BEL FUSE INC /NJ Leases Disclosure
| 18. | LEASES |
The Company has operating leases for its facilities used for manufacturing, research and development, sales and administration. There are also operating and finance leases related to manufacturing equipment, office equipment and vehicles. These leases have remaining lease terms ranging from year to 9 years. Certain of the leases contain options to extend the term of the lease and certain of the leases contain options to terminate the lease within a specified period of time. These options to extend or terminate a lease are included in the lease term only when it is reasonably likely that the Company will elect that option. The Company is not a party to any material sublease arrangements.
The components of lease expense, which are included in cost of sales, research and development costs, and selling, general and administrative expense, based on the underlying use of the ROU asset, were as follows:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Amortization of ROU assets - finance leases | $ | 415 | $ | 819 | $ | 491 | ||||||
| Interest on lease liabilities - finance leases | 83 | 190 | 121 | |||||||||
| Operating lease cost (cost resulting from lease payments) | 9,997 | 9,441 | 8,127 | |||||||||
| Short-term lease cost | 361 | 57 | 207 | |||||||||
| Variable lease cost (cost excluded from lease payments) | 1,302 | 1,218 | 397 | |||||||||
| Total lease cost | $ | 12,158 | $ | 11,725 | $ | 9,343 | ||||||
Supplemental cash flow information related to leases is as follows:
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||
| Operating cash flows from operating leases | $ | 10,063 | $ | 9,099 | $ | 8,090 | ||||||
| Operating cash flows from finance leases | 83 | 190 | 121 | |||||||||
| Finance cash flows from finance leases | 418 | 790 | 527 | |||||||||
| Right-of-use assets obtained in exchange for lease obligations: | ||||||||||||
| Operating leases | 4,763 | 6,870 | 5,999 | |||||||||
| Finance leases | 83 | 1,309 | 199 | |||||||||
Supplemental balance sheet information related to leases was as follows:
| 2025 | 2024 | |||||||
| Operating Leases: | ||||||||
| Operating lease right-of-use assets | $ | 22,868 | $ | 25,125 | ||||
| Operating lease liability, current | 8,029 | 7,954 | ||||||
| Operating lease liability, long-term | 15,867 | 17,763 | ||||||
| Total operating lease liabilities | $ | 23,896 | $ | 25,717 | ||||
| Finance Leases: | ||||||||
| Property, plant and equipment, gross | $ | 2,933 | $ | 2,596 | ||||
| Accumulated depreciation | (1,768 | ) | (1,185 | ) | ||||
| Property, plant and equipment, net | $ | 1,165 | $ | 1,411 | ||||
|
| $ | 423 | $ | 374 | ||||
|
| 838 | 1,054 | ||||||
| Total finance lease liabilities | $ | 1,261 | $ | 1,428 | ||||
| 2025 | 2024 | 2023 | ||||||||||
| Weighted-Average Remaining Lease Term: | ||||||||||||
| Operating leases (in years) | 4.0 | 4.5 | 4.3 | |||||||||
| Finance leases (in years) | 3.1 | 3.9 | 4.3 | |||||||||
| Weighted-Average Discount Rate: | ||||||||||||
| Operating leases | 6.0 | % | 6.0 | % | 6.0 | % | ||||||
| Finance leases | 6.0 | % | 6.0 | % | 6.0 | % | ||||||
Our discount rate is based on our incremental borrowing rate, as adjusted based on the geographic regions in which our lease assets are located.
Maturities of lease liabilities were as follows as of December 31, 2025:
| Year Ending | Operating | Finance | ||||||
| December 31, | Leases | Leases | ||||||
| 2026 | $ | 9,203 | $ | 492 | ||||
| 2027 | 6,151 | 400 | ||||||
| 2028 | 4,743 | 347 | ||||||
| 2029 | 2,718 | 104 | ||||||
| 2030 | 1,696 | 34 | ||||||
| Thereafter | 2,434 | - | ||||||
| Total undiscounted cash flows | 26,945 | 1,377 | ||||||
| Less imputed interest | (3,049 | ) | (116 | ) | ||||
| Present value of lease liabilities | $ | 23,896 | $ | 1,261 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 11, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 14, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 25, 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.