Note 13 - Leases

12 Months Ended

Oct. 01, 2022

(13) Leases

We have operating leases for certain equipment, office space and vehicles. We determine whether an arrangement is a lease at its inception if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Leases with an initial term of twelve months or less are not recorded on our consolidated balance sheet. Lease expense for operating leases with original terms of more than twelve months was $1.4 million in 2022, $1.4 million in 2021 and $1.3 million in 2020.

Most of our leases include options to extend or terminate the leases which are exercised at our sole discretion. As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate as of the commencement date in determining the present value of lease payments, which represents an estimate of the interest rate we would incur at the lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term.

Supplemental cash flow and non-cash information related to leases is as follows:

	Year Ended
(In thousands)	October 1, 2022		October 2, 2021
Cash paid for operating leases included in operating cash flows	$	1,418	$	1,413
Right-of-use assets obtained in exchange for new lease obligations		1,206		579

Supplemental balance sheet information related to leases is as follows:

(In thousands)	October 1, 2022		October 2, 2021
Right-of-use assets:
Other assets	$	1,565	$	1,717

Lease liabilities:
Accrued expenses	$	997	$	1,030
Other liabilities		572		695
Total operating lease liabilities	$	1,569	$	1,725

The weighted average remaining lease terms and discount rates for operating leases are as follows:

	October 1, 2022			October 2, 2021
Weighted average lease term (in years)		1.7			1.8
Weighted average discount rate		3.7	%		4.1	%

Aggregate future operating lease payments as of October 1, 2022 are as follows:

(In thousands)
2023	$	1,034
2024		512
2025		69
2026		2
2027		1
Total future operating lease payments		1,618
Less: imputed interest		(49	)
Present value of lease liabilities	$	1,569