What changed in this filing

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Item 1. Financial Statements

2023-05-10 compared with 2023-02-09 · 89 added, 104 removed, 388 unchanged (33% of the section changed)

4 unchanged sentences

except share data)

December 31, 2022 July 2, 2022

April 1, 2023 July 2, 2022

Current assets:

3 unchanged sentences

Contract assets 29,899 21,974

Inventories 171,749 155,741

Inventories, net 154,315 155,741

Other 24,095 24,710

28 unchanged sentences

Retained earnings 81,924 77,829

Accumulated other comprehensive loss ( 213 ) ( 425 )

Accumulated other comprehensive income (loss) ( 155 ) ( 425 )

Total shareholders’ equity 129,421 124,878

3 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited, in thousands, except per share amounts)

Three Months Ended Six Months Ended

December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022

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

Three Months Ended Nine Months Ended

April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022

Net sales $ 164,553 $ 138,391 $ 425,524 $ 405,609

8 unchanged sentences

Income before income taxes 2,443 1,238 5,018 2,896

Income tax provision (benefit) 134 ( 31 ) 456 256

Income tax provision 467 231 924 487

Net income $ 1,976 $ 1,007 $ 4,094 $ 2,409

7 unchanged sentences

(Unaudited, in thousands)

Three Months Ended Six Months Ended

December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022

Three Months Ended Nine Months Ended

April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022

Comprehensive income:

2 unchanged sentences

Unrealized gain (loss) on hedging instruments, net of tax 58 309 270 ( 2,306 )

Comprehensive income (loss) $ 1,026 $ ( 497 ) $ 2,331 $ ( 1,213 )

Other comprehensive income (loss) for the three months ended December 31, 2022 and January 1, 2022, is reflected net of tax expense (benefit) of approximately $ 0.0 million and $( 0.5 ) million, respectively.

Other comprehensive income (loss) for the six months ended December 31, 2022 and January 1, 2022, is reflected net of tax expense (benefit) of approximately $ 0.0 million and $( 0.8 ) million, respectively.

Comprehensive income $ 2,034 $ 1,316 $ 4,364 $ 103

Other comprehensive income (loss) for the three months ended April 1, 2023 and April 2, 2022, is reflected net of tax expense (benefit) of approximately $ 0.0 million and $ 0.1 million, respectively.

Other comprehensive income for the nine months ended April 1, 2023 and April 2, 2022, is reflected net of tax expense (benefit) of approximately $ 0.0 million and $( 0.7 ) million, respectively.

See accompanying notes to consolidated financial statements.

2 unchanged sentences

(Unaudited, in thousands)

Six Months Ended

December 31, 2022 January 1, 2022

Nine Months Ended

April 1, 2023 April 2, 2022

Operating activities:

4 unchanged sentences

Amortization of deferred loan costs 85 106

Provision for obsolete inventory — 520

Provision for warranty 280 285

Provision for doubtful accounts 32 54

Gain on disposal of assets ( 123 ) —

Loss on disposal of assets ( 124 ) —

Gain on insurance proceeds, net of losses

19 unchanged sentences

Repayments of long term debt ( 1,721 ) ( 1,603 )

Borrowings on revolver, net 12,552 6,122

Borrowings under revolving credit agreement 447,718 441,681

Repayments under revolving credit agreement ( 426,126 ) ( 432,833 )

Principal payments on finance leases ( 3,075 ) ( 2,561 )

13 unchanged sentences

except share data)

Three Months Ended Six Months Ended

December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022

Three Months Ended Nine Months Ended

April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022

Total shareholders’ equity, beginning balances $ 127,311 $ 122,635 $ 124,878 $ 123,705

12 unchanged sentences

Ending balances 81,924 76,861 81,924 76,861

Accumulated other comprehensive income (loss):

Accumulated other comprehensive income:

Beginning balances $ ( 213 ) $ ( 543 ) $ ( 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 and six month periods ended December 31, 2022 and January 1, 2022, were both 13 week periods.

The three month period ended April 1, 2023 was a 13 week period, and the three month period ended April 2, 2022 was also a 13 week period.

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

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

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

Management’s Assessment of Liquidity

As of April 1, 2023, approximately $ 3.2 million was available under the asset-based revolving credit facility.

Our cash requirements are affected by the level of current operations and new programs.

We believe that projected cash from operations, funds available under the revolving credit facility and leasing capabilities will be sufficient to meet our working and fixed capital requirements for the foreseeable future.

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

12 unchanged sentences

Derivative Instruments and Hedging Activities

The Company has entered into foreign currency forward contracts that are accounted for as cash flow hedges .

The Company has occasionally entered into foreign currency forward contracts that are accounted for as cash flow hedges .

The effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (AOCI) and is reclassified into earnings in the same period in which the underlying hedged transaction affects earnings.

The derivative’s effectiveness represents the change in fair value of the hedge that offsets the change in fair value of the hedged item.

The Company uses derivatives to manage the variability of foreign currency fluctuations of expenses in our Mexico facilities.

The Company occasionally uses derivatives to manage the variability of foreign currency fluctuations of expenses in our Mexico facilities.

The foreign currency forward contracts have terms that are matched to the underlying transactions being hedged.

As a result, these transactions fully offset the hedged risk and no ineffectiveness has been recorded.

The Company’s foreign currency forward contracts potentially expose the Company to credit risk to the extent the counterparty may be unable to meet the terms of the agreement.

The Company’s foreign currency forward contracts, where applicable, potentially expose the Company to credit risk to the extent the counterparty may be unable to meet the terms of the agreement.

The Company minimizes such risk by utilizing a counterparty with a strong credit rating.

The Company’s counterparty to the foreign currency forward contracts is a major banking institution.

This institution does not require collateral for the contracts, and the Company believes that the risk of the counterparty failing to meet their contractual obligations is remote.

The Company’s counterparty to the foreign currency forward contracts was a major banking institution.

This institution did not require collateral for the contracts, and the Company believes that the risk of the counterparty failing to meet their contractual obligations is remote.

The Company does not enter into derivative instruments for trading or speculative purposes.

14 unchanged sentences

taxing jurisdictions to which we are subject.

Refer to Note 5 for further discussions.

Refer to Note 5 for further discussions related to income taxes.

Recently Issued Accounting Standards

14 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.

Inventories as of December 31, 2022 are $ 171.7 million compared to $ 155.7 million as of July 2, 2022.

Inventories as of April 1, 2023 are $ 154.3 million compared to $ 155.7 million as of July 2, 2022.

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

1 unchanged sentence

On September 3, 2021, the Company entered into an amendment to the Company’s current loan agreement with Bank of America.

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 December 31, 2022, the Company had an outstanding balance under the asset-based revolving credit facility of $ 107.6 million, $ 0.3 million in outstanding letters of credit and $ 1.8 million available for future borrowings.

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

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 April 1, 2023, the Company had an outstanding balance under the asset-based revolving credit facility of $ 116.8 million, $ 0.3 million in outstanding letters of credit and $ 3.2 million available for future borrowings.

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.

Generally, the interest rate applicable to loans under the Bank of America loan agreement will be, at the Company’s option:

(i)(A) the base rate which is the highest of (1) the prime rate for the applicable day (as such rate is determined from time to time by the Bank), (2) the federal funds rate for the applicable day plus 0.50 %, and (3) LIBOR for a 30-day interest period as of the applicable day plus 1.00 % (provided that in no event shall the base rate be less than zero), plus the applicable interest margin for base rate loans;

and (B) LIBOR rate for an applicable interest period (provided that in no event shall the LIBOR rate be less than 0.50 %), plus the applicable interest margin for LIBOR rate loans.

(i)(A) the base rate which is the highest of (a) the Prime Rate for such day, (b) the Federal Funds Rate for such day plus 0.50 %, or (c) Term SOFR for a one month interest period as of such day, plus 1.00 % (provided that in no event shall the base rate be less than zero), plus the applicable interest margin for base rate loans;

and (B) SOFR rate for an applicable interest period, plus the applicable interest margin for SOFR rate loans.

Depending on average daily excess borrowing availability over applicable periods under the Credit Facility, applicable interest margins on:

(x) base rate loans will be 1.50 - 2.00 %;

and (y) LIBOR rate loans will be 2.25 - 2.75 %, resetting on a quarterly basis beginning in early 2021.

If there is an event of default under the loan agreement, all loans and other obligations will bear interest at a rate of an additional 2.00 % on the otherwise applicable interest rates.

and (y) SOFR rate loans will be 2.50 - 3.00 %, resetting on a quarterly basis beginning in early 2021.

If there is an event of default under the loan agreement, all loans and other obligations will bear interest at a rate of an additional 2.00 % on the last change rates above otherwise applicable interest rates.

In addition to interest charges, the Company is required to pay a fee of 0.25 % per annum on the unused portion of the Credit Facility, monthly in arrears.

Under the new loan agreement with Bank of America, the asset-based revolving credit facility bears interest at LIBOR plus 2.5 %, as elected by the Company.

On August 14, 2020, the Company also entered into a $ 5.0 million equipment financing facility relating to the Company’s existing U.S.

1 unchanged sentence

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 December 31, 2022, the Company had an outstanding balance of $ 2.8 million.

As of April 1, 2023, the Company had an outstanding balance of $ 2.5 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.

On November 24, 2020, the Company entered into a $ 6.0 million equipment financing facility related to the Company’s existing manufacturing equipment that bears interest at 5.52 % and matures on April 24, 2026.

On November 24, 2020, the Company entered into a $ 6.0 million equipment financing facility related to the Company’s existing manufacturing equipment in Mexico that bears interest at 5.52 % and matures on April 24, 2026.

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 December 31, 2022, the Company had an outstanding balance of $ 4.0 million.

As of April 1, 2023, the Company had an outstanding balance of $ 3.7 million.

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

The interest rates on outstanding debt as of December 31, 2022 range from 4.85 % - 7.44 % compared to 3.25 % - 5.52 % as of July 2, 2022.

Debt maturities as of December 31, 2022 for the next five years and thereafter are as follows (in thousands):

The interest rates on outstanding debt as of April 1, 2023 range from 4.85 % - 7.92 % compared to 4.50 % - 5.52 % as of July 2, 2022.

Debt maturities as of April 1, 2023 for the next five years and thereafter are as follows (in thousands):

Fiscal Years Ending Amount

2 unchanged sentences

Long-term debt, net of debt issuance costs $ 122,437

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

(1) Represents scheduled payments for the remaining three-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 December 31, 2022.

The Company was in compliance with all financial covenants as of April 1, 2023.

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 $ 10.8 million of gross federal research and development tax credits as of December 31, 2022.

The Company has available approximately $ 10.2 million of gross federal research and development tax credits as of April 1, 2023.

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 December 31, 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 $ 7.7 million.

Accordingly, as of April 1, 2023, the Company has recorded $ 3.2 million of unrecognized tax benefits associated with these federal tax credits, resulting in a net deferred tax benefit of approximately $ 7.0 million.

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

1 unchanged sentence

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

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.

The Company evaluated the ongoing impact of these law and regulatory changes, and determined that they did not have a material impact on its provision for income taxes at the end of the prior fiscal year.

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.

The Company is evaluating the impacts of this Act, and at this time the Company does not believe it 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)

December 31, 2022 January 1, 2022

April 1, 2023 April 2, 2022

Net income $ 1,976 $ 1,007

5 unchanged sentences

Antidilutive SARs not included in diluted earnings per share 376 619

Six Months Ended

(in thousands, except per share information)

December 31, 2022 January 1, 2022

Nine Months Ended

(in thousands, except share and per share information)

April 1, 2023 April 2, 2022

Net income $ 4,094 $ 2,409

19 unchanged sentences

Fair Value $ 2.09 $ 2.73

Total share-based compensation expense recognized during the three months ended December 31, 2022 and January 1, 2022 was approximately $ 62,000 and $ 75,000 , respectively.

Total share-based compensation expense recognized during the six months ended December 31, 2022 and January 1, 2022 was approximately $ 102,000 and $ 143,000 , respectively.

As of December 31, 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 April 1, 2023 and April 2, 2022 was approximately $ 76,000 and $ 75,000 , respectively.

Total share-based compensation expense recognized during the nine months ended April 1, 2023 and April 2, 2022 was approximately $ 178,000 and $ 218,000 , respectively.

As of April 1, 2023, total unrecognized compensation expense related to unvested share-based compensation arrangements was approximately $ 0.4 million.

This expense is expected to be recognized over a weighted average period of 1.79 years.

No SARs were exercised during the three or six months ended December 31, 2022 or January 1, 2022.

No SARs were exercised during the three or nine months ended April 1, 2023 or April 2, 2022.

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 $ 83,000 as of December 31, 2022 and $ 31,000 as of July 2, 2022, respectively.

The Company’s warranty reserve was approximately $ 78,000 as of April 1, 2023 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 and six months ended December 31, 2022, the Company recorded a gain from insurance recoveries, net of losses, of $ 2.7 million and $ 3.6 million, respectively due to the storm event.The gains are net of a $ 0.4 million loss on the disposal of fixed assets, which were damaged in the event.

During the second quarter of fiscal year 2023, the Company received additional insurance proceeds of $ 3.5 million to repair the plant and replace equipment, which should be completed by the second half of fiscal year 2023.

During the three and nine months ended April 1, 2023, the Company recorded a gain from insurance recoveries, net of losses, of $ 0.4 million and $ 4.0 million, respectively due to the storm event.

During the nine months ended April 1, 2023, the Company received insurance proceeds of $ 3.5 million to repair the plant and replace equipment, which should be completed by the end of the 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 December 31, 2022, the Company did not have any outstanding foreign currency forward contracts.

For the three months ended December 31, 2022, the Company did not enter into or settle any foreign currency forward contracts.

During the same period of the previous year, the Company did not enter into any foreign currency forward contracts and settled $ 5.1 million of contracts.

For the six months ended December 31, 2022, the Company did not enter into or settle any foreign currency contracts.

During the same period of the previous year, the Company entered into $ 13.9 million foreign currency contracts and settled $ 10.6 million of such contracts.

As of April 1, 2023, the Company did not have outstanding foreign currency forward contracts.

For the three months ended April 1, 2023, the Company did not enter into or settle any foreign currency forward contracts and settled $ 7.2 million of contracts during the same period of the previous year.

For the nine months ended April 1, 2023, 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 of foreign currency forward contracts and settled $ 17.8 million of such 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 tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the three months ended December 31, 2022 and January 1, 2022, respectively (in thousands):

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

October 1, 2022 Effective

AOCI Effective Portion

Reclassified From

Income AOCI Balance

December 31, 2022

Forward contracts Cost of sales $ — $ — $ — $ —

Interest rate swap Interest expense ( 272 ) — 59 ( 213 )

Total $ ( 272 ) $ — $ 59 $ ( 213 )

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

October 2, 2021 Effective

AOCI Effective Portion

Reclassified From

Income AOCI Balance

January 1, 2022

Forward contracts Cost of sales $ 1,115 $ 338 $ ( 1,498 ) $ ( 45 )

Interest rate swap Interest expense ( 574 ) — 76 ( 498 )

Total $ 541 $ 338 $ ( 1,422 ) $ ( 543 )

The following tables summarize the gain (loss) on derivative instruments, net of tax, on the Consolidated Statements of Income for the six months ended December 31, 2022 and January 1, 2022, 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 April 1, 2023 and April 2, 2022, respectively (in thousands):

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

July 2, 2022 Effective

January 1, 2023 Effective

AOCI Effective Portion

1 unchanged sentence

Income AOCI Balance

December 31, 2022

April 1, 2023

Forward contracts Cost of sales $ — $ — $ — $ —

2 unchanged sentences

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

July 3, 2021 Effective

January 1, 2022 Effective

AOCI Effective Portion

1 unchanged sentence

Income AOCI Balance

January 1, 2022

April 2, 2022

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

1 unchanged sentence

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

As of December 31, 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.

As of April 1, 2023, 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 and Mexico operations.

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

26 unchanged sentences

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

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

During the first nine 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 six months ended December 31, 2022 (in thousands):

The following table summarizes the activity in the Company’s contract assets during the nine months ended April 1, 2023 (in thousands):

Contract Assets

2 unchanged sentences

Amounts collected or invoiced ( 406,910 )

Ending balance, December 31, 2022

Ending balance, April 1, 2023

Disaggregation of Revenue

The following table presents the Company’s revenue disaggregated for the three and six months ended December 31, 2022 and January 1, 2022 (in thousands):

Recognition Three Months Ended Six Months Ended

December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022

The following table presents the Company’s revenue disaggregated for the three and nine months ended April 1, 2023 and April 2, 2022 (in thousands):

Recognition Three Months Ended Nine Months Ended

April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022

Over-Time $ 160,628 $ 134,980 $ 414,835 $ 392,587

3 unchanged sentences

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.

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 reasonable 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

The components of lease cost for the three months and nine months ended April 1, 2023 were (in thousands):

Three Months Ended Nine Months Ended

April 1, 2023 April 2, 2022 April 1, 2023 April 2, 2022

Lease cost Classification

7 unchanged sentences

Total lease cost $ 2,251 $ 2,107 $ 6,995 $ 6,774

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

Amounts reported in the Consolidated Balance Sheet as of April 1, 2023 were (in thousands, except weighted average lease term and discount rate):

April 1, 2023 July 2, 2022

Operating Leases:

17 unchanged sentences

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

Six Months Ended

December 31, 2022 January 1, 2022

Nine Months Ended

April 1, 2023 April 2, 2022

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

1 unchanged sentence

Financing cash flows used in financing leases $ 3,075 $ 2,561

Future lease payments under non-cancellable leases as of December 31, 2022 are as follows (in thousands):

Future lease payments under non-cancellable leases as of April 1, 2023 are as follows (in thousands):

Fiscal Years Ending Operating Leases Finance Leases

8 unchanged sentences

Total lease liabilities $ 17,471 $ 12,113

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

(1) Represents estimated lease payments for the remaining three-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