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Note 7 - Leases

3 Months Ended

Jun. 28, 2025

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
	June 28,			June 29,
	2025			2024
Lease cost:
Amortization of right-of-use assets	$	904		$	1,127
Interest on lease obligations		112			154
Finance lease cost		1,016			1,281
Operating lease cost		1,087			1,832
Short-term lease cost		3,683			2,745
Total lease cost	$	5,786		$	5,858

Cash paid for amounts included in the measurement of lease obligations:
Operating cash flows from finance leases	$	112		$	154
Operating cash flows from operating leases		2,066			3,089
Financing cash flows from finance leases		1,023			1,390
	$	3,201		$	4,633

Right-of-use assets obtained in exchange for new finance lease obligations	$	-		$	-
Right-of-use assets obtained in exchange for new operating lease obligations	$	1,955		$	1,391
Right-of-use assets derecognized upon early termination of finance leases	$	2		$	-
Right-of-use assets derecognized upon early termination of operating leases	$	57		$	5,627
Weighted-average lease term (years):
Finance leases		3.7			4.2
Operating leases		4.1			4.6
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 June 28, 2025 were as follows (in thousands):

Years ending March 31:	Operating		Finance
Balance of 2026	$	2,066	$	3,132
2027		3,010		3,218
2028		2,512		2,811
2029		1,455		1,659
2030		1,112		923
2031 and thereafter		1,015		383
Total minimum payment required		11,170		12,126
Less interest		1,090		903
Present value of minimum lease payments		10,080		11,223
Amount due within one year		3,083		3,664
Long-term lease obligations	$	6,997	$	7,559