What is the lease liability for Ben Jerrys at December 31, 2023?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
| BEN & JERRY'S FRANCHISING, INC. AND SUBSIDIARY | ||
|---|---|---|
| Consolidated Balance Sheets | ||
| (In Thousands) | ||
| 2023 | 2022 | |
| Liabilities and Equity | ||
| Current liabilities | ||
| Current portion of operating lease liability | 76 | 73 |
| Current portion of financing lease liability | - | 31 |
| Non-current portion of operating lease liability | 288 | 364 |
| Non-current portion of financing lease liability | - | 5 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 89–133)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the company's lease liabilities are divided into current and non-current portions for both operating and financing leases. As of December 31, 2023, the current portion of the operating lease liability is $76,000, while the non-current portion is $288,000. There is no current portion of financing lease liability, and the non-current portion of financing lease liability is not specified in this balance sheet, but it was $5,000 in 2022.
Therefore, the total operating lease liability for Ben Jerrys is the sum of the current and non-current portions, which amounts to $364,000. The total financing lease liability is $0 for the current portion, and the non-current portion is not specified in this balance sheet. These figures reflect the company's obligations for real estate and vehicle leases, with the real estate lease classified as an operating lease and the vehicle lease as a financing lease.
It's important to note that these lease agreements contain renewal options and escalation clauses, which could lead to increased rental payments based on fixed rates, real estate taxes, and landlord operating expenses. The weighted average remaining lease term for operating leases was 4.5 years, and the weighted average discount rate was 2.3% as of December 31, 2023. These factors can influence the overall cost and financial obligations associated with Ben Jerrys's lease commitments.