Civeo CorpCVEO

Civeo Corp Leases Disclosure

10-KFiled Feb 27, 20252 min read
LEASES
We have operating and finance leases covering certain land locations and various office facilities and equipment in our two reportable business segments. Our leases have remaining lease terms of one year to six years, some of which include options to extend the leases for up to 10 years, and some of which include options to terminate the leases within 90 days. In addition, we do not recognize right-of-use assets or lease liabilities for leases with terms shorter than twelve months.

The components of lease expense were $4.2 million, $4.2 million and $5.0 million under operating leases for the years ended December 31, 2024, 2023 and 2022, respectively. The components of lease expense were $0.5 million, $0.2 million and $0.0 million under finance leases for the years ended December 31, 2024, 2023 and 2022, respectively. Included in the measurement of lease liabilities, we paid $4.6 million and $0.5 million in cash related to operating leases and finance leases during the year ended December 31, 2024, respectively. Right-of-use assets obtained in exchange for new operating and finance lease obligations during the year ended December 31, 2024 were $4.2 million.

Supplemental balance sheet information related to leases were as follows (in thousands):
 December 31, 2024December 31, 2023
Operating leases
Operating lease right-of-use assets$9,401 $12,286 
Other current liabilities$3,061 $3,594 
Operating lease liabilities6,655 9,264 
Total operating lease liabilities$9,716 $12,858 
Finance leases
Other noncurrent assets$2,675 $760 
Other current liabilities$580 $164 
Other noncurrent liabilities2,155 613 
Total finance lease liabilities$2,735 $777 
Weighted average remaining lease term
Operating leases3.4 years4.1 years
Finance leases4.3 years4.3 years
Weighted average discount rate
Operating leases5.7 %5.5 %
Finance leases6.8 %6.6 %

Maturities of lease liabilities at December 31, 2024, were as follows (in thousands):

Year Ending December 31,Operating LeasesFinance LeasesTotal
2025$3,617 $731 $4,348 
20263,029 731 3,760 
20272,613 726 3,339 
20281,138 591 1,729 
2029278 285 563 
Thereafter231 — 231 
Total lease payments10,906 3,064 13,970 
Less imputed interest1,190 329 1,519 
Total$9,716 $2,735 $12,451 

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.

Other Available Disclosures

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