Leases

12 Months Ended

Mar. 26, 2022

The Company has operating leases for corporate offices and certain office equipment. Our leases have remaining lease terms of 1 year to 27 years, some of which include options to extend the leases that are considered reasonably certain to be exercised. Our leases generally contain fixed rental payments, with additional variable payments linked to actual common area maintenance costs incurred by the landlord. These variable payments are therefore not included within the lease liability and ROU asset, but are recognized as an expense when incurred. As our leases typically do not provide an implicit rate, the Company determined the Incremental Borrowing Rate ("IBR") for each lease based on the information available at the commencement date, taking into consideration necessary adjustments for collateral, currency, and lease term. There are no residual value guarantees in any of our leases. No restrictions or covenants have been imposed on the Company as a result of the lease agreements in place.

The Company also leases a small portion of our office space to tenants under operating leases, receiving monthly rental payments. Payments are generally fixed, with variable payments linked to actual common area maintenance costs incurred. Total fixed lease payments to be received over the life of the lease are recognized on a straight-line basis over the lease term.

All of the Company’s leases have been classified as operating leases. Operating leases in excess of 12 months are recognized on the balance sheet, with future lease payments recognized as a liability, measured at present value, and the right-of-use asset recognized for the lease term. A single lease cost is recognized in the income statement over the lease term.

The components of net operating lease expense were as follows (in thousands):


	Fiscal Years Ended
	March 26, 2022		March 27, 2021
Operating lease - in excess of 12 months	$	14,901	$	14,050
Variable lease	4,954		4,981
Short-term lease	22		151
Operating lease income	(1,518)		(1,416)
Total net operating lease expense	$	18,359	$	17,766

Supplemental operating lease information:


	Fiscal Years Ended
	March 26, 2022			March 27, 2021
Balance Sheet Information (in thousands)
Operating lease right-of-use assets	$	171,003		$	133,548
Operating lease liabilities	$	177,842		$	142,456

Cash Flow Information (in thousands)
Operating cash flows from operating leases	$	14,634		$	14,954
Right-of-use assets obtained in exchange for new operating lease liabilities	46,123			805

Operating Lease Information
Weighted-average remaining lease term - operating leases (in years)	16			19
Weighted-average discount rate - operating leases	4		%	4		%

As of March 26, 2022, there are no leases that have not yet commenced that would create significant rights and obligations on the Company.

Future lease commitments under non-cancellable leases, including extension options reasonably anticipated to be exercised as of March 26, 2022, are as follows (in thousands):


Fiscal Year	Operating Lease Expense
2023	$	14,913
2024	18,750
2025	19,450
2026	17,852
2027	16,365
Thereafter	172,170
Total	$	259,500
Less imputed interest	(81,658)
Total	$	177,842

The Company leases a portion of its facilities to other tenants. Future lease income from operating leases is $278 thousand for fiscal year 2023.

Operating lease liabilities consisted of the following (in thousands):


	March 26, 2022		March 27, 2021
Current lease liabilities	$	14,680	$	14,573
Non-current lease liabilities	163,162		127,883
Total operating lease liabilities	$	177,842	$	142,456

Leases