CENTRAL GARDEN & PET COCENT

CENTRAL GARDEN & PET CO Leases Disclosure

10-KFiled Nov 26, 20253 min read
Leases
The Company has operating and finance leases for manufacturing and distribution facilities, vehicles, equipment and office space. The Company's leases have remaining lease terms of one to 10 years, inclusive of renewal or termination options that the Company is reasonably certain to exercise. The Company does not include significant restrictions or covenants in its lease agreements, and residual value guarantees are not included within its operating leases. Some of the Company's leasing arrangements require variable payments that are dependent on usage or output or may vary for other reasons, such as product costs, insurance and tax payments. These variable payments are not included in the Company's recorded lease assets and liabilities and are expensed as incurred. Certain leases are tied to a variable index or rate and are included in lease assets and liabilities based on the indices or rates as of lease commencement. See Note 1 – Organization and Significant Accounting Policies, for more information about the Company's lease accounting policies.
Supplemental balance sheet information related to the Company's leases was as follows:
Balance Sheet ClassificationSeptember 27, 2025September 28, 2024
(in millions)
Operating leases
Right-of-use assetsOperating lease right-of-use assets$222.9 $205.1 
Current lease liabilitiesCurrent operating lease liabilities$56.9 $57.3 
Non-current lease liabilitiesLong-term operating lease liabilities191.7 173.1 
Total operating lease liabilities$248.6 $230.4 
Finance leases
Right-of-use assetsProperty, plant and equipment, net$0.2 $0.3 
Current lease liabilitiesCurrent portion of long-term debt$— $0.1 
Non-current lease liabilitiesLong-term debt0.1 0.2 
Total finance lease liabilities$0.1 $0.3 
Components of lease cost were as follows:
Fiscal Year Ended
September 27, 2025September 28, 2024
(in millions)
Operating lease cost$69.3 $62.8 
Finance lease cost:
   Amortization of right-of-use assets$0.3 $0.2 
   Interest on lease liabilities— — 
Total finance lease cost$0.3 $0.2 
Short-term lease cost$12.9 $13.6 
Variable lease cost$14.9 $10.6 
Total lease cost$97.4 $87.2 
Supplemental cash flow information and non-cash activity related to the Company's leases was as follows:
Fiscal Year Ended
September 27, 2025September 28, 2024
(in millions)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$58.6 $50.7 
Operating cash flows from finance leases— — 
Financing cash flows from finance leases0.1 0.1 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$74.0 $95.4 
Finance leases— — 
Weighted-average remaining lease term and discount rate for the Company's leases were as follows:
September 27, 2025September 28, 2024
Weighted-average remaining lease term (in years):
Operating leases5.45.3
Finance leases2.52.9
Weighted-average discount rate:
Operating leases6.01 %5.64 %
Finance leases6.87 %6.80 %
Lease liability maturities as of September 27, 2025 are as follows:
September 27, 2025
Operating LeasesFinance Leases
Fiscal Year(in millions)
2026$67.2 $— 
202756.1 0.1 
202844.3 — 
202937.9 — 
203032.5 — 
Thereafter56.7 — 
Total future undiscounted lease payments$294.7 $0.1 
Less imputed interest(46.1)— 
Total reported lease liability$248.6 $0.1 

Historical Timeline

Fiscal YearFiled
2025Nov 26, 2025Showing above
2024Nov 27, 2024
2023Nov 28, 2023
2022Nov 22, 2022
2021Nov 23, 2021
2020Nov 24, 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.

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