Kontoor Brands, Inc. Leases Disclosure
| (In thousands) | December 2025 | December 2024 | |||||||||||||||
| Assets | |||||||||||||||||
Operating lease assets, noncurrent (a) | $ | 141,579 | $ | 47,171 | |||||||||||||
| Total lease assets | $ | 141,579 | $ | 47,171 | |||||||||||||
| Liabilities | |||||||||||||||||
Operating lease liabilities, current (b) | $ | 33,663 | $ | 20,890 | |||||||||||||
Operating lease liabilities, noncurrent (c) | 116,877 | 29,955 | |||||||||||||||
| Total lease liabilities | $ | 150,540 | $ | 50,845 | |||||||||||||
| Weighted-average remaining lease term (in years) | |||||||||||||||||
| Operating leases | 5.42 | 4.00 | |||||||||||||||
| Weighted-average discount rate | |||||||||||||||||
| Operating leases | 5.80 | % | 5.76 | % | |||||||||||||
(b) "Operating lease liabilities, current" at December 2025 includes $14.2 million related to Helly Hansen.
(c) "Operating lease liabilities, noncurrent" at December 2025 includes $77.2 million related to Helly Hansen.
| Year Ended December | |||||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||||||||
Operating lease costs (a) | $ | 44,326 | $ | 29,163 | $ | 31,543 | |||||||||||||||||
| Short-term lease costs (excluding leases of one month or less) | 733 | 558 | 603 | ||||||||||||||||||||
| Variable lease costs | 5,898 | 4,929 | 4,070 | ||||||||||||||||||||
| Total lease costs | $ | 50,957 | $ | 34,650 | $ | 36,216 | |||||||||||||||||
| Year Ended December | |||||||||||||||||||||||
| (In thousands) | 2025 | 2024 | 2023 | ||||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities - operating cash flows | $ | 43,276 | $ | 33,037 | $ | 31,457 | |||||||||||||||||
Right-of-use operating lease assets obtained in exchange for new operating lease liabilities - non-cash activity (a) | $ | 114,426 | $ | 7,891 | $ | 14,964 | |||||||||||||||||
| (In thousands) | Lease Obligations | ||||||||||
| 2026 | $ | 43,665 | |||||||||
| 2027 | 35,693 | ||||||||||
| 2028 | 26,871 | ||||||||||
| 2029 | 24,165 | ||||||||||
| 2030 | 21,014 | ||||||||||
| Thereafter | 31,124 | ||||||||||
| Total future minimum lease payments | 182,532 | ||||||||||
| Less: amounts related to imputed interest | (31,992) | ||||||||||
| Present value of future minimum lease payments | 150,540 | ||||||||||
| Less: operating lease liabilities, current | (33,663) | ||||||||||
| Operating lease liabilities, noncurrent | $ | 116,877 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 4, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 2, 2022 | |
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.