FASTENAL COFAST

FASTENAL CO Leases Disclosure

10-KFiled Feb 5, 20262 min read
Note 8. Operating Leases
We lease space under non-cancelable operating leases for several distribution centers, several manufacturing locations, and certain branch locations. These leases do not have significant rent escalation holidays, concessions, leasehold improvement incentives, or other build-out clauses. Further, the leases do not contain contingent rent provisions. We also lease certain semi-tractors, pick-up trucks, and computer equipment under operating leases.
Certain operating leases for pick-up trucks contain residual value guarantee provisions which would generally become due at the expiration of the operating lease agreement if the fair value of the leased vehicles is less than the guaranteed residual value. The aggregate residual value guarantee related to these leases was approximately $124.2. We believe the likelihood of funding the guarantee obligation under any provision of the operating lease agreements is remote.
The cost components of our operating leases were as follows for the periods ended December 31:
2025
2024
2023
Leased
Facilities and
Equipment		Leased
Vehicles		TotalLeased
Facilities and
Equipment		Leased
Vehicles		TotalLeased
Facilities and
Equipment		Leased
Vehicles		Total
Operating lease cost$103.5 24.6 128.1 101.1 22.0 123.1 99.4 18.2 117.6 
Variable lease cost16.4 1.6 18.0 14.0 1.4 15.4 10.5 1.6 12.1 
Short-term lease cost— 39.3 39.3 — 32.6 32.6 — 23.7 23.7 
Total$119.9 65.5 185.4 115.1 56.0 171.1 109.9 43.5 153.4 
Variable lease costs are excluded from ROU assets and lease liabilities and consist primarily of taxes, insurance, and common area or other maintenance costs for our leased facilities and equipment which are paid based on actual costs incurred by the lessor as well as variable mileage costs related to our leased vehicles.
Maturities of our lease liabilities for all operating leases were as follows as of December 31, 2025:
Leased
Facilities and
Equipment		Leased
Vehicles		Total
2026$92.6 19.7 112.3 
202771.9 15.7 87.6 
202850.9 13.0 63.9 
202932.7 7.3 40.0 
203018.2 3.2 21.4 
2031 and thereafter19.7 0.7 20.4 
Total lease payments$286.0 59.6 345.6 
Less: Imputed interest(24.2)(4.5)(28.7)
Present value of lease liabilities$261.8 55.1 316.9 
The weighted average remaining lease terms and discount rates for all of our operating leases were as follows for the periods ended December 31:
Remaining lease term and discount rate:
2025
2024
Weighted average remaining lease term (years)
    Leased facilities and equipment3.983.98
    Leased vehicles3.583.62
Weighted average discount rate
    Lease facilities and equipment4.36%3.92%
    Leased vehicles4.50%4.46%
Supplemental cash flow information related to our operating leases was as follows for the periods ended December 31:
2025
2024
2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflow from operating leases$125.3 119.0 115.7 
Leased assets obtained in exchange for new operating lease liabilities131.4 95.0 116.2 

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 6, 2025
2023Feb 6, 2024
2022Feb 7, 2023
2021Feb 7, 2022
2020Feb 8, 2021
2019Feb 6, 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.

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