WINNEBAGO INDUSTRIES INCWGO
WINNEBAGO INDUSTRIES INC Leases Disclosure
Leases
Our leases primarily include operating leases for equipment and real estate, including office space and manufacturing space. Financing leases are primarily for real estate and solar energy producing equipment. For any lease with an initial term in excess of 12 months, the related lease assets and liabilities are recognized on the Consolidated Balance Sheets as either operating or finance leases at the inception of an agreement when it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and have elected to combine lease and non-lease components for all classes of assets. Leases with an initial term of 12 months or less are not recorded on the Consolidated Balance Sheets. When the terms of multiple lease agreements are materially consistent, we have elected the portfolio approach for our asset and liability calculations.
Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at commencement date. We generally use a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The assumed lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised.
Some of our real estate operating leases require payment of real estate taxes, common area maintenance, and insurance. In addition, some of the leases are subject to annual changes in the consumer price index ("CPI"). These components comprise the majority of our variable lease cost and are excluded from the present value of the lease obligations. Fixed payments may contain predetermined fixed rent escalations. For operating leases, we recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The supplemental balance sheet information related to our leases is as follows:
| (in millions) | Classification | August 30, 2025 | August 31, 2024 | ||||||||
| Assets | |||||||||||
| Operating leases | Operating lease assets | $ | 41.6 | $ | 46.6 | ||||||
| Finance leases | 7.9 | 8.9 | |||||||||
| Total lease assets | $ | 49.5 | $ | 55.5 | |||||||
| Liabilities | |||||||||||
| Current: Operating leases | $ | 7.5 | $ | 6.4 | |||||||
| Current: Finance leases | 1.8 | 1.6 | |||||||||
| Non-Current: Operating leases | Long-term operating lease liabilities | 39.3 | 45.6 | ||||||||
| Non-Current: Finance leases | 6.3 | 7.8 | |||||||||
| Total lease liabilities | $ | 54.9 | $ | 61.4 | |||||||
Operating lease costs incurred are as follows:
(1) Operating lease expense includes short-term leases and variable lease payments, which are immaterial.
| (in millions) | Classification | 2025 | 2024 | 2023 | ||||||||||||||||
Operating lease expense(1) | Costs of goods sold and SG&A | $ | 12.5 | $ | 11.8 | $ | 10.3 | |||||||||||||
| Finance lease cost: | ||||||||||||||||||||
| Depreciation of lease assets | Costs of goods sold and SG&A | 1.2 | 1.1 | 1.0 | ||||||||||||||||
| Interest on lease liabilities | Interest expense, net | 0.6 | 0.6 | 0.5 | ||||||||||||||||
| Total lease cost | $ | 14.3 | $ | 13.5 | $ | 11.8 | ||||||||||||||
Our future lease commitments as of August 30, 2025 included the following related party and non-related party leases:
| Operating Leases | Financing Leases | |||||||||||||
| (in millions) | Related Party Amount(1,2) | Non-Related Party Amount | Total | Non-Related Party Amount | ||||||||||
| Fiscal 2026 | $ | 2.3 | $ | 7.9 | $ | 10.2 | $ | 2.2 | ||||||
| Fiscal 2027 | 2.3 | 7.2 | 9.5 | 2.2 | ||||||||||
| Fiscal 2028 | 2.3 | 6.9 | 9.2 | 2.5 | ||||||||||
| Fiscal 2029 | 2.3 | 6.5 | 8.8 | 1.0 | ||||||||||
| Fiscal 2030 | 2.3 | 5.2 | 7.5 | 0.8 | ||||||||||
| Thereafter | 3.3 | 7.8 | 11.1 | 0.6 | ||||||||||
| Total future undiscounted lease payments | 14.8 | 41.5 | 56.3 | 9.3 | ||||||||||
| Less: Interest | 2.7 | 6.8 | 9.5 | 1.2 | ||||||||||
| Total reported lease liabilities | $ | 12.1 | $ | 34.7 | $ | 46.8 | $ | 8.1 | ||||||
(1) Future lease commitments do not include annual escalators based on the CPI. In the event there are changes to CPI, lease liabilities are not remeasured and instead are treated as variable lease payments and recognized in the period in which the obligation for those payments is incurred.
(2) Related to a lease agreement between one of our operating segments and a third party, of which one of our Executive Officers holds a 20% ownership interest.
Additional information related to our leases is as follows:
| 2025 | 2024 | 2023 | |||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
| Operating cash flows from operating leases | $ | 7.9 | $ | 5.9 | $ | 5.0 | |||||
| Operating cash flows from financing leases | 0.6 | 0.6 | 0.5 | ||||||||
| Financing cash flows from financing leases | 1.6 | 1.4 | 1.1 | ||||||||
| Weighted average remaining lease term: | |||||||||||
| Operating leases | 6.0 | 7.0 | 7.3 | ||||||||
| Finance leases | 3.8 | 4.7 | 5.2 | ||||||||
| Weighted average discount rate: | |||||||||||
| Operating leases | 6.4 | % | 6.4 | % | 6.2 | % | |||||
| Finance leases | 6.5 | % | 6.5 | % | 6.4 | % | |||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Oct 22, 2025 | Showing above |
| 2024 | Oct 23, 2024 | |
| 2023 | Oct 18, 2023 | |
| 2022 | Oct 19, 2022 | |
| 2021 | Oct 20, 2021 | |
| 2020 | Oct 21, 2020 | |
| 2015 | Oct 27, 2015 | |
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.