What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2022-11-09 compared with 2022-05-11 · 87 added, 135 removed, 369 unchanged (38% of the section changed)

4 unchanged sentences

except share data)

April 2, 2022 July 3, 2021

October 1, 2022 July 2, 2022

Current assets:

1 unchanged sentence

Trade receivables, net of allowance for doubtful accounts of $ 29 and $ 12

139,010 135,876

Contract assets 26,358 21,974

Inventories, net 155,066 137,329

Inventories 169,285 155,741

Other 22,803 24,710

26 unchanged sentences

issued and outstanding 10,762 and 10,762 shares, respectively

47,514 47,474

Retained earnings 78,981 77,829

Accumulated other comprehensive income (loss) ( 234 ) 2,072

Accumulated other comprehensive (loss) ( 272 ) ( 425 )

Total shareholders’ equity 126,223 124,878

4 unchanged sentences

(Unaudited, in thousands, except share and per share amounts)

Three Months Ended Nine Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Three Months Ended

October 1, 2022 October 2, 2021

Net sales $ 137,263 $ 132,762

3 unchanged sentences

Selling, general and administrative expenses 5,656 5,595

Gain on insurance proceeds, net of losses ( 934 ) —

Total operating expenses 7,018 8,044

12 unchanged sentences

(Unaudited, in thousands)

Three Months Ended Nine Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Three Months Ended

October 1, 2022 October 2, 2021

Comprehensive income:

3 unchanged sentences

Comprehensive income $ 1,305 $ ( 716 )

Other comprehensive income for the three months ended April 2, 2022 and April 3, 2021, is reflected net of tax expense (benefit) of approximately $ 0.1 million and $( 0.2 ) million, respectively.

Other comprehensive income for the nine months ended April 2, 2022 and April 3, 2021, is reflected net of tax expense (benefit) of approximately $( 0.7 ) million and $ 1.3 million, respectively.

Other comprehensive income for the three months ended October 2, 2021, is reflected net of tax expense (benefit) of approximately $( 0.3 ) million.

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Unaudited, in thousands)

Nine Months Ended

April 2, 2022 April 3, 2021

Three Months Ended

October 1, 2022 October 2, 2021

Operating activities:

4 unchanged sentences

Amortization of deferred loan costs 37 32

Provision for obsolete inventory 520 458

Provision for warranty 152 75

Provision for doubtful accounts 14 26

Gain on disposal of assets ( 123 ) —

Gain on insurance proceeds, net of losses ( 934 ) —

Share-based compensation expense 40 68

11 unchanged sentences

Purchase of property and equipment ( 2,526 ) ( 1,791 )

Proceeds from sale of fixed assets 2 —

Cash used in investing activities ( 2,526 ) ( 1,791 )

2 unchanged sentences

Proceeds from issuance of long term debt — 5,055

Interest rate swap termination fee — ( 925 )

Repayments of long term debt ( 543 ) ( 532 )

Borrowings under revolving credit agreement 441,681 288,892

Repayments of revolving credit agreement ( 432,833 ) ( 259,028 )

Borrowings on revolver, net 10,354 10,446

Principal payments on finance leases ( 1,022 ) ( 401 )

Cash provided by financing activities 8,789 14,488

Net (decrease) increase in cash and cash equivalents ( 1,751 ) 728

Net increase (decrease) in cash and cash equivalents 426 ( 1,929 )

Cash and cash equivalents, beginning of period 1,707 3,473

10 unchanged sentences

except share data)

Three Months Ended Nine Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

Three Months Ended

October 1, 2022 October 2, 2021

Total shareholders’ equity, beginning balances $ 124,878 $ 123,705

12 unchanged sentences

Ending balances 78,981 75,267

Accumulated other comprehensive income:

Accumulated other comprehensive income (loss):

Beginning balances $ ( 425 ) $ 2,072

14 unchanged sentences

The Company’s reporting period is a 52/53 week fiscal year ending on the Saturday closest to June 30.

The three month period ended April 2, 2022 was a 13 week period whereas the three month period ended April 3, 2021 was a 14 week period.

The three month periods ended October 1, 2022 and October 2, 2021, were both 13 week periods.

Fiscal year 2023 will end on July 1, 2023, which is a 52 week year.

Fiscal year 2021 which ended on July 3, 2021, was a 53 week year.

Fiscal year 2022 which ended on July 2, 2022, was also a 52 week year.

Certain Significant Risks and Uncertainties Related to Outbreak of Coronavirus Disease 2019 (“COVID-19”)

55 unchanged sentences

The Company is currently assessing the impact on its consolidated financial statements, and it intends to adopt the guidance when it becomes effective in the first quarter of fiscal year 2024.

Total inventory as of April 2, 2022 is $ 155.1 million compared to $ 137.3 million as of July 3, 2021.

Substantially all of the Company’s inventory balances consist of raw materials.

Inventories as of October 1, 2022 are $ 169.3 million compared to $ 155.7 million as of July 2, 2022.

Substantially all of the Company’s inventory balances are raw materials.

Long-Term Debt

1 unchanged sentence

The amendment increases the Company’s current credit facility of $ 93 million to $ 120 million, subject to the Company’s borrowing base, maturing on September 3, 2026.

As of April 2, 2022, the Company had an outstanding balance under the asset-based revolving credit facility of $ 99.7 million, $ 0.3 million in outstanding letters of credit and $ 15.8 million available for future borrowings.

As of October 1, 2022, the Company had an outstanding balance under the asset-based revolving credit facility of $ 105.4 million, $ 0.3 million in outstanding letters of credit and $ 10.6 million available for future borrowings.

On August 26, 2022, the company entered into a third amendment to the loan agreement with Bank of America.

The amendment removed the cash flow leverage ratio covenant and increased the interest rate by 25 basis points.

As of July 2, 2022, the Company had an outstanding balance under the credit facility with Bank of America of $ 95.1 million, $ 0.3 million in outstanding letters of credit and $ 10.8 million available for future borrowings.

11 unchanged sentences

Under this loan agreement, equal monthly payments of approximately $ 94,000 commenced on September 14, 2020 and will continue through the maturity of the equipment financing facility on August 14, 2025.

As of April 2, 2022, the Company had an outstanding balance of $ 3.5 million.

As of October 1, 2022, the Company had an outstanding balance of $ 3.1 million.

As of July 2, 2022, the Company had an outstanding balance of $ 3.3 million under the Bank of America equipment term loan agreement.

1 unchanged sentence

Under this loan agreement, equal monthly payments of $ 100,000 commenced on May 24, 2021 and will continue through the maturity of the equipment financing facility on April 24, 2026.

As of April 2, 2022, the Company had an outstanding balance of $ 4.9 million.

As of October 1, 2022, the Company had an outstanding balance of $ 4.3 million.

As of July 2, 2022, the Company had an outstanding balance of $ 4.6 million.

The interest rates on outstanding debt as of April 2, 2022 range from 3.25 % - 5.52 % compared to 3.25 % - 5.52 % as of July 3, 2021.

Debt maturities as of April 2, 2022 for the next five years and thereafter are as follows (in thousands):

The interest rates on outstanding debt as of October 1, 2022 range from 4.85 % - 6.15 % compared to 3.25 % - 5.52 % as of July 2, 2022.

Debt maturities as of October 1, 2022 for the next five years and thereafter are as follows (in thousands):

Fiscal Years Ending Amount

Thereafter 99,735

Total debt $ 112,793

1 unchanged sentence

Long-term debt, net of debt issuance costs $ 112,331

(1) Represents scheduled payments for the remaining three-month period ending July 2, 2022.

The Company must comply with certain financial covenants, including a fixed charge coverage ratio and a cash flow leverage ratio.

The Company was in compliance with all financial covenants as of April 2, 2022.

(1) Represents scheduled payments for the remaining nine-month period ending July 1, 2023.

The Company must comply with certain financial covenants, including a fixed charge coverage ratio.

The Company was in compliance with all financial covenants as of October 1, 2022.

The Company expects to repatriate a portion of its foreign earnings based on increased net sales growth driving additional capital requirements domestically, cash requirements for potential acquisitions and to implement certain tax strategies.

8 unchanged sentences

Withholding taxes would not apply to future repatriations from Mexico or Vietnam.

The Company has available approximately $ 7.0 million of gross federal research and development tax credits as of April 2, 2022.

The Company has available approximately $ 10.6 million of gross federal research and development tax credits as of October 1, 2022.

ASC 740 requires the Company to recognize in its financial statements uncertainties in tax positions taken that may not be sustained upon examination by the taxing authorities.

Accordingly, as of April 2, 2022, the Company has recorded $ 2.7 million of unrecognized tax benefits associated with these federal tax credits, resulting in a net deferred tax benefit of approximately $ 4.3 million.

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted in response to the COVID-19 pandemic.

The CARES Act is not expected to have a material impact on the provision or timing of cash payments for income taxes.

However, under the CARES Act, AMT credits not previously refunded for the 2018 tax year became refundable in the 2019 taxable year rather than in years 2019-2021, and taxpayers could elect to claim 100% of the AMT credits in the first taxable year beginning in 2018 by applying for a tentative refund claim on or before December 31, 2020.

The Company made this election by applying for a tentative refund claim in the fourth quarter of fiscal year 2020.

The Company is continuing to evaluate the impacts of other aspects of the CARES Act, and at this time the Company does not believe they will have a material impact on our consolidated financial position, results of operations, or cash flows.

The Company is evaluating tax law changes and regulatory guidance issued through the quarter.

Accordingly, as of October 1, 2022, the Company has recorded $ 3.1 million of unrecognized tax benefits associated with these federal tax credits, resulting in a net deferred tax benefit of approximately $ 7.5 million.

The Company evaluated tax law changes and regulatory guidance issued through the prior fiscal year.

Such changes and regulations include guidance under Sec.

951A, foreign tax credits, and rules relating to consolidated NOL carryback claims.

The Company is still evaluating the ongoing impact of these law and regulatory changes, and does not expect them to have a material impact on its provision for income taxes.

The Company evaluated the ongoing impact of these law and regulatory changes, which did not have a material impact on its provision for income taxes.

On August 16, 2022, the Inflation Reduction Act of 2022 was signed into law.

The Inflation Reduction Act of 2022 includes a new book minimum tax on certain large corporations and an excise tax on corporate stock buybacks, among other provisions.

The Company is evaluating the impacts of this act, and at this time the Company does not believe they will have a material impact on our consolidated financial position, results of operations, or cash flows.

On January 27, 2021, the Company received official notice from the Vietnamese tax authorities, confirming tax benefits awarded (the “Tax Holiday”) related to the Company’s principal product line in Vietnam.

6 unchanged sentences

(in thousands, except share and per share information)

April 2, 2022 April 3, 2021

Net income $ 1,007 $ 867

Weighted average shares outstanding—basic 10,762 10,760

Effect of dilutive common stock awards 300 669

Weighted average shares outstanding—diluted 11,062 11,429

Net income per share—basic $ 0.09 $ 0.08

Net income per share—diluted $ 0.09 $ 0.08

Antidilutive SARs not included in diluted earnings per share 619 188

Nine Months Ended

(in thousands, except share and per share information)

April 2, 2022 April 3, 2021

October 1, 2022 October 2, 2021

Net income $ 1,152 $ 815

15 unchanged sentences

The grant date fair value for the awards granted below were estimated using the Black Scholes option valuation method:

August 9, 2021 July 23, 2020

July 29, 2022 August 9, 2021

SARs Granted 145,000 165,000

1 unchanged sentence

Fair Value $ 2.09 $ 2.73

Total share-based compensation expense recognized during the three months ended April 2, 2022 and April 3, 2021 was approximately $ 75,000 and $ 18,000 , respectively.

Total share-based compensation expense recognized during the nine months ended April 2, 2022 and April 3, 2021 was approximately $ 218,000 and $ 132,000 , respectively.

As of April 2, 2022, total unrecognized compensation expense related to unvested share-based compensation arrangements was approximately $ 0.5 million.

Total share-based compensation expense recognized during the three months ended October 1, 2022 and October 2, 2021 was approximately $ 40,000 and $ 68,000 , respectively.

As of October 1, 2022, total unrecognized compensation expense related to unvested share-based compensation arrangements was approximately $ 0.6 million.

This expense is expected to be recognized over a weighted average period of 2.16 years.

No SARs were exercised during the three or nine months ended April 2, 2022 or April 3, 2021.

No SARs were exercised during the three months ended October 1, 2022 or October 2, 2021.

Commitments and Contingencies

6 unchanged sentences

If actual return rates and/or repair and replacement costs differ significantly from management’s estimates, adjustments to recognize additional cost of sales may be required in future periods.

The Company’s warranty reserve was approximately $ 28,000 as of April 2, 2022 and $ 25,000 as of July 3, 2021, respectively.

The Company’s warranty reserve was approximately $ 30,000 as of October 1, 2022 and $ 31,000 as of July 2, 2022, respectively.

Gain from Insurance Recoveries, Net of Losses

Gain from insurance recoveries, net of losses, relate to losses incurred from storm damage to the Company’s Arkansas facility on July 29, 2022, as the result of a lightning strike.

During the three months ended October 1, 2022, the Company recorded a gain from insurance recoveries, net of losses, of $ 0.9 million due to the storm event.

The gain is net of a $ 0.4 million loss on the disposal of fixed assets, which were damaged in the event.

Subsequent to the end of the first quarter of fiscal year 2023, the Company received initial insurance proceeds of $ 1 million to repair the plant and replace equipment, which should be completed by the second half of fiscal year 2023.

These initial coverage amounts, net of equipment book value loss, are included in reported gain on insurance claims during the quarter.

Derivative Financial Instruments

As of April 2, 2022, the Company had outstanding foreign currency forward contracts with a total notional amount of $ 6.7 million.

The maturity dates for these contracts extend through June 2022.

For the three months ended April 2, 2022, the Company did not enter into any foreign currency forward contracts and settled $ 7.2 million of contracts.

During the same period of the previous year, the Company did not enter into any foreign currency forward contracts and settled $ 7.0 million of contracts.

For the nine months ended April 2, 2022, the Company entered into $13.9 million of foreign currency forward contracts and settled $ 17.8 million of such contracts.

During the same period of the previous year, the Company did not enter into any foreign currency forward contracts and settled $ 19.9 million of such contracts.

As of April 2, 2022, the aggregate notional amount of the Company’s outstanding foreign currency contracts along with their unrealized gains (losses) are expected to mature as summarized below (in thousands):

Quarter Ending Notional Contracts in MXN Notional Contracts in USD Estimated Fair Value

July 2, 2022 $ 141,493 $ 6,726 $ 344

As of October 1, 2022, the Company did not have any outstanding foreign currency forward contracts.

For the three months ended October 1, 2022, the Company did not enter into or settle any foreign currency forward contracts.

During the same period of the previous year, the Company entered into $ 13.9 million foreign currency forward contracts and settled $ 5.5 million of contracts.

On November 6, 2019, the Company entered into an interest rate swap contract with an effective date of November 6, 2019 and a termination date of September 30, 2022, related to the borrowings outstanding under the term loan with Wells Fargo Bank.

4 unchanged sentences

On the date of termination this interest rate swap was in a liability position of $ 776,500 , which will be amortized to interest expense over the original term of the swap.

The following table summarizes the fair value of derivative instruments in the Consolidated Balance Sheet as of April 2, 2022 and July 3, 2021 (in thousands):

April 2, 2022 July 3, 2021

Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Fair Value

Foreign currency forward contracts Other current assets $ 344 $ 3,614

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended April 2, 2022 and April 3, 2021, respectively (in thousands):

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

January 1, 2022 Effective

AOCI Effective Portion

Reclassified From

Income AOCI Balance

April 2, 2022

Forward contracts Cost of sales $ ( 45 ) $ 302 $ ( 69 ) $ 188

Interest rate swap Interest expense ( 498 ) — 76 ( 422 )

Total $ ( 543 ) $ 302 $ 7 $ ( 234 )

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

December 26, 2020 Effective

AOCI Effective Portion

Reclassified From

Income AOCI Balance

April 3, 2021

Forward contracts Cost of sales $ 3,493 $ ( 63 ) $ ( 644 ) $ 2,786

Interest rate swap Interest expense ( 799 ) — 75 ( 724 )

Total $ 2,694 $ ( 63 ) $ ( 569 ) $ 2,062

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the nine months ended April 2, 2022 and April 3, 2021, respectively (in thousands):

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended October 1, 2022 and October 2, 2021, respectively (in thousands):

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

3 unchanged sentences

Income AOCI Balance

April 2, 2022

October 1, 2022

Forward contracts Cost of sales $ ( 79 ) $ — $ 79 $ —

2 unchanged sentences

Derivatives Designated as Hedging Instruments Classification of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) AOCI Balance

June 27, 2020 Effective

July 3, 2021 Effective

AOCI Effective Portion

1 unchanged sentence

Income AOCI Balance

April 3, 2021

October 2, 2021

Forward contracts Cost of sales $ 2,721 $ 224 $ ( 1,830 ) $ 1,115

1 unchanged sentence

Total $ 2,072 $ 224 $ ( 1,755 ) $ 541

As of April 2, 2022, the net amount of unrealized gain expected to be reclassified into earnings within the next 12 months is approximately $ 267,000 .

As of April 2, 2022, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

Fair Value Measurements

The Company currently has forward contracts to hedge known future cash outflows for expenses denominated in the Mexican peso.

These contracts are measured on a recurring basis based on the foreign currency spot rates and forward rates quoted by banks or foreign currency dealers.

There are three levels of fair value hierarchy inputs used to value assets and liabilities which include:

Level 1 – inputs are quoted market prices for identical assets or liabilities;

Level 2 – inputs other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly;

and Level 3 – inputs are unobservable inputs for the asset or liability.

These contracts are marked to market using level 2 input criteria every quarter with the unrealized gain or loss, net of tax, reported as a component of shareholders’ equity in accumulated other comprehensive gain (loss), as they qualify for hedge accounting.

The following table summarizes the fair value of assets (liabilities) of the Company’s derivatives that are required to be measured on a recurring basis as of April 2, 2022 and July 3, 2021 (in thousands):

April 2, 2022

Level 1 Level 2 Level 3 Total

Financial Assets:

Foreign currency forward contracts $ — $ 344 $ — $ 344

Level 1 Level 2 Level 3 Total

Financial Assets:

Foreign currency forward contracts $ — $ 3,614 $ — $ 3,614

The carrying values of cash and cash equivalents, accounts receivable and current liabilities reflected on the balance sheets at April 2, 2022 and July 3, 2021, reasonably approximate their fair value.

The Company’s long-term debt, which is measured at amortized cost, primarily consists of an asset-based revolving credit facility, lease liability, and an equipment loan.

These borrowings bear interest at LIBOR plus 2.5 % per the loan agreement.

Each of these rates is a variable floating rate dependent upon current market conditions and the Company’s current credit risk as discussed in Note 4.

As a result of the determinable market rates for our asset-based revolving credit facility and equipment loan, they are classified within Level 2 of the fair value hierarchy.

Further, the carrying value of each of these instruments reasonably approximates their fair value as of April 2, 2022 and July 3, 2021.

As of October 1, 2022, the Company does not have any foreign exchange contracts with credit-risk-related contingent features.

The Company is subject to the risk of fluctuating interest rates from our line of credit and foreign currency risk resulting from our China operations.

The Company does not currently manage these risk exposures by using derivative instruments.

Revenue Recognition

7 unchanged sentences

In these instances, as well as when we have an MSA in place, we receive customer purchase orders for specific quantities and timing of products.

As a result, the Company considers its contract with a customer to be the combination of the MSA and the purchase order.

As a result, the

Company considers its contract with a customer to be the combination of the MSA and the purchase order.

The transaction price is fixed and set forth in each purchase order.

10 unchanged sentences

The Company generally provides a warranty for workmanship on its manufacturing contracts.

Historically, the amount of returns for workmanship issues has been de minimis under the Company’s warranties.

Although we offer warranties on our products, our warranties are considered to be assurance-type in nature and do not cover anything beyond ensuring that the product is functioning as intended.

Based on the guidance in ASC 606, assurance-type warranties do not represent separate performance obligations;

therefore, the primary performance obligation in the majority of our contracts is the delivery of a specific good through the purchase order submitted by our customer.

The Company elected to not disclose information about remaining performance obligations as they are part of contracts that that have expected durations of one year or less.

During the first nine months of fiscal year 2022, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods.

The Company has elected to expense costs to obtain contracts as incurred as these costs are immaterial to the financial statements.

During the first three months of fiscal year 2023, no revenues were recognized from performance obligations satisfied or partially satisfied in previous periods.

Contract Balances

1 unchanged sentence

Contract assets are classified separately on the condensed consolidated balance sheet and transferred to receivables when the right to payment becomes unconditional.

The following table summarizes the activity in the Company’s contract assets during the nine months ended April 2, 2022 (in thousands):

The following table summarizes the activity in the Company’s contract assets during the three months ended October 1, 2022 (in thousands):

Contract Assets

2 unchanged sentences

Amounts collected or invoiced ( 130,173 )

Ending balance, April 2, 2022

Ending balance, October 1, 2022

Disaggregation of Revenue

The following table presents the Company’s revenue disaggregated for the three and nine months ended April 2, 2022 and April 3, 2021 (in thousands):

Recognition Three Months Ended Nine Months Ended

April 2, 2022 April 3, 2021 April 2, 2022 April 3, 2021

The following table presents the Company’s revenue disaggregated for the three months ended October 1, 2022 and October 2, 2021 (in thousands):

Recognition Three Months Ended

October 1, 2022 October 2, 2021

Over-Time $ 134,558 $ 129,481

2 unchanged sentences

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 and nine months ended April 2, 2022 were (in thousands):

Lease cost Classification Three Months Ended Nine Months Ended

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 ended October 1, 2022 and October 2, 2021 were (in thousands):

Lease cost Classification October 1, 2022 October 2, 2021

Operating lease cost Cost of sales $ 1,334 $ 1,433

6 unchanged sentences

Total lease cost $ 2,456 $ 2,185

Amounts reported in the Consolidated Balance Sheet as of April 2, 2022 were (in thousands, except weighted average lease term and discount rate):

April 2, 2022

Amounts reported in the Consolidated Balance Sheet as of October 1, 2022 were (in thousands, except weighted average lease term and discount rate):

October 1, 2022

Operating Leases:

16 unchanged sentences

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

Three Months Ended Nine Months Ended

April 2, 2022

Three Months Ended

October 1, 2022 October 2, 2021

Cash paid for amounts included in the measurement of lease liabilities:

1 unchanged sentence

Financing cash flows used in financing leases $ 1,022 $ 401

Future lease payments under non-cancellable leases as of April 2, 2022 are as follows (in thousands):

Future lease payments under non-cancellable leases as of October 1, 2022 are as follows (in thousands):

Fiscal Years Ending Operating Leases Finance Leases

8 unchanged sentences

Total lease liabilities $ 19,497 $ 10,120

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

(1) Represents estimated lease payments for the remaining nine-month period ending July 1, 2023.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements