Utz Brands, Inc.UTZ
Utz Brands, Inc. Leases Disclosure
LEASES
We determine if a contractual arrangement is a lease at inception. Our lease arrangements provide the Company the right to utilize certain specified tangible assets for a period of time in exchange for consideration. Our leases primarily relate to building space, vehicles, and equipment. Our leases generally have remaining terms ranging from one month to thirty years.
We separate non-lease components from vehicle leases and do not separate non-lease components from our building leases for the purposes of measuring our lease liabilities and assets. Our leases consist of operating leases, which are presented within , , and finance leases, which are presented within , and on our consolidated balance sheets. Leases with an initial term of 12 months or less are not recorded on the balance sheet.
We recognize a lease liability and a right-of-use (“ROU”) asset at the lease commencement date based on the present value of future lease payments. As many of our leases do not provide an implicit rate, we use our incremental borrowing rate based on information available at the commencement date in determining the present value of lease payments.
We recognize operating lease expenses on a straight-line basis over the term of the lease within operating expenses. Expenses associated with our finance leases consist of two components, including interest on our outstanding finance lease obligations and amortization of the related ROU assets. The interest component is recorded in interest expense, and depreciation of the finance lease asset is recognized on a straight-line basis over the term of the lease within Cost of goods sold and Selling, general and administrative expenses on the Consolidated Statements of Operations and Comprehensive Income (Loss).
Our leases do not contain material residual value guarantees or material restrictive covenants. Some of our leases include optional renewal periods or termination provisions which we assess at inception to determine the term of the lease, subject to reassessment in certain circumstances.
The following table presents lease expense we have recorded on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the fiscal years ended December 28, 2025, December 29, 2024 and December 31, 2023:
(in millions) | For the Fiscal Year Ended December 28, 2025 | For the Fiscal Year Ended December 29, 2024 | For the Fiscal Year Ended December 31, 2023 | |||||||||||||||||
| Finance lease expense: | ||||||||||||||||||||
Amortization of finance ROU asset | $ | 3.0 | $ | 3.2 | $ | 3.0 | ||||||||||||||
Interest of finance ROU asset | 0.7 | 0.7 | 0.5 | |||||||||||||||||
| Total finance lease expense | 3.7 | 3.9 | 3.5 | |||||||||||||||||
Operating lease expense (1) | 47.7 | 34.6 | 27.2 | |||||||||||||||||
| Total lease expense | $ | 51.4 | $ | 38.5 | $ | 30.7 | ||||||||||||||
(1) Included variable and short-term lease expense of $5.9 million and $9.3 million, respectively, for the fiscal year ended December 28, 2025, $5.2 million and $8.1 million, respectively, for the fiscal year ended December 29, 2024 and $4.6 million and $5.3 million, respectively, for the fiscal year ended December 31, 2023.
Finance leases, net, are included in Property, Plant and Equipment, net as follows:
(in millions) | As of December 28, 2025 | As of December 29, 2024 | ||||||||||||
| Leases | $ | 17.0 | $ | 19.5 | ||||||||||
| Less: accumulated depreciation | 9.7 | 10.0 | ||||||||||||
| Leases, net | $ | 7.3 | $ | 9.5 | ||||||||||
Maturities of lease liabilities as of December 28, 2025:
(in millions) | Operating Leases | Finance Leases | Total | |||||||||||||||||
| 2026 | $ | 28.3 | $ | 3.2 | $ | 31.5 | ||||||||||||||
| 2027 | 25.0 | 2.8 | 27.8 | |||||||||||||||||
| 2028 | 19.8 | 1.8 | 21.6 | |||||||||||||||||
| 2029 | 16.4 | 0.7 | 17.1 | |||||||||||||||||
| 2030 | 12.4 | 0.2 | 12.6 | |||||||||||||||||
| 2030 and thereafter | 253.8 | — | 253.8 | |||||||||||||||||
| Total undiscounted obligations | 355.7 | 8.7 | 364.4 | |||||||||||||||||
| Less imputed interest | (197.9) | (1.0) | (198.9) | |||||||||||||||||
| Present value of lease obligations | $ | 157.8 | $ | 7.7 | $ | 165.5 | ||||||||||||||
The following table summarizes supplemental balance sheet information related to leases as of December 28, 2025 and December 29, 2024:
| As of December 28, 2025 | As of December 29, 2024 | |||||||||||||||||||||||||
| (in millions, except lease term and discount rate) | Operating Leases | Finance Leases | Operating Leases | Finance Leases | ||||||||||||||||||||||
ROU asset, non-current(1) | $ | 149.4 | $ | 7.3 | $ | 146.9 | $ | 9.5 | ||||||||||||||||||
| Lease liability, current | $ | 18.6 | $ | 2.7 | $ | 17.3 | $ | 2.8 | ||||||||||||||||||
| Lease liability, non-current | 139.2 | 5.0 | 133.0 | 6.9 | ||||||||||||||||||||||
Total lease liabilities | $ | 157.8 | $ | 7.7 | $ | 150.3 | $ | 9.7 | ||||||||||||||||||
Weighted average remaining lease term (in years)(2) | 18.2 | 3.0 | 18.9 | 3.4 | ||||||||||||||||||||||
Weighted average discount rate | 7.76 | % | 8.02 | % | 7.58 | % | 7.53 | % | ||||||||||||||||||
(1) Finance ROU assets are reflected within on our consolidated balance sheets and operating leases ROU assets are reflected within on our consolidated balance sheets.
The following table presents other information related to leases for the fiscal year ended December 28, 2025, December 29, 2024 and December 31, 2023 (in millions):
| For the Fiscal Year Ended December 28, 2025 | For the Fiscal Year Ended December 29, 2024 | For the Fiscal Year Ended December 31, 2023 | ||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
Operating cash flows from operating leases | $ | 27.5 | $ | 20.0 | $ | 16.7 | ||||||||||||||
Operating cash flows from finance leases | $ | 0.7 | $ | 0.7 | $ | 0.6 | ||||||||||||||
Financing cash flows from finance leases | $ | 3.0 | $ | 3.2 | $ | 3.0 | ||||||||||||||
Leased assets obtained in exchange for new lease liabilities: | ||||||||||||||||||||
Operating leases | $ | 24.2 | $ | 108.3 | $ | 26.3 | ||||||||||||||
Finance leases | $ | 2.5 | $ | 3.8 | $ | 2.8 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Mar 2, 2023 | |
| 2022 | Mar 3, 2022 | |
| 2021 | Mar 18, 2021 | |
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.