LINDSAY CORP Leases Disclosure
Note 13 – Leases
The Company, as lessee, has operating leases primarily for office space, manufacturing facilities, equipment, and vehicles. The Company determines if a contract is or contains a lease at the inception of the contract based on whether the contract conveys the right to control the use of an identified asset over a period of time in exchange for consideration. The Company considers disclosures related to its transactions as a lessor to not be material and has omitted such disclosures.
The Company elected, for all classes of underlying assets, to not separate lease and non-lease components and instead will treat the lease agreement as a single lease component for all asset classes.
Short-term operating leases, which have an initial expected term of twelve months or less, are not recorded on the consolidated balance sheet. Such fixed lease payments are recognized within the consolidated statement of earnings on a straight-line basis over the lease term. Any variable payments associated with short-term operating leases are recognized within the consolidated statement of earnings as they are incurred. The Company did not recognize any expense for such leases during the twelve months ended August 31, 2025 and 2024.
Many of the Company’s leases contain renewal or extension options. The Company includes all renewal or extension periods that it is reasonably certain to exercise at lease commencement within the measurement of the ROU asset and lease liability.
The Company’s lease portfolio consists of operating leases which are included in operating lease ROU assets and operating lease liabilities in the consolidated balance sheet. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. To calculate the present value of future lease payments, the Company uses an incremental borrowing rate that estimates a collateralized rate based on the expected term of the lease.
Lease cost and other information related to the Company’s operating leases are as follows:
|
|
August 31, |
|
|||||
($ in thousands) |
|
2025 |
|
|
2024 |
|
||
Operating lease cost (cost resulting from lease payments) |
|
$ |
4,820 |
|
|
$ |
4,386 |
|
Variable lease cost (cost excluded from lease payments) |
|
|
574 |
|
|
|
567 |
|
Total lease cost |
|
$ |
5,394 |
|
|
$ |
4,953 |
|
|
|
|
|
|
|
|
||
Operating cash outflows from operating leases |
|
$ |
4,921 |
|
|
$ |
4,593 |
|
Weighted average lease term - operating leases |
|
6.9 years |
|
|
7.4 years |
|
||
Weighted average discount rate - operating leases |
|
|
4.0 |
% |
|
|
3.7 |
% |
Supplemental balance sheet information related to operating leases are as follows:
|
|
|
|
August 31, |
|
|||||
($ in thousands) |
|
Classification |
|
2025 |
|
|
2024 |
|
||
Operating lease ROU assets |
|
Operating lease right-of-use assets |
|
$ |
18,096 |
|
|
$ |
15,693 |
|
|
|
|
|
|
|
|
|
|
||
|
Other current liabilities |
|
|
4,113 |
|
|
|
3,623 |
|
|
|
Operating lease liabilities |
|
|
17,354 |
|
|
|
15,541 |
|
|
Total lease liabilities |
|
|
|
$ |
21,467 |
|
|
$ |
19,164 |
|
The minimum lease payments under operating leases expiring subsequent to August 31, 2025 are as follows:
Fiscal year ending |
|
$ in thousands |
|
|
2026 |
|
$ |
4,896 |
|
2027 |
|
|
4,115 |
|
2028 |
|
|
3,080 |
|
2029 |
|
|
2,476 |
|
2030 |
|
|
2,318 |
|
Thereafter |
|
|
7,894 |
|
Total lease payments |
|
|
24,779 |
|
Less: interest |
|
|
3,312 |
|
Present value of lease liabilities |
|
$ |
21,467 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 23, 2025 | Showing above |
| 2024 | Oct 24, 2024 | |
| 2023 | Oct 19, 2023 | |
| 2022 | Oct 20, 2022 | |
| 2021 | Oct 21, 2021 | |
| 2020 | Oct 22, 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.