CROWN CRAFTS INC Leases Disclosure
Note 9 – Leases
During the fiscal years ended March 30, 2025 and March 31, 2024, the Company capitalized operating lease obligations as right of use assets and recognized corresponding lease liabilities in the amount of $999,000 and $993,000. The Company made cash payments related to its recognized operating leases of $4.5 million and $3.6 million during the fiscal years ended March 30, 2025 and March 31, 2024, respectively. Such payments reduced the operating lease liabilities and were included in the cash flows provided by operating activities in the accompanying consolidated statements of cash flows. The Company recognized noncash reductions to its operating right of use assets resulting from reductions to its lease liabilities in the amount of $876,000 and $1.0 million during the fiscal years ended March 30, 2025 and March 31, 2024, respectively. As of March 30, 2025 and March 31, 2024, the Company’s operating leases had weighted-average discount rates of 6.0% and 6.0%, respectively, and weighted-average remaining lease terms of 3.2 years and 3.9 years, respectively.
During the fiscal years ended March 30, 2025 and March 31, 2024, the Company classified its operating lease costs within the accompanying consolidated statements of operations as follows (in thousands):
| Cost of products sold | $ | 4,202 | $ | 3,956 | ||||
| Marketing and administrative expenses | 386 | 388 | ||||||
| Total operating lease costs | $ | 4,588 | $ | 4,344 |
The maturities of the Company’s operating lease liabilities as of March 30, 2025 are as follows (in thousands):
| Fiscal Year | ||||
| 2026 | $ | 4,703 | ||
| 2027 | 4,384 | |||
| 2028 | 4,135 | |||
| 2029 | 850 | |||
| 2030 | 192 | |||
| 2031 | 148 | |||
| 2032 | 48 | |||
| Total undiscounted operating lease payments | 14,460 | |||
| Less imputed interest | 1,366 | |||
| Operating lease liabilities - net | $ | 13,094 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 25, 2025 | Showing above |
| 2024 | Jun 28, 2024 | |
| 2023 | Jun 26, 2023 | |
| 2022 | Jun 8, 2022 | |
| 2021 | Jun 9, 2021 | |
| 2020 | Jun 10, 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.