Credo Technology Group Holding LtdCRDO

Credo Technology Group Holding Ltd Leases Disclosure

10-KFiled Jul 2, 20251 min read
Leases
The Company's leases include office space located in the United States and other international locations, which are all classified as operating leases. The Company’s leases have remaining lease terms generally between 1 year and 6 years. Operating leases are included in right of use assets, other current liabilities, and non-current operating lease liabilities on the Company’s consolidated balance sheets. The Company does not have any finance leases.
Lease expense and supplemental cash flow information are as follows (in thousands):
Year Ended
May 3, 2025April 27, 2024
Operating lease expenses$4,186 $3,855 
Cash paid for amounts included in the measurement of operating lease liabilities$3,961 $3,495 
Right-of-use assets obtained in exchange for lease obligation$5,178 $978 
The aggregate future lease payments for operating leases as of May 3, 2025 are as follows (in thousands):
Fiscal YearOperating leases
2026
$4,092 
2027
3,515 
2028
3,496 
2029
3,425 
2030
2,824 
Thereafter1,199 
Total lease payments18,551 
Less: Interest2,516 
Present value of lease liabilities$16,035 
As of May 3, 2025, the weighted average remaining lease term for the Company's operating leases was 4.97 years and the weighted average discount rate used to determine the present value of the Company's operating leases was approximately 6.34%.

Historical Timeline

Fiscal YearFiled
2025Jul 2, 2025Showing above
2024Jun 24, 2024
2023Jun 23, 2023
2022Jun 8, 2022

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.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ESegmentsCommitmentsStock CompensationNew StandardsPay vs Performance