ENVIRI CorpNVRI

ENVIRI Corp Leases Disclosure

10-KFiled Feb 24, 20262 min read
Leases*
The components of lease expense were as follows:
(In thousands)202520242023
Finance leases:
Depreciation expense
$18,046 $12,785 $7,957 
Interest on lease liabilities6,204 4,318 2,036 
Operating leases39,345 38,438 37,206 
Variable and short-term leases54,909 54,739 54,696 
Sublease income(16)(7)(7)
Total lease expense
$118,488 $110,273 $101,888 

Supplemental cash flow information related to leases was as follows:
(In thousands)202520242023
Cash paid for amounts included in the measurement of lease liabilities:
Cash flows used by operating activities - Operating leases
$39,682 $37,120 $37,880 
Cash flows used by operating activities - Finance leases6,301 4,203 1,914 
Cash flows used by financing activities - Finance leases18,963 12,316 7,736 
ROU assets obtained in exchange for lease obligations:
Operating leases
$69,365 $21,895 $24,497 
Finance leases25,905 49,316 27,128 

Supplemental balance sheet information related to leases was as follows: 
(In thousands)20252024
Operating Leases:
     Operating lease ROU assets$132,323 $88,912 
     Current portion of operating lease liabilities30,077 26,001 
Operating lease liabilities
104,654 64,805 
Finance Leases:
  Property, plant and equipment, net$83,239 $73,734 
     Current maturities of long-term debt20,586 16,004 
     Long-term debt67,459 63,913 

Supplemental additional information related to leases was as follows:
20252024
Other information:
    Weighted average remaining lease term - Operating leases (in years)6.856.31
    Weighted average remaining lease term - Finance leases (in years)4.635.27
    Weighted average incremental borrowing rate - Operating leases
7.3 %6.7 %
    Weighted average incremental borrowing rate - Finance leases
7.3 %7.2 %
Maturities of lease liabilities were as follows:
(In thousands)Operating Leases
Finance Leases
Year Ending December 31:
2026$38,591 $26,236 
202731,115 24,131 
202823,581 20,448 
202917,416 14,706 
203013,126 11,465 
After 203050,479 7,004 
Total lease payments174,308 103,990 
Less: Imputed interest(39,577)(15,945)

$134,731 $88,045 
The Company's leases, excluding short-term leases, have remaining terms of less than one year to approximately 25 years, some of which contain options to extend or terminate the lease terms, based on the provisions in the lease agreements. As of December 31, 2025, the Company has approximately $18 million of operating and finance lease obligations to be recognized for vehicles, real estate and equipment in CE with expected commencement dates in 2026. There are no material residual value guarantees or material restrictive covenants in any of the Company's leases.

*Previously issued 2023 and 2024 amounts have been revised due to the correction of immaterial errors as discussed in Note 1, Summary of Significant Accounting Policies under "Revision of Previously Issued Financial Statements".

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 20, 2025
2023Feb 29, 2024
2022Mar 1, 2023
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 21, 2020
2018Feb 21, 2019
2017Feb 22, 2018
2016Feb 24, 2017
2015Feb 26, 2016

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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