C. H. ROBINSON WORLDWIDE, INC.CHRW
C. H. ROBINSON WORLDWIDE, INC. Leases Disclosure
LEASES
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We determine if our contractual agreements contain a lease at inception. A lease is identified when a contract allows us the right to control an identified asset for a period of time in exchange for consideration. Our lease agreements consist primarily of operating leases for office space, warehouses, office equipment, and trailers. We do not have material financing leases. Frequently, we enter into contractual relationships with a wide variety of transportation companies for freight capacity and utilize those relationships to efficiently and cost-effectively arrange the transport of our customers’ freight. These contracts typically have a term of twelve months or less and do not allow us to direct the use or obtain substantially all of the economic benefits of a specifically identified asset. Accordingly, these agreements are not considered leases.
Our operating leases are included on the consolidated balance sheets as right-of-use lease assets and lease liabilities. A right-of-use lease asset represents our right to use an underlying asset over the term of a lease, while a lease liability represents our obligation to make lease payments arising from the lease. Current and noncurrent lease liabilities are recognized on the commencement date at the present value of lease payments, including non-lease components, which consist primarily of common area maintenance and parking charges. Right-of-use lease assets are also recognized on the commencement date as the total lease liability plus prepaid rents. As our leases typically do not provide an implicit rate, we use our fully collateralized incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is influenced by market interest rates, our credit rating, and lease term, and as such, may differ for individual leases.
Our lease agreements typically do not contain variable lease payments, residual value guarantees, purchase options, or restrictive covenants. Many of our leases include the option to renew for a period of months to several years. The term of our leases may include the option to renew when it is reasonably certain we will exercise that option, although these occurrences are seldom. We have lease agreements with lease components (e.g., payments for rent) and non-lease components (e.g., payments for common area maintenance and parking), which are all accounted for as a single lease component.
We do not have material lease agreements that have not yet commenced that are expected to create significant rights or obligations as of December 31, 2025.
Information regarding lease costs, other lease information, remaining lease term, and discount rate are presented below (dollars in thousands):
| Twelve Months Ended December 31, | |||||||||||||||||
| Lease Costs | 2025 | 2024(1) | 2023(1) | ||||||||||||||
| Operating lease expense | $ | 91,228 | $ | 96,884 | $ | 100,635 | |||||||||||
| Short-term lease expense | 4,323 | 4,109 | 5,377 | ||||||||||||||
Right-of-use asset impairments(2) | 6,855 | 11,950 | — | ||||||||||||||
Total lease expense(3) | $ | 102,406 | $ | 112,943 | $ | 106,012 | |||||||||||
(1) The twelve months ended December 31, 2024 and December 31, 2023 have been adjusted to conform to current year presentation.
(2) During the twelve months ended December 31, 2025, we recognized a $6.3 million impairment charge included in All Other and Corporate resulting from the execution of a sublease agreement on a portion of our Kansas City Regional Center. The impairment was determined by comparing the discounted cash flows of the head lease and sublease rental payments. All other right-of-use asset impairments were associated with restructuring initiatives. During the twelve months ended December 31, 2024, we recognized $12.0 million of impairments associated with restructuring initiatives. Refer to Note 14, Restructuring, for further discussion related to our restructuring programs.
(3) Total lease expense is included within other selling, general, and administrative expenses in our consolidated statements of operations and comprehensive income.
| Twelve Months Ended December 31, | |||||||||||||||||
| Other Lease Information | 2025 | 2024 | 2023 | ||||||||||||||
| Operating cash outflows from operating leases | $ | 99,523 | $ | 97,743 | $ | 97,880 | |||||||||||
| Right-of-use lease assets obtained in exchange for new lease liabilities | 29,788 | 85,233 | 66,473 | ||||||||||||||
| As of December 31, | |||||||||||
| Lease Term and Discount Rate | 2025 | 2024 | |||||||||
| Weighted average remaining lease term (in years) | 4.9 | 5.5 | |||||||||
| Weighted average discount rate | 4.5 | % | 4.3 | % | |||||||
The maturity of lease liabilities as of December 31, 2025, were as follows (in thousands):
| Maturity of Lease Liabilities | Operating Leases | |||||||
| 2026 | $ | 84,147 | ||||||
| 2027 | 74,844 | |||||||
| 2028 | 59,736 | |||||||
| 2029 | 44,716 | |||||||
| 2030 | 31,663 | |||||||
| Thereafter | 46,205 | |||||||
| Total lease payments | 341,311 | |||||||
| Less: Interest | (35,363) | |||||||
| Present value of lease liabilities | $ | 305,948 | ||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 13, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 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.