Note 14 - Lease Financing Obligation

6 Months Ended

Sep. 27, 2015

Disclosure Text Block Supplement [Abstract]

Debt and Capital Leases Disclosures [Text Block]

NOTE 14. LEASE FINANCING OBLIGATIONS

We have acquired engineering design tools (“Design Tools”) under capital leases. We acquired Design Tools of $6.9 million in January 2015 under a two-year license and two three-year licenses with prepayment of $1.0 million, $4.4 million in October 2014 under a three-year license with a prepayment of $1.5 million for the first year license and $0.9 million in July 2012 under a three-year license all of which were accounted for as capital leases and recorded in the property, plant and equipment, net line item in the consolidated balance sheets. The obligations related to the Design Tools were included in other current liabilities and long-term lease financing obligations in our consolidated balance sheets as of September 27, 2015 and March 29, 2015, respectively. The effective interest rates for the Design Tools range from 2.0% to 7.25%.

Amortization expense related to the Design Tools, which was recorded using the straight-line method over the remaining useful life for the periods indicated below, was as follows (in thousands):

	Three Months Ended				Six Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Amortization expense	$	965	$	800	$	2,038	$	1,600

Future minimum lease and sublease income payments for the lease financing obligations as of September 27, 2015 are as follows (in thousands):

Fiscal Years	Design Tools
2016 (6 months remaining)	$	3,045
2017		3,961
2018		1,355
Total minimum lease payments		8,361
Less: amount representing interest		377
Present value of minimum lease payments		7,984
Less: short-term lease financing obligations		3,796
Long-term lease financing obligations	$	4,188

Interest expense for the lease financing obligations for the periods indicated below was as follows (in thousands):

	Three Months Ended				Six Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Interest expense	$	45	$	39	$	93	$	78

In the course of our business, we enter into arrangements accounted for as operating leases related to rental of office space. Rent expenses for all operating leases for the periods indicated below were as follows (in thousands):

	Three Months Ended				Six Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Rent expense	$	234	$	564	$	491	$	896

Our future minimum lease payments for the lease operating obligations as of September 27, 2015 are as follows (in thousands):

Fiscal Years	Facilities
2016 (6 months remaining)	$	377
2017		328
2018		128
2019		27
Total minimum lease payments	$	860