Note 11 – Leases

The Company made cash payments related to its recognized operating leases of $492,000 and $460,000 during the three months ended January 1, 2023 and December 26, 2021, respectively, and $1.5 million and $1.4 million during the nine months ended January 1, 2023 and December 26, 2021, respectively. Such payments reduced the operating lease liabilities and were included in the cash flows provided by operating activities in the accompanying unaudited condensed consolidated statements of cash flows. At January 1, 2023, the Company’s operating leases had a weighted-average remaining lease term of 1.6 years and a weighted-average discount rate of 3.6%.

During the three- and nine-month periods ended January 1, 2023 and December 26, 2021, the Company classified its operating lease costs within the accompanying unaudited condensed consolidated statements of income as follows (in thousands):

The maturities of the Company’s operating lease liabilities as of January 1, 2023 are as follows (in thousands):

On February 3, 2023, the Company entered into a new operating lease agreement for approximately 157,400 square feet for its existing office, warehouse and distribution center located in Compton, California.  The existing lease for the Compton facility will expire on May 31, 2023; the term of the new lease is sixty (60) months, commencing on June 1, 2023.  The Company will be required to remit minimum non-variable rental payments under the new lease of $2.8 million, $3.5 million, $3.7 million, $3.8 million, $4.0 million and $663,000 in fiscal years 2024, 2025, 2026, 2027, 2028 and 2029, respectively.  As of February 3, 2023, the Company had not yet calculated the amount associated with the lease that will be capitalized as an operating lease right-of-use asset or the corresponding operating lease liability.