UNIVERSAL CORP /VA/UVV

UNIVERSAL CORP /VA/ Leases Disclosure

10-KFiled Jun 1, 20262 min read
LEASES
The Company, as a lessee, enters into operating leases for land, buildings, equipment, and vehicles. For all operating leases with terms greater than 12 months and with fixed payment arrangements, a lease liability and corresponding right-of-use asset are recognized in the balance sheet for the term of the lease by calculating the net present value of future lease payments. On the date of lease commencement, the present value of lease liabilities is determined by discounting the future lease payments by
the Company’s collateralized incremental borrowing rate, adjusted for the lease term and currency of the lease payments. If a lease contains a renewal option that the Company is reasonably certain to exercise, the Company accounts for the original lease term and expected renewal term in the calculation of the lease liability and right-of-use asset.
The following table sets forth the right-of-use assets and lease liabilities for operating leases included in the Company’s consolidated balance sheet:
March 31, 2026March 31, 2025
Assets
   Operating lease right-of-use assets$37,272 $34,260 
Liabilities
    Current portion of operating lease liabilities$11,172 $10,742 
    Long-term operating lease liabilities24,359 20,608 
          Total operating lease liabilities$35,531 $31,350 
The following table sets forth the location and amount of operating lease costs included in the Company’s consolidated statement of income:
Fiscal Year Ended March 31,
202620252024
Income Statement Location
   Cost of goods sold$16,220 $14,987 $11,806 
   Selling, general, and administrative expenses9,461 9,572 10,691 
          Total operating lease costs (1)
$25,681 $24,559 $22,497 
(1)Includes variable operating lease costs.
The following table reconciles the undiscounted cash flows to the operating lease liabilities in the Company’s consolidated balance sheet:
March 31, 2026
Fiscal Year Maturity of Operating Lease Liabilities
2027$13,232 
20288,667 
20296,660 
20305,191 
20312,654 
2031 and thereafter7,406 
          Total undiscounted cash flows for operating leases$43,810 
          Less: Imputed interest(8,279)
Total operating lease liabilities$35,531 
As of March 31, 2026, the Company had entered into no additional operating leases that have not yet commenced.
The following table sets forth supplemental information related to operating leases:
Fiscal Year Ended March 31,
(in thousands, except lease term and incremental borrowing rate)202620252024
Supplemental Cash Flow Information
Cash paid for amounts included in the measurement of operating lease liabilities$16,061 $14,156 $13,898 
Right-of-use assets obtained in exchange for new operating leases16,901 15,406 8,507 
Weighted Average Remaining Lease Term (years)
5.124.464.59
Weighted Average Collateralized Incremental Borrowing Rate
7.55 %6.92 %6.10 %

Historical Timeline

Fiscal YearFiled
2026Jun 1, 2026Showing above
2025May 30, 2025
2024May 29, 2024
2023May 25, 2023
2022May 27, 2022
2020May 28, 2020
2019May 24, 2019
2018May 25, 2018
2017May 26, 2017
2016May 27, 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.

Other Available Disclosures

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