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Leases
9 Months Ended
Dec. 26, 2020
Leases [Abstract]  
Leases

9.

Leases

The Company has operating leases for land, manufacturing and office facilities, and equipment. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such option. The Company's leases do not contain material residual value guarantees or material restrictive covenants. Operating lease expense is recognized on a straight-line basis over the lease terms. Lease expense included in the accompanying condensed consolidated income statements is shown below:

 


 

 

 

Three Months Ended

 

(Dollars in thousands)

 

December 26,

2020

 

 

December 28,

2019

 

Operating lease expense

 

$

1,362

 

 

$

1,359

 

Short-term lease expense

 

 

266

 

 

 

402

 

Total lease expense

 

$

1,628

 

 

$

1,761

 

 

 

 

Nine Months Ended

 

(Dollars in thousands)

 

December 26,

2020

 

 

December 28,

2019

 

Operating lease expense

 

$

4,102

 

 

$

4,234

 

Short-term lease expense

 

 

1,251

 

 

 

1,005

 

Total lease expense

 

$

5,353

 

 

$

5,239

 

 

Operating lease assets and obligations included in the accompanying condensed consolidated balance sheets are below:

(Dollars in thousands)

 

December 26,

2020

 

 

March 28,

2020

 

Right-of-use assets under operating leases:

 

 

 

 

 

 

 

 

Other long-term assets

 

$

12,515

 

 

$

14,808

 

Lease obligations under operating leases:

 

 

 

 

 

 

 

 

Other current liabilities

 

$

4,305

 

 

$

4,789

 

Other long-term liabilities

 

 

8,210

 

 

 

10,019

 

Total lease obligation

 

$

12,515

 

 

$

14,808

 

 

Maturities of lease obligations as of December 26, 2020, are shown below:

 

(Dollars in thousands)

 

December 26,

2020

 

Fiscal 2021 (1)

 

$

1,294

 

Fiscal 2022

 

 

4,694

 

Fiscal 2023

 

 

3,754

 

Fiscal 2024

 

 

1,803

 

Fiscal 2025

 

 

1,124

 

Thereafter

 

 

1,879

 

Total undiscounted cash flows

 

 

14,548

 

Less: imputed interest

 

 

(2,033

)

Lease obligations under operating leases

 

$

12,515

 

(1)

For remaining period in fiscal year.

The weighted-average lease term and discount rate for operating leases are shown below:

 

 

 

December 26,

2020

 

Weighted-average remaining lease term (in years)

 

 

4.6

 

Weighted-average discount rate

 

 

5.5

 

 

 

The discount rate used to measure a lease obligation should be the rate implicit in the lease; however, the Company’s operating leases generally do not provide an implicit rate. Accordingly, the Company uses its incremental borrowing rate at lease commencement to determine the present value of lease payments. The incremental borrowing rate is an entity-specific rate, which represents the rate of interest a lessee would pay to borrow on a collateralized basis over a similar term with similar payments.

Cash flow information related to operating leases is shown below:

 

 

Nine Months Ended

 

(Dollars in thousands)

 

December 26,

2020

 

 

December 28,

2019

 

Non-cash activity:

 

 

 

 

 

 

 

 

Right-of-use assets obtained in exchange for operating lease obligations

 

$

1,430

 

 

$

1,711

 

Operating cash flows:

 

 

 

 

 

 

 

 

Cash paid related to operating lease obligations

 

$

4,255

 

 

$

4,262