Total depreciation expense amounted to $39,337, $37,447 and $56,214 for the fiscal years ended March 27, 2026, March 28, 2025 and March 29, 2024, respectively. Total amortization expense for the finance lease right-of-use asset, amounted to $1,392, $1,397 and $581 for the fiscal years ended March 27, 2026, March 28, 2025 and March 29, 2024, respectively.

The Company continues to expand and optimize its global manufacturing capacities, such as by its expansion of operations at its Philippines location, and its acquisition of Crocus. Through its expansion efforts, newly acquired machinery and equipment and continuous maintenance and evaluation of on-hand equipment, the Company recognized advancements in equipment quality indicating increased estimated useful lives. During the first quarter of fiscal year 2025, following periodic review of the estimated useful lives of long-lived assets, the Company determined that the useful lives of its machinery and equipment should be increased. Effective March 30, 2024, the Company increased the useful lives of a significant portion of its machinery and equipment from seven years to ten years. For the fiscal year ended March 27, 2026, these changes decreased depreciation expense by $14,944, decreased the benefit for income taxes by $3,138 and decreased net loss by $11,806, or $0.06 per share.

During the year ended March 28, 2025, the Company classified various units of machinery and equipment as held for sale, as management approved a plan in the fourth quarter of fiscal year 2025 to market these assets to third-party buyers. The planned disposal of these assets did not constitute a strategic shift in the Company’s operations and therefore did not meet the discontinued operations criteria. These assets were intended to be sold within one year of their designation as held for sale. Assets held for sale are measured at the lower of carrying value or the fair value less cost. As of March 27, 2026, no assets met the criteria of held for sale, and as of March 28, 2025, the value of these assets were measured at $16,508.

As of March 27, 2026, management identified various assets that no longer meet the held for sale classification criteria as management no longer has the intent to sell the assets as it was determined the assets would be needed to support production activities. Following the change in circumstances, assets no longer meeting the held for sale criteria were reclassified as held and used. These assets were measured at their unadjusted carrying value, less the cumulative depreciation that would have been recorded had the asset never been classified as held for sale. The total unadjusted carrying value of assets identified as no longer meeting the held for sale criteria was $9,751. The depreciation adjustment to the unadjusted carrying amount was immaterial.

As of March 27, 2026, the carrying value of the assets classified as held for sale was determined to be greater than their fair value, less costs to sell and, accordingly, the Company recorded a $6,590 impairment on assets held. The impairment charge was recorded to income from continuing operations and is separately disclosed in the Company’s consolidated statement of operations.