8. LEASES
The Company leases certain of its corporate, manufacturing and other facilities from multiple third-party real estate developers. The Company also leases various machinery and office equipment. These operating leases expire at various dates through 2036, and some of these leases have renewal options, with the longest ranging up to two, ten-year periods.
Operating leases are classified in the Consolidated Balance Sheets as follows (in thousands): | | | | | | | | | | | |
| March 28, 2026 | | March 29, 2025 |
| Other non-current assets | $ | 52,397 | | | $ | 58,511 | |
| Other current liabilities | 16,468 | | | 16,562 | |
| Other long-term liabilities | 40,615 | | | 45,283 | |
Details of operating leases are as follows (in thousands): | | | | | | | | | | | | | | | | | |
| Fiscal Year |
| 2026 | | 2025 | | 2024 |
| Operating lease expense | $ | 19,020 | | | $ | 19,172 | | | $ | 21,531 | |
| Short-term lease expense | 6,508 | | | 8,342 | | | 7,359 | |
| Variable lease expense | 5,829 | | | 4,243 | | | 5,323 | |
| | | | | |
| Cash paid for amounts included in the measurement of operating lease liabilities | 19,869 | | | 20,392 | | | 22,471 | |
| | | | | |
| Right-of-use assets obtained in exchange for new operating lease liabilities | 11,953 | | | 14,363 | | | 11,750 | |
The weighted-average remaining lease term and weighted-average discount rate for operating leases are as follows:
| | | | | | | | | | | |
| March 28, 2026 | | March 29, 2025 |
| Weighted-average remaining lease term (years) | 4.8 | | 5.1 |
| Weighted-average discount rate | 4.24 | % | | 4.27 | % |
The aggregate future lease payments for operating leases as of March 28, 2026 are as follows (in thousands): | | | | | |
| Fiscal Year | |
| 2027 | $ | 18,224 | |
| 2028 | 15,677 | |
| 2029 | 9,735 | |
| 2030 | 5,544 | |
| 2031 | 4,306 | |
| Thereafter | 10,320 | |
| Total future lease payments | 63,806 | |
| Less imputed interest | (6,723) | |
| Present value of lease liabilities | $ | 57,083 | |
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.