TIDEWATER INC Leases Disclosure
| (6) | LEASES |
We have operating leases primarily for office space, temporary residences, automobiles and office equipment. We also have finance leases for vessels under bareboat charters that we intend to purchase. Contracts containing assets that we benefit from and control are recognized on our balance sheet. Leases with an initial term of 12 months or less are not recorded on the balance sheet. We recognized lease expense for these leases on a straight-line basis over the lease term. We combine the lease and non-lease components for all lease agreements. Certain leases include one or more options to renew with renewal terms that can extend the lease term from to years. The exercise of lease renewal options is at our sole discretion and lease renewal options are not included in our lease terms if they are not reasonably certain to be exercised. Our lease agreements generally do not contain any residual value guarantees or restrictive covenants. The amount of right of use assets and lease liabilities recorded on our Consolidated Balance Sheet at December 31, 2025 and 2024, respectively, are as follows.
| Leases (In Thousands) | Classification | December 31, 2025 | December 31, 2024 | ||||||
| Assets: | |||||||||
| Operating |
| $ | 7,483 | $ | 11,152 | ||||
| Finance |
| 24,147 | — | ||||||
| Total lease assets | $ | 31,630 | $ | 11,152 | |||||
| Liabilities: | |||||||||
| Current | |||||||||
| Operating |
| 615 | 4,904 | ||||||
| Finance |
| 24,370 | — | ||||||
| Noncurrent | |||||||||
| Operating |
| 6,363 | 5,914 | ||||||
| Total lease liabilities | $ | 31,348 | $ | 10,818 | |||||
Future payments to be made on our operating and finance lease liabilities at December 31, 2025 will be as follows.
| Maturity of lease liabilities (In Thousands) | Operating leases | Finance leases | ||||||
| 2026 | $ | 1,890 | $ | 24,903 | ||||
| 2027 | 2,005 | — | ||||||
| 2028 | 1,643 | — | ||||||
| 2029 | 1,369 | — | ||||||
| 2030 | 1,385 | — | ||||||
| After 2030 | 1,334 | — | ||||||
| Total lease payments | 9,626 | 24,903 | ||||||
| Less: Interest | (2,648 | ) | (533 | ) | ||||
| Present value of lease liabilities | $ | 6,978 | $ | 24,370 | ||||
As most of our leases do not provide an implicit interest rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments.
Lease costs included in our Consolidated Income Statements for the years ended December 31, 2025, 2024 and 2023, respectively, are as follows.
| (In Thousands) | Year Ended | Year Ended | Year Ended | ||||||||||
| Lease costs | Classification | December 31, 2025 | December 31, 2024 | December 31, 2023 | |||||||||
| Operating lease costs | General and administrative | $ | 1,823 | $ | 1,699 | $ | 1,798 | ||||||
| Finance lease costs: | |||||||||||||
| Amortization of finance lease assets | Depreciation and amortization | 827 | — | — | |||||||||
| Interest on finance lease liabilities | Interest and other debt costs, net | 903 | — | — | |||||||||
| Short-term leases | General and administrative | 2,889 | 2,587 | 2,496 | |||||||||
| Variable lease costs | General and administrative | 445 | 381 | 648 | |||||||||
| Net lease cost | $ | 6,887 | $ | 4,667 | $ | 4,942 | |||||||
Our weighted average remaining lease term and weighted average discount rate at December 31, 2025 is as follows.
| Lease term and discount rate | December 31, 2025 | |||
| Weighted average remaining lease term in years - operating lease | 4.8 | |||
| Weighted average remaining lease term in years - finance lease | 0.1 | |||
| Weighted average discount rate - operating lease | 7.8 | % | ||
| Weighted average discount rate - finance lease | 9.5 | % | ||
The cash paid for operating leases included in operating cash flows and in the measurement of lease liabilities for the years ended December 31, 2025, 2024 and 2023 was $3.6 million, $3.5 million and $3.8 million, respectively. Right of use assets obtained in exchange for operating lease obligations were $2.5 million, $6.7 million and $3.1 million, for the years ended December 31, 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 4, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2016 | May 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.