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LEASES | 12 Months Ended
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Jul. 02, 2022
Leases [Abstract] |
Lessee, Operating Leases | 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 Company has some 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%. The weighted average discount rate is disclosed in the tables below. The components of lease cost were as follows as of July 2, 2022, July 3, 2021 and June 27, 2020 (in thousands):
|  | Year Ended |  | Year Ended |  | Year Ended
Lease cost | Classification | July 2, 2022 |  | July 3, 2021 |  | June 27, 2020
Operating lease cost | Cost of sales | $ | 6,442 |  |  | $ | 4,818 |  |  | $ | 4,511 |
Operating lease cost | Selling, general and administrative expenses | 929 |  |  | 1,270 |  |  | 1,266 |
Financing lease cost | Cost of sales | $ | 2,054 |  |  | $ | — |  |  | $ | — |
Financing lease cost | Selling, general and administrative expenses | $ | 64 |  |  | $ | — |  |  | $ | — |
Total lease cost |  | $ | 9,489 |  |  | $ | 6,088 |  |  | $ | 5,777 |
Fixed lease cost |  | $ | 7,941 |  |  | $ | 4,943 |  |  | $ | 5,335 |
Short-term lease cost |  | $ | 1,548 |  |  | $ | 1,145 |  |  | $ | 442 |
Total lease cost |  | $ | 9,489 |  |  | $ | 6,088 |  |  | $ | 5,777 |
Amounts reported in the Consolidated Balance Sheet as of July 2, 2022 and July 3, 2021 were (in thousands, except weighted average lease term and discount rate):
| July 2, 2022 |  | July 3, 2021
Operating Leases: |  |  |
Operating lease right of use assets | $ | 16,731 |  |  | $ | 15,745 |
Operating lease liabilities (1) | 16,731 |  |  | 15,653 |
Weighted-average remaining lease term (in years) |  |  |
Operating leases | 5.28 |  | 5.95
Weighted-average discount rate |  |  |
Operating leases | 4.00 | % |  | 4.05 | %
Financing Leases (2): |  |  |
Financing lease right of use assets | $ | 12,464 |  |  | $ | — |
Financing lease liabilities | 11,211 |  |  | — |
Weighted-average remaining lease term (in years) |  |  |
Financing leases | 2.56 |  | 0.00
Weighted-average discount rate |  |  |
Financing leases | 8.82 | % |  | — | %
(1) For fiscal year 2022 and 2021, the current portion of the total operating lease liabilities is classified under Other Current Liabilities. (2) The total finance lease right of use assets of $12.5 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $5.2 million is classified under Current portion of debt, net, resulting in $6.0 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet. Other information related to leases was as follows (in thousands):
| July 2, 2022 |  | July 3, 2021 |  | June 27, 2020
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | 4,261 |  |  | 4,976 |  |  | 4,237 |
Financing cash flows used in financing leases | 2,331 |  |  | — |  |  | — |
Future lease payments under non-cancellable leases as of July 2, 2022 are as follows (in thousands):
Fiscal Years Ending |  | Operating Leases |  | Finance Leases
2023 |  | $ | 4,709 |  |  | $ | 5,213 |
2024 |  | 3,811 |  |  | 3,960 |
2025 |  | 2,972 |  |  | 2,539 |
2026 |  | 2,351 |  |  | 107 |
2027 |  | 1,450 |  |  | 71 |
Thereafter |  | 3,071 |  |  | — |
Total undiscounted lease payments |  | 18,364 |  |  | 11,890 |
Less: present value discount |  | 1,633 |  |  | 679 |
Total lease liabilities |  | $ | 16,731 |  |  | $ | 11,211 |

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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 https://asc.fasb.org/subtopic&trid=77888251 + Details
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