LEASES
We have commitments as lessees under lease agreements primarily for real estate, equipment and vehicles. Our leases have remaining lease terms ranging from approximately 0.2 years to 135.9 years.
The following table presents lease-related costs:
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| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Finance leases | | | | | |
| Amortization of right-of-use assets | $ | 1,223 | | | $ | 1,169 | | | $ | 1,102 | |
| Interest on lease liabilities | 256 | | | 174 | | | 79 | |
| Finance lease expense | 1,479 | | | 1,343 | | | 1,181 | |
| Operating lease expense | 7,448 | | | 7,696 | | | 7,619 | |
| Short-term lease expense | 2,262 | | | 1,976 | | | 2,617 | |
| Variable lease expense | 4,006 | | | 4,243 | | | 3,620 | |
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| Total lease expense | $ | 15,195 | | | $ | 15,258 | | | $ | 15,037 | |
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The following table presents information related to our operating leases as of and for the years ended December 31, 2025 and 2024:
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| December 31, |
| 2025 | | 2024 |
| Right-of-use assets, net | $ | 133,493 | | $ | 67,937 |
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| Short-term lease liabilities | 9,108 | | 7,172 |
| Long-term lease liabilities | 71,000 | | 60,893 |
| Total lease liabilities | $ | 80,108 | | $ | 68,065 |
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| Weighted average remaining lease term | 46.4 years | | 33.6 years |
| Weighted average incremental borrowing rate | 6.3 | % | | 5.9 | % |
The following table presents supplemental cash flow information for the years ended December 31, 2025, 2024, and 2023:
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| December 31, |
| 2025 | | 2024 | | 2023 |
Cash paid for amounts included in the measurement of operating lease liabilities | $ | 7,431 | | | $ | 7,437 | | | $ | 7,187 | |
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| Noncash - ROU assets recorded for new and modified leases | 68,467 | | | 2,020 | | | 2,828 | |
Sale Leaseback Transaction
In the second quarter of 2024, Jefferson Terminal transferred land to the Port of Beaumont Navigation District of Jefferson County, Texas in association with the Tax Exempt Series 2024A Bonds. Jefferson Terminal entered into a ground lease with the Port of Beaumont Navigation District of Jefferson County, Texas on approximately 50 acres of land.
Jefferson Terminal was provided access to 10 acres to begin construction of a new dock and supporting facilities. The lease of the 10 acres is an operating lease. This transaction was recorded as a sale in accordance with ASC 842. Jefferson Terminal recorded a gain on the sale leaseback through Gain on sale of assets, net on the Consolidated Statements of Operations of $3.1 million as of December 31, 2024.
Jefferson Terminal has not been provided access to the other 40 acres for construction, so the lease has not commenced. Once the Port of Beaumont Navigation District of Jefferson County, Texas provides access to the property for construction, the 40 acres will be reassessed as a sale leaseback. This transaction was recorded as a failed sale in accordance with ASC 842 as of December 31, 2024. Jefferson Terminal recorded a finance liability of $12.0 million through Other liabilities on the Consolidated Balance Sheets as of December 31, 2024 for the failed sale.
The following table presents future minimum lease payments under non-cancellable operating leases as of December 31, 2025:
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| 2026 | $ | 10,836 | |
| 2027 | 9,415 | |
| 2028 | 7,457 | |
| 2029 | 5,804 | |
| 2030 | 5,375 | |
| Thereafter | 251,855 | |
| Total undiscounted lease payments | 290,742 | |
| Less: Imputed interest | 210,634 | |
| Total lease liabilities | $ | 80,108 | |