CVR PARTNERS, LPUAN

CVR PARTNERS, LP Leases Disclosure

10-KFiled Feb 18, 20262 min read
(6) Leases
Lease Overview
We lease railcars, equipment, real estate, and certain facilities to support the Partnership’s operations. Most of our leases include one or more renewal options to extend the lease term, which can be exercised at our sole discretion. Certain leases also include options to purchase the leased asset. Additionally, certain of our lease agreements include rental payments, which are adjusted periodically for factors such as inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Furthermore, we do not have any material lessor or sub-leasing arrangements.
Balance Sheet Summary as of December 31, 2025 and 2024
The following table summarizes the ROU asset and lease liability balances for the Partnership’s operating and finance leases at December 31, 2025 and 2024.
(in thousands)December 31, 2025December 31, 2024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
ROU asset, net
Equipment, real estate and other$1,947 $24,488 $1,794 $24,995 
Railcars14,339 — 16,357 — 
Lease liability
Equipment, real estate and other$562 $21,423 $231 $21,003 
Railcars13,916 — 16,168 — 
Lease Expense Summary for the Years Ended December 31, 2025, 2024, and 2023
For the years ended December 31, 2025, 2024, and 2023, we recognized lease expense comprised of the following components:
Year Ended December 31,
(in thousands)202520242023
Operating lease expense$6,083 $5,542 $4,664 
Finance lease expense:
Amortization of ROU asset974 81 — 
Interest expense on lease liability2,396 231 — 
Short-term lease expense2,218 2,789 3,022 

Lease Terms and Discount Rates
The following outlines the remaining lease terms and discount rates used in the measurement of the ROU assets and lease liabilities of the Partnership’s operating leases at December 31, 2025 and 2024:
December 31, 2025December 31, 2024
Operating LeasesFinance LeasesOperating LeasesFinance Leases
Weighted-average remaining lease term3.9 years13.6 years4.5 years14.6 years
Weighted-average discount rate7.8 %11.3 %7.3 %11.3 %

Maturities of Lease Liabilities
The following summarizes the remaining minimum lease payments through maturity of the Partnership’s lease liabilities at December 31, 2025:
(in thousands)Operating LeasesFinance Leases
Year Ending December 31,
2026$4,876 $3,148 
20274,884 3,148 
20282,847 3,148 
20291,959 3,148 
20301,657 3,148 
Thereafter674 25,596 
Total lease payments 16,897 41,336 
Less: Imputed interest
(2,419)(19,913)
Total lease liability$14,478 $21,423 

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 19, 2025
2023Feb 21, 2024
2022Feb 22, 2023
2021Feb 23, 2022
2020Feb 23, 2021
2019Feb 20, 2020

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.

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