Lease Obligations and Other Commitments

12 Months Ended

May 27, 2023

Commitments and Contingencies Disclosure [Abstract]

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 uses operating leases for facility space and automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company. Financing leases were used for computer servers.

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 determines it is reasonably certain of renewal.

The gross amounts of assets and liabilities related to both operating and financing leases at May 27, 2023 and May 28, 2022 were as follows (in thousands):


Lease Type	May 27, 2023		May 28, 2022
Operating lease ROU asset	$	2,457	$	3,024
Financing lease ROU asset		—		215
Total Lease ROU asset	$	2,457	$	3,239

Operating lease liability current	$	1,028	$	1,109
Financing lease liability current		—		—
Total lease liability current	$	1,028	$	1,109

Operating lease liability non-current	$	1,429	$	1,915
Financing lease liability non-current		—		—
Total lease liability non-current	$	1,429	$	1,915

The components of lease costs for fiscal 2023 and fiscal 2022 were as follows (in thousands):


Lease Type	Classification	Fiscal Year Ended May 27, 2023		Fiscal Year Ended May 28, 2022
Consolidated operating lease expense	Operating expenses	$	1,721	$	1,781

Consolidated financing lease amortization	Operating expenses		—		92
Consolidated financing lease interest	Interest expense		—		3
Consolidated financing lease expense			—		95

Net lease cost		$	1,721	$	1,876

Rent expense for fiscal 2023, fiscal 2022 and fiscal 2021 was $1.5 million, $1.6 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
2024	$	1,147
2025		827
2026		453
2027		113
2028		23
Thereafter		12
Total lease payments		2,575
Lease inputted interest		118
Net minimum lease payments	$	2,457

The weighted average remaining lease terms and interest rates of leases held by the Company as of May 27, 2023 were as follows:


Lease Type	Weighted Average Remaining Lease Term in Years	Weighted Average Interest Rate
Operating leases	2.6	4.0%

The cash outflows of the leasing activity of the Company as lessee for fiscal 2023 and fiscal 2022 were as follows (in thousands):


		Fiscal Year Ended
Cash Flow Source	Classification	May 27, 2023		May 28, 2022
Operating cash flows from operating leases	Operating activities	$	566	$	747
Operating cash flows from financing leases	Operating activities		—		148
Finance cash flows from financing leases	Financing activities		—		151