LEASES

The Company has operating and finance leases for office and warehouse facilities, headquarters, call centers, machinery and certain computer and communications equipment which provide the right to use the underlying assets in exchange for agreed upon lease payments, determined by the payment schedule contained in each lease. The Company’s lease portfolio consists primarily of operating leases which expire at various dates through 2034. In the first quarter of 2025, the Company recorded an operating right-of-use ("ROU") asset and related lease liability of $0.6 million related to a nine years, eight months term lease amendment of an existing administrative office location consisting of approximately 5,800 square feet. In the second quarter of 2025, the Company recorded an ROU asset and related lease liability of approximately $28.2 million related to an eighty-eight months term lease renewal of an existing warehouse location. In addition, the Company recorded an ROU asset and related lease liability of $0.5 million related to the April 2025 acquisition with a lease term of five years. In the third quarter of 2025, the Company recorded an ROU asset and related lease liability of approximately $11.8 million related to an eighty-six months term lease extension of an existing warehouse location, which was subsequently modified, in the fourth quarter of 2025, to an ROU asset and related lease liability of approximately $3.6 million related to a twenty-four months term lease extension.

The Company's operating and finance lease costs, included in continuing operations, was $19.3 million, $17.4 million and $17.0 million, for the years ended December 31, 2025, 2024 and 2023, respectively.

Information relating to operating leases for continuing and discontinued operations as of December 31, 2025 and 2024:


	Year Ended December 31,
	2025			2024
Weighted Average Remaining Lease Term
Operating leases	6.2 years			6.5 years

Weighted Average Discount Rate
Operating leases	5.5		%	5.4		%

ROU assets obtained in exchange for operating and finance lease obligations	$	32.9		$	4.5

Maturities of lease liabilities were as follows (in millions):


Year Ending December 31	Operating Leases
2026	21.4
2027	19.7
2028	18.9
2029	17.8
2030	15.7
Thereafter	30.2
Total lease payments	123.7
Less: interest	(20.1)
Total present value of lease liabilities	$	103.6

The Company currently leases its headquarters office facility from an entity owned by the Company’s principal shareholders. Total rent expense recorded to related parties was $1.0 million in 2025, 2024 and 2023.

The Company has sublease agreements for unused facilities which expire at various dates through 2028. Total sublease income of $3.7 million, $4.3 million and $4.1 million was recorded for the years ended December 31, 2025, 2024 and 2023, respectively. Future rent streams related to sublease agreements consists of $3.7 million to be collected in less than one year and $1.5 million to be collected between one and three years.

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.

GLOBAL INDUSTRIAL Co Leases Disclosure

About Leases Disclosures

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