MONRO, INC. Leases Disclosure
We lease certain retail stores, office space and land as well as service contracts that are considered leases.
Our leases have remaining lease terms, including renewals reasonably certain to be exercised, of less than one year to approximately 32 years. Most of our leases include one or more options to extend the lease, for periods ranging from three years to 30 years or more.
Historical failed sale leasebacks that were assumed through acquisitions and do not qualify for sale leaseback accounting continue to be accounted for as financing obligations. As of March 28, 2026 and March 29, 2025, net assets of $1.0 million and $2.2 million, respectively, and liabilities of $2.4 million and $4.3 million, respectively, due to failed sale leaseback arrangements were included with finance lease assets and liabilities, respectively, on the Consolidated Balance Sheets.
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Lease Cost |
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(thousands) |
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| 2026 |
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| 2025 |
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| 2024 |
Operating lease cost |
| $ | 43,547 |
| $ | 45,518 |
| $ | 44,454 |
Finance lease/financing obligations cost: |
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Amortization of leased assets |
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| 27,702 |
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| 30,075 |
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| 30,286 |
Interest on lease liabilities |
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| 10,665 |
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| 12,083 |
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| 13,513 |
Short term and variable lease cost |
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| 618 |
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| 1,200 |
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| 1,749 |
Sublease income |
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| (128) |
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| (136) |
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| (166) |
Total lease cost |
| $ | 82,404 |
| $ | 88,740 |
| $ | 89,836 |
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Maturity of Lease Liabilities |
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| Finance Leases and |
(thousands) |
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| Operating Leases (a) |
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| Financing Obligations (b) |
2027 |
| $ | 47,571 |
| $ | 46,289 |
2028 |
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| 42,206 |
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| 45,269 |
2029 |
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| 34,284 |
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| 36,039 |
2030 |
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| 26,990 |
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| 32,172 |
2031 |
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| 21,287 |
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| 26,556 |
Thereafter |
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| 57,569 |
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| 92,251 |
Total undiscounted lease obligations |
| $ | 229,907 |
| $ | 278,576 |
Less: imputed interest |
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| (33,952) |
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| (48,629) |
Present value of lease obligations |
| $ | 195,955 |
| $ | 229,947 |
(a)Operating lease obligations include approximately $28.7 million related to options to extend operating leases that are reasonably certain of being exercised.
(b)Finance lease payments include approximately $44.7 million related to options to extend finance leases that are reasonably certain of being exercised.
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Lease Term and Discount Rate |
| 2026 |
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| 2025 |
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| 2024 |
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Weighted average remaining lease term (years) |
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Operating leases |
| 6.9 |
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| 7.1 |
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| 7.3 |
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Finance leases and financing obligations |
| 7.7 |
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| 7.9 |
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| 8.5 |
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Weighted average discount rate |
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Operating leases |
| 4.50 | % |
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| 4.14 | % |
| 3.77 | % |
Finance leases and financing obligations |
| 5.23 | % |
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| 5.17 | % |
| 5.41 | % |
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Other Information |
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(thousands) |
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| 2026 |
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| 2025 |
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| 2024 |
Cash paid for amounts included in measurement of lease obligations: |
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Operating cash flows from operating leases |
| $ | 48,226 |
| $ | 47,954 |
| $ | 46,355 |
Operating cash flows from finance leases and financing obligations |
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| 10,729 |
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| 12,177 |
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| 13,712 |
Financing cash flows from finance leases and financing obligations |
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| 38,689 |
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| 39,758 |
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| 39,031 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | May 27, 2026 | Showing above |
| 2019 | May 29, 2019 | |
| 2018 | May 30, 2018 | |
| 2017 | May 24, 2017 | |
| 2016 | May 25, 2016 | |
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.