YETI Holdings, Inc.YETI
YETI Holdings, Inc. Leases Disclosure
LEASES
_________________________(1)During the twelve months ended January 3, 2026, we extended the lease term of our headquarters in Austin, Texas and extended the term of the service agreement related to one of our distribution facilities. This resulted in an increase to right-of-use assets and corresponding lease liabilities of approximately $50.4 million.
We determine if an arrangement is or contains a lease at contract inception and determine its classification as an operating or finance lease at lease commencement. We lease certain retail locations, office space, distribution facilities, manufacturing space, and machinery and equipment. While the substantial majority of these leases are operating leases, certain machinery and equipment agreements are finance leases. As of January 3, 2026, the initial lease terms of the various leases range from to 20 years. ROU lease assets and liabilities associated with leases with an initial term of twelve months or less are not recorded on the balance sheet.
Operating lease assets represent the right to use an underlying asset for the lease term, and operating 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 use our collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. Our operating leases also typically require payment of real estate taxes, common area maintenance and insurance. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components, with the exception of our distribution facilities. Operating lease assets include prepaid lease payments and initial direct costs and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term.
The following table presents the assets and liabilities related to operating and finance leases (in thousands):
| Balance Sheet Location | January 3, 2026 | December 28, 2024 | |||||||||||||||
| Assets: | |||||||||||||||||
| Operating lease assets | Operating lease right-of-use assets | $ | 131,531 | $ | 78,279 | ||||||||||||
| Finance lease assets | 16,387 | 5,625 | |||||||||||||||
| Total lease assets | $ | 147,918 | $ | 83,904 | |||||||||||||
| Liabilities: | |||||||||||||||||
| Current | |||||||||||||||||
| Operating lease liabilities | Operating lease liabilities | $ | 15,044 | $ | 19,621 | ||||||||||||
| Finance lease liabilities | 953 | 2,256 | |||||||||||||||
| Non-current | |||||||||||||||||
| Operating lease liabilities | Operating lease liabilities, non-current | 139,945 | 73,586 | ||||||||||||||
| Finance lease liabilities | 237 | 1,190 | |||||||||||||||
| Total lease liabilities | $ | 156,179 | $ | 96,653 | |||||||||||||
The following table presents the components of lease costs (in thousands):
| Fiscal Year Ended | |||||||||||||||||
| January 3, 2026 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Operating lease costs | $ | 23,944 | $ | 19,623 | $ | 14,889 | |||||||||||
| Finance lease cost - amortization of right-of-use assets | 2,982 | 2,014 | 1,862 | ||||||||||||||
| Finance lease cost - interest on lease liabilities | 59 | 109 | 138 | ||||||||||||||
| Short-term lease cost | 1,105 | 356 | 246 | ||||||||||||||
| Variable lease cost | 6,539 | 4,897 | 5,537 | ||||||||||||||
| Sublease income | (7) | (827) | (747) | ||||||||||||||
| Total lease cost | $ | 34,622 | $ | 26,172 | $ | 21,925 | |||||||||||
The following table presents lease terms and discount rates:
| January 3, 2026 | December 28, 2024 | ||||||||||
| Weighted average remaining lease term: | |||||||||||
| Operating leases | 8.48 years | 6.41 years | |||||||||
| Finance leases | 2.12 years | 2.98 years | |||||||||
| Weighted average discount rate: | |||||||||||
| Operating leases | 6.12 | % | 5.24 | % | |||||||
| Finance leases | 2.95 | % | 2.39 | % | |||||||
The following table presents the minimum lease payment obligations of operating and finance lease liabilities (leases with terms in excess of one year) for the next five years and thereafter as of January 3, 2026 (in thousands):
| Operating Leases | Finance Leases | Total | |||||||||||||||
| 2026 | $ | 21,119 | $ | 973 | $ | 22,092 | |||||||||||
| 2027 | 23,596 | 142 | 23,738 | ||||||||||||||
| 2028 | 24,224 | 106 | 24,330 | ||||||||||||||
| 2029 | 23,367 | — | 23,367 | ||||||||||||||
| 2030 | 23,241 | — | 23,241 | ||||||||||||||
| Thereafter | 90,862 | — | 90,862 | ||||||||||||||
| Total lease payments | 206,409 | 1,221 | 207,630 | ||||||||||||||
| Less: Effect of discounting to net present value | 51,420 | 31 | 51,451 | ||||||||||||||
| Present value of lease liabilities | $ | 154,989 | $ | 1,190 | $ | 156,179 | |||||||||||
The following table presents supplemental cash flow information related to our leases (in thousands):
| January 3, 2026 | December 28, 2024 | December 30, 2023 | |||||||||||||||
| Cash paid for amounts included in measurement of liabilities: | |||||||||||||||||
| Operating cash flows used in operating leases | $ | 23,790 | $ | 20,038 | $ | 15,047 | |||||||||||
| Operating cash flows used in finance leases | 59 | 109 | 137 | ||||||||||||||
| Financing cash flows used in finance leases | 16,000 | 3,719 | 2,131 | ||||||||||||||
| Right-of-use assets obtained in exchange for new lease liabilities: | |||||||||||||||||
Operating leases(1) | 78,320 | 16,670 | 35,497 | ||||||||||||||
| Finance leases | — | 1,362 | 625 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 27, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 26, 2024 | |
| 2022 | Feb 28, 2022 | |
| 2021 | Mar 1, 2021 | |
| 2019 | Feb 18, 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.