WEYCO GROUP INC Leases Disclosure
7. LEASES
We lease retail shoe stores, as well as several office and distribution facilities worldwide. The leases have original lease periods expiring between 2026 and 2031. Many leases include one or more options to renew. We do not assume renewals in our determination of the
lease term unless the renewals are deemed to be reasonably assured at lease commencement. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The components of our operating lease costs were as follows:
Twelve Months Ended December 31, | |||||
2025 | 2024 | ||||
(Dollars in thousands) | |||||
Operating lease costs | $ | 4,648 | $ | 4,421 | |
Total lease costs | $ | 4,648 | $ | 4,421 | |
Variable lease costs primarily include percentage rentals based upon sales in excess of specified amounts. In 2025, variable lease costs were $2.2 million.
Short-term lease costs, which were excluded from the above table, are not material to our financial statements.
The following is a schedule of maturities of operating lease liabilities as of December 31, 2025:
| | Operating Leases | |
(Dollars in thousands) | |||
2026 |
| $ | 4,712 |
2027 |
|
| 3,005 |
2028 |
|
| 1,941 |
2029 |
|
| 1,362 |
2030 | 450 | ||
Thereafter |
|
| 24 |
Total lease payments |
|
| 11,494 |
Less: imputed interest |
|
| (703) |
Present value of operating lease liabilities |
| $ | 10,791 |
The operating lease liabilities were classified in the Consolidated Balance Sheets as follows:
| December 31, | December 31, | ||||
2025 | | 2024 | ||||
(Dollars in thousands) | ||||||
Operating lease liabilities - current | $ | 4,354 | $ | 4,033 | ||
Operating lease liabilities - non-current | 6,437 | 7,034 | ||||
Total |
| $ | 10,791 | $ | 11,067 | |
We determined the present value of our lease liabilities using a weighted-average discount rate of 4.90% and 4.67% in 2025 and 2024, respectively. As of December 31, 2025 and 2024, our leases had a weighted-average remaining lease term of 3.0 years and 3.1 years, respectively.
Supplemental cash flow information related to our operating leases is as follows:
Twelve Months Ended December 31, | |||||
2025 | | 2024 | |||
(Dollars in thousands) | |||||
Cash paid for amounts included in the measurement of lease liabilities | $ | 5,185 | $ | 4,725 | |
Right-of-use assets obtained in exchange for new lease liabilities (noncash) | $ | 3,763 | $ | 2,533 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 13, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 12, 2020 | |
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.