Alliance Laundry Holdings Inc.ALH

Alliance Laundry Holdings Inc. Leases Disclosure

10-KFiled Mar 13, 20262 min read
Leases
We lease certain property, information technology equipment, warehouse equipment, vehicles and other equipment
through operating leases. We recognize a lease liability and corresponding right-of-use (“ROU”) asset based on the present
value of lease payments. Our lease agreements may include options to extend or terminate the lease. When it is reasonably
certain that we will exercise an option, we include the option in the recognition of ROU assets and lease liabilities. The
Company used the short-term lease practical expedient which permits the Company to not capitalize leases with a term
equal to or less than 12 months.
The Company has elected the practical expedient to include fixed non-lease components of lease payments for the
purpose of calculating lease right-of-use assets and liabilities. Non-lease components that are not fixed are expensed as
incurred as variable lease payments.
The Company’s lease agreements do not provide an implicit rate to determine the present value of lease payments. As
such, the Company uses its incremental borrowing rate to determine the present value of lease payments. The Company
derives its incremental borrowing rate from information available at the lease commencement date, which represents a
collateralized rate of interest the Company would have to pay to borrow over a similar term an amount equal to the lease
payments in a similar economic environment.
We sublease certain real estate to third parties. Our sublease portfolio consists of operating leases, resulting in a
nominal amount of sublease income for the year ended December 31, 2025, 2024 and 2023.
The components of lease expense were as follows:
(in thousands)
December 31,
2025
December 31,
2024
December 31,
2023
Operating lease expense
$7,048
$7,181
$7,142
Variable lease expense
1,454
1,751
1,511
Short-term lease expense
2,796
2,284
1,252
Total Operating lease expense
$11,298
$11,216
$9,905
The variable lease expenses generally include common area maintenance, property taxes and mileage.
Supplemental information related to leases was as follows:
(in thousands)
December 31,
2025
December 31,
2024
Operating Leases
Operating lease right-of-use assets
$20,741
$17,080
Current liabilities
$5,927
$5,502
Long-term liabilities
$15,745
$12,549
Weighted average remaining lease term
Operating leases
4.5
4.1
Weighted Average discount rates
Operating leases
5.5%
5.6%
Supplemental Cash Flow Information:
(in thousands)
December 31, 2025
December 31, 2024
December 31, 2023
Cash paid for amounts included in the measurement of Operating
lease liabilities
$6,055
$6,112
$3,950
Operating lease ROU assets obtained in the exchange for
Operating lease liabilities
$9,785
$4,703
$3,009
Maturities of operating lease liabilities were as follows:
(in thousands)
December 31, 2025
Amounts Due In
2026
$7,174
2027
5,808
2028
4,156
2029
3,280
2030
2,517
Thereafter
2,126
Total lease payments
25,061
Less: Imputed interest
(3,389)
Total
$21,672
Free Sentinel

Want the next Alliance Laundry Holdings Inc. leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment Alliance Laundry Holdings Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsNew Standards