12.

COMMITMENTS AND CONTINGENCIES

 

The Company has certain purchase commitments that have a remaining term of less than one year.

 

The Company enters into various agreements with suppliers for the purchase of raw materials, the terms of which may include variable or fixed pricing and minimum purchase quantities. At May 2, 2026, the Company had purchase commitments for raw materials of $6.0 million through 2027.

 

At May 2, 2026, the Company had purchase commitments for plant and equipment of $7.3 million anticipated to be completed in Fiscal 2027.

  

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Historical Timeline

Fiscal YearFiled
2026Jul 1, 2026Showing above
2025Jul 2, 2025
2024Jun 26, 2024
2023Jun 28, 2023
2022Jun 29, 2022
2021Jun 30, 2021
2020Jul 1, 2020
2019Jun 26, 2019
2018Jun 27, 2018
2017Jul 13, 2017
2016Jul 14, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.