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Leases
12 Months Ended
Apr. 01, 2023
Leases [Abstract]  
Operating Leases Leases
We lease certain production and retail locations, office space and equipment. We determine if a contract or arrangement is, or contains, a lease at inception. Lease agreements with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term by one to three years or more. Generally, the exercise of lease renewal options is at our discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that we are reasonably certain to exercise.
 Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.
 Right Of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider the lease period and comparable market interest rates, as well as any other information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of April 1, 2023 and April 2, 2022 (in thousands):
ClassificationApril 1,
2023
April 2,
2022
ROU assets
Operating lease assetsOperating lease right-of-use assets$26,755 $16,952 
Finance lease assets
Property, plant and equipment, net (1)
6,088 7,070 
Total lease assets$32,843 $24,022 
Lease Liabilities
Current:
   Operating lease liabilitiesAccrued expenses and other current liabilities$6,262 $5,085 
   Finance lease liabilitiesAccrued expenses and other current liabilities347 347 
Non-current:
   Operating lease liabilitiesOperating lease liabilities21,678 13,158 
   Finance lease liabilitiesOther liabilities5,896 5,969 
Total lease liabilities$34,183 $24,559 
(1) Recorded net of accumulated amortization of $0.3 million and $0.1 million as of April 1, 2023 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 years ended April 1, 2023, April 2, 2022 and April 3, 2021 (in thousands):
Year Ended
Lease Expense CategoryClassificationApril 1,
2023
April 2,
2022
April 3,
2021
Operating lease expense (2)
Cost of sales$1,190 $1,160 $1,105 
Selling, general and administrative expenses4,059 3,636 3,327 
Finance lease expense
   Amortization of leased assetsCost of sales175 109 39 
   Interest on lease liabilitiesInterest expense283 151 17 
Total lease expense$5,707 $5,056 $4,488 
(2) Excludes short-term and variable lease expenses, which are immaterial.
Cash payments for operating and finance leases were as follows (in thousands):
 April 1,
2023
April 2,
2022
April 3,
2021
Operating leases$5,609 $4,794 $4,164 
Finance leases356 220 79 
The present value of minimum payments for future fiscal years under non-cancelable leases as of April 1, 2023 was as follows (in thousands):
Operating LeasesFinance LeasesTotal
2023$6,397 $356 $6,753 
20245,551 356 5,907 
20255,073 356 5,429 
20262,673 356 3,029 
20272,174 356 2,530 
Thereafter11,913 10,585 22,498 
33,781 12,365 46,146 
Less: Amount representing interest(5,841)(6,122)(11,963)
$27,940 $6,243 $34,183 
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of April 1, 2023:
Remaining Lease Term (Years)Discount Rate
   Operating leases8.24.5 %
   Finance leases34.84.5 %
Finance Leases Leases
We lease certain production and retail locations, office space and equipment. We determine if a contract or arrangement is, or contains, a lease at inception. Lease agreements with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term by one to three years or more. Generally, the exercise of lease renewal options is at our discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that we are reasonably certain to exercise.
 Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.
 Right Of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider the lease period and comparable market interest rates, as well as any other information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of April 1, 2023 and April 2, 2022 (in thousands):
ClassificationApril 1,
2023
April 2,
2022
ROU assets
Operating lease assetsOperating lease right-of-use assets$26,755 $16,952 
Finance lease assets
Property, plant and equipment, net (1)
6,088 7,070 
Total lease assets$32,843 $24,022 
Lease Liabilities
Current:
   Operating lease liabilitiesAccrued expenses and other current liabilities$6,262 $5,085 
   Finance lease liabilitiesAccrued expenses and other current liabilities347 347 
Non-current:
   Operating lease liabilitiesOperating lease liabilities21,678 13,158 
   Finance lease liabilitiesOther liabilities5,896 5,969 
Total lease liabilities$34,183 $24,559 
(1) Recorded net of accumulated amortization of $0.3 million and $0.1 million as of April 1, 2023 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 years ended April 1, 2023, April 2, 2022 and April 3, 2021 (in thousands):
Year Ended
Lease Expense CategoryClassificationApril 1,
2023
April 2,
2022
April 3,
2021
Operating lease expense (2)
Cost of sales$1,190 $1,160 $1,105 
Selling, general and administrative expenses4,059 3,636 3,327 
Finance lease expense
   Amortization of leased assetsCost of sales175 109 39 
   Interest on lease liabilitiesInterest expense283 151 17 
Total lease expense$5,707 $5,056 $4,488 
(2) Excludes short-term and variable lease expenses, which are immaterial.
Cash payments for operating and finance leases were as follows (in thousands):
 April 1,
2023
April 2,
2022
April 3,
2021
Operating leases$5,609 $4,794 $4,164 
Finance leases356 220 79 
The present value of minimum payments for future fiscal years under non-cancelable leases as of April 1, 2023 was as follows (in thousands):
Operating LeasesFinance LeasesTotal
2023$6,397 $356 $6,753 
20245,551 356 5,907 
20255,073 356 5,429 
20262,673 356 3,029 
20272,174 356 2,530 
Thereafter11,913 10,585 22,498 
33,781 12,365 46,146 
Less: Amount representing interest(5,841)(6,122)(11,963)
$27,940 $6,243 $34,183 
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of April 1, 2023:
Remaining Lease Term (Years)Discount Rate
   Operating leases8.24.5 %
   Finance leases34.84.5 %