TWIN DISC INC Leases Disclosure
I. LEASE OBLIGATIONS
The following table provides a summary of leases recorded on the consolidated balance sheet at June 30.
| Balance Sheet Location | 2024 | 2023 | |||||||
| Lease Assets | |||||||||
| Operating lease right-of-use assets |
| $ | 16,622 | $ | 13,133 | ||||
| Finance lease right-of-use assets |
| 5,210 | 4,427 | ||||||
| Lease Liabilities | |||||||||
| Operating lease liabilities |
| $ | 2,352 | $ | 2,343 | ||||
| Operating lease liabilities |
| 14,376 | 10,811 | ||||||
| Finance lease liabilities |
| 882 | 643 | ||||||
| Finance lease liabilities |
| 4,795 | 4,314 | ||||||
The components of lease expense for the years ended June 30 were as follows:
Other information related to leases was as follows:
| 2024 | 2023 | |||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
| Operating cash flows from operating leases | $ | 3,447 | $ | 3,282 | ||||
| Operating cash flows from finance leases | 308 | 267 | ||||||
| Financing cash flows from finance leases | 921 | 621 | ||||||
| Right-of-use-assets obtained in exchange for lease obligations: | ||||||||
| Operating leases | 6,069 | 2,917 | ||||||
| Finance leases | 1,383 | 522 | ||||||
| Weighted average remaining lease term (years): | ||||||||
| Operating leases | 8.4 | 8.8 | ||||||
| Finance lease | 11.3 | |||||||
| Weighted average discount rate: | ||||||||
| Operating leases | 8.3 | % | 7.2 | % | ||||
| Finance leases | 6.2 | % | 5.2 | % | ||||
Approximate future minimum rental commitments under non-cancellable leases as of June 30, 2024 were as follows:
| Operating Leases | Finance Leases | |||||||
| 2025 | $ | 3,789 | $ | 1,039 | ||||
| 2026 | 3,197 | 988 | ||||||
| 2027 | 2,816 | 918 | ||||||
| 2028 | 2,270 | 820 | ||||||
| 2029 | 2,201 | 619 | ||||||
| Thereafter | 9,724 | 2,791 | ||||||
| Total future lease payments | 23,997 | 7,175 | ||||||
| Less: Amount representing interest | (7,269 | ) | (1,497 | ) | ||||
| Present value of future payments | $ | 16,728 | $ | 5,678 | ||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Sep 6, 2024 | Showing above |
| 2023 | Sep 8, 2023 | |
| 2022 | Sep 8, 2022 | |
| 2021 | Sep 2, 2021 | |
| 2020 | Aug 26, 2020 | |
| 2019 | Aug 29, 2019 | |
| 2018 | Aug 27, 2018 | |
| 2017 | Aug 31, 2017 | |
| 2016 | Sep 13, 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.