XML 29 R19.htm IDEA: XBRL DOCUMENT
v3.22.4

Leases | 6 Months Ended
--- | ---
Dec. 31, 2022
Leases [Abstract] |
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 for the three months and six months ended December 31, 2022 and were (in thousands):
|  | Three Months Ended |  | Six Months Ended |  |
|  | December 31, 2022 |  | January 1, 2022 |  | December 31, 2022 |  | January 1, 2022 |  |
Lease cost | Classification |  |  |  |  |
Operating lease cost | Cost of sales | $ | 2,441 |  |  | $ | 1,598 |  |  | $ | 3,775 |  |  | $ | 3,031 |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 367 |  |  | $ | 250 |  |  | $ | 551 |  |  | $ | 558 |  |  |
Financing lease cost | Cost of sales | $ | 1,859 |  |  | $ | 617 |  |  | $ | 2,759 |  |  | $ | 1,051 |  |  |
Financing lease cost | Selling, general and administrative expenses | $ | 77 |  |  | $ | 17 |  |  | $ | 115 |  |  | $ | 27 |  |  |
Total lease cost |  | $ | 4,744 |  |  | $ | 2,482 |  |  | $ | 7,200 |  |  | $ | 4,667 |  |  |
Fixed lease cost |  | $ | 4,435 |  |  | $ | 2,081 |  |  | $ | 6,656 |  |  | $ | 3,858 |  |  |
Short-term lease cost |  | $ | 309 |  |  | $ | 401 |  |  | $ | 544 |  |  | $ | 809 |  |  |
Total lease cost |  | $ | 4,744 |  |  | $ | 2,482 |  |  | $ | 7,200 |  |  | $ | 4,667 |  |  |
Amounts reported in the Consolidated Balance Sheet as of December 31, 2022 were (in thousands, except weighted average lease term and discount rate):
|  | December 31, 2022 |  | July 2, 2022
Operating Leases: |  |  |  |
Operating lease right of use assets |  | $ | 18,652 |  |  | $ | 16,731 |
Operating lease liabilities (1) |  | $ | 18,652 |  |  | $ | 16,731 |
Weighted-average remaining lease term (in years) |  |  |  |
Operating leases |  | 4.84 |  | 5.28
Weighted-average discount rate |  |  |  |
Operating leases |  | 4.0 | % |  | 4.0 | %
Financing Leases (2): |  |  |  |
Financing lease right of use assets |  | $ | 10,258 |  |  | $ | 12,464 |
Financing lease liabilities |  | $ | 9,006 |  |  | $ | 11,211 |
Weighted-average remaining lease term (in years) |  |  |  |
Financing leases |  | 2.08 |  | 2.56
Weighted-average discount rate |  |  |  |
Financing leases |  | 8.8 | % |  | 8.8 | %
(1) The current portion of the total operating lease liabilities of $5.6 million is classified under Other Current Liabilities, resulting in $13.1 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 $10.3 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $4.4 million is classified under Current portion of debt, net, resulting in $4.6 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet. Other information related to leases was as follows (in thousands):
|  | Six Months Ended |  |
|  | December 31, 2022 |  | January 1, 2022 |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 3,128 |  |  | $ | 1,924 |  |  |
Financing cash flows used in financing leases |  | $ | 1,970 |  |  | $ | 1,077 |  |  |
Future lease payments under non-cancellable leases as of December 31, 2022 are as follows (in thousands):
Fiscal Years Ending |  | Operating Leases |  | Finance Leases
2023 (1) |  | $ | 2,877 |  |  | $ | 2,607 |
2024 |  | 5,048 |  |  | 3,960 |
2025 |  | 3,987 |  |  | 2,539 |
2026 |  | 3,365 |  |  | 107 |
2027 |  | 2,464 |  |  | 71 |
Thereafter |  | 3,240 |  |  | — |
Total undiscounted lease payments |  | 20,981 |  |  | 9,284 |
Less: present value discount |  | (2,329) |  |  | (278) |
Total lease liabilities |  | $ | 18,652 |  |  | $ | 9,006 |
(1) Represents estimated lease payments for the remaining six-month period ending July 1, 2023.
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 for the three months and six months ended December 31, 2022 and were (in thousands):
|  | Three Months Ended |  | Six Months Ended |  |
|  | December 31, 2022 |  | January 1, 2022 |  | December 31, 2022 |  | January 1, 2022 |  |
Lease cost | Classification |  |  |  |  |
Operating lease cost | Cost of sales | $ | 2,441 |  |  | $ | 1,598 |  |  | $ | 3,775 |  |  | $ | 3,031 |  |  |
Operating lease cost | Selling, general and administrative expenses | $ | 367 |  |  | $ | 250 |  |  | $ | 551 |  |  | $ | 558 |  |  |
Financing lease cost | Cost of sales | $ | 1,859 |  |  | $ | 617 |  |  | $ | 2,759 |  |  | $ | 1,051 |  |  |
Financing lease cost | Selling, general and administrative expenses | $ | 77 |  |  | $ | 17 |  |  | $ | 115 |  |  | $ | 27 |  |  |
Total lease cost |  | $ | 4,744 |  |  | $ | 2,482 |  |  | $ | 7,200 |  |  | $ | 4,667 |  |  |
Fixed lease cost |  | $ | 4,435 |  |  | $ | 2,081 |  |  | $ | 6,656 |  |  | $ | 3,858 |  |  |
Short-term lease cost |  | $ | 309 |  |  | $ | 401 |  |  | $ | 544 |  |  | $ | 809 |  |  |
Total lease cost |  | $ | 4,744 |  |  | $ | 2,482 |  |  | $ | 7,200 |  |  | $ | 4,667 |  |  |
Amounts reported in the Consolidated Balance Sheet as of December 31, 2022 were (in thousands, except weighted average lease term and discount rate):
|  | December 31, 2022 |  | July 2, 2022
Operating Leases: |  |  |  |
Operating lease right of use assets |  | $ | 18,652 |  |  | $ | 16,731 |
Operating lease liabilities (1) |  | $ | 18,652 |  |  | $ | 16,731 |
Weighted-average remaining lease term (in years) |  |  |  |
Operating leases |  | 4.84 |  | 5.28
Weighted-average discount rate |  |  |  |
Operating leases |  | 4.0 | % |  | 4.0 | %
Financing Leases (2): |  |  |  |
Financing lease right of use assets |  | $ | 10,258 |  |  | $ | 12,464 |
Financing lease liabilities |  | $ | 9,006 |  |  | $ | 11,211 |
Weighted-average remaining lease term (in years) |  |  |  |
Financing leases |  | 2.08 |  | 2.56
Weighted-average discount rate |  |  |  |
Financing leases |  | 8.8 | % |  | 8.8 | %
(1) The current portion of the total operating lease liabilities of $5.6 million is classified under Other Current Liabilities, resulting in $13.1 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 $10.3 million is classified under Other Long-term Assets. The current portion of the total finance lease liabilities of $4.4 million is classified under Current portion of debt, net, resulting in $4.6 million classified in Other Long-term Liabilities section of the condensed consolidated balance sheet. Other information related to leases was as follows (in thousands):
|  | Six Months Ended |  |
|  | December 31, 2022 |  | January 1, 2022 |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |
Operating cash flows from operating leases |  | $ | 3,128 |  |  | $ | 1,924 |  |  |
Financing cash flows used in financing leases |  | $ | 1,970 |  |  | $ | 1,077 |  |  |
Future lease payments under non-cancellable leases as of December 31, 2022 are as follows (in thousands):
Fiscal Years Ending |  | Operating Leases |  | Finance Leases
2023 (1) |  | $ | 2,877 |  |  | $ | 2,607 |
2024 |  | 5,048 |  |  | 3,960 |
2025 |  | 3,987 |  |  | 2,539 |
2026 |  | 3,365 |  |  | 107 |
2027 |  | 2,464 |  |  | 71 |
Thereafter |  | 3,240 |  |  | — |
Total undiscounted lease payments |  | 20,981 |  |  | 9,284 |
Less: present value discount |  | (2,329) |  |  | (278) |
Total lease liabilities |  | $ | 18,652 |  |  | $ | 9,006 |
(1) Represents estimated lease payments for the remaining six-month period ending July 1, 2023.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance 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
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration