OLD DOMINION FREIGHT LINE, INC. Leases Disclosure

Note 3. Leases

We lease certain assets under operating leases, which primarily consisted of real estate leases for certain service center locations and automotive leases for private passenger vehicles. Certain operating leases provide for renewal options, which can vary by lease and are typically offered at their fair rental value. We have not made any residual value guarantees related to our operating leases; therefore, we have no corresponding liability recorded on our Balance Sheets.

The right-of-use assets and corresponding lease liabilities on our Balance Sheets represent payments over the lease term, which includes renewal options for certain real estate leases that we are likely to exercise. These renewal options included in the right-of-use assets and corresponding lease liabilities begin in 2026 and continue through 2035, and range from three years to five years in length. Short-term leases, which have an initial term of 12 months or less, are not included in our right-of-use assets or corresponding lease liabilities.

Of our total operating lease liabilities, $17.2 million and $15.7 million are classified as current and are presented within “Other accrued liabilities,” and $84.2 million and $92.6 million are classified as non-current and are presented within “Other non-current liabilities” on our Balance Sheets as of December 31, 2025 and 2024, respectively. Our right-of-use assets totaled $96.8 million and $104.2 million and are presented within “Other assets,” which is classified as long-term, on our Balance Sheets as of December 31, 2025 and 2024, respectively.

The weighted average lease term for our operating leases was 5.3 years and 6.2 years at December 31, 2025 and 2024, respectively. The discount rate used in the calculation of our right-of-use assets and corresponding lease liabilities was determined based on the stated rate within each contract when available, or our collateralized borrowing rate from lending institutions. The weighted average discount rate for our operating leases was 4.8% and 4.9% as of December 31, 2025 and 2024, respectively.

Cash paid for amounts included in the measurement of our lease liabilities was $21.2 million and $21.3 million for the years ended December 31, 2025 and 2024, respectively. Certain operating leases include rent escalation provisions, which we recognize as expense on a straight-line basis. Lease expense is presented within “Operating supplies and expenses” or “General supplies and expenses,” depending on the nature of the use of the leased asset. Aggregate expense under operating leases was $23.8 million, $23.3 million and $24.5 million for 2025, 2024 and 2023, respectively. During the years ended December 31, 2025 and 2024, we increased our right-of-use assets by $10.2 million and $5.0 million, respectively, in exchange for new operating lease liabilities.