CAVCO INDUSTRIES, INC.CVCO
CAVCO INDUSTRIES, INC. Leases Disclosure
Leases
We lease certain production and retail locations, office space and equipment. We determine if a contract or arrangement is, or contains, a lease at inception. Lease agreements with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheets. Certain lease agreements include one or more options to renew, with renewal terms that can extend the lease term by to three years or more. Generally, the exercise of lease renewal options is at our discretion. Some agreements also include options to purchase the leased property. The estimated life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option that we are reasonably certain to exercise.
Certain of our lease agreements include rental payments adjusted periodically for inflation. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.
Right of Use ("ROU") assets represent the right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments in accordance with the lease. Operating lease ROU assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. Since our leases do not provide a readily determinable implicit interest rate, we estimate an incremental borrowing rate. In determining the estimated incremental borrowing rate, we consider the lease period and comparable market interest rates, as well as any other information available at the lease commencement date. The lease term includes options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
The following table provides information about the financial statement classification of our lease balances reported within the Consolidated Balance Sheets as of March 28, 2026 and March 29, 2025 (in thousands):
| Classification | March 28, 2026 | March 29, 2025 | |||||||||||||||
| ROU assets | |||||||||||||||||
| Operating lease assets | Operating lease right-of-use assets | $ | 33,578 | $ | 35,576 | ||||||||||||
| Finance lease assets | 5,960 | 5,738 | |||||||||||||||
| Total lease assets | $ | 39,538 | $ | 41,314 | |||||||||||||
| Lease Liabilities | |||||||||||||||||
| Current: | |||||||||||||||||
| Operating lease liabilities | $ | 4,608 | $ | 5,925 | |||||||||||||
| Finance lease liabilities | 85 | 83 | |||||||||||||||
| Non-current: | |||||||||||||||||
| Operating lease liabilities | Operating lease liabilities | 30,747 | 31,538 | ||||||||||||||
| Finance lease liabilities | 5,961 | 6,003 | |||||||||||||||
| Total lease liabilities | $ | 41,401 | $ | 43,549 | |||||||||||||
(1) Recorded net of accumulated amortization of $0.9 million and $0.6 million as of March 28, 2026 and March 29, 2025, respectively.
The following table provides information about the financial statement classification of our lease expenses reported within the Consolidated Statements of Comprehensive Income for the years ended March 28, 2026, March 29, 2025 and March 30, 2024 (in thousands):
| Year Ended | |||||||||||||||||||||||
| Lease Expense Category | Classification | March 28, 2026 | March 29, 2025 | March 30, 2024 | |||||||||||||||||||
Operating lease expense (2) | |||||||||||||||||||||||
| Cost of sales | $ | 1,062 | $ | 1,119 | $ | 1,119 | |||||||||||||||||
| Selling, general and administrative expenses | 6,340 | 5,037 | 4,693 | ||||||||||||||||||||
| Finance lease expense | |||||||||||||||||||||||
| Amortization of leased assets | Cost of sales | 228 | 145 | 175 | |||||||||||||||||||
| Interest on lease liabilities | Interest expense | 280 | 276 | 279 | |||||||||||||||||||
| Total lease expense | $ | 7,910 | $ | 6,577 | $ | 6,266 | |||||||||||||||||
(2) Excludes short-term and variable lease expenses, which are immaterial.
Cash payments for operating and finance leases were as follows (in thousands):
| March 28, 2026 | March 29, 2025 | March 30, 2024 | |||||||||||||||
| Operating leases | $ | 7,461 | $ | 5,648 | $ | 6,694 | |||||||||||
| Finance leases | 356 | 267 | 356 | ||||||||||||||
The present value of minimum payments for future fiscal years under non-cancelable leases as of March 28, 2026 was as follows (in thousands):
| Operating Leases | Finance Leases | Total | |||||||||||||||
| 2027 | $ | 6,418 | $ | 356 | $ | 6,774 | |||||||||||
| 2028 | 5,240 | 356 | 5,596 | ||||||||||||||
| 2029 | 4,878 | 356 | 5,234 | ||||||||||||||
| 2030 | 4,517 | 356 | 4,873 | ||||||||||||||
| 2031 | 4,361 | 356 | 4,717 | ||||||||||||||
| Thereafter | 19,453 | 9,518 | 28,971 | ||||||||||||||
| 44,867 | 11,298 | 56,165 | |||||||||||||||
| Less: Amount representing interest | (9,512) | (5,252) | (14,764) | ||||||||||||||
| $ | 35,355 | $ | 6,046 | $ | 41,401 | ||||||||||||
The following table provides information about the weighted average remaining lease terms and weighted average discount rates as of March 28, 2026:
| Remaining Lease Term (Years) | Discount Rate | ||||||||||
| Operating leases | 9.0 | 5.0 | % | ||||||||
| Finance leases | 31.0 | 4.5 | % | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 22, 2026 | Showing above |
| 2025 | May 23, 2025 | |
| 2024 | May 24, 2024 | |
| 2023 | May 19, 2023 | |
| 2022 | May 31, 2022 | |
| 2021 | May 28, 2021 | |
| 2020 | May 27, 2020 | |
| 2019 | May 29, 2019 | |
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.