LEASES

3 Months Ended

Oct. 02, 2021

Leases

The Company has several commitments under operating and financing 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 components of lease cost for the three months ended October 2, 2021 were (in thousands):


Lease cost	Classification	Three Months Ended
Operating lease cost	Cost of sales	$	1,433
Operating lease cost	Selling, general and administrative expenses	$	308

Financing lease cost	Cost of sales	$	434
Financing lease cost	Selling, general and administrative expenses	$	10

Total lease cost		$	2,185

Fixed lease cost		$	1,777
Short-term lease cost		$	408
Total lease cost		$	2,185

Amounts reported in the Consolidated Balance Sheet as of October 2, 2021 were (in thousands, except weighted average lease term and discount rate):


	October 2, 2021
Operating Leases:
Operating lease right of use assets	$	18,994
Operating lease liabilities (1)	$	18,953

Weighted-average remaining lease term (in years)
Operating leases	5.73

Weighted-average discount rate
Operating leases	4.0		%

Financing Leases (2):
Financing lease right of use assets	$	4,948
Financing lease liabilities	$	4,456

Weighted-average remaining lease term (in years)
Financing leases	2.83

Weighted-average discount rate
Financing leases	8.7		%

(1) The current portion of the total operating lease liabilities of $5.2 million is classified under Other Current Liabilities, resulting in $13.7 million classified under Operating Lease Liabilities in the Long-term Liabilities section of the condensed consolidated balance sheet.

(2) The total finance lease right of use assets of $4.9 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $1.9 million is classified under Current portion of debt, net, resulting in $2.6 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet.

Other information related to leases was as follows (in thousands):


	Three Months Ended
	October 2, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	1,446
Financing cash flows used in financing leases	$	401

Future lease payments under non-cancellable leases as of October 2, 2021 are as follows (in thousands):


Fiscal Years Ending	Operating Leases		Finance Leases
2022 (1)	$	4,026	$	1,477
2023	4,398		1,969
2024	3,811		1,642
2025	3,462		—
2026	2,667		—
Thereafter	4,521		—
Total undiscounted lease payments	22,885		5,088
Less: present value discount	(3,932)		(632)
Total lease liabilities	$	18,953	$	4,456

(1) Represents estimated lease payments for the remaining nine-month period ending July 2, 2022.