Leases

3 Months Ended

Jul. 05, 2020

Leases [Abstract]

Leases

Leases

The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years.

Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred.

The following table presents lease assets and liabilities and their balance sheet classification:

	Classification	As of July 5, 2020		As of March 31, 2020
Operating Leases:
Right-of-use assets	Other assets	$	71,124	$	70,045
Operating lease current liabilities	Accrued expenses	21,891		21,128
Operating lease non-current liabilities	Other liabilities	51,461		51,215
Finance Leases:
Right-of-use assets	Property, plant, and equipment, net	$	513	$	540
Finance lease current liabilities	Accrued expenses	169		162
Finance lease non-current liabilities	Other liabilities	375		407

The components of lease expense for the first quarter ended July 5, 2020 and June 30, 2019 were as follows:

	Classification	Quarter ended July 5, 2020		Quarter ended June 30, 2019
Operating Leases:
Operating lease cost	Operating expenses	$	6,936	$	7,295
Variable lease cost	Operating expenses	2,119		1,706
Short term lease cost	Operating expenses	1,829		2,184
Finance Leases:
Depreciation	Operating expenses	$	42	$	143
Interest expense	Interest expense	7		12
Total		$	10,933	$	11,340

The following table presents the weighted average lease term and discount rates for leases as of July 5, 2020:

Operating Leases:
Weighted average remaining lease term	6 years
Weighted average discount rate	5.11%
Finance Leases:
Weighted average remaining lease term	3.2 years
Weighted average discount rate	4.92%

The following table presents future payments due under leases reconciled to lease liabilities as of July 5, 2020:

	Finance Leases		Operating Leases
Nine months ended March 31, 2021	$	149	$	19,170
Year ended March 31,
2022	201		21,086
2023	158		14,239
2024	107		8,866
2025	15		5,641
Thereafter	10		16,763
Total undiscounted lease payments	640		85,765
Present value discount	96		12,413
Lease liability	$	544	$	73,352

The following table presents supplemental disclosures of cash flow information related to leases for the first quarter ended July 5, 2020 and June 30, 2019:

	Quarter ended July 5, 2020		Quarter ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	7	$	12
Operating cash flows from operating leases	6,921		7,213
Financing cash flows from finance leases	41		142
Supplemental non-cash information on lease liabilities arising from right-of-use assets:
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—	$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	6,177		2,628

Leases

Leases

The Company leases manufacturing facilities, distribution centers, office space, vehicles and other equipment under non-cancellable leases with initial terms typically ranging from 1 to 17 years.

Short term leases with an initial term of 12 months or less are not presented on the balance sheet and expense is recognized as incurred.

The following table presents lease assets and liabilities and their balance sheet classification:

	Classification	As of July 5, 2020		As of March 31, 2020
Operating Leases:
Right-of-use assets	Other assets	$	71,124	$	70,045
Operating lease current liabilities	Accrued expenses	21,891		21,128
Operating lease non-current liabilities	Other liabilities	51,461		51,215
Finance Leases:
Right-of-use assets	Property, plant, and equipment, net	$	513	$	540
Finance lease current liabilities	Accrued expenses	169		162
Finance lease non-current liabilities	Other liabilities	375		407

The components of lease expense for the first quarter ended July 5, 2020 and June 30, 2019 were as follows:

	Classification	Quarter ended July 5, 2020		Quarter ended June 30, 2019
Operating Leases:
Operating lease cost	Operating expenses	$	6,936	$	7,295
Variable lease cost	Operating expenses	2,119		1,706
Short term lease cost	Operating expenses	1,829		2,184
Finance Leases:
Depreciation	Operating expenses	$	42	$	143
Interest expense	Interest expense	7		12
Total		$	10,933	$	11,340

The following table presents the weighted average lease term and discount rates for leases as of July 5, 2020:

Operating Leases:
Weighted average remaining lease term	6 years
Weighted average discount rate	5.11%
Finance Leases:
Weighted average remaining lease term	3.2 years
Weighted average discount rate	4.92%

The following table presents future payments due under leases reconciled to lease liabilities as of July 5, 2020:

	Finance Leases		Operating Leases
Nine months ended March 31, 2021	$	149	$	19,170
Year ended March 31,
2022	201		21,086
2023	158		14,239
2024	107		8,866
2025	15		5,641
Thereafter	10		16,763
Total undiscounted lease payments	640		85,765
Present value discount	96		12,413
Lease liability	$	544	$	73,352

The following table presents supplemental disclosures of cash flow information related to leases for the first quarter ended July 5, 2020 and June 30, 2019:

	Quarter ended July 5, 2020		Quarter ended June 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	7	$	12
Operating cash flows from operating leases	6,921		7,213
Financing cash flows from finance leases	41		142
Supplemental non-cash information on lease liabilities arising from right-of-use assets:
Right-of-use assets obtained in exchange for new finance lease liabilities	$	—	$	—
Right-of-use assets obtained in exchange for new operating lease liabilities	6,177		2,628