LITTELFUSE INC /DELFUS
LITTELFUSE INC /DE Leases Disclosure
Lease Commitments
There were no sale leaseback transactions for the fiscal years ended December 27, 2025 and December 30, 2023. The net gain recorded from a sale leaseback transaction was $0.3 million for the fiscal year ended December 28, 2024.
Under ASC 842, a contract contains a lease if there is an identified asset and the Company has the right to control the asset. The Company determines whether a contract contains a lease at contract inception. The Company leases office and production space under various non-cancellable operating leases that expire no later than 2036. Certain real estate leases include one or more options to renew. The exercise of lease renewal options is at the Company's sole discretion. Options to extend the lease are included in the lease term when it is reasonably certain the Company will exercise the option. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option that is reasonably certain of exercise. Certain leases include rental payments adjusted periodically for inflation. The lease agreements do not contain any material residual value guarantee or material restrictive covenants. The Company has elected to use the available practical expedient to account for the lease and non-lease components of its leases as a single component. As the Company elected not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities.
The Company does not have a published credit rating because it has no publicly traded debt; therefore, the Company is generating its incremental borrowing rate ("IBR"), using a synthetic credit rating model that compares its credit quality to other rated companies based on certain financial metrics and ratios. The reference rate will be based on the yield curve of companies with similar credit quality based on the metrics and adjusted for currency in regions where we have significant operations.
All leases with an initial term of 12 months or less that do not include an option to extend or purchase the underlying asset that the Company is reasonably certain to exercise (“short-term leases”) are not recorded on the Consolidated Balance Sheets. Short-term lease expenses are recognized on a straight-line basis over the lease term.
The following table presents the classification of right of use assets and lease liabilities as of December 27, 2025 and December 28, 2024:
| Fiscal Year Ended | |||||||||||||||||
(in thousands) | Consolidated Balance Sheet Classification | December 27, 2025 | December 28, 2024 | ||||||||||||||
| Operating Leases | |||||||||||||||||
| Right of use assets - operating lease | $ | 85,318 | $ | 71,513 | |||||||||||||
| Current operating lease liabilities | 11,347 | 13,626 | |||||||||||||||
| Non-current operating lease liabilities | 71,664 | 60,558 | |||||||||||||||
| Total operating lease liabilities | $ | 83,011 | $ | 74,184 | |||||||||||||
| Finance Leases | |||||||||||||||||
| Right of use assets - finance lease | $ | 945 | $ | 698 | |||||||||||||
| Current finance lease liabilities | 88 | 274 | |||||||||||||||
| Non-current finance lease liabilities | 101 | 1 | |||||||||||||||
| Total finance lease liabilities | $ | 189 | $ | 275 | |||||||||||||
The following table represents the lease costs for 2025, 2024, and 2023:
| Fiscal Year Ended | |||||||||||||||||||||||
(in thousands) | Consolidated Statements of Net (Loss) Income Classification | December 27, 2025 | December 28, 2024 | December 30, 2023 | |||||||||||||||||||
| Operating lease expenses | Cost of sales, Selling, general, and administrative expenses | $ | 18,906 | $ | 17,310 | $ | 15,817 | ||||||||||||||||
| Finance lease: | |||||||||||||||||||||||
| Finance lease expenses | Cost of sales | 107 | 96 | 219 | |||||||||||||||||||
| Interest on lease liabilities | Other (income) expense, net | 9 | 8 | 19 | |||||||||||||||||||
| Short-term lease expenses | Cost of sales, Selling, general, and administrative expenses | 758 | 1,170 | 1,229 | |||||||||||||||||||
| Variable lease expenses | Cost of sales, Selling, general, and administrative expenses | 1,407 | 1,151 | 1,034 | |||||||||||||||||||
| Total lease costs | Cost of sales, Selling, general, and administrative expenses | $ | 21,187 | $ | 19,735 | $ | 18,318 | ||||||||||||||||
The Company leases certain office and warehouse space as well as certain machinery and equipment under non-cancellable operating leases. Rent expense under these leases was $21.2 million, $19.7 million, and $18.3 million in 2025, 2024, and 2023, respectively.
Maturity of lease liabilities as of December 27, 2025 (in thousands) | Operating Leases | Finance Leases | |||||||||
| 2026 | $ | 15,282 | $ | 94 | |||||||
| 2027 | 14,481 | 97 | |||||||||
| 2028 | 13,681 | 4 | |||||||||
| 2029 | 13,031 | 4 | |||||||||
| 2030 | 10,583 | — | |||||||||
| 2031 and thereafter | 35,091 | — | |||||||||
| Total lease payments | $ | 102,149 | $ | 199 | |||||||
| Less: Imputed interest | (19,138) | (10) | |||||||||
| Present value of lease liabilities | $ | 83,011 | $ | 189 | |||||||
| Fiscal Year Ended | |||||||||||
| December 27, 2025 | December 28, 2024 | ||||||||||
| Weighted-average remaining lease term (years) | |||||||||||
| Operating leases | 7.63 | 8.67 | |||||||||
| Finance leases | 1.56 | 1.00 | |||||||||
| Weighted-average discount rate | |||||||||||
| Operating leases | 5.07 | % | 5.39 | % | |||||||
| Finance leases | 5.30 | % | 2.00 | % | |||||||
| Fiscal Year Ended | |||||||||||||||||
| (in thousands) | December 27, 2025 | December 28, 2024 | December 30, 2023 | ||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | |||||||||||||||||
| Operating cash flow - payments on operating leases | $ | (19,848) | $ | (13,258) | $ | (14,518) | |||||||||||
| Operating cash flow - interest payments on finance leases | (9) | (8) | (19) | ||||||||||||||
| Financing cash flow - payments on finance lease obligations | (377) | (280) | (1,164) | ||||||||||||||
| Leased assets obtained in exchange of new lease obligations, including leases acquired: | |||||||||||||||||
| Operating leases | $ | 21,895 | $ | 26,785 | $ | 16,689 | |||||||||||
| Finance leases | 269 | — | — | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 19, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2020 | Feb 18, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 27, 2017 | |
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.