AMERICAN WOODMARK CORPAMWD
AMERICAN WOODMARK CORP Leases Disclosure
Leases
Operating Leases - right-of-use ("ROU") assets related to operating leases are presented as Operating lease right-of-use assets on the consolidated balance sheet. Lease liabilities related to operating leases with lease terms greater than twelve months are presented in short-term lease liability - operating and Long-term lease liability - operating on the consolidated balance sheet.
Operating lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Operating lease ROU assets may also include any cumulative prepaid or accrued rent when the lease payments are uneven throughout the lease term. The ROU assets and lease liabilities may also include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The ROU asset includes any lease payments made and lease incentives received prior to the commencement date. The Company has lease arrangements with lease and non-lease components, which are accounted for separately. Non-lease components of the lease payments are expensed as incurred and are not included in determining the present value.
Finance Leases - ROU assets related to finance leases are presented in property, plant and equipment, net on the consolidated balance sheet. Lease liabilities related to finance leases are presented in current maturities of long-term debt and long-term debt, less current maturities on the consolidated balance sheet.
Finance lease ROU assets and lease liabilities are recognized at the commencement date based on the present value of the future lease payments over the lease term. The discount rate used to determine the present value of the lease payments is the rate implicit in the lease unless that rate cannot be readily determined, in which case, the Company utilizes its incremental borrowing rate in determining the present value of the future lease payments. The incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment.
The components of lease costs were as follows:
| FISCAL YEARS ENDED APRIL 30, | ||||||||||||||||||||
| (in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Finance lease cost: | ||||||||||||||||||||
| Reduction in the carrying value of right-of-use assets | $ | 2,662 | $ | 2,078 | $ | 1,720 | ||||||||||||||
| Interest on lease liabilities | 373 | 202 | 105 | |||||||||||||||||
| Operating lease cost | 38,746 | 31,365 | 26,592 | |||||||||||||||||
Additional information related to leases was as follows:
| FISCAL YEARS ENDED APRIL 30, | ||||||||||||||||||||
| (dollars in thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows for finance leases | $ | 373 | $ | 202 | $ | 105 | ||||||||||||||
| Operating cash flows for operating leases | 38,807 | 30,388 | 26,906 | |||||||||||||||||
| Financing cash flows for financing leases | 2,597 | 2,059 | 1,714 | |||||||||||||||||
| Right-of-use assets obtained in exchange for new finance lease liabilities | 3,161 | 4,738 | 1,138 | |||||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | 20,893 | 26,912 | 11,109 | |||||||||||||||||
| Weighted average remaining lease term (years) | ||||||||||||||||||||
| Weighted average remaining lease term - finance leases | 2.48 | 2.71 | 1.99 | |||||||||||||||||
| Weighted average remaining lease term - operating leases | 5.12 | 5.91 | 4.84 | |||||||||||||||||
| Weighted average discount rate | ||||||||||||||||||||
| Weighted average discount rate - finance leases | 6.40 | % | 6.04 | % | 3.69 | % | ||||||||||||||
| Weighted average discount rate - operating leases | 4.47 | % | 4.18 | % | 3.35 | % | ||||||||||||||
The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on the consolidated balance sheet as of April 30, 2025:
| FISCAL YEAR | OPERATING (in thousands) | FINANCING (in thousands) | ||||||||||||
| 2026 | $ | 38,955 | $ | 2,956 | ||||||||||
| 2027 | 33,365 | 2,256 | ||||||||||||
| 2028 | 27,833 | 949 | ||||||||||||
| 2029 | 20,941 | 332 | ||||||||||||
| 2030 | 8,329 | 83 | ||||||||||||
| Thereafter | 24,206 | — | ||||||||||||
| Total lease payments | 153,629 | 6,576 | ||||||||||||
| Less imputed interest | (17,185) | (496) | ||||||||||||
| Total lease liability | 136,444 | 6,080 | ||||||||||||
| (33,598) | (2,659) | |||||||||||||
| $ | 102,846 | $ | 3,421 | |||||||||||
| $ | 128,907 | $ | 12,107 | |||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 25, 2025 | Showing above |
| 2024 | Jun 26, 2024 | |
| 2023 | Jun 27, 2023 | |
| 2022 | Jun 29, 2022 | |
| 2020 | Jun 29, 2020 | |
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.