XML 96 R14.htm IDEA: XBRL DOCUMENT
v3.19.3

Leases | 6 Months Ended
--- | ---
Sep. 28, 2019
Leases [Abstract] |
Operating Leases | Leases The Company leases certain production and retail locations, office space and equipment. The Company determines 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 on the Consolidated Balance Sheet. 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 the Company’s 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 the Company is reasonably certain to exercise. Certain of the Company's lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from 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 the Company’s leases do not provide a readily determinable implicit interest rate, the Company must estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, the Company considers 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 the Company will exercise such options. The following table provides information about the financial statement classification of the Company's lease balances reported within the Consolidated Balance Sheets as of September 28, 2019 (in thousands):
| Classification |  | September 28, 2019
ROU assets |  |  |
Operating lease assets | Operating lease right-of-use assets |  | $ | 11,732 |
Finance lease assets | Property, plant and equipment, net (1) |  | 1,685 |
Total lease assets |  |  | $ | 13,417 |
Lease Liabilities |  |  |
Current |  |  |
Operating lease liabilities | Accrued liabilities |  | $ | 3,786 |
Finance lease liabilities | Current portion of secured financings and other |  | 726 |
Non-current |  |  |
Operating lease liabilities | Operating lease liabilities |  | 8,735 |
Finance lease liabilities | Securitized financings and other |  | 317 |
Total lease liabilities |  |  | $ | 13,564 |
(1) Recorded net of accumulated amortization of $89,000 as of September 28, 2019. The following table provides information about the financial statement classification of the Company's lease expenses reported within the Consolidated Statements of Comprehensive Income for the three and six months ended September 28, 2019 (in thousands):
|  |  |  | September 28, 2019
Lease Expense Category |  | Classification |  | Three Months Ended |  | Six Months Ended
Operating lease expense (1) |  |  |  |  |  |
|  | Cost of sales |  | $ | 208 |  |  | $ | 417 |
|  | Selling, general and administrative expenses |  | 776 |  |  | 1,529 |
Finance lease expense |  |  |  |  |  |
Amortization of leased assets |  | Cost of sales |  | 10 |  |  | 19 |
Interest on lease liabilities |  | Interest expense |  | 14 |  |  | 27 |
Total lease expense |  |  |  | $ | 1,008 |  |  | $ | 1,992 |
(1) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating leases for the three and six months ended September 28, 2019 were $832,000 and $1.6 million, respectively. Cash payments for finance leases for the three and six months ended September 28, 2019 were $36,000 and $70,000, respectively. The present value of the minimum payments for future fiscal years under non-cancelable leases as of September 28, 2019 were as follows (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder of 2020 | $ | 1,746 |  |  | $ | 703 |  |  | $ | 2,449 |
2021 | 3,797 |  |  | 79 |  |  | 3,876 |
2022 | 2,882 |  |  | 73 |  |  | 2,955 |
2023 | 1,875 |  |  | 73 |  |  | 1,948 |
2024 | 1,445 |  |  | 73 |  |  | 1,518 |
Thereafter | 2,611 |  |  | 122 |  |  | 2,733 |
Total lease payments | 14,356 |  |  | 1,123 |  |  | 15,479 |
Less: Amount representing interest | (1,835 | ) |  | (80 | ) |  | (1,915 | )
Present value of lease liabilities | $ | 12,521 |  |  | $ | 1,043 |  |  | $ | 13,564 |
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of September 28, 2019:
| Remaining Lease Term (Years) |  | Discount Rate
Operating leases | 4.8 |  | 4.5 | %
Finance leases | 2.5 |  | 5.0 | %
Operating Leases pre-Topic 842 adoption: The Company has non-cancelable operating leases with third parties, primarily for administrative and distribution center space and computer equipment. The Company's facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options. Rent expense for these third-party operating leases was $5.2 million for the fiscal year ended March 30, 2019 and $5.3 million for each of the fiscal years ended March 31, 2018 and April 1, 2017, and is included in Cost of sales and Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income. Future minimum lease commitments for future fiscal years under all non-cancelable operating leases having a remaining term in excess of one year as of March 30, 2019 were as follows (in thousands):
2020 | $ | 2,292 |
2021 | 2,197 |
2022 | 1,389 |
2023 | 1,072 |
Thereafter | 1,372 |
Total remaining lease payments | $ | 8,322 |
Finance Leases | Leases The Company leases certain production and retail locations, office space and equipment. The Company determines 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 on the Consolidated Balance Sheet. 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 the Company’s 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 the Company is reasonably certain to exercise. Certain of the Company's lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from 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 the Company’s leases do not provide a readily determinable implicit interest rate, the Company must estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, the Company considers 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 the Company will exercise such options. The following table provides information about the financial statement classification of the Company's lease balances reported within the Consolidated Balance Sheets as of September 28, 2019 (in thousands):
| Classification |  | September 28, 2019
ROU assets |  |  |
Operating lease assets | Operating lease right-of-use assets |  | $ | 11,732 |
Finance lease assets | Property, plant and equipment, net (1) |  | 1,685 |
Total lease assets |  |  | $ | 13,417 |
Lease Liabilities |  |  |
Current |  |  |
Operating lease liabilities | Accrued liabilities |  | $ | 3,786 |
Finance lease liabilities | Current portion of secured financings and other |  | 726 |
Non-current |  |  |
Operating lease liabilities | Operating lease liabilities |  | 8,735 |
Finance lease liabilities | Securitized financings and other |  | 317 |
Total lease liabilities |  |  | $ | 13,564 |
(1) Recorded net of accumulated amortization of $89,000 as of September 28, 2019. The following table provides information about the financial statement classification of the Company's lease expenses reported within the Consolidated Statements of Comprehensive Income for the three and six months ended September 28, 2019 (in thousands):
|  |  |  | September 28, 2019
Lease Expense Category |  | Classification |  | Three Months Ended |  | Six Months Ended
Operating lease expense (1) |  |  |  |  |  |
|  | Cost of sales |  | $ | 208 |  |  | $ | 417 |
|  | Selling, general and administrative expenses |  | 776 |  |  | 1,529 |
Finance lease expense |  |  |  |  |  |
Amortization of leased assets |  | Cost of sales |  | 10 |  |  | 19 |
Interest on lease liabilities |  | Interest expense |  | 14 |  |  | 27 |
Total lease expense |  |  |  | $ | 1,008 |  |  | $ | 1,992 |
(1) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating leases for the three and six months ended September 28, 2019 were $832,000 and $1.6 million, respectively. Cash payments for finance leases for the three and six months ended September 28, 2019 were $36,000 and $70,000, respectively. The present value of the minimum payments for future fiscal years under non-cancelable leases as of September 28, 2019 were as follows (in thousands):
| Operating Leases |  | Finance Leases |  | Total
Remainder of 2020 | $ | 1,746 |  |  | $ | 703 |  |  | $ | 2,449 |
2021 | 3,797 |  |  | 79 |  |  | 3,876 |
2022 | 2,882 |  |  | 73 |  |  | 2,955 |
2023 | 1,875 |  |  | 73 |  |  | 1,948 |
2024 | 1,445 |  |  | 73 |  |  | 1,518 |
Thereafter | 2,611 |  |  | 122 |  |  | 2,733 |
Total lease payments | 14,356 |  |  | 1,123 |  |  | 15,479 |
Less: Amount representing interest | (1,835 | ) |  | (80 | ) |  | (1,915 | )
Present value of lease liabilities | $ | 12,521 |  |  | $ | 1,043 |  |  | $ | 13,564 |
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of September 28, 2019:
| Remaining Lease Term (Years) |  | Discount Rate
Operating leases | 4.8 |  | 4.5 | %
Finance leases | 2.5 |  | 5.0 | %
Operating Leases pre-Topic 842 adoption: The Company has non-cancelable operating leases with third parties, primarily for administrative and distribution center space and computer equipment. The Company's facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options. Rent expense for these third-party operating leases was $5.2 million for the fiscal year ended March 30, 2019 and $5.3 million for each of the fiscal years ended March 31, 2018 and April 1, 2017, and is included in Cost of sales and Selling, general and administrative expenses in the accompanying Consolidated Statements of Comprehensive Income. Future minimum lease commitments for future fiscal years under all non-cancelable operating leases having a remaining term in excess of one year as of March 30, 2019 were as follows (in thousands):
2020 | $ | 2,292 |
2021 | 2,197 |
2022 | 1,389 |
2023 | 1,072 |
Thereafter | 1,372 |
Total remaining lease payments | $ | 8,322 |

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration