WARRIOR MET COAL, INC. Leases Disclosure
Note 11—Leases
The Company primarily enters into rental agreements for certain mining equipment that are for periods of 12 months or less, some of which include options to extend the leases. Leases that are for periods of 12 months or less are not recorded on the balance sheet in accordance with the Company's accounting policy election described in Note 2. The Company recognizes lease expense on these agreements on a straight-line basis over the lease term. Additionally, the Company has certain finance leases for mining equipment that expire over various contractual periods. These leases have remaining lease terms of to ten years and include options to renew. Amortization expense for finance leases is included in depreciation and depletion expense.
Supplemental balance sheet information related to leases was as follows (in thousands):
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
(1) |
|
$ |
141,853 |
|
|
$ |
56,702 |
|
Finance lease liabilities |
|
|
|
|
|
|
||
Current |
|
|
29,669 |
|
|
|
13,208 |
|
Noncurrent |
|
|
54,492 |
|
|
|
6,217 |
|
Total finance lease liabilities |
|
$ |
84,161 |
|
|
$ |
19,425 |
|
|
|
|
|
|
|
|
||
Weighted average remaining lease term - finance leases (in months) |
|
|
62.0 |
|
|
|
17.9 |
|
Weighted average discount rate - finance leases(2) |
|
|
6.99 |
% |
|
|
7.25 |
% |
The components of lease expense were as follows (in thousands):
|
|
For the year ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Operating lease cost(1): |
|
$ |
23,400 |
|
|
$ |
34,877 |
|
Finance lease cost: |
|
|
|
|
|
|
||
Amortization of leased assets |
|
|
26,586 |
|
|
|
22,184 |
|
Interest on lease liabilities |
|
|
7,790 |
|
|
|
4,613 |
|
Net lease cost |
|
$ |
57,776 |
|
|
$ |
61,674 |
|
Maturities of lease liabilities are as follows (in thousands):
|
|
Finance Leases(1) |
|
|
2026 |
|
$ |
34,158 |
|
2027 |
|
|
23,702 |
|
2028 |
|
|
18,812 |
|
2029 |
|
|
9,948 |
|
2030 |
|
|
1,672 |
|
Thereafter |
|
|
7,384 |
|
Total |
|
|
95,676 |
|
Less: amount representing interest |
|
|
(11,515 |
) |
Present value of lease liabilities |
|
$ |
84,161 |
|
Supplemental cash flow information related to leases was as follows (in thousands):
|
|
For the year ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash paid (received) for amounts included in the measurement of lease liabilities: |
|
|
|
|
|
|
||
Operating cash flows from finance leases |
|
$ |
7,790 |
|
|
$ |
4,613 |
|
Financing cash outflows from finance leases |
|
$ |
36,942 |
|
|
$ |
17,414 |
|
Financing cash inflows from finance leases |
|
$ |
(48,771 |
) |
|
$ |
(4,503 |
) |
Non-cash right-of-use assets obtained in exchange for lease obligations: |
|
|
|
|
|
|
||
Finance leases |
|
$ |
92,679 |
|
|
$ |
12,147 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 13, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 15, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 19, 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.