Leases

9 Months Ended

Dec. 24, 2021

The Company determines if an arrangement is or contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The Company also considers whether its service arrangements include the right to control the use of an asset.

The Company leases real estate, equipment and vehicles under operating lease agreements that have initial terms ranging from 1 to 10 years. The Company does not have any leases classified as finance leases. Some leases include one or more options to exercise renewal terms, generally at the Company’s sole discretion, that can extend the lease term. Certain leases contain rights to terminate whereby those termination options are held by either the Company, the lessor, or both parties. These options to extend or terminate a lease are included in the lease term only when it is reasonably certain that the Company will exercise that option. The Company’s leases generally do not contain any material restrictive covenants.

Operating lease cost is recognized on a straight-line basis over the lease term. Information regarding the Company’s leases are as follows:


	Three-Month Period Ended			Nine-Month Period Ended
	December 24, 2021				December 24, 2021
Lease costs:
Operating lease expense	$	1,075			$	3,378
Short term lease expense	190				332

Other information:
Operating cash flows from operating leases	$	1,259			$	3,733
Weighted-average remaining lease term – operating leases	5.53 years				5.53 years
Weighted-average discount rate – operating leases	4.5		%		4.5		%

Rent expense incurred under operating lease agreements was $1,454 and $4,226 for the three- and nine-month periods ended December 24, 2021, respectively, and $1,172 and $3,477 for the three- and nine-month periods ended December 25, 2020.

As of December 24, 2021, expirations of lease obligations by fiscal year were as follows:


Remainder of 2022	$	1,056
2023	3,886
2024	3,503
2025	3,070
2026	2,597
Thereafter	4,406
Total undiscounted lease payments	$	18,518
Less: present value adjustment	(2,272)
Total operating lease liabilities	$	16,246

Information as Lessee under ASC 840

Future minimum lease payments for noncancellable operating leases as reported under the previous lease guidance as of March 26, 2021 are as follows:


2022	$	2,887
2023	2,726
2024	2,644
2025	2,172
2026	1,773
Thereafter	3,713
Total	$	15,915