Note 7 - Leases

6 Months Ended

Sep. 27, 2025

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

7. Leases

The Company determines whether an arrangement is a lease at inception of the agreement. Presently, the Company leases land, machinery and equipment under various operating and finance leases.

Right-of-use (“ROU”) assets represent the Company’s right to use the underlying assets for the lease term, and lease obligations represent the net present value of the Company’s obligation to make payments arising from these leases. ROU assets and lease obligations are recognized at commencement date based on the present value of lease payments over the lease term using the implicit lease interest rate or, when unknown, an incremental borrowing rate based on the information available at commencement date or April 1, 2019 for leases that commenced prior to that date. ROU assets and lease obligations for the Company’s operating and finance leases are disclosed separately in the Company’s condensed consolidated balance sheets.

Lease terms may include options to extend or terminate the lease, and the impact of these options are included in the calculation of the ROU asset and lease obligation only when the exercise of the option is at the Company’s sole discretion and it is reasonably certain that the Company will exercise that option. The Company will not separate lease and non-lease components for its leases when it is impractical to separate the two. In addition, the Company may have certain leases that have variable payments based solely on output or usage of the leased asset. These variable operating lease assets are excluded from the Company’s condensed consolidated balance sheet presentation and expensed as incurred. Leases with an initial term of 12 months or less, or short-term leases, are not recorded on the accompanying condensed consolidated balance sheets and are expensed as incurred.

The components of lease cost were as follows (in thousands): 

	Three Months Ended				Six Months Ended
	September 27,		September 28,		September 27,			September 28,
	2025		2024		2025			2024
Lease cost:
Amortization of right-of-use assets	$	902	$	1,179	$	1,806		$	2,306
Interest on lease obligations		104		207		216			361
Finance lease cost		1,006		1,386		2,022			2,667
Operating lease cost		1,127		1,442		2,214			3,274
Short-term lease cost		3,099		2,821		6,782			5,566
Total lease cost	$	5,232	$	5,649	$	11,018		$	11,507
Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows from finance leases					$	216		$	361
Operating cash flows from operating leases						3,085			4,475
Financing cash flows from finance leases						2,054			2,825
					$	5,355		$	7,661
Right-of-use assets obtained in exchange for new finance lease obligations					$	-		$	-
Right-of-use assets obtained in exchange for new operating lease obligations					$	2,116		$	2,117
Right-of-use assets derecognized upon early termination of finance leases					$	2		$	8
Right-of-use assets derecognized upon early termination of operating leases					$	74		$	8,222
Weighted-average lease term (years):
Finance leases						3.5			4.1
Operating leases						4.0			4.3
Weighted-average discount rate (percentage):
Finance leases						4.2	%		4.0	%
Operating leases						5.2	%		4.9	%

Undiscounted future lease payments under non-cancelable operating and finance leases, along with a reconciliation of undiscounted cash flows to operating and finance lease obligations, respectively, as of September 27, 2025 were as follows (in thousands):

Years ending March 31:	Operating		Finance
Balance of 2026	$	1,094	$	1,998
2027		3,060		3,218
2028		2,569		2,811
2029		1,455		1,659
2030		1,112		923
2031 and thereafter		1,015		384
Total minimum payment required		10,305		10,993
Less interest		973		799
Present value of minimum lease payments		9,332		10,194
Amount due within one year		2,967		3,373
Long-term lease obligations	$	6,365	$	6,821