Leases

3 Months Ended

Aug. 25, 2019

The Company has entered into various non-cancellable operating lease agreements for manufacturing and distribution facilities, vehicles, equipment and office space. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Right-of-use assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term.

The Company leases property and equipment under finance leases. Gross assets recorded under finance leases, included in “Property and equipment, net,” were $3.8 million as of both August 25, 2019 and May 26, 2019. Accumulated amortization associated with finance leases was $0.4 million as of both August 25, 2019 and May 26, 2019.

The components of lease cost were as follows:



(In thousands, except term and discount rate)	Three Months Ended
	August 25, 2019
Finance lease cost:
Amortization of leased assets	$	28
Interest on lease liabilities	90
Operating lease cost	1,593
Variable lease cost and other	165
Total lease cost	$	1,876

Weighted-average remaining lease term:
Operating leases	13.75
Finance leases	3.35
Weighted-average discount rate:
Operating leases	5.28		%
Finance leases	9.99		%

Our leases have original lease periods ending between 2019 and 2040. The Company's maturity analysis of operating and finance lease liabilities as of August 25, 2019 were as follows:



(In thousands)	Operating Leases			Finance Leases			Total
Remainder of 2020	$	3,931		$	335		$	4,266
2021	4,011			455			4,466
2022	3,522			466			3,988
2023	3,255			3,497			6,752
2024	2,931			9			2,940
Thereafter	26,407			2			26,409
Total lease payments	44,057			4,764			48,821
Less: interest	(14,053		)	(1,141		)	(15,194		)
Present value of lease liabilities	30,004			3,623			33,627
Less: current obligation of lease liabilities	(3,514		)	(87		)	(3,601		)
Total long-term lease liabilities	$	26,490		$	3,536		$	30,026

Supplemental cash flow information related to leases are as follows:



	Three Months Ended
(In thousands)	August 25, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,654
Operating cash flows from finance leases	90
Financing cash flows from finance leases	30

Leases

The components of lease cost were as follows:



(In thousands, except term and discount rate)	Three Months Ended
	August 25, 2019
Finance lease cost:
Amortization of leased assets	$	28
Interest on lease liabilities	90
Operating lease cost	1,593
Variable lease cost and other	165
Total lease cost	$	1,876

Weighted-average remaining lease term:
Operating leases	13.75
Finance leases	3.35
Weighted-average discount rate:
Operating leases	5.28		%
Finance leases	9.99		%

Our leases have original lease periods ending between 2019 and 2040. The Company's maturity analysis of operating and finance lease liabilities as of August 25, 2019 were as follows:



(In thousands)	Operating Leases			Finance Leases			Total
Remainder of 2020	$	3,931		$	335		$	4,266
2021	4,011			455			4,466
2022	3,522			466			3,988
2023	3,255			3,497			6,752
2024	2,931			9			2,940
Thereafter	26,407			2			26,409
Total lease payments	44,057			4,764			48,821
Less: interest	(14,053		)	(1,141		)	(15,194		)
Present value of lease liabilities	30,004			3,623			33,627
Less: current obligation of lease liabilities	(3,514		)	(87		)	(3,601		)
Total long-term lease liabilities	$	26,490		$	3,536		$	30,026

Supplemental cash flow information related to leases are as follows:



	Three Months Ended
(In thousands)	August 25, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,654
Operating cash flows from finance leases	90
Financing cash flows from finance leases	30