Schneider National, Inc.SNDR
Schneider National, Inc. Leases Disclosure
LEASES
As Lessee
We lease real estate and equipment under operating and finance leases. Our real estate operating leases include operating centers, distribution warehouses, offices, and drop yards. Our non-real estate operating leases and finance leases include transportation, office, yard, and warehouse equipment, in addition to truck washes. Most leases include an option to extend the lease, and a small number include an option to terminate the lease early, which may include a termination payment. If we are reasonably certain to exercise an option to extend a lease, the extension period is included as part of the right-of-use asset and lease liability.
For our real estate leases, we have elected to apply the recognition requirement to leases of twelve months or less; therefore, a lease right-of-use asset and liability will be recognized for all of these leases. For our equipment leases, we have elected to not apply the recognition requirements to leases of twelve months or less. These leases will be expensed on a straight-line basis, and no operating lease right-of-use asset or liability will be recorded.
We have also elected to not separate the different components within the contract for our leases; therefore, all fixed costs associated with the lease are included in the right-of-use asset and lease liability. This often relates to the requirement for us to pay a proportionate share of real estate taxes, insurance, common area maintenance, and other operating costs in addition to a base or fixed rent. Some of our leases have variable payment amounts, and the variable portions of those payments are excluded from the right-of-use asset and lease liability.
At the inception of our contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. None of our leases contain restrictions or covenants that restrict us from incurring other financial obligations.
Right-of-use lease assets and liabilities are recognized based on the present value of the future lease payments over the term. Our incremental borrowing rates are used as the discount rates for leases and are determined based on U.S. Treasury rates plus an applicable margin. Schneider uses multiple discount rates based on lease terms.
In conjunction with our acquisition of M&M, the Company entered into nine related party leases. The leases are for the use of shop, warehouse, office, and drop yard locations throughout the country. The leases run through 2026 and the related lease payments are not material.
The following table presents our net lease costs for the years ended December 31, 2025, 2024, and 2023.
| Financial Statement Classification | Year Ended December 31, | |||||||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||||||||
| Operating lease cost | ||||||||||||||||||||||||||
| Operating lease cost | Operating supplies and expenses—net | $ | 42.0 | $ | 38.3 | $ | 36.7 | |||||||||||||||||||
Short-term lease cost (1) | Operating supplies and expenses—net | 4.8 | 5.4 | 7.7 | ||||||||||||||||||||||
| Finance lease cost | ||||||||||||||||||||||||||
| Amortization of right-of-use assets | Depreciation and amortization | 3.7 | 4.5 | 3.9 | ||||||||||||||||||||||
| Interest on lease liabilities | Interest expense | 0.3 | 0.5 | 0.5 | ||||||||||||||||||||||
| Variable lease cost | Operating supplies and expenses—net | 4.1 | 2.5 | 2.7 | ||||||||||||||||||||||
| Sublease income | Operating supplies and expenses—net | (2.5) | (2.4) | (2.3) | ||||||||||||||||||||||
| Total net lease cost | $ | 52.4 | $ | 48.8 | $ | 49.2 | ||||||||||||||||||||
(1)Includes short-term lease costs for leases twelve months or less, including those with a duration of one month or less.
As of December 31, 2025 and 2024, remaining lease terms and discount rates under operating and finance leases were as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||
| Weighted-average remaining lease term | ||||||||||||||
| Operating leases | 3.7 years | 3.6 years | ||||||||||||
| Finance leases | 2.3 years | 2.8 years | ||||||||||||
Weighted-average discount rate (1) | ||||||||||||||
| Operating leases | 5.2 | % | 5.2 | % | ||||||||||
| Finance leases | 5.2 | % | 5.1 | % | ||||||||||
(1)Determined based on a portfolio approach.
Additional information related to our leases is as follows:
| Year Ended December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities | ||||||||||||||||||||
| Operating cash flows for operating leases | $ | 42.3 | $ | 39.0 | $ | 36.7 | ||||||||||||||
| Operating cash flows for finance leases | 0.3 | 0.5 | 0.5 | |||||||||||||||||
| Financing cash flows for finance leases | 3.9 | 4.5 | 3.9 | |||||||||||||||||
| Right-of-use assets obtained in exchange for new lease liabilities | ||||||||||||||||||||
| Operating leases | $ | 41.4 | $ | 30.6 | $ | 52.6 | ||||||||||||||
| Finance leases | 0.5 | 0.9 | 5.8 | |||||||||||||||||
Operating lease right-of-use assets, current operating lease liabilities, and noncurrent operating lease liabilities are included in internal use software and other noncurrent assets, other current liabilities, and other noncurrent liabilities, respectively, in the consolidated balance sheets. Operating lease right-of-use assets were $90.3 million and $79.0 million as of December 31, 2025 and 2024, respectively. Impairment amounts were not significant for the years ended December 31, 2025, 2024, and 2023.
As of December 31, 2025, future lease payments under operating and finance leases were as follows:
| (in millions) | Operating Leases | Finance Leases | ||||||||||||
| 2026 | $ | 35.1 | $ | 2.7 | ||||||||||
| 2027 | 24.9 | 1.5 | ||||||||||||
| 2028 | 18.9 | 1.0 | ||||||||||||
| 2029 | 13.3 | 0.1 | ||||||||||||
| 2030 | 8.3 | — | ||||||||||||
2031 and thereafter | 4.0 | — | ||||||||||||
| Total | 104.5 | 5.3 | ||||||||||||
| Amount representing interest | (9.7) | (0.3) | ||||||||||||
| 94.8 | 5.0 | |||||||||||||
| (31.2) | (2.5) | |||||||||||||
| Long-term lease obligations | $ | 63.6 | $ | 2.5 | ||||||||||
As of December 31, 2025, we did not have any leases that were signed but had not yet commenced.
The consolidated balance sheets include right-of-use assets acquired under finance leases as components of property and equipment as of December 31, 2025 and 2024. Real and other property under finance leases are being amortized to a zero net book value over the initial lease term.
| (in millions) | December 31, 2025 | December 31, 2024 | ||||||||||||
| Transportation equipment | $ | 5.1 | $ | 7.4 | ||||||||||
| Real property | 1.3 | 1.3 | ||||||||||||
| Other property | 6.4 | 8.9 | ||||||||||||
| Accumulated amortization | (8.1) | (9.6) | ||||||||||||
| Total | $ | 4.7 | $ | 8.0 | ||||||||||
As Lessor
We finance various types of transportation-related equipment for independent third parties under lease contracts which are generally for to three years and accounted for as sales-type leases with fully guaranteed residual values. At the inception of the contracts, we determine if the contract is or contains a lease. A contract is or contains a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Our leases contain an option for the lessee to return, extend, or purchase the equipment at the end of the lease term for the guaranteed contract residual amount. This contract residual amount is estimated to approximate the fair value of the equipment. Lease payments primarily include base rentals and guaranteed residual values.
In addition, we also collect one-time administrative fees and heavy vehicle use tax on our leases. We have elected to not separate the different components within the contract as the administrative fees were not material for the years ended December 31, 2025, 2024, and 2023. We have also elected to exclude all taxes assessed by a governmental authority from the consideration (e.g., heavy vehicle use tax). All of our leases require fixed payments, therefore we have no variable payment provisions.
As of December 31, 2025 and 2024, investments in lease receivables were as follows:
| (in millions) | December 31, 2025 | December 31, 2024 | ||||||||||||
| Future minimum payments to be received on leases | $ | 162.9 | $ | 166.2 | ||||||||||
| Guaranteed residual lease values | 93.5 | 96.7 | ||||||||||||
| Total minimum lease payments to be received | 256.4 | 262.9 | ||||||||||||
| Unearned income | (43.8) | (44.5) | ||||||||||||
| Net investment in leases | $ | 212.6 | $ | 218.4 | ||||||||||
The amounts to be received on lease receivables as of December 31, 2025 were as follows:
| (in millions) | December 31, 2025 | |||||||
| 2026 | $ | 106.1 | ||||||
| 2027 | 84.7 | |||||||
| 2028 | 64.0 | |||||||
| 2029 | 1.6 | |||||||
| Total undiscounted lease cash flows | 256.4 | |||||||
| Amount representing interest | (43.8) | |||||||
| Present value of lease receivables | 212.6 | |||||||
| Current lease receivables—net of allowance | (80.7) | |||||||
| Long-term lease receivable | $ | 131.9 | ||||||
Prior to entering a lease contract, we assess the credit quality of the potential lessee using credit checks and other relevant factors, ensuring that the inherent credit risk is consistent with our existing lease portfolio. Given our leases have fully guaranteed residual values and we can take possession of the transportation-related equipment in the event of default, we do not categorize net investment in leases by different credit quality indicators upon origination. We monitor our lease portfolio weekly by tracking amounts past due, days past due, and outstanding maintenance account balances, including performing subsequent credit checks as needed. Our net investment in leases with any portion past due as of December 31, 2025 was $62.1 million, which includes both current and future lease payments.
Lease payments on our lease receivables are generally due on a weekly basis and are classified as past due when the weekly payment is not received by its due date. As of December 31, 2025, our lease payments past due were $2.3 million.
Leases are generally placed on nonaccrual status (nonaccrual of interest and other fees) when a payment becomes 90 days past due or upon notification of bankruptcy, death, or other instances management concludes collectability is not reasonably assured. The accrual of interest and other fees resumes when all payments are less than 60 days past due.
The table below provides additional information on our sales-type leases. Revenue and cost of goods sold are recorded in operating revenues and operating supplies and expenses—net in the consolidated statements of comprehensive income, respectively.
| Year Ended December 31, | ||||||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | |||||||||||||||||
| Revenue | $ | 238.4 | $ | 234.5 | $ | 206.1 | ||||||||||||||
| Cost of goods sold | (214.4) | (210.5) | (174.9) | |||||||||||||||||
| Operating profit | $ | 24.0 | $ | 24.0 | $ | 31.2 | ||||||||||||||
| Interest income on lease receivables | $ | 32.6 | $ | 32.0 | $ | 36.1 | ||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 17, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 19, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 27, 2018 | |
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.