XML 37 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Lease Obligations and Other Commitments | 12 Months Ended
--- | ---
May 29, 2021
Commitments And Contingencies Disclosure [Abstract] |
Lease Obligations and Other Commitments |
6. | LEASE OBLIGATIONS AND OTHER COMMITMENTS
The Company leases real and personal property in the normal course of business under various operating and financing leases. The Company has two types of operating leases: leases for facility space and leases for automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company. The financing lease is used for our computer servers The new standard was effective for the Company on June 2, 2019. The FASB issued ASU 2018-11, targeted improvements to Topic 842, which includes an option to not restate comparative periods in transition and elect to use the effective date of Topic 842 as the date of initial application of transition. We adopted the new standard applying the new transition method allowed under ASU 2018-11. As a result of adopting Topic 842, at June 2, 2019, we recognized operating right-of-use assets of $3.6 million, financing right-of-use assets of $0.5 million, operating lease liabilities of $3.8 million and financing lease liabilities of $0.5 million. Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities when the Company is reasonably certain it will renew the lease. The standard did not have a material impact on our results of operations or cash flows. The gross amounts of assets and liabilities related to both operating and financing leases at May 29, 2021 and May 30, 2020 were as follows (in thousands):
Lease Type |  | May 29, 2021 |  |  | May 30, 2020 |
Operating lease ROU asset |  | $ | 2,262 |  |  | $ | 3,018 |
Financing lease ROU asset |  |  | 308 |  |  |  | 401 |
Total Lease ROU asset |  | $ | 2,570 |  |  | $ | 3,419 |
Operating lease liability current |  | $ | 918 |  |  | $ | 1,329 |
Financing lease liability current |  |  | 148 |  |  |  | 156 |
Total lease liability current |  | $ | 1,066 |  |  | $ | 1,485 |
Operating lease liability non-current |  | $ | 1,358 |  |  | $ | 1,778 |
Financing lease liability non-current |  |  | - |  |  |  | 163 |
Total lease liability non-current |  | $ | 1,358 |  |  | $ | 1,941 |
The components of lease costs for fiscal 2021 and fiscal 2020 were as follows (in thousands):
Lease Type |  | Classification |  | Fiscal Year Ended May 29, 2021 |  |  | Fiscal Year Ended May 30, 2020 |
Consolidated operating lease expense |  | Operating expenses |  | $ | 1,939 |  |  | $ | 1,963 |
Consolidated financing lease amortization |  | Operating expenses |  |  | 92 |  |  |  | 62 |
Consolidated financing lease interest |  | Interest expense |  |  | 11 |  |  |  | 22 |
Consolidated financing lease expense |  |  |  |  | 103 |  |  |  | 84 |
Net lease cost |  |  |  | $ | 2,042 |  |  | $ | 2,047 |
Rent expense for fiscal 2021, fiscal 2020 and fiscal 2019 was $1.7 million, $1.8 million, and $1.7 million, respectively. Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years are as follows (in thousands):
Fiscal Year |  | Operating Leases |  |  | Financing Leases |  |  | Total |
2022 |  | $ | 993 |  |  | $ | 151 |  |  | $ | 1,144 |
2023 |  |  | 713 |  |  |  | — |  |  |  | 713 |
2024 |  |  | 441 |  |  |  | — |  |  |  | 441 |
2025 |  |  | 210 |  |  |  | — |  |  |  | 210 |
2026 |  |  | 38 |  |  |  | — |  |  |  | 38 |
Thereafter |  |  | 36 |  |  |  | — |  |  |  | 36 |
Total lease payments |  |  | 2,431 |  |  |  | 151 |  |  |  | 2,582 |
Less imputed interest |  |  | 155 |  |  |  | 3 |  |  |  | 158 |
Net minimum lease payments |  | $ | 2,276 |  |  | $ | 148 |  |  | $ | 2,424 |
The weighted average remaining lease terms and interest rates of leases held by the Company as of May 29, 2021 were as follows:
Lease Type |  | Weighted Average Remaining Lease Term in Years |  | Weighted Average Interest Rate |
Operating leases |  | 2.7 |  | 4.6% |
Financing leases |  | 0.9 |  | 4.6% |
The cash outflows of the leasing activity of the Company as lessee for fiscal 2021 and fiscal 2020 were as follows (in thousands):
|  |  |  | Fiscal Year Ended |
Cash Flow Source |  | Classification |  | May 29, 2021 |  |  | May 30, 2020 |
Operating cash flows from operating leases |  | Operating activities |  | $ | 831 |  |  | $ | 924 |
Operating cash flows from financing leases |  | Operating activities |  |  | 170 |  |  |  | 149 |
Finance cash flows from financing leases |  | Financing activities |  |  | 181 |  |  |  | 166 |

X
- References No definition available. + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for commitments and contingencies. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -URI http://asc.fasb.org/topic&trid=2127136 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -URI http://asc.fasb.org/topic&trid=2144648 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=121559207&loc=d3e25336-109308 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 4 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=121559207&loc=d3e25336-109308 + Details
Name: | us-gaap_CommitmentsAndContingenciesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration