Cooper-Standard Holdings Inc.CPS
Cooper-Standard Holdings Inc. Leases Disclosure
Leases
The Company has operating and finance leases for certain manufacturing facilities, corporate offices and certain equipment. Operating leases are included in operating lease right-of-use assets, net, current operating lease liabilities and long-term operating lease liabilities on the Company’s consolidated balance sheets. Finance leases are included in property, plant and equipment, net, debt payable within one year, and long-term debt on the Company’s consolidated balance sheets.
Lease right-of-use assets are recognized at commencement date based upon the present value of the remaining future lease payments over the lease term. The Company’s lease terms include options to renew or terminate the lease when it is reasonably certain that the Company will exercise the option. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based upon information available at the lease commencement date to determine the present value of the remaining future lease payments.
The Company has lease agreements with lease and non-lease components. For real estate leases, these components are accounted for separately, while for equipment leases, the lease and non-lease components are accounted for as a single lease component.
Variable lease expense includes payments based upon changes in a rate or index, such as consumer price indexes, as well as usage of the leased asset. Short-term lease expense includes leases with terms, at lease commencement, of 12 months or less and no purchase option reasonably certain to be exercised. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The components of lease expense for the years ended December 31, 2025, 2024 and 2023 were as follows:
| Year Ended December 31, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Operating lease expense | $ | 26,988 | $ | 27,220 | $ | 28,128 | ||||||||||||||
| Short-term lease expense | 5,358 | 5,585 | 5,037 | |||||||||||||||||
| Variable lease expense | 2,875 | 2,817 | 2,310 | |||||||||||||||||
| Finance lease expense: | ||||||||||||||||||||
| Amortization of right-of-use assets | 2,210 | 2,291 | 2,216 | |||||||||||||||||
| Interest on lease liabilities | 1,008 | 1,152 | 1,292 | |||||||||||||||||
| Total lease expense | $ | 38,439 | $ | 39,065 | $ | 38,983 | ||||||||||||||
The Company recorded sublease income of $957, $2,017 and $1,213 for the years ended December 31, 2025, 2024 and 2023, respectively.
Other information related to leases was as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Supplemental Cash Flows Information | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows for operating leases | $ | 27,330 | $ | 27,611 | $ | 28,432 | |||||||||||
| Operating cash flows for finance leases | 1,002 | 1,156 | 1,292 | ||||||||||||||
| Financing cash flows for finance leases | 2,380 | 2,527 | 2,247 | ||||||||||||||
| Non-cash right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||
| Operating leases | 9,812 | 10,201 | 8,653 | ||||||||||||||
| Finance leases | 157 | — | 540 | ||||||||||||||
| Weighted Average Remaining Lease Term (in years) | |||||||||||||||||
| Operating leases | 6.0 | 6.7 | 7.3 | ||||||||||||||
| Finance leases | 6.4 | 7.2 | 7.9 | ||||||||||||||
| Weighted Average Discount Rate | |||||||||||||||||
| Operating leases | 7.1 % | 7.2 % | 6.7 % | ||||||||||||||
| Finance leases | 5.7 % | 6.0 % | 6.0 % | ||||||||||||||
Future lease payments under non-cancellable leases as of December 31, 2025 were as follows:
| Year | Operating Leases | Finance Leases | ||||||||||||
| 2026 | $ | 23,633 | $ | 2,980 | ||||||||||
| 2027 | 18,948 | 2,903 | ||||||||||||
| 2028 | 16,883 | 2,492 | ||||||||||||
| 2029 | 12,599 | 5,721 | ||||||||||||
| 2030 | 10,015 | 1,691 | ||||||||||||
| Thereafter | 24,150 | 5,307 | ||||||||||||
| Total future lease payments | $ | 106,228 | $ | 21,094 | ||||||||||
| Less: imputed interest | (18,010) | (3,758) | ||||||||||||
| Total | $ | 88,218 | $ | 17,336 | ||||||||||
Amounts recognized on the consolidated balance sheets as of December 31, 2025 and December 31, 2024 were as follows:
| December 31, 2025 | December 31, 2024 | ||||||||||
| Operating Leases | |||||||||||
| Operating lease right-of-use assets, net | $ | 83,474 | $ | 87,292 | |||||||
| Current operating lease liabilities | 18,412 | 18,859 | |||||||||
| Long-term operating lease liabilities | 69,806 | 71,907 | |||||||||
| Finance Leases | |||||||||||
| Property, plant and equipment, net | $ | 17,260 | $ | 18,241 | |||||||
| Debt payable within one year | 2,088 | 2,655 | |||||||||
| Long-term debt | 15,248 | 16,301 | |||||||||
As of December 31, 2025, the Company had additional leases that have not yet commenced with undiscounted lease payments of approximately $42. These leases will commence in 2026 with lease terms up to four years.
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 18, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 25, 2019 | |
| 2017 | Feb 20, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 23, 2016 | |
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.