CENTURY ALUMINUM COCENX

CENTURY ALUMINUM CO Leases Disclosure

10-KFiled Mar 3, 20262 min read
6.    Leases
We are a lessee in various agreements for the lease of office space, land, automobiles, and mobile equipment. All of our leases are considered operating leases. The weighted average remaining lease term for our operating leases was 9.2 years as of December 31, 2025 and 10.1 years as of December 31, 2024. Certain lease payment amounts are variable in nature and change periodically based on the local market consumer price index. The weighted average discount rate for our operating leases was 7.4% as of December 31, 2025 and 7.5% as of December 31, 2024.
Our ROUA and lease liability balances for the years ended December 31, 2025 and December 31, 2024 were as follows:
December 31,
20252024
ROUA(1)
$24.4 $21.0 
Lease liability - current(2)
2.6 3.0 
Lease liability - non-current(3)
22.0 18.7 
Total lease liability
$24.6 $21.7 
(1)ROUA was recorded as part of Other Assets within non-current assets at December 31, 2025 and 2024.
(2)Lease liability - current was recorded as part of Accrued and other current liabilities within current liabilities at December 31, 2025 and 2024.
(3)Lease liability - non-current was recorded as part of Other liabilities within non-current liabilities at December 31, 2025 and 2024.
The undiscounted maturities of our operating lease liability balances as of December 31, 2025 are as follows:
Year
2026$4.3 
20273.7 
20283.6 
20293.5 
20303.3 
Thereafter16.8 
Total 35.2 
Less: Interest(10.6)
Lease liability
$24.6 
During 2025 and 2024, we entered into new lease obligations, which resulted in $3.7 million and $2.0 million of additional right of use assets, respectively.
Total operating expense includes the following:
December 31,
202520242023
Operating leases expense$5.6 $5.3 $4.9 
Short term lease expense3.3 3.2 0.6 
Total(1)
$8.9 $8.5 $5.5 
(1)Total lease expense is included in Cost of goods sold and Selling, general, and administrative expenses on the Consolidated Statements of Operations.
We had cash outflows of $5.3 million, $5.0 million and $4.6 million for amounts included in the lease liability balance at the beginning of the year related to our operating leases for the years ended December 31, 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Mar 3, 2026Showing above
2024Mar 3, 2025
2023Mar 15, 2024
2022Feb 27, 2023
2021Feb 25, 2022
2020Mar 4, 2021
2019Feb 27, 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.

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