RICHARDSON ELECTRONICS, LTD. Leases Disclosure
The Company leases real and personal property in the normal course of business under various operating leases. The Company uses operating leases for facility space and automobiles. Most of the leased facility space is for sales and general office use. Automobile leases are used throughout the Company. Several leases include renewal clauses which vary in length and may not include specific rent renewal amounts. The Company will revise the value of the right of use assets and associated lease liabilities upon a remeasurement event.
The gross amounts of assets and liabilities related to operating leases on May 31, 2025 and June 1, 2024 were as follows (in thousands):
Lease Type |
|
May 31, 2025 |
|
|
June 1, 2024 |
|
||
|
$ |
2,276 |
|
|
$ |
2,760 |
|
|
|
|
|
|
|
|
|
||
|
$ |
1,171 |
|
|
$ |
1,169 |
|
|
|
|
|
|
|
|
|
||
|
$ |
1,105 |
|
|
$ |
1,591 |
|
|
The components of lease costs for fiscal 2025, fiscal 2024 and fiscal 2023 were as follows (in thousands):
|
|
|
|
Fiscal Year Ended |
|
|||||||||
Lease Type |
|
Classification |
|
May 31, 2025 |
|
|
June 1, 2024 |
|
|
May 27, 2023 |
|
|||
Consolidated operating lease expense |
|
Operating expenses |
|
$ |
1,610 |
|
|
$ |
1,745 |
|
|
$ |
1,721 |
|
Rent expenses for fiscal 2025, fiscal 2024 and fiscal 2023 were $1.4 million, $1.5 million, and $1.5 million, respectively.
Our future lease commitments for minimum rentals, including common area maintenance charges and property taxes during the next five years are as follows (in thousands):
Fiscal Year |
|
Operating Leases |
|
|
2026 |
|
$ |
1,258 |
|
2027 |
|
|
691 |
|
2028 |
|
|
293 |
|
2029 |
|
|
161 |
|
Total lease payments |
|
|
2,403 |
|
Lease inputted interest |
|
|
127 |
|
Net minimum lease payments |
|
$ |
2,276 |
|
The weighted average remaining lease terms and interest rates of leases held by the Company as of May 31, 2025 and June 1, 2024 were as follows:
Operating Leases as of: |
|
Weighted Average Remaining |
|
Weighted Average |
May 31, 2025 |
|
4.1 |
|
5.1% |
June 1, 2024 |
|
2.9 |
|
4.5% |
The cash activities associated with our leases for fiscal 2025, fiscal 2024 and fiscal 2023 were as follows (in thousands):
|
|
|
|
Fiscal Year Ended |
|
|||||||||
Cash Flow Source |
|
Classification |
|
May 31, 2025 |
|
|
June 1, 2024 |
|
|
May 27, 2023 |
|
|||
Operating cash flows from operating leases |
|
Operating activities |
|
$ |
1,384 |
|
|
$ |
1,329 |
|
|
$ |
566 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 4, 2025 | Showing above |
| 2024 | Aug 5, 2024 | |
| 2021 | Aug 2, 2021 | |
| 2019 | Aug 5, 2019 | |
| 2018 | Aug 2, 2018 | |
| 2017 | Jul 31, 2017 | |
| 2016 | Jul 29, 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.