EXPEDITORS INTERNATIONAL OF WASHINGTON INC Leases Disclosure
NOTE 4. LEASES
The Company enters into lease agreements primarily for office and warehouse space in all districts where it conducts business. As of December 31, 2025, all of the Company's leases are operating leases. Lease terms are either on a month-to-month basis or terminate at various times through 2040. The Company also has two long-term operating lease arrangements to use land, for which the usage rights were entirely prepaid. Usage rights for those arrangements are recognized in rent expense over the lease terms up to 2057.
Lease cost is recorded under rent and occupancy expenses in the consolidated statements of earnings and is comprised of the following for the year-ended December 31:
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
|
$ |
145,772 |
|
|
$ |
131,970 |
|
|
$ |
123,411 |
|
Variable lease cost |
|
|
54,074 |
|
|
|
50,614 |
|
|
|
50,508 |
|
Total lease cost |
|
$ |
199,846 |
|
|
$ |
182,584 |
|
|
$ |
173,919 |
|
Variable lease cost includes short-term lease expenses, which are insignificant.
Maturities of lease liabilities as of December 31, 2025 are as follows:
2026 |
|
$ |
138,158 |
|
2027 |
|
|
118,846 |
|
2028 |
|
|
99,454 |
|
2029 |
|
|
81,613 |
|
2030 |
|
|
66,704 |
|
Thereafter |
|
|
178,115 |
|
Total minimum lease payments |
|
|
682,890 |
|
Less imputed interest |
|
|
112,301 |
|
Lease liability |
|
$ |
570,589 |
|
As of December 31, 2025, the Company had $51 million in operating lease obligations with maturities through 2036 for several office and warehouse locations not included in the lease liabilities, as the lease had not yet commenced.
The weighted-average remaining lease term and weighted-average discount rate are as follows:
|
|
2025 |
|
|
2024 |
|
||
Weighted-average remaining lease term (in years) |
|
|
6.56 |
|
|
|
6.79 |
|
Weighted-average discount rate |
|
|
5.67 |
% |
|
|
5.11 |
% |
Other information related to the Company's operating leases are as follows:
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
$ |
100,629 |
|
|
$ |
154,197 |
|
|
$ |
105,888 |
|
Cash paid for amounts included in the measurement of lease liabilities |
|
$ |
141,784 |
|
|
$ |
128,481 |
|
|
$ |
120,793 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 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.