TANDY LEATHER FACTORY INC Leases Disclosure
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Leases
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Balance Sheet
Classification
|
December 31, 2025
|
December 31, 2024
|
|||||||
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(in thousands)
|
||||||||||
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Assets:
|
||||||||||
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Operating
|
|
$
|
24,736 |
$
|
10,323 |
|||||
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Total assets
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$
|
24,736 |
$
|
10,323 |
||||||
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Liabilities:
|
||||||||||
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Current
|
||||||||||
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Operating
|
|
$
|
3,512 |
$
|
3,205 |
|||||
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Non-current
|
||||||||||
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Operating
|
|
23,868 |
7,561 |
|||||||
|
Total lease liabilities
|
$
|
27,380 |
$
|
10,766 |
||||||
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Lease Cost
|
Income Statement
Classification
|
December 31, 2025
|
December 31, 2024
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|||||||
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(in thousands)
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||||||||||
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Operating lease cost
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Operating expenses
|
$
|
3,101 |
$
|
4,029 |
|||||
|
Operating lease cost
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Impairment expense
|
- |
(18 |
)
|
||||||
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Short-term lease cost
|
Operating expenses
|
58 |
- |
|||||||
|
Variable lease cost (1)
|
Operating expenses
|
1,178 |
914 |
|||||||
|
Total lease cost
|
$
|
4,337 |
$
|
4,925 |
||||||
| (1) | Variable lease cost includes payment for certain real estate taxes, insurance, common area maintenance, and other charges related to lease agreements, which are not included in the measurement of the operating lease liabilities. |
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|
December 31, 2025
|
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Maturity of Lease Liabilities
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Operating Leases
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Finance Leases
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|||||||
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(in thousands)
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|||||||||
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2026
|
5,391 |
- |
|||||||
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2027
|
5,010 |
- |
|||||||
|
2028
|
4,127 |
- |
|||||||
|
2029
|
3,107 |
- |
|||||||
|
2030
|
2,123 |
- |
|||||||
|
Thereafter
|
23,374 |
- |
|||||||
|
Total lease payments
|
|
$
|
43,132 |
$
|
- |
||||
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Less: Interest
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(15,752 |
)
|
- |
||||||
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Present value of lease liabilities
|
|
$
|
27,380 |
$
|
- |
||||
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Other Information
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December 31, 2025
|
December 31, 2024
|
||||||
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(in thousands)
|
||||||||
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Cash paid for amounts included in the measurement of lease liabilities:
|
||||||||
|
Operating cash flows used in operating leases
|
$
|
3,101 |
$
|
3,512 |
||||
|
Financing cash flows used in finance leases
|
- |
1 |
||||||
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Operating lease assets obtained in exchange for lease obligations
|
||||||||
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Operating leases, initial recognition
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18,248 |
4,755 |
||||||
| Lease Term and Discount Rate | December 31, 2025 | December 31, 2024 | ||||||
| Weighted-average remaining lease term (years): | ||||||||
| Operating leases | 13.0 | 3.7 | ||||||
| Weighted-average discount rate: | ||||||||
| Operating leases | 6.2 | % | 5.3 | % | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Mar 22, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Sep 2, 2021 | |
| 2019 | Jun 22, 2021 | |
| 2017 | Mar 8, 2018 | |
| 2016 | Mar 27, 2017 | |
| 2015 | Mar 30, 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.