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Leases | 9 Months Ended
--- | ---
Feb. 23, 2020
Leases [Abstract] |
Leases | Leases 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 February 23, 2020 and May 26, 2019. Accumulated amortization associated with finance leases was $0.4 million as of both February 23, 2020 and May 26, 2019. The components of lease cost were as follows:
(In thousands, except term and discount rate) | Three Months Ended |  | Nine Months Ended
| February 23, 2020 |  | February 23, 2020
Finance lease cost: |  |  |
Amortization of leased assets | $ | 29 |  |  | $ | 86 |
Interest on lease liabilities | 89 |  |  | 269 |
Operating lease cost | 1,626 |  |  | 4,791 |
Variable lease cost and other | 725 |  |  | 1,279 |
Total lease cost | $ | 2,469 |  |  | $ | 6,425 |
Weighted-average remaining lease term: |  |  |
Operating leases |  |  | 11.37
Finance leases |  |  | 2.85
Weighted-average discount rate: |  |  |
Operating leases |  |  | 5.26 | %
Finance leases |  |  | 9.99 | %
The Company's leases have original lease periods ending between 2019 and 2040. The Company's maturity analysis of operating and finance lease liabilities as of February 23, 2020 were as follows:
(In thousands) | Operating Leases |  | Finance Leases |  | Total
Remainder of 2020 | $ | 1,385 |  |  | $ | 125 |  |  | $ | 1,510 |
2021 | 4,862 |  |  | 455 |  |  | 5,317 |
2022 | 4,350 |  |  | 466 |  |  | 4,816 |
2023 | 3,680 |  |  | 3,497 |  |  | 7,177 |
2024 | 3,008 |  |  | 9 |  |  | 3,017 |
Thereafter | 20,086 |  |  | 2 |  |  | 20,088 |
Total lease payments | 37,371 |  |  | 4,554 |  |  | 41,925 |
Less: interest | (10,306) |  |  | (962) |  |  | (11,268) |
Present value of lease liabilities | 27,065 |  |  | 3,592 |  |  | 30,657 |
Less: current obligation of lease liabilities | (3,775) |  |  | (125) |  |  | (3,900) |
Total long-term lease liabilities | $ | 23,290 |  |  | $ | 3,467 |  |  | $ | 26,757 |
The future minimum annual lease payments required under the Company’s existing operating lease agreements as of May 26, 2019 prior to the adoption of ASC 842 were as follows:
(In thousands) | Operating Leases
Fiscal year 2020 | $ | 5,056 |
Fiscal year 2021 | 4,044 |
Fiscal year 2022 | 3,589 |
Fiscal year 2023 | 3,350 |
Fiscal year 2024 | 3,047 |
Thereafter | 9,335 |
Total | $ | 28,421 |
Rent expense for operating leases, including month to month arrangements was $7.3 million and $6.1 million and for the fiscal years 2019 and 2018, respectively. The future minimum annual lease payments required under the Company’s existing capital lease agreements as of May 26, 2019 prior to the adoption of ASC 842 were as follows:
(In thousands) | Capital Leases
Fiscal year 2020 | $ | 486 |
Fiscal year 2021 | 489 |
Fiscal year 2022 | 460 |
Fiscal year 2023 | 3,490 |
Fiscal year 2024 | — |
Thereafter | — |
Total minimum lease payment | 4,925 |
Less: amounts representing interest and taxes | (1,291) |
Total | 3,634 |
Less: current portion included in other accrued liabilities | (102) |
Long-term capital lease obligation | $ | 3,532 |
Supplemental cash flow information related to leases are as follows:
| Nine Months Ended
(In thousands) | February 23, 2020
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases |  | $ | 5,780 |
Operating cash flows from finance leases |  | 270 |
Financing cash flows from finance leases |  | 94 |
Lease liabilities arising from obtaining right-of-use assets: |  |
Operating leases |  | $ | 2,527 |
Leases | Leases 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 February 23, 2020 and May 26, 2019. Accumulated amortization associated with finance leases was $0.4 million as of both February 23, 2020 and May 26, 2019. The components of lease cost were as follows:
(In thousands, except term and discount rate) | Three Months Ended |  | Nine Months Ended
| February 23, 2020 |  | February 23, 2020
Finance lease cost: |  |  |
Amortization of leased assets | $ | 29 |  |  | $ | 86 |
Interest on lease liabilities | 89 |  |  | 269 |
Operating lease cost | 1,626 |  |  | 4,791 |
Variable lease cost and other | 725 |  |  | 1,279 |
Total lease cost | $ | 2,469 |  |  | $ | 6,425 |
Weighted-average remaining lease term: |  |  |
Operating leases |  |  | 11.37
Finance leases |  |  | 2.85
Weighted-average discount rate: |  |  |
Operating leases |  |  | 5.26 | %
Finance leases |  |  | 9.99 | %
The Company's leases have original lease periods ending between 2019 and 2040. The Company's maturity analysis of operating and finance lease liabilities as of February 23, 2020 were as follows:
(In thousands) | Operating Leases |  | Finance Leases |  | Total
Remainder of 2020 | $ | 1,385 |  |  | $ | 125 |  |  | $ | 1,510 |
2021 | 4,862 |  |  | 455 |  |  | 5,317 |
2022 | 4,350 |  |  | 466 |  |  | 4,816 |
2023 | 3,680 |  |  | 3,497 |  |  | 7,177 |
2024 | 3,008 |  |  | 9 |  |  | 3,017 |
Thereafter | 20,086 |  |  | 2 |  |  | 20,088 |
Total lease payments | 37,371 |  |  | 4,554 |  |  | 41,925 |
Less: interest | (10,306) |  |  | (962) |  |  | (11,268) |
Present value of lease liabilities | 27,065 |  |  | 3,592 |  |  | 30,657 |
Less: current obligation of lease liabilities | (3,775) |  |  | (125) |  |  | (3,900) |
Total long-term lease liabilities | $ | 23,290 |  |  | $ | 3,467 |  |  | $ | 26,757 |
The future minimum annual lease payments required under the Company’s existing operating lease agreements as of May 26, 2019 prior to the adoption of ASC 842 were as follows:
(In thousands) | Operating Leases
Fiscal year 2020 | $ | 5,056 |
Fiscal year 2021 | 4,044 |
Fiscal year 2022 | 3,589 |
Fiscal year 2023 | 3,350 |
Fiscal year 2024 | 3,047 |
Thereafter | 9,335 |
Total | $ | 28,421 |
Rent expense for operating leases, including month to month arrangements was $7.3 million and $6.1 million and for the fiscal years 2019 and 2018, respectively. The future minimum annual lease payments required under the Company’s existing capital lease agreements as of May 26, 2019 prior to the adoption of ASC 842 were as follows:
(In thousands) | Capital Leases
Fiscal year 2020 | $ | 486 |
Fiscal year 2021 | 489 |
Fiscal year 2022 | 460 |
Fiscal year 2023 | 3,490 |
Fiscal year 2024 | — |
Thereafter | — |
Total minimum lease payment | 4,925 |
Less: amounts representing interest and taxes | (1,291) |
Total | 3,634 |
Less: current portion included in other accrued liabilities | (102) |
Long-term capital lease obligation | $ | 3,532 |
Supplemental cash flow information related to leases are as follows:
| Nine Months Ended
(In thousands) | February 23, 2020
Cash paid for amounts included in the measurement of lease liabilities: |
Operating cash flows from operating leases |  | $ | 5,780 |
Operating cash flows from finance leases |  | 270 |
Financing cash flows from finance leases |  | 94 |
Lease liabilities arising from obtaining right-of-use assets: |  |
Operating leases |  | $ | 2,527 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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