XML 63 R16.htm IDEA: XBRL DOCUMENT v3.24.1.1.u2
Leases
12 Months Ended
Mar. 30, 2024
Leases [Abstract]  
Leases Leases
We lease certain production and retail locations, office space and equipment. We determine if a contract or arrangement is, or contains, a lease at inception. Lease agreements with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term by one to three years or more. Generally, the exercise of lease renewal options is at our discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that we are reasonably certain to exercise.
 Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.
 Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider the lease period and comparable market interest rates, as well as any other information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of March 30, 2024 and April 1, 2023 (in thousands):
ClassificationMarch 30,
2024
April 1,
2023
ROU assets
Operating lease assetsOperating lease right-of-use assets$39,027 $26,755 
Finance lease assets
Property, plant and equipment, net (1)
5,913 6,088 
Total lease assets$44,940 $32,843 
Lease Liabilities
Current:
   Operating lease liabilitiesAccrued expenses and other current liabilities$5,303 $6,262 
   Finance lease liabilitiesAccrued expenses and other current liabilities80 347 
Non-current:
   Operating lease liabilitiesOperating lease liabilities35,148 21,678 
   Finance lease liabilitiesOther liabilities6,086 5,896 
Total lease liabilities$46,617 $34,183 
(1) Recorded net of accumulated amortization of $0.4 million and $0.3 million as of March 30, 2024 and April 1, 2023, respectively.
The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended March 30, 2024, April 1, 2023 and April 2, 2022 (in thousands):
Year Ended
Lease Expense CategoryClassificationMarch 30,
2024
April 1,
2023
April 2,
2022
Operating lease expense (2)
Cost of sales$1,119 $1,190 $1,160 
Selling, general and administrative expenses4,693 4,059 3,636 
Finance lease expense
   Amortization of leased assetsCost of sales175 175 109 
   Interest on lease liabilitiesInterest expense279 283 151 
Total lease expense$6,266 $5,707 $5,056 
(2) Excludes short-term and variable lease expenses, which are immaterial.
Cash payments for operating and finance leases were as follows (in thousands):
 March 30,
2024
April 1,
2023
April 2,
2022
Operating leases$6,694 $5,609 $4,794 
Finance leases356 356 220 
The present value of minimum payments for future fiscal years under non-cancelable leases as of March 30, 2024 was as follows (in thousands):
Operating LeasesFinance LeasesTotal
2025$7,074 $356 $7,430 
20267,396 356 7,752 
20274,870 356 5,226 
20283,979 356 4,335 
20293,810 356 4,166 
Thereafter24,305 10,230 34,535 
51,434 12,010 63,444 
Less: Amount representing interest(10,983)(5,844)(16,827)
$40,451 $6,166 $46,617 
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of March 30, 2024:
Remaining Lease Term (Years)Discount Rate
   Operating leases10.34.9 %
   Finance leases33.84.5 %
Leases Leases
We lease certain production and retail locations, office space and equipment. We determine if a contract or arrangement is, or contains, a lease at inception. Lease agreements with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term by one to three years or more. Generally, the exercise of lease renewal options is at our discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that we are reasonably certain to exercise.
 Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.
 Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider the lease period and comparable market interest rates, as well as any other information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of March 30, 2024 and April 1, 2023 (in thousands):
ClassificationMarch 30,
2024
April 1,
2023
ROU assets
Operating lease assetsOperating lease right-of-use assets$39,027 $26,755 
Finance lease assets
Property, plant and equipment, net (1)
5,913 6,088 
Total lease assets$44,940 $32,843 
Lease Liabilities
Current:
   Operating lease liabilitiesAccrued expenses and other current liabilities$5,303 $6,262 
   Finance lease liabilitiesAccrued expenses and other current liabilities80 347 
Non-current:
   Operating lease liabilitiesOperating lease liabilities35,148 21,678 
   Finance lease liabilitiesOther liabilities6,086 5,896 
Total lease liabilities$46,617 $34,183 
(1) Recorded net of accumulated amortization of $0.4 million and $0.3 million as of March 30, 2024 and April 1, 2023, respectively.
The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended March 30, 2024, April 1, 2023 and April 2, 2022 (in thousands):
Year Ended
Lease Expense CategoryClassificationMarch 30,
2024
April 1,
2023
April 2,
2022
Operating lease expense (2)
Cost of sales$1,119 $1,190 $1,160 
Selling, general and administrative expenses4,693 4,059 3,636 
Finance lease expense
   Amortization of leased assetsCost of sales175 175 109 
   Interest on lease liabilitiesInterest expense279 283 151 
Total lease expense$6,266 $5,707 $5,056 
(2) Excludes short-term and variable lease expenses, which are immaterial.
Cash payments for operating and finance leases were as follows (in thousands):
 March 30,
2024
April 1,
2023
April 2,
2022
Operating leases$6,694 $5,609 $4,794 
Finance leases356 356 220 
The present value of minimum payments for future fiscal years under non-cancelable leases as of March 30, 2024 was as follows (in thousands):
Operating LeasesFinance LeasesTotal
2025$7,074 $356 $7,430 
20267,396 356 7,752 
20274,870 356 5,226 
20283,979 356 4,335 
20293,810 356 4,166 
Thereafter24,305 10,230 34,535 
51,434 12,010 63,444 
Less: Amount representing interest(10,983)(5,844)(16,827)
$40,451 $6,166 $46,617 
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of March 30, 2024:
Remaining Lease Term (Years)Discount Rate
   Operating leases10.34.9 %
   Finance leases33.84.5 %