ARCBEST CORP /DE/ Leases Disclosure
NOTE F – LEASES
The Company has operating lease arrangements for certain facilities and revenue equipment used in the Asset-Based and Asset-Light segment operations and certain other facilities and office equipment. Current operating leases have remaining terms of approximately 22 years or less, some of which include one or more options to renew, with renewal option terms up to ten years. There is one early termination option available on an operating lease as of December 31, 2025, provided notification is given 24 months prior to the end of the lease term, which is included in the right-of-use assets and liabilities as of December 31, 2025.
The components of operating lease expense for the years ended December 31 were as follows:
| 2025 | | 2024 | | 2023 | ||||
(in thousands) | |||||||||
Operating lease expense | $ | 46,453 | $ | 42,772 | $ | 38,794 | |||
Variable lease expense | 9,080 | 7,183 | 6,804 | ||||||
Sublease income | (4,722) | (2,631) | (246) | ||||||
Total operating lease expense | $ | 50,811 | $ | 47,324 | $ | 45,352 | |||
The operating cash flows from operating lease activity for the years ended December 31 were as follows:
| 2025 | | 2024 | | 2023 | ||||
(in thousands) | |||||||||
Noncash change in operating right-of-use assets | $ | 34,292 | $ | 34,445 | $ | 33,470 | |||
Cash payments to obtain right-of-use assets | (11,500) | (7,752) | — | ||||||
Change in operating lease liabilities | (33,811) | (33,898) | (30,550) | ||||||
Changes in operating right-of-use assets and lease liabilities, net | $ | (11,019) | $ | (7,205) | $ | 2,920 | |||
Supplemental cash flow information | |||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 46,018 | $ | 42,173 | $ | 35,759 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 50,195 | $ | 49,452 | $ | 62,425 | |||
The weighted-average remaining lease term for our outstanding operating lease obligations was 7.9 years as of December 31, 2025 and 7.4 years as of December 31, 2024. As of December 31, 2025 and 2024, the weighted-average discount rate was 4.79% and 4.59%, respectively. Maturities of operating lease liabilities at December 31, 2025 were as follows:
Operating | ||||
Lease | ||||
| Liabilities | | ||
| (in thousands) | |||
2026 | $ | 46,841 | ||
2027 |
| 41,657 | ||
2028 |
| 37,748 | ||
2029 |
| 32,655 | ||
2030 |
| 29,851 | ||
Thereafter |
| 104,974 | ||
Total lease payments | 293,726 | |||
Less imputed interest | (52,999) | |||
$ | 240,727 | |||
Lease Impairment Charges
In 2023, lease impairment charges totaling $30.2 million were recognized as a component of operating expenses for impairment of certain long-lived operating right-of-use assets that were made available for sublease and continued to be classified as held and used.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.