Leases

9 Months Ended

Dec. 31, 2022

Leases [Abstract]

Finance Leases

Leases

We lease certain production and retail locations, office space and equipment. The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of December 31, 2022 and April 2, 2022 (in thousands):

	Classification	December 31, 2022		April 2, 2022
ROU assets
Operating lease assets	Operating lease right-of-use assets	$	17,230	$	16,952
Finance lease assets	Property, plant and equipment, net (1)	6,132		7,070
Total lease assets		$	23,362	$	24,022
Lease Liabilities
Current:
Operating lease liabilities	Accrued expenses and other current liabilities	$	5,389	$	5,085
Finance lease liabilities	Accrued expenses and other current liabilities	347		347
Non-current:
Operating lease liabilities	Operating lease liabilities	13,058		13,158
Finance lease liabilities	Other liabilities	5,914		5,969
Total lease liabilities		$	24,708	$	24,559

(1) Recorded net of accumulated amortization of $219,000 and $87,000 as of December 31, 2022 and April 2, 2022, 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 three and nine months ended December 31, 2022 and January 1, 2022 (in thousands):

		Three Months Ended				Nine Months Ended
Lease Expense Category	Classification	December 31, 2022		January 1, 2022		December 31, 2022		January 1, 2022
Operating lease expense(2):
	Cost of sales	$	297	$	286	$	898	$	858
	Selling, general and administrative expenses	1,057		910		3,012		2,640
Finance lease expense:
Amortization of leased assets	Cost of sales	44		9		131		26
Interest on lease liabilities	Interest expense	71		73		212		80
Total lease expense		$	1,469	$	1,278	$	4,253	$	3,604

(2) Excludes short-term and variable lease expenses, which are immaterial.

Cash payments for operating and finance leases were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	December 31, 2022		January 1, 2022		December 31, 2022		January 1, 2022
Operating leases	$	1,372	$	1,190	$	4,003	$	2,277
Finance leases	89		18		267		37

The present value of the minimum payments for future fiscal years under non-cancelable leases as of December 31, 2022 was as follows (in thousands):

	Operating Leases		Finance Leases		Total
Remainder of 2023	$	1,405	$	89	$	1,494
2024	5,308		356		5,664
2025	4,318		356		4,674
2026	3,897		356		4,253
2027	1,686		356		2,042
2028	1,203		356		1,559
Thereafter	2,795		10,585		13,380
Total lease payments	20,612		12,454		33,066
Less amount representing interest	(2,165)		(6,193)		(8,358)
Present value of lease liabilities	$	18,447	$	6,261	$	24,708

The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of December 31, 2022:

	Remaining Lease Term (Years)	Discount Rate
Operating leases	4.9	4.6	%
Finance leases	34.9	4.5	%

Operating Leases

Leases

We lease certain production and retail locations, office space and equipment. The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of December 31, 2022 and April 2, 2022 (in thousands):

	Classification	December 31, 2022		April 2, 2022
ROU assets
Operating lease assets	Operating lease right-of-use assets	$	17,230	$	16,952
Finance lease assets	Property, plant and equipment, net (1)	6,132		7,070
Total lease assets		$	23,362	$	24,022
Lease Liabilities
Current:
Operating lease liabilities	Accrued expenses and other current liabilities	$	5,389	$	5,085
Finance lease liabilities	Accrued expenses and other current liabilities	347		347
Non-current:
Operating lease liabilities	Operating lease liabilities	13,058		13,158
Finance lease liabilities	Other liabilities	5,914		5,969
Total lease liabilities		$	24,708	$	24,559

(1) Recorded net of accumulated amortization of $219,000 and $87,000 as of December 31, 2022 and April 2, 2022, 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 three and nine months ended December 31, 2022 and January 1, 2022 (in thousands):

		Three Months Ended				Nine Months Ended
Lease Expense Category	Classification	December 31, 2022		January 1, 2022		December 31, 2022		January 1, 2022
Operating lease expense(2):
	Cost of sales	$	297	$	286	$	898	$	858
	Selling, general and administrative expenses	1,057		910		3,012		2,640
Finance lease expense:
Amortization of leased assets	Cost of sales	44		9		131		26
Interest on lease liabilities	Interest expense	71		73		212		80
Total lease expense		$	1,469	$	1,278	$	4,253	$	3,604

(2) Excludes short-term and variable lease expenses, which are immaterial.

Cash payments for operating and finance leases were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	December 31, 2022		January 1, 2022		December 31, 2022		January 1, 2022
Operating leases	$	1,372	$	1,190	$	4,003	$	2,277
Finance leases	89		18		267		37

The present value of the minimum payments for future fiscal years under non-cancelable leases as of December 31, 2022 was as follows (in thousands):

	Operating Leases		Finance Leases		Total
Remainder of 2023	$	1,405	$	89	$	1,494
2024	5,308		356		5,664
2025	4,318		356		4,674
2026	3,897		356		4,253
2027	1,686		356		2,042
2028	1,203		356		1,559
Thereafter	2,795		10,585		13,380
Total lease payments	20,612		12,454		33,066
Less amount representing interest	(2,165)		(6,193)		(8,358)
Present value of lease liabilities	$	18,447	$	6,261	$	24,708

The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of December 31, 2022:

	Remaining Lease Term (Years)	Discount Rate
Operating leases	4.9	4.6	%
Finance leases	34.9	4.5	%