Fortune Brands Innovations, Inc. Leases Disclosure
7. Leases
We have operating and finance leases for buildings and certain machinery and equipment. Operating leases are included in operating lease assets, other current liabilities and operating lease liabilities in our consolidated balance sheets. Amounts recognized for finance leases as of and for the years ended December 28, 2024 and December 30, 2023 were immaterial.
Operating lease expense recognized in the consolidated statement of comprehensive income for 2024, 2023 and 2022 were $46.1 million, $42.1 million and $37.4 million, respectively.
Other information related to leases was as follows:
(In millions, except lease term and discount rate) |
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|
December 31, 2022 |
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Cash paid for amounts included in the measurement of |
|
|
|
|
|
|
|
|
|
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Operating cash flows from operating leases |
|
$ |
43.1 |
|
|
$ |
36.5 |
|
|
$ |
35.1 |
|
Right-of-use assets obtained in exchange for operating |
|
$ |
14.0 |
|
|
$ |
87.1 |
|
|
$ |
21.6 |
|
Weighted average remaining lease term - operating leases |
|
6.1 years |
|
|
6.7 years |
|
|
5.6 years |
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Weighted average discount rate - operating leases |
|
|
5.0 |
% |
|
|
4.1 |
% |
|
|
3.6 |
% |
Future lease payments under non-cancelable operating leases as of December 28, 2024 were as follows:
(In millions) |
|
|
|
|
|
|
|
|
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2025 |
|
$ |
38.6 |
|
2026 |
|
|
33.7 |
|
2027 |
|
|
26.0 |
|
2028 |
|
|
21.0 |
|
2029 |
|
|
16.6 |
|
Thereafter |
|
|
44.7 |
|
Total lease payments |
|
|
180.6 |
|
Less imputed interest |
|
|
(27.5 |
) |
Total |
|
$ |
153.1 |
|
Reported as of December 28, 2024 |
|
|
|
|
Other current liabilities |
|
$ |
31.5 |
|
|
|
121.6 |
|
|
Total |
|
$ |
153.1 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Feb 25, 2025 | Showing above |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 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.