Calumet, Inc. /DE Leases Disclosure
4. Leases
The Company has various operating and finance leases primarily for the use of land, storage tanks, railcars, equipment, precious metals and office facilities that have remaining lease terms of greater than to , some of which include options to extend the lease for up to 30 years, and some of which include options to terminate the lease within one year.
Supplemental balance sheet information related to the Company’s leases for the periods presented were as follows (in millions):
| | December 31, | | December 31, | ||||
Assets: | Classification: | 2025 | 2024 | |||||
Operating lease assets |
| Operating lease right-of-use assets (1) | $ | 224.2 | $ | 240.2 | ||
Finance lease assets |
|
| 1.5 |
| 2.5 | |||
Total leased assets | $ | 225.7 | $ | 242.7 | ||||
Liabilities: |
|
| ||||||
Current |
|
| ||||||
Operating | Current portion of operating lease liabilities | $ | 64.2 | $ | 58.8 | |||
Finance |
| 0.9 |
| 1.0 | ||||
Non-current |
|
| ||||||
Operating | Long-term operating lease liabilities |
| 161.4 |
| 182.2 | |||
Finance |
| 1.0 |
| 1.9 | ||||
Total lease liabilities | $ | 227.5 | $ | 243.9 | ||||
| (1) | During the years ended December 31, 2025 and 2024, the Company had additions to its operating lease right of use assets and operating lease liabilities of approximately $46.2 million and $203.7 million, respectively. |
| (2) | As of December 31, 2025 and 2024, finance lease assets are recorded net of accumulated amortization of $5.3 million and $5.8 million, respectively. |
Lease expense for lease payments is recognized on a straight-line basis over the lease term. The components of lease expense related to the Company’s leases for the periods presented were as follows (in millions):
| December 31, | ||||||||||
Lease Costs: | Classification: | | 2025 | | 2024 | | 2023 | ||||
Fixed operating lease cost |
| Cost of Sales; SG&A Expenses | $ | 78.2 | $ | 83.6 | $ | 75.6 | |||
Short-term operating lease cost (1) |
| Cost of Sales; SG&A Expenses |
| 8.9 |
| 8.8 |
| 9.5 | |||
Variable operating lease cost |
| Cost of Sales; SG&A Expenses |
| 18.5 |
| 4.5 |
| 3.6 | |||
Finance lease cost: |
| |
| |
| |
| ||||
Amortization of finance lease assets |
| Cost of Sales |
| 0.9 |
| 0.8 |
| 0.9 | |||
Interest on lease liabilities |
| Interest expense |
| 0.2 |
| 0.2 |
| 0.2 | |||
Total lease cost | $ | 106.7 | $ | 97.9 | $ | 89.8 | |||||
| (1) | The Company’s leases with an initial term of 12 months or less are not recorded on the consolidated balance sheets. |
Operating lease expense included in the consolidated statements of operations was $105.6 million, $96.9 million and $88.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Cash paid related to operating lease obligations approximated lease expense for 2025, 2024 and 2023, respectively.
As of December 31, 2025, the Company had estimated minimum commitments for the payment of rentals under leases which, at inception, had a noncancelable term of more than one year, as follows (in millions):
| Operating | | Finance | | |||||
Maturity of Lease Liabilities | Leases | Leases | Total | ||||||
2026 | $ | 79.4 | $ | 1.1 | $ | 80.5 | |||
2027 |
| 74.7 |
| 0.5 |
| 75.2 | |||
2028 |
| 70.1 |
| 0.4 |
| 70.5 | |||
2029 |
| 14.4 |
| 0.1 |
| 14.5 | |||
2030 |
| 7.5 |
| — |
| 7.5 | |||
Thereafter |
| 15.6 |
| — |
| 15.6 | |||
Total | $ | 261.7 | $ | 2.1 | $ | 263.8 | |||
Less: Impact on discounting |
| 36.1 |
| 0.2 |
| 36.3 | |||
Present value of lease liabilities | $ | 225.6 | $ | 1.9 | $ | 227.5 | |||
Weighted-Average Lease Term and Discount Rate
The weighted-average remaining lease term and weighted-average discount rate for the Company’s operating and finance leases for the periods presented were as follows:
| December 31, | | December 31, |
| |
Lease Term and Discount Rate: | 2025 | 2024 |
| ||
Weighted-average remaining lease term (years): |
| |
| | |
Operating leases |
| 3.8 |
| 4.4 | |
Finance leases |
| 2.4 |
| 3.1 | |
Weighted-average discount rate: |
|
| |||
Operating leases |
| 8.0 | % | 8.1 | % |
Finance leases |
| 8.3 | % | 8.0 | % |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
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.