NATIONAL BEVERAGE CORP Leases Disclosure
| 4. | LEASES |
The Company has entered into various non-cancelable operating lease agreements for certain of its offices, buildings, machinery and equipment expiring at various dates through January 2037. The Company does not assume renewals in the determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. Lease agreements generally do not contain material residual value guarantees or material restrictive covenants. Operating lease cost was $17.0 million, $15.9 million and $14.4 million in Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively. As of May 3, 2025, the weighted-average remaining lease term and weighted average discount rate of operating leases were 5.92 years and 4.52%, respectively. As of April 27, 2024, the weighted-average remaining lease term and weighted average discount rate of operating leases were 4.80 years and 4.30%, respectively. Cash paid for amounts included in the measurement of operating lease liabilities were $16.4 million, $15.4 million and $14.3 million for Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively.
The following is a summary of future minimum lease payments and related liabilities for all non-cancelable operating leases at May 3, 2025:
| (In thousands) | ||||
| Fiscal 2026 | $ | 17,388 | ||
| Fiscal 2027 | 16,399 | |||
| Fiscal 2028 | 11,611 | |||
| Fiscal 2029 | 10,506 | |||
| Fiscal 2030 | 9,935 | |||
| Thereafter | 17,017 | |||
| Total minimum lease payments including interest | 82,856 | |||
| Less: Amounts representing interest | (10,732 | ) | ||
| Present value of minimum lease payments | 72,124 | |||
| Less: Current portion of lease liabilities | (14,533 | ) | ||
| Non-current portion of lease liabilities | $ | 57,591 | ||
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.