QUAKER CHEMICAL CORPKWR

QUAKER CHEMICAL CORP Leases Disclosure

10-KFiled Feb 23, 20262 min read
Leases
The Company has operating leases for facilities, vehicles, and machinery and equipment with remaining lease terms up to 9 years. In addition, the Company has land use leases with remaining lease terms up to 89 years.
The Company’s finance leases are included in PP&E in the Consolidated Balance Sheets. See Note 14, Property, Plant and Equipment, for additional information. The Company has no material variable lease costs or sublease income for the years ended December 31, 2025, 2024 and 2023.
During the year ended December 31, 2024, the Company entered into a new lease agreement for office and laboratory space in Radnor, PA for the purpose of relocating its global headquarters. The lease for one portion of the laboratory space is expected to commence in the second quarter of 2026. The lease for the remaining portions of laboratory and office space is expected to commence upon the completion of the lessor owned leasehold improvements, which is expected to be in the second half of 2026. The lease agreement for the office and laboratory space is expected to expire during 2041. The cumulative future lease commitment for laboratory and office space is $79.7 million. The future lease commitments relating to this lease were not included in the lease liabilities balance as of December 31, 2025.
The components of the Company’s lease expense for the years ended December 31, 2025, 2024 and 2023 are as follows:
December 31, 2025December 31, 2024December 31, 2023
Operating lease expense$16,738 $15,096 $14,981 
Short-term lease expense572 807 760 
Supplemental cash flow information related to the Company’s leases is as follows:
December 31,
2025		December 31,
2024		December 31,
2023
Cash paid for amounts included in the measurement of lease liabilities
     Operating cash flows from operating leases$16,508 $14,923 $16,020 
Non-cash lease liabilities activity
     Leased right-of-use assets obtained in exchange for new operating lease liabilities17,561 9,792 10,044 
Supplemental balance sheet information related to the Company’s leases is as follows:
December 31, 2025December 31, 2024
Right-of-use lease assets$38,737 $34,120 
Other accrued liabilities12,536 10,619 
Long-term lease liabilities22,759 20,028 
Total operating lease liabilities$35,295 $30,647 
Weighted average remaining lease term (years)5.75.0
Weighted average discount rate6.58 %5.63 %
Maturities of operating lease liabilities as of December 31, 2025 were as follows:
For the year ended December 31, 2026$14,135 
For the year ended December 31, 20279,483 
For the year ended December 31, 20286,599 
For the year ended December 31, 20293,706 
For the year ended December 31, 20302,296 
For the year ended December 31, 2031 and beyond8,051 
Total lease payments44,270 
Less: imputed interest(8,975)
Present value of lease liabilities (1)
$35,295 
(1) The $79.7 million of future lease commitments for the office and laboratory lease expected to commence during 2026 were not included in the lease liabilities balance as of December 31, 2025.

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.

Other Available Disclosures

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