Ecovyst Inc.ECVT

Ecovyst Inc. Leases Disclosure

10-KFiled Feb 27, 20262 min read
12. Leases:
Operating lease costs of $12,396, $10,360 and $10,218 are included in cost of goods sold and in selling, general and administrative expenses on the consolidated statements of (loss) income for the years ended December 31, 2025, 2024 and 2023, respectively. Finance lease costs of $21, $74 and $77 are included in cost of goods sold and in selling, general, and administrative expenses on the consolidated statements of (loss) income for the years ended December 31, 2025, 2024 and 2023, respectively. Lease income is not material to the results of operations for the years ended December 31, 2025, 2024 and 2023.
The table below presents the operating and finance leases right-of-use assets and liabilities recognized on the consolidated balance sheets as of December 31, 2025 and 2024:
December 31,
Balance Sheet location20252024
Assets
Operating leaseRight-of-use lease assets$37,935 $33,082 
Finance leaseProperty, plant and equipment, net986 1,116 
Total leased assets$38,921 $34,198 
Liabilities
Current:
Operating leaseOperating lease liabilities—current$9,495 $9,053 
Finance leaseAccrued liabilities— 23 
Noncurrent:
Operating leaseOperating lease liabilities—noncurrent28,666 23,927 
Total leased liabilities$38,161 $33,003 
The Company’s weighted average remaining lease term and weighted average discount rate for operating and financing leases as of December 31, 2025 and 2024 are as follows:
December 31,
20252024
Weighted average remaining lease term (in years):
Operating leases5.144.81
Finance leases0.000.44
Weighted average discount rate:
Operating leases6.26 %6.24 %
Finance leases0.00 %4.09 %
Maturities of lease liabilities as of December 31, 2025 are as follows:
YearOperating
Leases
2026$11,788 
20279,857 
20287,401 
20295,726 
20304,111 
Thereafter5,912 
Total lease payments44,795 
Less: Interest(6,634)
Total lease liabilities (1)
$38,161 
(1)     Refer to the above table regarding the Company’s right-of-use lease assets and lease liabilities for the classification of lease liabilities in the Company’s consolidated balance sheets as of December 31, 2025.
The following table presents other information related to the Company’s operating and finance leases and the impact on the Company’s consolidated statements of cash flows:
Years ended December 31,
20252024
Cash paid for amounts included in the measurement of lease liabilities:
Payments on operating leases included in operating cash flows$12,079 $10,359 
Interest payments under finance leases included in operating cash flows— 2 
Principal payments under finance leases included in financing cash flows23 76 
Right-of-use assets obtained in exchange for new lease liabilities (non-cash):
Operating leases15,101 18,274 

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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