Company: SENEA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025429
Chunk: 23

Company: Seneca Foods Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 23
---
S CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Undiscounted future lease payments under non-cancelable operating and finance leases, along with a reconciliation of undiscounted cash flows to operating and finance lease obligations, respectively, as of June 28, 2025 were as follows (in thousands):

			Years ending March 31:

			Operating

			Finance

			Balance of 2026

			$
			2,066

			$
			3,132

			2027

			3,010

			3,218

			2028

			2,512

			2,811

			2029

			1,455

			1,659

			2030

			1,112

			923

			2031 and thereafter

			1,015

			383

			Total minimum payment required

			11,170

			12,126

			Less interest

			1,090

			903

			Present value of minimum lease payments

			10,080

			11,223

			Amount due within one year

			3,083

			3,664

			Long-term lease obligations

			$
			6,997

			$
			7,559

			8.

			Income Taxes

The Company’s effective tax rate was 24.5% and 23.3% for the three months ended June 28, 2025 and June 29, 2024, respectively. The effective tax rate increased in the current quarter partially driven by the impact of lower federal credits and higher earnings before income taxes as compared to the prior year quarter which increased the effective rate by 0.4%. The prior year quarter also benefited from interest received on a federal income tax refund, which resulted in a 0.7% increase in the current quarter effective rate on a comparative basis. The effective tax rate was further increased in the current quarter by additional state tax filings and partially offset by a decrease in the valuation allowance related to the usage of state tax credits.

On July 4, 2025, the President of the United States signed into law the One Big Beautiful Bill Act (“OBBBA”). The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of