v3.25.3
Leases
 3 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Leases Leases
Substantially all current lease activity comes from two active facilities near the Company’s owned headquarters facility in Chaska, Minnesota. Additionally, an operating lease liability for the abandoned headquarters of the Curation Foods business in Santa Maria, California was settled with the landlord in the March 2025 for a gain of $2,642. None of the Company’s other leases are material to the periods presented.
Operating lease assets are included in other assets and operating lease liabilities are presented in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheets. Finance lease assets are included in property, plant and equipment and finance lease liabilities are classified as debt.
In January 2016, a lease commenced for the Company’s warehouse and final packaging building in Chaska, Minnesota. The lease has since been amended twice to accomplish the following: (i) to extend the term of the lease to September 2034, (ii) to add a buyout option equal to the balance of the lessor’s mortgage loan, valued at $3,100 as of September 30, 2025; and (iii) to provide a $2,400 cash payment to the Company in October 2024 in exchange for an increased rent payment schedule and an updated purchase option. The lease is classified as a finance lease and has a discount rate of 9%, which was the Company’s incremental borrowing rate at the time of the most recent amendment to the lease in August 2024.
In January 2021, a lease commenced for the Company’s warehouse and office space in Chanhassen, Minnesota. The lease term extends through March 2033. The lease is classified as an operating lease and has a discount rate of 3%, which was the Company’s incremental borrowing rate at lease inception.
The components of lease cost were as follows:
Three months ended
September 30, 2025August 25, 2024
Finance lease cost:
Amortization of leased assets$40 $36 
Interest on lease liabilities130 91 
Operating lease cost74 74 
Total lease cost$244 $201 
The Company’s maturity analysis of operating and finance lease liabilities as of September 30, 2025 are as follows:
Operating
leases		Finance
leases
Remainder of 2025
$102 $169 
2026$410 $691 
2027414 707 
2028144 725 
2029148 729 
2030153 724 
Thereafter347 5,975 
Total lease payments1,718 9,720 
Less: interest(136)(3,806)
Present value of lease liabilities$1,582 $5,914 
Classification on consolidated balance sheet:
Accrued expenses and other current liabilities (see note 7)
$368 $174 
Debt, net of current portion
— 5,740 
Other liabilities
1,214 — 
Present value of lease liabilities$1,582 $5,914 
Supplemental cash flow information related to leases are as follows:
Three months ended
September 30, 2025August 25, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $102 $101 
Operating cash flows from finance leases 130 91 
Financing cash flows from finance leases 39 40 
Leases Leases
Substantially all current lease activity comes from two active facilities near the Company’s owned headquarters facility in Chaska, Minnesota. Additionally, an operating lease liability for the abandoned headquarters of the Curation Foods business in Santa Maria, California was settled with the landlord in the March 2025 for a gain of $2,642. None of the Company’s other leases are material to the periods presented.
Operating lease assets are included in other assets and operating lease liabilities are presented in accrued expenses and other current liabilities and other liabilities on the consolidated balance sheets. Finance lease assets are included in property, plant and equipment and finance lease liabilities are classified as debt.
In January 2016, a lease commenced for the Company’s warehouse and final packaging building in Chaska, Minnesota. The lease has since been amended twice to accomplish the following: (i) to extend the term of the lease to September 2034, (ii) to add a buyout option equal to the balance of the lessor’s mortgage loan, valued at $3,100 as of September 30, 2025; and (iii) to provide a $2,400 cash payment to the Company in October 2024 in exchange for an increased rent payment schedule and an updated purchase option. The lease is classified as a finance lease and has a discount rate of 9%, which was the Company’s incremental borrowing rate at the time of the most recent amendment to the lease in August 2024.
In January 2021, a lease commenced for the Company’s warehouse and office space in Chanhassen, Minnesota. The lease term extends through March 2033. The lease is classified as an operating lease and has a discount rate of 3%, which was the Company’s incremental borrowing rate at lease inception.
The components of lease cost were as follows:
Three months ended
September 30, 2025August 25, 2024
Finance lease cost:
Amortization of leased assets$40 $36 
Interest on lease liabilities130 91 
Operating lease cost74 74 
Total lease cost$244 $201 
The Company’s maturity analysis of operating and finance lease liabilities as of September 30, 2025 are as follows:
Operating
leases		Finance
leases
Remainder of 2025
$102 $169 
2026$410 $691 
2027414 707 
2028144 725 
2029148 729 
2030153 724 
Thereafter347 5,975 
Total lease payments1,718 9,720 
Less: interest(136)(3,806)
Present value of lease liabilities$1,582 $5,914 
Classification on consolidated balance sheet:
Accrued expenses and other current liabilities (see note 7)
$368 $174 
Debt, net of current portion
— 5,740 
Other liabilities
1,214 — 
Present value of lease liabilities$1,582 $5,914 
Supplemental cash flow information related to leases are as follows:
Three months ended
September 30, 2025August 25, 2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases $102 $101 
Operating cash flows from finance leases 130 91 
Financing cash flows from finance leases 39 40