | Year Ended June 26, 2025 |  |  | Year Ended June 27, 2024 |  |  | Year Ended June 29, 2023 |
Operating lease costs (a) |  | $ | 7,379 |  |  | $ | 3,147 |  |  | $ | 2,215 |
Variable lease costs (b) |  |  | 1,282 |  |  |  | (25 | ) |  |  | 208 |
Total Lease Cost |  | $ | 8,661 |  |  | $ | 3,122 |  |  | $ | 2,423 |
(a) Includes short-term leases which are immaterial for all periods presented. (b) Variable lease costs consist of property tax, sales tax, insurance and lease overtime charges. Supplemental cash flow and other information related to leases was as follows:
|  | Year Ended June 26, 2025 |  |  | Year Ended June 27, 2024 |  |  | Year Ended June 29, 2023 |
Operating cash flows information: |  |  |  |  |  |  |  |  |
Cash paid for amounts included in measurements for lease liabilities |  | $ | 5,609 |  |  | $ | 2,636 |  |  | $ | 1,804 |
Non-cash activity: |  |  |  |  |  |  |  |  |
Right-of-use assets obtained in exchange for new operating lease obligations |  | $ | 4,959 |  |  | $ | 23,000 |  |  | $ | 5,749 |
|  | June 26, 2025 |  |  | June 27, 2024 |
Weighted Average Remaining Lease Term (in years) |  |  | 5.7 |  |  |  | 6.6 |
Weighted Average Discount Rate |  |  | 6.7 | % |  |  | 6.8 | %
Maturities of operating lease liabilities as of June 26, 2025 are as follows:
Fiscal Year Ending |  |  |
June 25, 2026 |  | $ | 6,285 |
June 24, 2027 |  |  | 6,295 |
June 29, 2028 |  |  | 6,149 |
June 28, 2029 |  |  | 5,230 |
June 27, 2030 |  |  | 4,379 |
Thereafter |  |  | 6,368 |
Total lease payments |  |  | 34,706 |
Less imputed interest |  |  | (5,967 | )
Present value of operating lease liabilities |  | $ | 28,739 |
At June 26, 2025, the Company has additional operating leases of approximately $496 that have not yet commenced and therefore are not reflected in the Consolidated Balance Sheet and tables above. The leases are scheduled to commence in the first quarter of fiscal 2026 with an initial lease term ranging from 4 to 6 years. 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: Leases 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:
|  | Year Ended June 26, 2025 |  |  | Year Ended June 27, 2024 |  |  | Year Ended June 29, 2023 |
Lease income related to lease payments |  | $ | 1,479 |  |  | $ | 2,010 |  |  | $ | 1,651 |
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 25, 2026 |  | $ | 1,155 |
June 24, 2027 |  |  | 1,172 |
June 29, 2028 |  |  | 582 |
June 28, 2029 |  |  | 531 |
June 27, 2030 |  |  | 544 |
Thereafter |  |  | 2,443 |
|  | $ | 6,427 |

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- Definition Disclosure of accounting policy for leasing arrangement entered into by lessee. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478964/842-20-50-1 + Details
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