USA TODAY Co., Inc.TDAY

USA TODAY Co., Inc. Leases Disclosure

10-KFiled Feb 26, 20262 min read
NOTE 4 — Leases
We lease certain real estate, vehicles, and equipment. Our leases have remaining lease terms of one to 11 years, some of
which may include options to extend the leases, and some of which may include options to terminate the leases. The exercise of
lease renewal options is at our sole discretion. The depreciable lives of assets and leasehold improvements are limited by the
expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise.
The components of lease expense are as follows:
Year ended December 31,
In thousands
2025
2024
2023
Operating lease cost(a)
$40,321
$52,417
$64,845
Short-term lease cost(b)
1,400
938
900
Variable lease cost
9,848
12,390
13,200
Net lease cost
$51,569
$65,745
$78,945
(a) Includes sublease income of $8.8 million, $8.3 million, and $9.1 million for the years ended December 31, 2025, 2024, and 2023, respectively.
(b)Excludes expenses relating to leases with a lease term of one month or less.
In 2023, the Company sold two properties in Michigan and Arizona for a total of $60.5 million, which resulted in a net gain
of $39.3 million. Contemporaneously with the closing of the sales, the Company entered into leases pursuant to which we
leased back the properties for cumulative annual rent of $39.9 million, subject to annual escalations. The leases are accounted
for as operating leases.
Supplemental information related to leases are as follows:
Year ended December 31,
In thousands, except lease term and discount rate
2025
2024
2023
Cash paid for amounts included in the measurement of operating lease liabilities
$62,184
$71,985
$76,338
Right-of-use assets obtained in exchange for operating lease obligations
8,497
6,071
31,501
Gain on sale and leaseback transactions, net
—
(105)
(40,221)
Weighted-average remaining lease term (in years)
5.5
6.0
6.4
Weighted-average discount rate
13.3%
13.2%
13.0%
Future minimum lease payments under non-cancellable leases are as follows:
In thousands
Year ended
December 31,
2026
$50,609
2027
41,936
2028
37,963
2029
36,286
2030
32,305
Thereafter
43,125
Total future minimum lease payments
242,224
Less: Imputed interest
62,368
Total
$179,856
As of December 31, 2025, we have entered into leases that have not yet commenced with total future lease payments of
$0.1 million, which are not yet recorded on the Consolidated balance sheet.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 20, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 26, 2021
2019Mar 2, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Feb 21, 2017

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

Income TaxesRevenueEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance