Note 9 Leases

 

During the fiscal years ended March 29, 2026 and March 30, 2025, the Company capitalized operating lease obligations as right of use assets and recognized corresponding lease liabilities in the amount of $641 thousand and $999 thousand. The Company made cash payments related to its recognized operating leases of $4.7 million and $4.5 million during the fiscal years ended March 29, 2026 and March 30, 2025, respectively. Such payments reduced the operating lease liabilities and were included in the cash flows provided by operating activities in the accompanying consolidated statements of cash flows. The Company recognized noncash reductions to its operating right of use assets resulting from reductions to its lease liabilities in the amount of $876 thousand during the fiscal year ended March 30, 2025. As of March 29, 2026 and March 30, 2025, the Company’s operating leases had weighted-average discount rates of 6.1% and 6.0%, respectively, and weighted-average remaining lease terms of 2.4 years and 3.2 years, respectively.

 

During the fiscal years ended March 29, 2026 and March 30, 2025, the Company classified its operating lease costs within the accompanying consolidated statements of operations as follows (in thousands):

 

  

Fiscal Years Ended

 
  

2026

  

2025

 

Cost of products sold

 $4,225  $4,202 

Marketing and administrative expenses

  417   386 

Total operating lease costs

 $4,642  $4,588 

 

The maturities of the Company’s operating lease liabilities as of March 29, 2026 by fiscal year are as follows (in thousands):

 

2027

 $4,667 

2028

  4,521 

2029

  884 

2030

  192 

2031

  148 

2032

  48 

2033

  - 

Total undiscounted operating lease payments

  10,460 

Less imputed interest

  734 

Operating lease liabilities - net

 $9,727 

  

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Historical Timeline

Fiscal YearFiled
2026Jun 24, 2026Showing above
2025Jun 25, 2025
2024Jun 28, 2024
2023Jun 26, 2023
2022Jun 8, 2022
2021Jun 9, 2021
2020Jun 10, 2020

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.