UNITED STATES LIME & MINERALS INC Leases Disclosure
(3) Leases
The Company has operating leases for the use of equipment, corporate office space, and some of its terminal and distribution facilities. The leases have remaining lease terms of to 8 years, with a weighted-average remaining lease term of 4 years at December 31, 2025. Some operating leases include options to extend the leases for up to 5 years. The Company’s lease calculations include the impact of options to extend when it is reasonably certain the Company will exercise the option. The Company used a weighted-average discount rate of 5.5% and 6.4% for leases entered into during 2025 and 2024, respectively. The components of net operating lease costs for 2025, 2024, and 2023 were as follows:
Year Ended December 31, | |||||||||||
| Classification | 2025 | | 2024 | 2023 | ||||||
Operating lease costs(1) | Cost of revenues | $ | 3,442 | $ | 2,642 | $ | 3,090 | ||||
Operating lease costs(1) | Selling, general and administrative expenses |
| 318 |
| 307 |
| 216 | ||||
Rental revenues | Revenues | (222) | (332) | (470) | |||||||
Rental revenues | Other (income) expense, net |
| (91) |
| (95) |
| (91) | ||||
Net operating lease costs | $ | 3,447 | $ | 2,522 | $ | 2,745 | |||||
(1) | Includes the costs of leases with a term of one year or less. |
As of December 31, 2025, future minimum payments under operating leases that were either non-cancelable or subject to significant penalty upon cancellation, including future minimum payments under renewal options that the Company is reasonably certain to exercise, were as follows:
2026 | $ | 1,712 | |
2027 | 1,339 | ||
2028 | 645 | ||
2029 | 217 | ||
2030 | 191 | ||
Thereafter | 290 | ||
Total future minimum lease payments | 4,394 | ||
Less imputed interest | (381) | ||
Present value of lease liabilities | $ | 4,013 |
Supplemental cash flow information pertaining to the Company’s leasing activity for the years ended December 31, 2025, 2024, and 2023 was as follows:
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Cash payments for lease liabilities included in operating cash flows | $ | 2,006 | $ | 1,954 | $ | 1,641 | |||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 508 | $ | 998 | $ | 1,286 | |||
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.