XML 22 R11.htm IDEA: XBRL DOCUMENT

LEASED ASSETS

3 Months Ended

Mar. 30, 2019

NOTE 5 – LEASED ASSETS

The Company leases certain of its real estate and equipment. The Company has evaluated all its leases and determined that all are operating leases under the definitions of the guidance of ASU 2016-02. The Company’s lease agreements generally do not include material variable lease payments, residual value guarantees or restrictive covenants.

The Company adopted the provisions of ASU 2016-02 using the effective date method on January 1, 2019 and recorded right-of-use assets equal to the present value of the contractual liability for future lease payments. The table below presents the right-of-use assets and related lease liabilities recognized on the condensed consolidated balance sheet as of March 30, 2019:

	Balance Sheet Line Item	March 30, 2019
Right-of-use assets	Other assets	$	2,728

Operating lease liabilities
Current portion	Trade accounts payable and accrued expenses		584

Noncurrent portion	Lease liabilities		2,144

Total operating lease liabilities		$	2,728

The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight line basis over the life of the lease..

The Company’s leases generally do not provide an implicit interest rate, and therefore the Company uses its incremental borrowing rate enumerated in its revolving line of credit (see Note 6) to determine the present value of its operating lease liabilities. The following table reconciles the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the condensed consolidated balance sheet as of March 30, 2019:

Remainder of 2019	$	439
2020		540
2021		508
2022		192
2023		160
Thereafter		1,760
Total undiscounted future minimum lease payments		3,599
Less: Difference between undiscounted lease payments and the present value of future lease payments		871
Total operating lease liabilities	$	2,728

Certain of the Company’s lease agreements contain renewal options at the Company’s discretion. The Company does not recognize right-of-use assets or lease liabilities for leases of one year or less or for renewal periods unless it is reasonably certain that the Company will exercise the renewal option at the inception of the lease or when a triggering event occurs. The Company’s weighted average remaining lease term for operating leases as of March 30, 2019 is 11.85 years.