Company: FWRG
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001789940-25-000072
Chunk: 26

Company: First Watch Restaurant Group, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 included in the measurement of lease liabilities:Operating cash flows - operating leases$26,067 $27,391 Operating cash flows - finance leases$131 $36 Financing cash flows - finance leases$112 $311 

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Table of ContentsFIRST WATCH RESTAURANT GROUP, INC.NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (continued)

Supplemental information related to leases was as follows:TWENTY-SIX WEEKS ENDED JUNE 29, 2025JUNE 30, 2024Weighted-average remaining lease term (in years)Operating leases13.013.5Finance leases13.63.3Weighted-average discount rate (1)Operating leases7.7 %8.0 %Finance leases6.2 %6.5 %____________(1) Based on the Company’s incremental borrowing rate.

10.  Deferred Compensation

The Company adopted a non-qualified deferred compensation plan (the “First Watch Deferred Compensation Plan”) effective January 1, 2025. The First Watch Deferred Compensation Plan allows officers and other key employees to defer their compensation within annual limits designated by the Company. Discretionary matching and other credits may be made to the accounts of active participants, which vest based on an employee’s years of service or vest in full upon an active participant’s death, disability or a Company change in control event, as defined in the plan. Participants’ earnings on contributions fluctuate with the actual earnings and losses of available investment choices selected by the participants.While the First Watch Deferred Compensation Plan is unsecured, the Company has elected to fund certain of these obligations through a rabbi trust, the assets of which consist of Company-owned life insurance policies. The assets held in the rabbi trust are not available for general corporate purposes and are subject to creditor claims in the event of insolvency. The cash surrender value of the life insurance policies held in the rabbi trust is recorded in other long-term assets. As of June 29, 2025, rabbi trust assets totaled $1.0 million. Changes to the cash surrender value and any increases or decreases to deferred compensation liabilities incurred under the First Watch Deferred Compensation Plan are recorded as general and administrative expenses. As of June 29, 2025, the deferred compensation obligation included in other long-term liabilities totaled $1.0 million.

11.  Equity and Stock-Based Compensation

Stock option awardsThere were no stock option awards granted during the twenty-six weeks