Company: KEQU
Filing Date: 2025-12-12
Form Type: 10-Q
Source: 0000055529-25-000054
Chunk: 54

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-12-12
Form: 10-Q
Item: Part I, Item 8
Chunk 54
---
31, 2024, respectively.The Company will continue to depreciate the building down to zero over the 20-year assumed economic life of the property so that at the end of the lease term, the remaining carrying amount of the financing liability will equal the carrying amount of the land of $41,000.Remaining future cash payments related to the financing liability as of October 31, 2025 are as follows:

($ in thousands)Remainder of fiscal 2026$1,006 20272,049 20282,090 20292,132 20302,175 Thereafter29,560 Total Minimum Liability Payments39,012 Imputed Interest(11,980)Total$27,032  

J. Leases

The Company recognizes lease assets and lease liabilities reflecting the rights and obligations created by operating type leases for real estate and equipment in both the U.S. and internationally and financing leases for vehicles and IT equipment in the U.S. At October 31, 2025 and April 30, 2025, right-of-use assets totaled $11,459,000 and $12,965,000, respectively. Operating cash paid to settle lease liabilities was $2,165,000 and $1,334,000 for the six months ended October 31, 2025 and October 31, 2024, respectively. The Company's leases have remaining lease terms of up to 6 years. In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year. Operating lease expense was $1,599,000 and $3,058,000 for the three and six months ended October 31, 2025, inclusive of period cost for short-term leases, not included in lease liabilities, of $474,000 and $893,000. Operating lease expense was $878,000 and $1,760,000 for the three and six months ended October 31, 2024, respectively, inclusive of period cost for short-term leases, not included in lease liabilities, of $202,000 and $426,000. 

14

At October 31, 2025, the weighted average remaining lease term for the capitalized operating leases was 3.6 years and the weighted average discount rate was 6.2%. For the financing leases, the weighted average remaining lease term was 4.9 years and the weighted average discount rate was 7.6