The Company has operating leases related to land, office space, warehouse space and equipment. All of the Company’s leases have been assessed to be operating leases. Renewal options are included in the lease terms to the extent the Company is reasonably certain to exercise the option. The exercise of lease renewal options is at the Company’s sole discretion. The amounts disclosed in our consolidated balance sheet as of March 1, 2026, pertaining to the right-of-use assets and lease liabilities, are measured on our current expectations of exercising our available renewal options. The incremental borrowing rate represents the Company’s ability to borrow on a collateralized basis over a term similar to the lease term. The leases typically contain renewal options for periods ranging from one year to 10 years and require the Company to pay real estate taxes and other operating costs. The latest land lease expiration is 2068 assuming exercise of all applicable renewal options by the Company. The Company’s existing leases are not subject to any restrictions or covenants which preclude its ability to pay dividends, obtain financing or exercise its available renewal options.

Future minimum lease payments under non-cancellable operating leases as of March 1, 2026 are as follows:

The above payment schedule includes renewal options that the Company is reasonably likely to exercise. Leases with an initial term of 12 months or less are not recorded on the Company’s Consolidated Balance Sheets. The Company recognizes lease expense for leases on a straight-line basis over the terms of the leases.

During the 2026, 2025 and 2024 fiscal years, the Company’s operating lease expense was $68, $71 and $62, respectively. Cash payments of $57, $55 and $53 in the 2026, 2025 and 2024 fiscal years, respectively, pertaining to operating leases, are reflected in the Consolidated Statements of Cash Flows under cash flows from operating activities.

The following table sets forth the right-of-use assets and operating lease liabilities as of March 1, 2026:

The Company’s weighted average remaining lease terms for its operating leases were 5.59 and 6.34 years as of March 1, 2026 and March 2, 2025, respectively. The Company’s weighted average borrowing rates for its operating leases were 4.98% and 4.97% as of March 1, 2026 and March 2, 2025, respectively.

Rental expenses, inclusive of real estate taxes and other costs, were $291, $321, and $464 for the 2026, 2025, and 2024 fiscal years, respectively.

On March 27, 2025, Park and ArianeGroup SAS entered into an agreement under which Park would advance funds to ArianeGroup SAS against future purchases of RAYCARB C2®B product in the total amount of €4,587 payable in three installments in 2025, 2026, and 2027. The advance would be paid as follows: €1,376 was paid in April 2025 (actual cost of $1,564), €1,835 was paid in May 2026 (actual cost of $2,156) and €1,376 to be paid in the first quarter of fiscal 2028 (approximately $1,598 based on May 18, 2026 exchange rates). These advanced funds are to be used to help fund the purchase and installation, by ArianeGroup SAS, of additional manufacturing equipment for ArianeGroup SAS’ production of RAYCARB C2®B product. Under the agreement, the Company commits to purchase RAYCARB C2®B product through December 2033 at an estimated cost of €36,000. The Company has a remaining advance of $1,630 in Other Assets on the Consolidated Balance Sheet as of March 1, 2026.