COLUMBUS MCKINNON CORPCMCO
COLUMBUS MCKINNON CORP Leases Disclosure
Leases
Nature of leases
The Company’s lease arrangements generally include real estate (manufacturing facilities, sales offices, distribution centers, warehouses), vehicles, and equipment. At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. At lease commencement, the Company evaluates whether the arrangement is a finance or operating lease, and accounts for it accordingly. Operating leases are included in other assets, other current liabilities, and other liabilities on the Company’s Consolidated Balance Sheet. Finance leases are included in net property, plant, and equipment, current portion of long-term debt and finance lease obligation, and the remaining balance is recorded within Term loan and finance lease obligations on the Consolidated Balance Sheet.
Leases with a term greater than one year are recognized on the Consolidated Balance Sheet as right-of-use (“ROU”) assets, lease obligations, and, if applicable, long-term lease obligations in the financial statement line items above. The Company has elected not to recognize leases with terms of one year or less on the Consolidated Balance Sheet. Lease obligations and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. As the interest rate implicit in lease contracts is generally not readily determinable, the Company uses its estimated incremental borrowing rate in determining the present value of lease payments. The incremental borrowing rate is determined based on the Company’s recent debt issuances, lease term, and the currency in which lease payments are made. The Company recognizes lease expense on a straight-line basis over the lease term. Additionally, because the Company has elected to not separate lease and non-lease components, variable costs also include payments to the landlord for common area maintenance, real estate taxes, insurance, and other operating expenses.
The Company's leases have lease terms ranging from 1 to 23 years, some of which include options to extend or terminate the lease. The exercise of lease renewal options is at the Company’s sole discretion. When deemed reasonably certain of exercise, the renewal options are included in the determination of the lease term. The Company’s lease agreements do not contain material residual value guarantees or any material restrictive covenants. The Company recorded a finance lease for a manufacturing facility in Hartland, WI that has a 23 year lease term which terminates in 2035 as a result of the Dorner acquisition. As of March 31, 2025, the Company does not have any significant additional leases that have not yet commenced.
Significant Inputs:
The following table presents the weighted average remaining lease term and discount rate as of March 31, 2025 and March 31, 2024, respectively:
| March 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Weighted-average remaining lease term (in years) | ||||||||||||||
| Operating leases | 8.30 | 9.16 | ||||||||||||
| Finance leases | 10.58 | 11.58 | ||||||||||||
| Operating leases | 7.05 | % | 6.96 | % | ||||||||||
| Finance leases | 4.51 | % | 4.51 | % | ||||||||||
Amounts recognized on the financial statements
The following table illustrates the balance sheet classification for lease assets and liabilities as of March 31, 2025 and March 31, 2024, respectively (in thousands):
| March 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Operating leases: | ||||||||||||||
| 59,506 | $ | 65,584 | ||||||||||||
| 9,961 | 8,723 | |||||||||||||
| 59,735 | 60,666 | |||||||||||||
| Total operating liabilities | $ | 69,696 | $ | 69,389 | ||||||||||
| Finance leases: | ||||||||||||||
| $ | 10,595 | $ | 11,596 | |||||||||||
| 739 | 670 | |||||||||||||
| 11,528 | 12,267 | |||||||||||||
| Total finance liabilities | $ | 12,267 | $ | 12,937 | ||||||||||
Operating lease expense of $14,433,000, $12,550,000 and $9,197,000 for the fiscal years ending March 31, 2025, 2024, and 2023, respectively, is included in Income from operations on the Consolidated Statements of Operations. Short-term lease expense, sublease income, and variable lease expenses are not material for the fiscal year ending March 31, 2025, 2024, and 2023, respectively. Finance lease expense of $1,001,000 for both fiscal years ending March 31, 2025 and 2024, is included in Income from operations on the Consolidated Statements of Operations, and $566,000 and $597,000 and is included in Interest and debt expense for the fiscal years ending March 31, 2025 and 2024, on the Company's Consolidated Statements of Operations related to the finance lease.
Other lease disclosures
Future maturities of leases as of March 31, 2025, were as follows (in thousands):
| Year: | Operating Leases | Finance Leases | ||||||
| 2026 | $ | 14,343 | 1,274 | |||||
| 2027 | 13,799 | 1,312 | ||||||
| 2028 | 12,097 | 1,351 | ||||||
| 2029 | 9,220 | 1,392 | ||||||
| 2030 | 8,176 | 1,433 | ||||||
| Thereafter | 38,639 | 8,832 | ||||||
| Total undiscounted lease payments | $ | 96,274 | $ | 15,594 | ||||
| Less: imputed interest | $ | 26,578 | $ | 3,327 | ||||
| Present value of lease liabilities | $ | 69,696 | $ | 12,267 | ||||
Supplemental cash flow information related to leases is as follows (in thousands):
Year ended March 31, 2025 | Year ended March 31, 2024 | Year ended March 31, 2023 | |||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 12,014 | $ | 9,454 | $ | 8,872 | |||||
| Cash paid for amounts included in the measurement of finance lease liabilities | $ | 1,237 | $ | 1,200 | $ | 1,166 | |||||
| ROU assets obtained in exchange for new operating lease liabilities | $ | 8,173 | $ | 22,506 | $ | 31,423 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | May 28, 2025 | Showing above |
| 2024 | May 29, 2024 | |
| 2023 | May 25, 2023 | |
| 2022 | May 25, 2022 | |
| 2021 | May 26, 2021 | |
| 2020 | May 27, 2020 | |
| 2019 | May 29, 2019 | |
| 2018 | May 30, 2018 | |
| 2017 | May 31, 2017 | |
| 2016 | Jun 1, 2016 | |
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.