LEASES
The Company’s lease portfolio is predominately operating leases for real estate, vehicles and industrial equipment utilized in operations and rail cars. The Company presents operating lease balances separately on the consolidated balance sheets. The Company's finance leases relate to vehicles, rail cars and certain real estate. The following table presents the Company's finance lease balances and their classification on the consolidated balance sheets (in thousands):
| | | | | | | | | | | | | | |
| Finance Lease Balances (Classification) | | December 31, 2025 | | December 31, 2024 |
| ROU assets (Property, plant and equipment, net) | | $ | 222,291 | | | $ | 182,532 | |
| Current portion of lease liabilities (Accrued expenses and other current liabilities) | | 33,125 | | | 25,330 | |
| Long-term portion of lease liabilities (Other long-term liabilities) | | 196,192 | | | 161,375 | |
The Company’s lease expense was as follows (in thousands):
| | | | | | | | | | | | | | | | | | | |
| | | For the years ended December 31, |
| | | 2025 | | 2024 | | 2023 |
| Operating lease cost | | | $ | 92,822 | | | $ | 81,688 | | | $ | 69,156 | |
| | | | | | | |
| Finance lease cost: | | | | | | | |
| Amortization of ROU assets | | | 33,537 | | | 25,985 | | | 17,183 | |
| Interest on lease liabilities | | | 10,987 | | | 7,066 | | | 4,051 | |
| Total finance lease cost | | | 44,524 | | | 33,051 | | | 21,234 | |
| | | | | | | |
| Short-term lease cost | | | 191,209 | | | 199,516 | | | 167,379 | |
| Variable lease cost | | | 4,574 | | | 5,187 | | | 4,887 | |
| Total lease cost | | | $ | 333,129 | | | $ | 319,442 | | | $ | 262,656 | |
Other information related to leases was as follows:
| | | | | | | | | | | | | | |
| Weighted Average Remaining Lease Term (years) | | December 31, 2025 | | December 31, 2024 |
| Operating leases | | 4.0 | | 4.3 |
| Finance leases | | 6.1 | | 6.8 |
| | | | |
| Weighted Average Discount Rate | | December 31, 2025 | | December 31, 2024 |
| Operating leases | | 5.42 | % | | 5.20 | % |
| Finance leases | | 5.15 | % | | 4.84 | % |
| | | | | | | | | | | | | | | | | | | | |
| | For the years ended December 31, |
| Supplemental Cash Flow Related Disclosures (in thousands) | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts related to lease liabilities: | | | | | | |
| Operating cash flows from operating leases | | $ | 92,487 | | | $ | 84,932 | | | $ | 71,185 | |
| Operating cash flows from finance leases | | 10,987 | | | 7,066 | | | 4,051 | |
| Financing cash flows from finance leases | | 33,113 | | | 30,886 | | | 15,937 | |
| ROU assets obtained in exchange for operating lease liabilities | | 86,000 | | | 123,938 | | | 82,392 | |
| ROU assets obtained in exchange for finance lease liabilities | | 75,538 | | | 78,455 | | | 47,238 | |
At December 31, 2025, the Company's future lease payments under non-cancelable leases that have lease terms in excess of one year were as follows (in thousands):
| | | | | | | | | | | |
| Years ending December 31, | December 31, 2025 |
| Operating Leases | | Finance Leases |
| 2026 | $ | 87,403 | | | $ | 46,993 | |
| 2027 | 74,622 | | | 53,522 | |
| 2028 | 56,732 | | | 41,840 | |
| 2029 | 36,717 | | | 37,679 | |
| 2030 | 17,828 | | | 36,812 | |
| Thereafter | 18,243 | | | 54,605 | |
| Total future lease payments | 291,545 | | | 271,451 | |
| Amount representing interest | (32,011) | | | (42,134) | |
| Total lease liabilities | $ | 259,534 | | | $ | 229,317 | |
At December 31, 2025, none of the Company's executed leases that had not yet commenced will create significant rights or obligations in the future and sublease transactions are not material. Additionally, the Company does not have any related party leases, and there were no restrictions or covenants imposed by its leases.
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.