AdvanSix Inc.ASIX

AdvanSix Inc. Leases Disclosure

10-KFiled Feb 20, 20263 min read
Leases
We determine if an arrangement is a lease at inception. Operating leases, which are reported as Operating lease right-of-use assets ("ROU"), Operating lease liabilities – short-term, and Operating lease liabilities – long-term are included in our Consolidated Balance
Sheets. Finance leases are included in Property, plant and equipment – net, Accounts payable, and Other liabilities in our Consolidated Balance Sheets.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. Our lease terms may include options to extend or terminate the lease and, when it is reasonably certain that such an option will be exercised, it is included in the determination of the corresponding assets and liabilities. Short-term leases are not recognized on our Consolidated Balance Sheets. Lease expense for all operating lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for certain equipment leases, we apply a portfolio approach to effectively account for the operating lease ROU assets and liabilities. The Company has entered into agreements to lease transportation equipment, storage facilities, office space, dock access and other equipment. The operating leases have initial terms of up to 20 years with some containing renewal options subject to customary conditions. The term and length of the various agreements, as well as the timing of any renewals, will impact the ROU asset calculation and related liability.

The components of lease expense were as follows:
Years Ended December 31,
202520242023
Finance lease cost:
Amortization of right-of-use asset$1,027 $1,036 $932 
Interest on lease liabilities149 163 106 
Total finance lease cost1,176 1,199 1,038 
Operating lease cost53,748 43,517 47,148 
Short-term lease cost4,181 6,647 5,415 
Total lease cost$59,105 $51,363 $53,601 

Supplemental cash flow information related to leases was as follows:
Years Ended December 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$52,782 $43,188 
Operating cash flows from finance leases149 124 
Financing cash flows from finance leases1,002 1,011 
Non-cash information:
Right-of-use assets obtained in exchange for lease obligations:
Operating leases12,375 72,361 
Finance leases684 1,218 

Supplemental balance sheet information related to leases was as follows:
Years Ended December 31,
20252024
Operating Leases
Operating lease right-of-use assets$164,494 $153,438 
Operating lease liabilities – short term44,354 42,493 
Operating lease liabilities – long term121,201 111,400 
Total operating lease liabilities$165,555 $153,893 
Finance Leases
Property, plant and equipment – gross$2,707 $4,131 
Accumulated depreciation(592)(1,771)
Property, plant and equipment – net$2,115 $2,360 
Accounts payable$945 $897 
Other liabilities1,194 1,549 
Total finance lease liabilities$2,139 $2,446 
Weighted Average Remaining Lease Term
Operating leases7.0 years7.2 years
Finance leases2.5 years3.1 years
Weighted Average Discount Rate
Operating leases6.46 %6.16 %
Finance leases6.61 %6.92 %

Maturities of lease liabilities are as follows:
Year Ending December 31,Operating
 Leases		Finance
Leases
2026$54,516 $1,064 
202743,399 768 
202836,925 433 
202922,324 50 
203016,506 15 
Thereafter38,516 — 
Total lease payments212,186 2,330 
Less imputed interest(46,631)(191)
Total$165,555 $2,139 

As of December 31, 2025, we have no additional operating or finance leases that have not yet commenced.
Free Sentinel

Want the next AdvanSix Inc. leases disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment AdvanSix Inc.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2023Feb 16, 2024
2022Feb 17, 2023
2021Feb 18, 2022

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.

Other Available Disclosures

Income TaxesRevenueEarnings Per SharePP&EGoodwill & IntangiblesSegmentsCommitmentsStock CompensationNew Standards