HAEMONETICS CORPHAE
HAEMONETICS CORP Leases Disclosure
LEASES
Lessee Activity
The Company has operating leases for office space, land, warehouse and manufacturing space, R&D laboratories, vehicles and certain equipment. Leases with an initial term of 12 months or less are not recognized on the consolidated balance sheets and expense for these leases is recognized on a straight-line basis over the lease term. The Company accounts for the lease components and the non-lease components as a single lease component. The Company’s leases have remaining lease terms of 1 year to approximately 30 years, some of which may include options to extend the leases for up to 10 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees.
The Company determines whether an arrangement is, or contains, a lease based on the unique facts and circumstances present at the inception of an arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received.
The following table presents supplemental consolidated balance sheets information related to the Company’s operating leases:
| Classification | March 28, 2026 | March 29, 2025 | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||
| Assets | |||||||||||||||||
| Other long-term assets | $ | 39,619 | $ | 47,492 | |||||||||||||
| Liabilities | |||||||||||||||||
| Other current liabilities | $ | 9,243 | $ | 8,107 | |||||||||||||
| Other long-term liabilities | $ | 40,898 | $ | 50,454 | |||||||||||||
The following table presents the weighted average remaining lease term and discount rate information related to the Company’s operating leases:
| March 28, 2026 | March 29, 2025 | ||||||||||
| Weighted average remaining lease term (years) | 6.7 | 7.5 | |||||||||
| Weighted average discount rate | 4.6 | % | 5.0 | % | |||||||
The Company’s operating lease costs were $10.4 million, $12.1 million and $10.6 million during fiscal 2026, 2025 and 2024, respectively.
The following table presents supplemental cash flow information related to the Company’s operating leases:
| March 28, 2026 | March 29, 2025 | March 30, 2024 | |||||||||||||||
| (Dollars in Thousands) | |||||||||||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | |||||||||||||||||
| Operating cash flows used for operating leases | $ | 11,803 | $ | 11,201 | $ | 10,636 | |||||||||||
| Right-of-use assets obtained in exchange for new operating lease liabilities | $ | 997 | $ | 399 | $ | 2,450 | |||||||||||
The following table presents the maturities of the Company’s operating lease liabilities as of March 28, 2026:
| Operating Leases | |||||
| (Dollars in Thousands) | |||||
| Fiscal 2027 | $ | 11,631 | |||
| Fiscal 2028 | 9,567 | ||||
| Fiscal 2029 | 7,621 | ||||
| Fiscal 2030 | 7,261 | ||||
| Fiscal 2031 | 7,029 | ||||
| Thereafter | 16,895 | ||||
| Total future minimum operating lease payments | 60,004 | ||||
| Less: imputed interest | (9,863) | ||||
| Present value of operating lease liabilities | $ | 50,141 | |||
Lessor Activity
Assets on the Company’s consolidated balance sheets classified as Haemonetics equipment primarily consists of medical devices installed at customer sites but owned by Haemonetics. These devices are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as the purchase and consumption of the Company’s disposable products. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where devices are provided under operating lease arrangements, a substantial majority of the entire lease revenue is variable and subject to subsequent non-lease component (disposable products) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Operating lease revenue represents approximately three percent of the Company’s total net sales.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 20, 2026 | Showing above |
| 2025 | May 21, 2025 | |
| 2024 | May 20, 2024 | |
| 2023 | May 22, 2023 | |
| 2022 | May 25, 2022 | |
| 2021 | May 26, 2021 | |
| 2020 | May 20, 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.