IMMERSION CORP Leases Disclosure
7. LEASES
Immersion
For the fiscal year ended April 30, 2025, four months ended April 30, 2024, and calendar year ended December 31, 2023, Immersion’s leases and related activity were not material.
Barnes & Noble Education
Barnes & Noble Education recognizes lease assets and lease liabilities on the Consolidated Balance Sheets for substantially all lease arrangements based on the present value of future lease payments as required by ASC Topic 842, Leases. Barnes & Noble Education’s portfolio of leases consists of operating leases comprised of operating agreements which grant us the right to operate on-campus bookstores at colleges and universities; real estate leases for office and warehouse operations; and vehicle leases. We have one immaterial finance lease and no short-term leases (i.e., those with a term of twelve months or less).
Barnes & Noble Education recognize a right of use (“ROU”) asset and lease liability in the Consolidated Balance Sheets for leases with a term greater than twelve months. Options to extend or terminate a lease are included in the determination of the ROU asset and lease liability when it is reasonably certain that such options will be exercised.
Barnes & Noble Education lease terms generally range from one year to fifteen years, and a number of agreements contain minimum annual guarantees, many of which are adjusted at the start of each contract year based on the actual sales activity of the leased premises for the most recently completed contract year.
Payment terms are based on the fixed rates explicit in the lease, including minimum annual guarantees, and/or variable rates based on: (i) a percentage of revenues or sales arising at the relevant premises (“variable commissions”), and/or (ii) operating expenses, such as common area charges, real estate taxes and insurance. For contracts with fixed lease payments, including those with minimum annual guarantees, Barnes & Noble Education recognize lease expense on a straight-line basis over the lease term. For variable commissions, Barnes & Noble Education recognize lease expense as incurred. Barnes & Noble Education lease agreements do not contain any material residual value guarantees, material restrictions or covenants.
Barnes & Noble Education use an estimated incremental borrowing rate to determine the present value of fixed lease payments based on the information available at the lease commencement date, if the rate implicit in the lease is not readily determinable. Barnes & Noble Education utilizes an estimated collateralized incremental borrowing rate as of the effective date or the commencement date of the lease, whichever is later.
The following summarizes lease expense (in thousands):
|
|
From |
|
|
Operating lease costs |
|
$ |
60,179 |
|
Variable lease costs |
|
|
59,650 |
|
Short-term lease costs |
|
|
16,970 |
|
Total lease costs |
|
$ |
136,799 |
|
The following summarizes Barnes & Noble Education’s minimum fixed lease obligations, excluding variable commissions, at (in thousands):
|
|
|
|
|
|
|
Operating lease liabilities |
|
|
Fiscal 2026 |
|
$ |
70,036 |
|
Fiscal 2027 |
|
|
35,395 |
|
Fiscal 2028 |
|
|
29,438 |
|
Fiscal 2029 |
|
|
26,053 |
|
Fiscal 2030 |
|
|
19,577 |
|
Thereafter |
|
|
18,457 |
|
Total lease payments |
|
|
198,956 |
|
Less: imputed interest |
|
|
(29,067 |
) |
Operating lease liabilities at period end |
|
$ |
169,889 |
|
Future lease payment obligations related to leases that were entered into, but did not commence at April 30, 2025, were not material.
The following is additional information related to Barnes & Noble Education’s operating leases as of (in thousands except weighted-average information):
|
|
April 30, 2025 |
|
|
Weighted average remaining lease term (in years) |
|
4.7 |
|
|
Weighted average discount rate |
|
|
6.7 |
% |
Supplemental cash flow information: |
|
|
|
|
Cash payments for lease liabilities within operating activities |
|
$ |
110,853 |
|
ROU assets obtained in exchange for lease liabilities from initial recognition |
|
|
19,977 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2023 | Mar 11, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 6, 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.