Note 13 - Lease Financing Obligations

9 Months Ended

Jan. 01, 2017

Notes to Financial Statements

Debt and Capital Leases Disclosures [Text Block]

NOTE 13. LEASE FINANCING OBLIGATIONS

We have acquired licenses to engineering design tools (“Design Tools”) under capital leases. We acquired licenses to 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 condensed consolidated balance sheets. The obligations related to the Design Tools were included in other current liabilities and long-term lease financing obligations in our condensed consolidated balance sheets as of

January

1,

2017

and

March

27,

2016,

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				Nine Months Ended
	January 1,		December 27,		January 1,		December 27,
	2017		2015		2017		2015
Amortization expense	$	1,483	$	941	$	2,825	$	2,979

During the

three

and

nine

months ended

January

1,

2017,

we recorded

$0

and

$1.5

million in impairment charges, respectively, and a restructuring expense of

$0.4

million associated with a portion of these Design Tools.

Future minimum lease and sublease income payments for the lease financing obligations as of

January

1,

2017

are as follows (in thousands):

Fiscal Years	Design tools
2017 (3 months remaining)	$	510
2018		1,530
Total minimum lease payments		2,040
Less: amount representing interest		(326	)
Present value of future minimum lease payments		1,714
Less: short-term lease financing obligations		(1,714	)
Long-term lease financing obligations	$	-

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

	Three Months Ended				Nine Months Ended
	January 1,		December 27,		January 1,		December 27,
	2017		2015		2017		2015
Interest expense	$	19	$	65	$	87	$	158

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				Nine Months Ended
	January 1,		December 27,		January 1,		December 27,
	2017		2015		2017		2015
Rent expense	$	499	$	186	$	666	$	530

Our future minimum lease payments for the lease operating obligations as of

January

1,

2017

are as follows (in thousands):

Fiscal Years	Facilities
2017 (3 months remaining)	$	472
2018		1,482
2019		292
2020		48
Total future minimum lease payments	$	2,294