JELD-WEN Holding, Inc.JELD
JELD-WEN Holding, Inc. Leases Disclosure
Leases
We lease certain warehouses, distribution centers, office spaces, land, vehicles, and equipment.
The Company’s ROU assets and lease liabilities were as follows:
| (amounts in thousands) | Balance Sheet Location | December 31, 2025 | December 31, 2024 | ||||||||||||||
| Assets: | |||||||||||||||||
| Operating | Operating lease assets, net | $ | 179,378 | $ | 126,256 | ||||||||||||
| Finance | 11,534 | 9,726 | |||||||||||||||
| Total ROU assets | $ | 190,912 | $ | 135,982 | |||||||||||||
| Liabilities: | |||||||||||||||||
| Current: | |||||||||||||||||
| Operating | $ | 33,761 | $ | 32,738 | |||||||||||||
| Finance | 3,187 | 2,296 | |||||||||||||||
| Noncurrent: | |||||||||||||||||
| Operating | Operating lease liability | 158,565 | 105,499 | ||||||||||||||
| Finance | 8,635 | 7,517 | |||||||||||||||
| Total lease liability | $ | 204,148 | $ | 148,050 | |||||||||||||
(1) Finance lease assets are recorded net of accumulated depreciation of $6.1 million and $5.0 million as of December 31, 2025 and 2024, respectively.
During the year ended December 31, 2025, we obtained $85.6 million in ROU assets in exchange for operating lease liabilities, primarily relating to real estate. We obtained $24.0 million in ROU assets in exchange for operating lease liabilities, primarily relating to real estate during the year ended December 31, 2024.
During the years ended December 31, 2025 and 2024, we obtained $4.4 million and $5.6 million in ROU assets, respectively, in exchange for finance lease liabilities.
We recorded accelerated amortization on our ROU assets of $0.6 million, $7.2 million, and $0.5 million during the years ended December 31, 2025, 2024, and 2023, respectively, within restructuring and asset-related charges, net in the accompanying consolidated statements of operations. Refer to Note 19 - Restructuring and Asset-Related Charges, Net to our consolidated financial statements included in this Form 10-K for more information.
The components of lease expense were as follows:
| Year Ended December 31, | |||||||||||||||||
| (amounts in thousands) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating | $ | 45,961 | $ | 43,031 | $ | 41,942 | |||||||||||
| Short term | 9,401 | 10,497 | 13,324 | ||||||||||||||
| Variable | 9,190 | 7,546 | 6,571 | ||||||||||||||
| Low value | 2,189 | 2,198 | 1,600 | ||||||||||||||
| Finance | 780 | 536 | 313 | ||||||||||||||
| Total lease expense | $ | 67,521 | $ | 63,808 | $ | 63,750 | |||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||
| Weighted average remaining lease terms (in years): | |||||||||||
| Operating | 5.5 | 5.3 | |||||||||
| Finance | 4.0 | 4.7 | |||||||||
| Weighted average discount rate: | |||||||||||
| Operating | 5.9% | 5.9% | |||||||||
| Finance | 6.3% | 6.4% | |||||||||
Future minimum lease payment obligations under operating and finance leases are as follows for each of the periods ending December 31:
| (amounts in thousands) | Operating Leases(1) | Finance Leases | Total | ||||||||||||||
| 2026 | $ | 45,279 | $ | 3,755 | $ | 49,034 | |||||||||||
| 2027 | 46,644 | 3,545 | 50,189 | ||||||||||||||
| 2028 | 40,597 | 2,829 | 43,426 | ||||||||||||||
| 2029 | 33,830 | 1,946 | 35,776 | ||||||||||||||
| 2030 | 26,860 | 851 | 27,711 | ||||||||||||||
| Thereafter | 37,915 | 333 | 38,248 | ||||||||||||||
| Total future minimum lease payments | 231,125 | 13,259 | 244,384 | ||||||||||||||
| Interest | (38,799) | (1,437) | (40,236) | ||||||||||||||
| Present value of lease liability | $ | 192,326 | $ | 11,822 | $ | 204,148 | |||||||||||
(1) Operating lease payments include $4.1 million related to options to extend lease terms that are reasonably certain of being exercised.
Sales-Leaseback Transaction
On December 22, 2025, the Company completed a sale-leaseback transaction for its industrial warehouse located in Coral Springs, Florida. The property was sold for $38.0 million in cash proceeds, of which $0.4 million was deducted for closing expenses. The net book value of the property at the time of sale was approximately $3.3 million. In connection with the sale, the Company recognized a pre-tax gain on sale of $34.3 million in the year ended December 31, 2025, which is recorded within SG&A in the accompanying consolidated statements of operations.
The transaction qualifies as a sale in accordance with GAAP under ASC 606 and ASC 842, and the leaseback is classified as an operating lease. At lease commencement, the Company recognized an ROU asset and lease liability of $11.1 million, in the accompanying consolidated balance sheet, measured at the present value of future lease payments as of the lease commencement date using the Company’s incremental borrowing rate of 5.6%.
The lease has an initial non-cancelable term of five years with an option to renew for an additional period of five years. Annual base rent is $2.3 million payable monthly and increases on a straight-line basis over the initial lease term to $2.7 million. The lease does not contain any purchase optionsHistorical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 22, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 24, 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.