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Leases | 12 Months Ended
--- | ---
Mar. 30, 2024
Leases [Abstract] |
Leases | Leases We lease certain production and retail locations, office space and equipment. We determine 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 in the Consolidated Balance Sheets. 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 our 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 we are reasonably certain to exercise. Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with 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 our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider 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 we will exercise such options. The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of March 30, 2024 and April 1, 2023 (in thousands):
| Classification |  | March 30, 2024 |  | April 1, 2023
ROU assets |  |  |  |  |
Operating lease assets | Operating lease right-of-use assets |  | $ | 39,027 |  |  | $ | 26,755 |
Finance lease assets | Property, plant and equipment, net (1) |  | 5,913 |  |  | 6,088 |
Total lease assets |  |  | $ | 44,940 |  |  | $ | 32,843 |
Lease Liabilities |  |  |  |  |
Current: |  |  |  |  |
Operating lease liabilities | Accrued expenses and other current liabilities |  | $ | 5,303 |  |  | $ | 6,262 |
Finance lease liabilities | Accrued expenses and other current liabilities |  | 80 |  |  | 347 |
Non-current: |  |  |  |  |
Operating lease liabilities | Operating lease liabilities |  | 35,148 |  |  | 21,678 |
Finance lease liabilities | Other liabilities |  | 6,086 |  |  | 5,896 |
Total lease liabilities |  |  | $ | 46,617 |  |  | $ | 34,183 |
(1) Recorded net of accumulated amortization of $0.4 million and $0.3 million as of March 30, 2024 and April 1, 2023, respectively. The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended March 30, 2024, April 1, 2023 and April 2, 2022 (in thousands):
|  |  | Year Ended
Lease Expense Category | Classification |  | March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
Operating lease expense (2) |  |  |  |  |  |  |
| Cost of sales |  | $ | 1,119 |  |  | $ | 1,190 |  |  | $ | 1,160 |
| Selling, general and administrative expenses |  | 4,693 |  |  | 4,059 |  |  | 3,636 |
Finance lease expense |  |  |  |  |  |  |
Amortization of leased assets | Cost of sales |  | 175 |  |  | 175 |  |  | 109 |
Interest on lease liabilities | Interest expense |  | 279 |  |  | 283 |  |  | 151 |
Total lease expense |  |  | $ | 6,266 |  |  | $ | 5,707 |  |  | $ | 5,056 |
(2) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating and finance leases were as follows (in thousands):
| March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
Operating leases | $ | 6,694 |  |  | $ | 5,609 |  |  | $ | 4,794 |
Finance leases | 356 |  |  | 356 |  |  | 220 |
The present value of minimum payments for future fiscal years under non-cancelable leases as of March 30, 2024 was as follows (in thousands):
| Operating Leases |  | Finance Leases |  | Total
2025 | $ | 7,074 |  |  | $ | 356 |  |  | $ | 7,430 |
2026 | 7,396 |  |  | 356 |  |  | 7,752 |
2027 | 4,870 |  |  | 356 |  |  | 5,226 |
2028 | 3,979 |  |  | 356 |  |  | 4,335 |
2029 | 3,810 |  |  | 356 |  |  | 4,166 |
Thereafter | 24,305 |  |  | 10,230 |  |  | 34,535 |
| 51,434 |  |  | 12,010 |  |  | 63,444 |
Less: Amount representing interest | (10,983) |  |  | (5,844) |  |  | (16,827) |
| $ | 40,451 |  |  | $ | 6,166 |  |  | $ | 46,617 |
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of March 30, 2024:
| Remaining Lease Term (Years) |  | Discount Rate
Operating leases | 10.3 |  | 4.9 | %
Finance leases | 33.8 |  | 4.5 | %
Leases | Leases We lease certain production and retail locations, office space and equipment. We determine 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 in the Consolidated Balance Sheets. 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 our 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 we are reasonably certain to exercise. Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants. Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with 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 our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider 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 we will exercise such options. The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of March 30, 2024 and April 1, 2023 (in thousands):
| Classification |  | March 30, 2024 |  | April 1, 2023
ROU assets |  |  |  |  |
Operating lease assets | Operating lease right-of-use assets |  | $ | 39,027 |  |  | $ | 26,755 |
Finance lease assets | Property, plant and equipment, net (1) |  | 5,913 |  |  | 6,088 |
Total lease assets |  |  | $ | 44,940 |  |  | $ | 32,843 |
Lease Liabilities |  |  |  |  |
Current: |  |  |  |  |
Operating lease liabilities | Accrued expenses and other current liabilities |  | $ | 5,303 |  |  | $ | 6,262 |
Finance lease liabilities | Accrued expenses and other current liabilities |  | 80 |  |  | 347 |
Non-current: |  |  |  |  |
Operating lease liabilities | Operating lease liabilities |  | 35,148 |  |  | 21,678 |
Finance lease liabilities | Other liabilities |  | 6,086 |  |  | 5,896 |
Total lease liabilities |  |  | $ | 46,617 |  |  | $ | 34,183 |
(1) Recorded net of accumulated amortization of $0.4 million and $0.3 million as of March 30, 2024 and April 1, 2023, respectively. The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended March 30, 2024, April 1, 2023 and April 2, 2022 (in thousands):
|  |  | Year Ended
Lease Expense Category | Classification |  | March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
Operating lease expense (2) |  |  |  |  |  |  |
| Cost of sales |  | $ | 1,119 |  |  | $ | 1,190 |  |  | $ | 1,160 |
| Selling, general and administrative expenses |  | 4,693 |  |  | 4,059 |  |  | 3,636 |
Finance lease expense |  |  |  |  |  |  |
Amortization of leased assets | Cost of sales |  | 175 |  |  | 175 |  |  | 109 |
Interest on lease liabilities | Interest expense |  | 279 |  |  | 283 |  |  | 151 |
Total lease expense |  |  | $ | 6,266 |  |  | $ | 5,707 |  |  | $ | 5,056 |
(2) Excludes short-term and variable lease expenses, which are immaterial. Cash payments for operating and finance leases were as follows (in thousands):
| March 30, 2024 |  | April 1, 2023 |  | April 2, 2022
Operating leases | $ | 6,694 |  |  | $ | 5,609 |  |  | $ | 4,794 |
Finance leases | 356 |  |  | 356 |  |  | 220 |
The present value of minimum payments for future fiscal years under non-cancelable leases as of March 30, 2024 was as follows (in thousands):
| Operating Leases |  | Finance Leases |  | Total
2025 | $ | 7,074 |  |  | $ | 356 |  |  | $ | 7,430 |
2026 | 7,396 |  |  | 356 |  |  | 7,752 |
2027 | 4,870 |  |  | 356 |  |  | 5,226 |
2028 | 3,979 |  |  | 356 |  |  | 4,335 |
2029 | 3,810 |  |  | 356 |  |  | 4,166 |
Thereafter | 24,305 |  |  | 10,230 |  |  | 34,535 |
| 51,434 |  |  | 12,010 |  |  | 63,444 |
Less: Amount representing interest | (10,983) |  |  | (5,844) |  |  | (16,827) |
| $ | 40,451 |  |  | $ | 6,166 |  |  | $ | 46,617 |
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of March 30, 2024:
| Remaining Lease Term (Years) |  | Discount Rate
Operating leases | 10.3 |  | 4.9 | %
Finance leases | 33.8 |  | 4.5 | %

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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- 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 -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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