Leases
The Company has operating leases for corporate offices and certain office equipment. Our leases have remaining lease terms of 1 year to 23 years, some of which include options to extend the leases that are considered reasonably certain to be exercised. There are no residual value guarantees in any of our leases. No restrictions or covenants have been imposed on the Company as a result of the lease agreements in place. All of the Company’s leases have been classified as operating leases.
The components of net operating lease expense were as follows (in thousands): | | | | | | | | | | | | | | |
| | Fiscal Years Ended |
| | March 28, 2026 | | March 29, 2025 |
| Operating lease - in excess of 12 months | | $ | 19,741 | | | $ | 19,750 | |
| Variable lease | | 6,150 | | | 6,137 | |
| Short-term lease | | 168 | | | 351 | |
| Operating lease income | | (1,997) | | | (944) | |
| Total net operating lease expense | | $ | 24,062 | | | $ | 25,294 | |
Supplemental operating lease information: | | | | | | | | | | | | | | |
| | Fiscal Years Ended |
| | March 28, 2026 | | March 29, 2025 |
| Balance Sheet Information (in thousands) | | | | |
| Operating lease right-of-use assets | | $ | 120,676 | | | $ | 126,688 | |
| Operating lease liabilities | | $ | 133,977 | | | $ | 143,719 | |
| | | | |
| Cash Flow Information (in thousands) | | | | |
| Operating cash outflows from operating leases | | $ | 22,446 | | | $ | 21,965 | |
| Non-Cash Information | | | | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | | 9,425 | | | 3,538 | |
| Lease remeasurements | | (1,087) | | | (1,078) | |
| | | | |
| Operating Lease Information | | | | |
| Weighted-average remaining lease term - operating leases (in years) | | 11 | | 11 |
| Weighted-average discount rate - operating leases | | 4 | % | | 4 | % |
Future lease commitments and income under non-cancellable leases, including extension options reasonably anticipated to be exercised as of March 28, 2026, are as follows (in thousands):
| | | | | | | | | | | | | | |
| Fiscal Year | | Operating Lease Commitments | | Operating Lease Income |
| 2027 | | $ | 19,966 | | | $ | (2,764) | |
| 2028 | | 21,489 | | | (3,001) | |
| 2029 | | 20,547 | | | (2,160) | |
| 2030 | | 17,762 | | | — | |
| 2031 | | 17,955 | | | — | |
| Thereafter | | 72,169 | | | — | |
| Total | | $ | 169,888 | | | $ | (7,925) | |
| Less imputed interest and other | | (35,911) | | | — | |
| Total | | $ | 133,977 | | | $ | (7,925) | |
Operating lease liabilities consisted of the following (in thousands):
| | | | | | | | | | | | | | |
| | March 28, 2026 | | March 29, 2025 |
| Current lease liabilities | | $ | 19,872 | | | $ | 21,811 | |
| Non-current lease liabilities | | 114,105 | | | 121,908 | |
| Total operating lease liabilities | | $ | 133,977 | | | $ | 143,719 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.