B&G Foods, Inc. Leases Disclosure
(13) | Leases |
Operating Leases and Finance Lease. We determine whether an arrangement is a lease at inception. We have operating leases and had a finance lease for certain of our manufacturing facilities, distribution centers, warehouse and storage facilities, machinery and equipment, and office equipment. Our leases have remaining lease terms of one year to seven years, some of which include options to extend the lease term for up to ten years, and some of which include options to terminate the lease within one year. We consider these options in determining the lease term used to establish our right-of use assets and lease liabilities. During the third quarter of 2025, we made the final payment related to our only finance lease. As of January 3, 2026, we did not have any finance lease right-of-use assets or .
Operating leases and a finance lease are included in the accompanying consolidated balance sheets in the following line items (in thousands):
January 3, | | December 28, | |||
2026 | | 2024 | |||
Right-of-use assets: | |||||
Operating lease right-of-use assets | $ | 50,983 | $ | 55,431 | |
Finance lease right-of-use assets | — | 773 | |||
Total lease right-of-use assets | $ | 50,983 | $ | 56,204 | |
Operating lease liabilities: | |||||
Current portion of operating lease liabilities | $ | 16,697 | $ | 17,963 | |
Long-term operating lease liabilities, net of current portion | 34,636 | 37,697 | |||
Total operating lease liabilities | $ | 51,333 | $ | 55,660 | |
Finance lease liabilities: | |||||
Current portion of finance lease liabilities | $ | — | $ | 726 | |
Long-term finance lease liabilities, net of current portion | — | — | |||
Total finance lease liabilities | $ | — | $ | 726 | |
During the second quarter of 2025, we entered into an operating lease agreement for new corporate headquarters in Parsippany, New Jersey. The lease had not yet commenced as of January 3, 2026 and therefore the operating lease right-of-use assets and the operating lease liabilities are not recorded on our consolidated balance sheet as of January 3, 2026. This operating lease commenced during the first quarter of 2026, with a lease term of 15.67 years and total lease payments of $27.3 million.
The following table shows supplemental information related to leases (in thousands):
Fiscal 2025 | | Fiscal 2024 | Fiscal 2023 | |||||
Operating cash flow information: | ||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 20,023 | $ | 19,795 | $ | 18,678 | ||
Cash paid for amounts included in the measurement of finance lease liabilities | $ | 732 | $ | 1,099 | $ | 1,099 | ||
The components of operating lease costs were as follows: | ||||||||
Cost of goods sold | $ | 13,200 | $ | 12,548 | $ | 11,852 | ||
Selling, general and administrative expenses | 6,952 | 6,839 | 6,909 | |||||
Total operating lease costs | $ | 20,152 | $ | 19,387 | $ | 18,761 | ||
The components of finance lease costs were as follows: | ||||||||
Depreciation of finance right-of-use assets | $ | 773 | $ | 1,058 | $ | 1,058 | ||
Interest on finance lease liabilities | 6 | 30 | 54 | |||||
Total finance lease costs | $ | 779 | $ | 1,088 | $ | 1,112 | ||
Total net lease costs | $ | 20,931 | $ | 20,475 | $ | 19,873 | ||
Total rent expense was $21.6 million, $20.6 million and $20.5 million, including the operating lease costs of $20.2 million, $19.4 million and $18.8 million stated above, for fiscal 2025, 2024 and 2023, respectively.
Because our operating leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We have lease agreements that contain both lease and non-lease components. With the exception of our real estate leases, we account for our leases as a single lease component.
The following table shows the weighted average lease term and weighted average discount rate for our ROU assets:
January 3, | December 28, | ||||
2026 | 2024 | ||||
Weighted average remaining lease term (years) | |||||
Operating leases | 4.5 | 4.3 | |||
Finance lease | 0.7 | ||||
Weighted average discount rate | |||||
Operating leases | 4.35% | 3.77% | |||
Finance lease | — | 2.30% | |||
As of January 3, 2026, the maturities of lease liabilities were as follows (in thousands):
Operating Leases |
| Finance Lease | Total Maturities of Lease Liabilities | |||||
Fiscal year: | ||||||||
2026 | $ | 18,514 | $ | — | $ | 18,514 | ||
2027 | 14,684 | — | 14,684 | |||||
2028 |
| 9,229 |
| — |
| 9,229 | ||
2029 |
| 4,341 |
| — |
| 4,341 | ||
2030 |
| 2,182 |
| — |
| 2,182 | ||
Thereafter |
| 7,897 |
| — |
| 7,897 | ||
Total undiscounted future minimum lease payments | 56,847 | — | 56,847 | |||||
Less: Imputed interest | (5,514) | — | (5,514) | |||||
Total present value of future lease liabilities | $ | 51,333 | $ | — | $ | 51,333 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 3, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 2, 2021 | |
| 2019 | Feb 26, 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.