Core Natural Resources, Inc.CNR
Core Natural Resources, Inc. Leases Disclosure
NOTE 14—LEASES:
The Company has operating leases for mining and other equipment used in operations and office space. Many leases include one or more options to renew, some of which include options to extend, and some leases include options to terminate or buy out the leases within a set period of time. In certain of the Company’s lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for inflation or changes in other indexes. Historically, many of the Company’s operating lease payments for mining equipment contained a variable component which was calculated based upon production metrics such as feet of advance or raw tonnage mined. While most of the Company’s leases contain clauses regarding the general condition of the equipment upon lease termination, they do not contain residual value guarantees.
The Company determines if an arrangement is an operating or finance lease at inception of the applicable lease. Right of Use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent an obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available on the commencement date in determining the present value of lease payments. The ROU asset also consists of any prepaid lease payments, lease incentives received and costs which will be incurred in exiting a lease. The lease terms used to calculate the ROU asset and related lease liability include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating leases is recognized on a straight-line basis over the lease term as an operating expense while the expense for finance leases is recognized as depreciation expense and interest expense using the interest method of recognition. Further, the Company made an accounting policy election not to apply the recognition and measurement requirements to short-term leases, defined as leases with an initial term of 12 months or less. For the years ended December 31, 2025, 2024 and 2023, these short-term leases were not material to the Company’s financial statements.
The components of operating lease expense were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Fixed operating lease expense | $ | 3,385 | $ | 4,850 | $ | 6,447 | |||||||||||
| Variable operating lease expense | — | 6,373 | 8,358 | ||||||||||||||
| Total operating lease expense | $ | 3,385 | $ | 11,223 | $ | 14,805 | |||||||||||
Supplemental cash flow information related to the Company’s operating leases was as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of operating lease liabilities | $ | 3,483 | $ | 4,787 | $ | 6,148 | |||||||||||
The following table presents the lease balances within the Consolidated Balance Sheets, the weighted-average lease term and the weighted-average discount rate related to the Company’s operating leases:
| December 31, | |||||||||||||||||
| Lease Assets and Liabilities | Balance Sheet Classification | 2025 | 2024 | ||||||||||||||
| Assets: | |||||||||||||||||
| Operating Lease ROU Assets | $ | 12,520 | $ | 5,513 | |||||||||||||
| Liabilities: | |||||||||||||||||
| Current: | |||||||||||||||||
| Operating Lease Liabilities | $ | 2,624 | $ | 612 | |||||||||||||
| Long-Term: | |||||||||||||||||
| Operating Lease Liabilities | 10,819 | 5,466 | |||||||||||||||
| Total Operating Lease Liabilities | $ | 13,443 | $ | 6,078 | |||||||||||||
| Weighted-average remaining lease term (in years) | 8.58 | 7.92 | |||||||||||||||
| Weighted-average discount rate | 7.59 | % | 7.74 | % | |||||||||||||
The Company also enters into finance leases for certain mining equipment and automobiles. Assets arising from finance leases are included in property, plant and equipment-net and the liabilities are included in current portion of long-term debt and long-term debt in the accompanying Consolidated Balance Sheets.
The components of finance lease expense were as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Amortization of right of use assets | $ | 13,147 | $ | 9,814 | $ | 25,400 | |||||||||||
| Interest expense | 2,526 | 1,079 | 1,712 | ||||||||||||||
| Total finance lease expense | $ | 15,673 | $ | 10,893 | $ | 27,112 | |||||||||||
The following table presents the weighted-average lease term and weighted-average discount rate related to the Company’s finance leases:
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Weighted-average remaining lease term (in years) | 2.66 | 2.93 | |||||||||
| Weighted-average discount rate | 6.60 | % | 6.59 | % | |||||||
The following table presents the future maturities of the Company’s operating and finance lease liabilities, together with the present value of the net minimum lease payments, at December 31, 2025:
| Finance Leases | Operating Leases | ||||||||||
| 2026 | $ | 23,824 | $ | 3,529 | |||||||
| 2027 | 23,639 | 2,507 | |||||||||
| 2028 | 14,593 | 1,345 | |||||||||
| 2029 | 854 | 1,368 | |||||||||
| 2030 | 60 | 1,391 | |||||||||
| Thereafter | — | 8,482 | |||||||||
| Total minimum lease payments | 62,970 | 18,622 | |||||||||
| Less: amount representing interest | 5,304 | 5,179 | |||||||||
| Present value of minimum lease payments | $ | 57,666 | $ | 13,443 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 9, 2024 | |
| 2022 | Feb 10, 2023 | |
| 2019 | Feb 14, 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.