Company: KEQU
Filing Date: 2025-12-12
Form Type: 10-Q
Source: 0000055529-25-000054
Chunk: 26

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-12-12
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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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. 

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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%. As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments. The Company uses the implicit rate when readily determinable. Future minimum lease payments under non-cancelable leases as of October 31, 2025 were as follows:($ in thousands)OperatingFinancingRemainder of fiscal 2026$2,068 $47 20273,468 94 20282,474 94 20292,107 94 20301,629 94 There