UNIVERSAL LOGISTICS HOLDINGS, INC. Leases Disclosure
As of December 31, 2025, our obligations under operating lease arrangements primarily related to the rental of office space, warehouses, freight distribution centers, terminal yards and equipment. Right-of-use assets represent our right to use an underlying asset over the lease term and lease liabilities represent the obligation to make lease payments resulting from the lease agreement. We recognize a right-of-use asset and a lease liability on the effective date of a lease agreement. These assets and liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date, using our incremental borrowing rate as of the respective dates of lease inception, as the rate implicit in each lease is not readily determinable. Our incremental borrowing rate is based on collateralized borrowings of similar assets with terms that approximate the lease term when available and when collateralized rates are not available, we use uncollateralized rates with similar terms adjusted for the fact that it is an unsecured rate.
Our lease obligations typically do not include options to purchase the leased property, nor do they contain residual value guarantees or material restrictive covenants. Options to extend or terminate an agreement are included in the lease term when it becomes reasonably certain the option will be exercised. As of December 31, 2025, we were not reasonably certain of exercising any renewal or termination options, and as such, no adjustments were made to the right-of-use lease assets or corresponding liabilities.
Leases with an initial term of 12 months or less, short-term leases, are not recorded on the balance sheet. Lease expense for short-term and long-term operating leases is recognized on a straight-line basis over the lease term. For facility leases, variable lease costs include the costs of common area maintenance, taxes, and insurance for which we pay the lessors an estimate that is adjusted to actual expense on a quarterly or annual basis depending on the underlying contract terms. For equipment leases, variable lease costs may include additional fees associated with using equipment in excess of estimated amounts.
The following table summarizes our lease costs for the years ended December 31, 2025 and 2024, and related information (in thousands):
|
|
December 31, 2025 |
|
|||||||||
|
|
With Affiliates |
|
|
With Third Parties |
|
|
Total |
|
|||
Lease cost |
|
|
|
|
|
|
|
|
|
|||
Operating lease cost |
|
$ |
16,420 |
|
|
$ |
22,523 |
|
|
$ |
38,943 |
|
Short-term lease cost |
|
|
528 |
|
|
|
11,411 |
|
|
|
11,939 |
|
Variable lease cost |
|
|
722 |
|
|
|
4,090 |
|
|
|
4,812 |
|
Total lease cost |
|
$ |
17,670 |
|
|
$ |
38,024 |
|
|
$ |
55,694 |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
December 31, 2024 |
|
|||||||||
|
|
With Affiliates |
|
|
With Third Parties |
|
|
Total |
|
|||
Lease cost |
|
|
|
|
|
|
|
|
|
|||
Operating lease cost |
|
$ |
9,972 |
|
|
$ |
26,101 |
|
|
$ |
36,073 |
|
Short-term lease cost |
|
|
512 |
|
|
|
12,031 |
|
|
|
12,543 |
|
Variable lease cost |
|
|
917 |
|
|
|
4,364 |
|
|
|
5,281 |
|
Total lease cost |
|
$ |
11,401 |
|
|
$ |
42,496 |
|
|
$ |
53,897 |
|
The following table summarizes other lease related information as of and for the years ended December 31, 2025 and 2024 (in thousands):
|
|
December 31, 2025 |
|
|||||||||
|
|
With Affiliates |
|
|
With Third Parties |
|
|
Total |
|
|||
Other information |
|
|
|
|
|
|
|
|
|
|||
Cash paid for amounts included in the measurement of operating leases |
|
$ |
15,414 |
|
|
$ |
23,776 |
|
|
$ |
39,190 |
|
Right-of-use asset change due to lease termination |
|
$ |
— |
|
|
$ |
(6,929 |
) |
|
$ |
(6,929 |
) |
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
$ |
120,433 |
|
|
$ |
9,197 |
|
|
$ |
129,630 |
|
Weighted-average remaining lease term (in years) |
|
|
8.2 |
|
|
|
2.6 |
|
|
|
6.9 |
|
Weighted-average discount rate |
|
|
11.3 |
% |
|
|
6.6 |
% |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|||
|
|
December 31, 2024 |
|
|||||||||
|
|
With Affiliates |
|
|
With Third Parties |
|
|
Total |
|
|||
Other information |
|
|
|
|
|
|
|
|
|
|||
Cash paid for amounts included in the measurement of operating leases |
|
$ |
10,025 |
|
|
$ |
26,904 |
|
|
$ |
36,929 |
|
Right-of-use asset change due to lease termination |
|
$ |
— |
|
|
$ |
(109 |
) |
|
$ |
(109 |
) |
Right-of-use assets obtained in exchange for new operating lease liabilities |
|
$ |
3,916 |
|
|
$ |
16,184 |
|
|
$ |
20,100 |
|
Right-of-use assets obtained due to acquisition of business |
|
$ |
— |
|
|
$ |
432 |
|
|
$ |
432 |
|
Weighted-average remaining lease term (in years) |
|
|
3.8 |
|
|
|
2.9 |
|
|
|
3.1 |
|
Weighted-average discount rate |
|
|
7.9 |
% |
|
|
6.0 |
% |
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|||
Future minimum lease payments under these operating leases as of December 31, 2025, are as follows (in thousands):
|
|
With Affiliates |
|
|
With Third Parties |
|
|
Total |
|
|||
2026 |
|
$ |
24,559 |
|
|
$ |
20,556 |
|
|
$ |
45,115 |
|
2027 |
|
|
23,573 |
|
|
|
13,481 |
|
|
|
37,054 |
|
2028 |
|
|
24,140 |
|
|
|
6,162 |
|
|
|
30,302 |
|
2029 |
|
|
24,241 |
|
|
|
3,442 |
|
|
|
27,683 |
|
2030 |
|
|
24,782 |
|
|
|
465 |
|
|
|
25,247 |
|
Thereafter |
|
|
91,186 |
|
|
|
— |
|
|
|
91,186 |
|
Total required lease payments |
|
$ |
212,481 |
|
|
$ |
44,106 |
|
|
$ |
256,587 |
|
Less amounts representing interest |
|
|
|
|
|
|
|
|
(82,786 |
) |
||
Present value of lease liabilities |
|
|
|
|
|
|
|
$ |
173,801 |
|
||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
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.