BUILD-A-BEAR WORKSHOP INC Leases Disclosure
| (4) | Leases |
The table below presents information related to the lease costs for operating leases for the periods presented (in thousands).
| For the Year Ended | ||||||||||||
| January 31, 2026 | February 1, 2025 | February 3, 2024 | ||||||||||
| Operating lease costs | $ | 43,489 | $ | 39,792 | $ | 36,849 | ||||||
| Variable lease costs (1) | 11,858 | 11,063 | 10,782 | |||||||||
| Short term lease costs | 101 | 101 | 110 | |||||||||
| Total Operating Lease costs | $ | 55,448 | $ | 50,956 | $ | 47,741 | ||||||
(1) Variable lease costs consist of leases with variable rent structures, which are intended to increase flexibility in an environment with expected high sales volatility and provide a natural hedge against potential sales declines.
Other information
The table below presents supplemental cash flow information related to leases for the periods presented (in thousands).
| For the Year Ended | ||||||||||||
| January 31, 2026 | February 1, 2025 | February 3, 2024 | ||||||||||
| Operating cash flows for operating leases | $ | 41,803 | $ | 41,547 | $ | 39,598 | ||||||
As of January 31, 2026, the weighted-average remaining operating lease term was 6.3 years and the weighted-average discount rate was 7.0% for operating leases recognized on the consolidated balance sheet.
The Company recorded immaterial impairment charges during fiscal 2025, fiscal 2024 and fiscal 2023 against its right-of-use operating lease assets in the Company's DTC segment.
Undiscounted cash flows
The table below reconciles the undiscounted cash flows for each of the first five years and total remaining years to the operating lease liabilities recorded on the balance sheet (in thousands).
| Operating Leases | ||||
| 2026 | $ | 38,905 | ||
| 2027 | 26,822 | |||
| 2028 | 21,405 | |||
| 2029 | 17,149 | |||
| 2030 | 13,498 | |||
| Thereafter | 40,062 | |||
| Total minimum lease payments | 157,841 | |||
| Less: amount of lease payments representing interest | (30,543 | ) | ||
| Present value of future minimum lease payments | 127,298 | |||
| Less: current obligations under leases | (28,651 | ) | ||
| Long-term lease obligations | $ | 98,647 |
As of January 31, 2026, the Company had additional executed leases that had not yet commenced with operating lease liabilities totaling $5.7 million. These leases are expected to commence in the first and second quarters of fiscal 2026 with lease terms of to years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Apr 16, 2026 | Showing above |
| 2025 | Apr 17, 2025 | |
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.