Note 8 - Leases

6 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Lessee, Operating and Finance Leases [Text Block]

8. Leases

The Company determines whether an arrangement is a lease at inception of the agreement. Presently, the Company leases land, machinery and equipment under various operating and financing leases.

Right-of-Use (“ROU”) assets represent the Company’s right to use the underlying assets for the lease term, and lease obligations represent the net present value of the Company’s obligation to make payments arising from these leases. ROU assets and lease obligations are recognized at commencement date based on the present value of lease payments over the lease term using the implicit lease interest rate or, when unknown, an incremental borrowing rate based on the information available at commencement date or April 1, 2019 for leases that commenced prior to that date.

Lease terms may include options to extend or terminate the lease, and the impact of these options are included in the calculation of the ROU asset and lease obligation only when the exercise of the option is at the Company’s sole discretion and it is reasonably certain that the Company will exercise that option. The Company will not separate lease and non-lease components for its leases when it is impractical to separate the two. In addition, the Company may have certain leases that have variable payments based solely on output or usage of the leased asset. These variable operating lease assets are excluded from the Company’s balance sheet presentation and expensed as incurred. Leases with an initial term of 12 months or less, or short-term leases, are not recorded on the accompanying condensed consolidated balance sheets.

ROU assets and lease obligations for the Company’s operating and financing leases are disclosed separately in the Company’s condensed consolidated balance sheets. The components of lease cost were as follows (in thousands):

	Three Months Ended				Six Months Ended
	September 30,		October 1,		September 30,			October 1,
	2023		2022		2023			2022
Lease cost:
Amortization of ROU assets	$	1,644	$	1,668	$	3,484		$	3,257
Interest on lease liabilities		199		242		422			481
Finance lease cost		1,843		1,910		3,906			3,738
Operating lease cost		1,809		3,657		4,158			7,884
Total lease cost	$	3,652	$	5,567	$	8,064		$	11,622
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases					$	422		$	481
Operating cash flows from operating leases						6,976			10,404
Financing cash flows from finance leases						4,560			4,287
					$	11,958		$	15,172
ROU assets obtained in exchange for new finance lease liabilities					$	73		$	3,298
ROU assets obtained in exchange for new operating lease liabilities					$	4,063		$	1,868
Weighted-average lease term (years):
Financing leases						4.5			4.6
Operating leases						4.7			4.5
Weighted-average discount rate (percentage):
Financing leases						3.9	%		3.5	%
Operating leases						4.7	%		4.2	%

Undiscounted future lease payments under non-cancelable operating and financing leases, along with a reconciliation of undiscounted cash flows to operating and financing lease obligations, respectively, as of September 30, 2023 were as follows (in thousands):

Years ending March 31:	Operating		Financing
Balance of 2024	$	1,701	$	3,765
2025		6,447		5,301
2026		4,652		4,210
2027		3,520		3,152
2028		3,269		2,774
2029-2034		2,969		2,964
Total minimum payment required	$	22,558	$	22,166
Less interest		2,277		1,883
Present value of minimum lease payments		20,281		20,283
Amount due within one year		6,286		6,081
Long-term lease obligations	$	13,995	$	14,202