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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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- References

No definition available.

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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

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X

- 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

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