Company: NGVC
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001437749-25-003026
Chunk: 63

Company: Natural Grocers by Vitamin Cottage, Inc.
Filing Date: 2025-02-06
Form: 10-Q
Item: Part I, Item 8
Chunk 63
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	Cost of goods sold and occupancy costs(1)

			1,621

			1,582

			Sublease income

			Store expenses

			(103
			)

			(88
			)

			Total lease cost

			$
			15,273

			15,212

(1) Immaterial balances related to corporate headquarters and distribution center are included in administrative expenses and store expenses, respectively.

Additional information related to the Company’s leases for the three months ended December 31, 2024 and 2023 was as follows, dollars in thousands:

			Three months ended

			December 31,

			2024

			2023

			Cash paid for amounts included in the measurement of lease liabilities:

			Operating cash flows from operating leases

			$
			11,476

			11,380

			Operating cash flows from finance leases

			542

			585

			Financing cash flows from finance leases

			969

			815

			Lease assets obtained in exchange for new lease liabilities:

			Operating leases

			1,612

			4,680

			Finance leases

			—

			(52
			)

12

Additional information related to the Company’s leases as of December 31, 2024 and 2023 was as follows:

			December 31,

			2024

			2023

			Weighted-average remaining lease term (in years):

			Operating leases

			9.7

			10.1

			Finance leases

			13.5

			14.0

			Weighted-average discount rate:

			Operating leases

			4.1
			
			%

			3.9

			Finance leases

			4.8
			
			%

			4.9

During the three months ended December 31, 2024, the Company early terminated a lease due to a store relocation, and, as a result, the Company wrote off operating lease assets and liabilities of less than $0.1 million each and recorded a gain of less than $0.1 million. In the three months ended December 31, 2024 and 2023, the Company incurred impairment charges related to operating lease assets of less than $0.1 million, associated with an early store relocation and a store