NOTE E - LEASES:

 

The Company leases its 19,576 square foot corporate office facility with average annual lease payments of approximately $18.00 per square foot. This lease began on January 2, 2017 and has a ten-year term. The Company amended its lease agreement in June 2020 and has elected to defer one-half of the monthly base rent for the period from June 2020 through May 2021. As of June 28, 2026 and June 29, 2025, the unpaid balance of deferred base rent was approximately zero and $24 thousand, respectively which is included in accounts payable on the accompanying Consolidated Balance Sheets.

 

The components of total lease expense for the fiscal years ended June 28, 2026, June 29, 2025, and June 30, 2024, where operating lease cost is included in general and administrative expense and sublease income is included in revenues in the accompanying Consolidated Statements of Income, are as follows (in thousands):

 

 

Supplemental cash flow information related to operating leases is included in the table below (in thousands):

 

 

Weighted average remaining lease term and weighted average discount rate for operating leases are as follows:

 

 

Remaining operating lease liabilities with enforceable contract terms that are greater than one year mature as follows (in thousands):