Westrock Coffee Co
For the period ended Jun 30, 2025. Filed Aug 7, 2025.
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Jun 30, 2025 · Filed Aug 7, 2025
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9. Leases
Note 9. Leases
We have operating leases for manufacturing, production, administrative, distribution and warehousing facilities, vehicles and machinery and equipment. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. The remaining terms on our leases range from 1 year to 15 years, some of whichmay include options to extend the leases and some of whichmay include options to terminate the leases within 1 year.
The following table summarizes the amount of right-of-use lease assets and lease liabilities included in each respective line item on the Company’s Condensed Consolidated Balance Sheets:
| | | | | | | | | |
|---|---|---|---|---|---|---|---|---|
| (Thousands) · Balance Sheet Location · June 30, 2025 · December 31, 2024 | ||||||||
| Right-of-use operating lease assets | | Operating lease right-of-use assets | | $61,955 | | $63,380 | ||
| Operating lease liabilities - current | | Accrued expenses and other current liabilities | | | 4,666 | | | 4,420 |
| Operating lease liabilities - noncurrent | | Operating lease liabilities | | | 59,553 | | | 60,692 |
During the six months ended June 30, 2025 and 2024, the Company obtained approximately $1.2 million and $1.0 million, respectively, of right-of-use operating lease assets in exchange for lease obligations.
On February 12, 2024, following the completion of its 530,000 square foot distribution center in Conway, Arkansas, the Company entered into a lease termination agreement for the Gregory Distribution Center lease. The Gregory Distribution Center lease terminated, by mutual agreement, on June 30, 2024. No costs were incurred as a result of the lease termination. This lease termination event does not significantly alter the Company’s operational capabilities or its financial position.
Depending on the nature of the lease, lease costs are classified within costs of sales or selling, general and administrative expense on the Company’s Condensed Consolidated Statements of Operations. The components of lease costs for the three and six months ended June 30, 2025 and 2024, respectively, are as follows:
| | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · Three Months Ended June 30, · · Six Months Ended June 30, | ||||||||||||
| (Thousands) · · 2025 · 2024 · · 2025 · · 2024 | ||||||||||||
| Operating lease cost | | $2,536 | | $2,772 | | $5,012 | | $5,564 | ||||
| Short-term lease cost | | | 361 | | | 228 | | | 567 | | | 461 |
| Total | | $2,897 | | $3,000 | | $5,579 | | $6,025 | ||||
The following table presents information about the Company’s weighted average discount rate and remaining lease term as of June 30, 2025 and December 31, 2024:
| | | | | | | |
|---|---|---|---|---|---|---|
| · June 30, 2025 · December 31, 2024 | ||||||
| Weighted-average discount rate | | | 7.8% | | | 7.7% |
| Weighted-average remaining lease term | | | 11.8 years | | | 12.1 years |
Supplemental cash flow information about the Company’s leases as of June 30, 2025 and 2024, respectively, is as follows:
| · · · · · · | ||||
|---|---|---|---|---|
| · · Six Months Ended June 30, | ||||
| (Thousands) · 2025 · 2024 | ||||
| Cash paid related to operating lease liabilities | | $4,564 | | $4,981 |
Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued expenses and other current liabilities and long-term debt, net on the Condensed Consolidated Balance Sheets. There wereno material finance leases as of June 30, 2025.
Future minimum lease payments under non-cancellable operating leases as of June 30, 2025 are as follows:
| | | | |
|---|---|---|---|
| (Thousands) · · | |||
| 2025 | | $5,244 | |
| 2026 | | | 8,916 |
| 2027 | | | 8,736 |
| 2028 | | | 8,141 |
| 2029 | | | 8,184 |
| Thereafter | | | 62,299 |
| Total future minimum lease payments | | | 101,520 |
| Less: imputed interest | | | (37,301) |
| Present value of minimum lease payments | | $64,219 | |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.