FUELCELL ENERGY INC Leases Disclosure
Note 11. Leases
The Company enters into operating and finance lease agreements for the use of real estate, vehicles, information technology equipment, and certain other equipment. We determine if an arrangement contains a lease at inception, which is the date on which the terms of the contract are agreed to and the agreement creates enforceable rights and obligations. The impacts of accounting for operating leases are included in Operating lease right-of-use assets, Operating lease liabilities, and Long-term operating lease liabilities in the Company’s Consolidated Balance Sheets. Finance leases are not considered significant to the Company’s Consolidated Balance Sheets or Consolidated Statements of Operations and Comprehensive Loss.
Operating lease expense for the year ended October 31, 2024 was $1.4 million. Operating lease expense for each of the years ended October 31, 2023 and 2022 was $1.5 million. As of October 31, 2024, the weighted average remaining lease term (in years) was approximately 16 years and the weighted average discount rate was 6.9%. Lease payments made during the years ended October 31, 2024, 2023 and 2022 totaled $1.3 million, $1.2 million, and $1.4 million, respectively.
As of October 31, 2024, undiscounted maturities of operating lease liabilities are as follows (in thousands):
| Operating |
| ||
Due Year 1 | $ | 1,361 | ||
Due Year 2 | 1,374 | |||
Due Year 3 | 1,407 | |||
Due Year 4 | 1,375 | |||
Due Year 5 | 795 | |||
Thereafter | 11,923 | |||
Total undiscounted lease payments | 18,235 | |||
Less imputed interest | (8,534) | |||
$ | 9,701 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Dec 27, 2024 | Showing above |
| 2023 | Dec 19, 2023 | |
| 2022 | Dec 20, 2022 | |
| 2021 | Dec 29, 2021 | |
| 2020 | Jan 21, 2021 | |
| 2016 | Jan 12, 2017 | |
| 2015 | Jan 8, 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.