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LEASES | 12 Months Ended
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Jul. 03, 2021
Leases [Abstract] |
Lessee, Operating Leases | LEASES As a result of adopting ASC 842 as of June 30, 2019, the Company recognized an right of use asset of $21.4 million, a corresponding lease liability of $20.4 million, a reduction in prepaid rent of $0.4 million, a reduction of favorable lease agreement intangible of $0.7 million, and no adjustment to retained earnings or future P&L impact. The Company has several commitments under operating leases for warehouses, manufacturing facilities, office buildings, and equipment with initial terms that expire at various dates during the next 1 year to 10 years. The Company has some operating leases that include an extension clause. Management has considered the likelihood of exercising each extension option included and estimated the duration of the extension option, for those leases management determined to be reasonably certain, in calculating the lease term for measurement of the right of use asset and liability. For operating leases, management assumed a discount rate of 4% - 5.9%. The weighted average discount rate is disclosed in the tables below. The components of lease expense were as follows as of July 3, 2021 and June 27, 2020 (in thousands):
|  | Year Ended |  | Year Ended
Lease cost | Classification | July 3, 2021 |  | June 27, 2020
Operating lease cost | Cost of sales | $ | 4,818 |  |  | $ | 4,511 |
Operating lease cost | Selling, general and administrative expenses | 1,270 |  |  | 1,266 |
Total lease cost |  | $ | 6,088 |  |  | $ | 5,777 |
Fixed lease cost |  | $ | 4,943 |  |  | $ | 5,335 |
Short-term lease cost |  | $ | 1,145 |  |  | $ | 442 |
Total lease cost |  | $ | 6,088 |  |  | $ | 5,777 |
Amounts reported in the Consolidated Balance Sheet as of July 3, 2021 and June 27, 2020 were (in thousands, except weighted average lease term and discount rate):
| July 3, 2021 |  | June 27, 2020
Operating Leases: |  |  |
Operating lease right of use assets | $ | 15,745 |  |  | $ | 17,568 |
Operating lease liabilities (1) | 15,653 |  |  | 17,173 |
Weighted-average remaining lease term (in years) |  |  |
Operating leases | 5.95 |  | 6.46
Weighted-average discount rate |  |  |
Operating leases | 4.05 | % |  | 4.07 | %
(1) For fiscal year 2021 and 2020, the current portion of the total operating lease liabilities is classified under Other Current Liabilities. Other information related to leases was as follows (in thousands):
| July 3, 2021 |  | June 27, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows from operating leases | 4,976 |  |  | 4,237 |
Future lease payments under non-cancellable leases as of July 3, 2021 are as follows (in thousands):
Fiscal Years Ending |  | Operating Leases
2022 |  | $ | 4,225 |
2023 |  | 3,140 |
2024 |  | 2,526 |
2025 |  | 2,427 |
2026 |  | 1,865 |
Thereafter |  | 4,125 |
Total undiscounted lease payments |  | 18,308 |
Less: present value discount |  | 2,655 |
Total lease liabilities |  | $ | 15,653 |

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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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