LEASES
TIMBERLAND LEASES
    Our timberland leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases.
OTHER NON-TIMBERLAND LEASES
    In addition to timberland holdings, we lease properties for certain office locations. Significant leased properties include a regional office in Lufkin, Texas.
LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION
    The following table details our undiscounted lease obligations as of December 31, 2025 by type of lease and year of expiration:
Year of Expiration
Lease ObligationsTotal20262027202820292030Thereafter
Operating lease liabilities$21,475 $2,708 $2,555 $2,213 $2,184 $2,174 $9,641 
Total Undiscounted Cash Flows$21,475 $2,708 $2,555 $2,213 $2,184 $2,174 $9,641 
Imputed interest(5,189)
Balance at December 31, 2025
$16,286 
Less: Current portion(2,617)
Non-current portion at December 31, 2025
$13,669 

The following table details components of our lease cost for the years ended December 31, 2025, 2024, and 2023:
Year Ended December 31,
Lease Cost Components202520242023
Operating lease cost$3,308 $3,627 $4,449 
Variable lease cost (a)383 395 533 
Total lease cost (b)$3,691 $4,022 $4,982 
(a)    The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates.
(b)    Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet.Related costs are recognized on a straight line basis over the lease term. Short-term lease expense was not material for the year ended December 31, 2025.
The following table provides supplemental cash flow information related to leases for the years ended December 31, 2025, 2024 and 2023:
Year Ended December 31,
Supplemental Cash Flow Information Related to Leases:202520242023
Cash paid for amounts included in the measurement of lease liabilities:
     Operating cash flows from operating leases$1,216 $1,407 $2,081 
     Investing cash flows from operating leases2,092 2,220 2,368 
Total cash flows from operating leases$3,308 $3,627 $4,449 
Weighted-average remaining lease term in years - operating leases101111
Weighted-average discount rate - operating leases6%6%6%

We apply the following practical expedients as allowed under ASC 842:
Practical ExpedientDescription
Short-term leasesWe do not record right-of-use assets or liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised).
Separation of lease and non-lease componentsWe do not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease.

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.