Leases

3 Months Ended

Jun. 25, 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 11 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
	June 25, 2021
Lease costs:
Operating lease expense	$	1,149
Short term lease expense	55

Other information:
Operating cash flows from operating leases	$	1,230
Weighted-average remaining lease term – operating leases	5.97 years
Weighted-average discount rate – operating leases	4.6		%

Rent expense incurred under operating lease agreements was $1,235 and $1,183 for the three months ended June 25, 2021 and June 26, 2020, respectively.

As of June 25, 2021, expirations of lease obligations by fiscal year were as follows:


Remainder of 2022	$	3,149
2023	3,694
2024	3,296
2025	3,021
2026	2,639
Thereafter	4,496
Total undiscounted lease payments	$	20,295
Less: present value adjustment	(2,601)
Total operating lease liabilities	$	17,694

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