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Lease Obligations and Other Commitments
6 Months Ended
Nov. 27, 2021
Commitments And Contingencies Disclosure [Abstract]  
Lease Obligations and Other Commitments

4.  LEASE OBLIGATIONS AND OTHER COMMITMENTS

 

The Company leases real and personal property in the normal course of business under various operating leases 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 for our computer servers.

The gross amounts of assets and liabilities related to both operating and financing leases were as follows (in thousands):

 

Lease Type

 

November 27, 2021

 

 

May 29, 2021

 

Operating lease ROU asset

 

$

3,579

 

 

$

2,262

 

Financing lease ROU asset

 

 

262

 

 

 

308

 

Total lease ROU asset

 

$

3,841

 

 

$

2,570

 

 

 

 

 

 

 

 

 

 

Operating lease liability current

 

$

1,192

 

 

$

918

 

Financing lease liability current

 

 

60

 

 

 

148

 

Total lease liability current

 

$

1,252

 

 

$

1,066

 

 

 

 

 

 

 

 

 

 

Operating lease liability non-current

 

$

2,388

 

 

$

1,358

 

Total lease liability non-current

 

$

2,388

 

 

$

1,358

 

 

 


 

The components of lease costs were as follows (in thousands):

 

 

 

 

Three Months Ended

 

 

 

 

 

November 27, 2021

 

 

November 28, 2020

 

Consolidated operating lease expense

 

Operating expenses

 

$

446

 

 

$

502

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated financing lease amortization

 

Operating expenses

 

 

23

 

 

 

23

 

Consolidated financing lease interest

 

Interest expense

 

 

1

 

 

 

3

 

Consolidated financing lease expense

 

 

 

 

24

 

 

 

26

 

 

 

 

 

 

 

 

 

 

 

 

Net lease cost

 

 

 

$

470

 

 

$

528

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

November 27, 2021

 

 

November 28, 2020

 

Consolidated operating lease expense

 

Operating expenses

 

$

901

 

 

$

990

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated financing lease amortization

 

Operating expenses

 

 

46

 

 

 

46

 

Consolidated financing lease interest

 

Interest expense

 

 

3

 

 

 

7

 

Consolidated financing lease expense

 

 

 

 

49

 

 

 

53

 

 

 

 

 

 

 

 

 

 

 

 

Net lease cost

 

 

 

$

950

 

 

$

1,043

 

 

The approximate future minimum lease payments under operating and financing leases at November 27, 2021 were as follows (in thousands):

 

Fiscal Year

 

Operating Leases

 

 

Financing Leases

 

 

Total

 

Remaining 2022

 

$

692

 

 

$

60

 

 

$

752

 

2023

 

 

1,221

 

 

 

 

 

 

1,221

 

2024

 

 

837

 

 

 

 

 

 

837

 

2025

 

 

583

 

 

 

 

 

 

583

 

2026

 

 

401

 

 

 

 

 

 

401

 

Thereafter

 

 

94

 

 

 

 

 

 

94

 

     Total  lease payments

 

 

3,828

 

 

 

60

 

 

 

3,888

 

Less imputed interest

 

 

248

 

 

 

1

 

 

 

249

 

     Net minimum lease payments

 

$

3,580

 

 

$

59

 

 

$

3,639

 

 

The weighted average remaining lease terms and interest rates of leases held by the Company as of November 27, 2021 were as follows:

Lease Type

 

Weighted Average Remaining

Lease Term in Years

 

Weighted Average Interest Rate

 

Operating leases

 

3.6

 

4.5%

 

Financing leases

 

0.4

 

4.6%

 

 

The cash outflows of the leasing activity of the Company as lessee for the six months ending November 27, 2021 and November 28, 2020 were as follows (in thousands):

 

 

 

 

Six Months Ended

 

Cash Flow Source

 

Classification

 

November 27, 2021

 

 

November 28, 2020

 

Operating cash flows from operating leases

 

Operating activities

 

$

1,303

 

 

$

549

 

Operating cash flows from financing leases

 

Operating activities

 

 

88

 

 

 

84

 

Finance cash flows from financing leases

 

Financing activities

 

 

91

 

 

 

91