Westrock Coffee Co Leases Disclosure
Note 9. Leases
We have operating leases for manufacturing, production, administrative, distribution and warehousing facilities, vehicles and machinery and equipment. Some of our lease agreements have renewal options, tenant improvement allowances, rent holidays and rent escalation clauses. The remaining terms on our leases range from 1 year to 15 years, some of which may include options to extend the leases and some of which may include options to terminate the leases within 1 year.
The following table summarizes the amount of right-of-use lease assets and lease liabilities included in each respective line item on the Company’s Consolidated Balance Sheets:
(Thousands) | | Balance Sheet Location | | December 31, 2025 | | December 31, 2024 | ||
Right-of-use operating lease assets | Operating lease right-of-use assets | $ | 60,310 | $ | 63,380 | |||
Accrued expenses and other current liabilities | 4,908 | 4,420 | ||||||
Operating lease liabilities | 58,146 | 60,692 | ||||||
During the years ended December 31, 2025 and 2024, the Company obtained approximately $2.5 million and $1.0 million, respectively, of right-of-use operating lease assets in exchange for lease obligations.
On February 12, 2024, following the completion of its 530,000 square foot distribution center in Conway, Arkansas, the Company entered into a lease termination agreement for the Gregory Distribution Center lease. The Gregory Distribution Center lease terminated, by mutual agreement, on June 30, 2024. No costs were incurred as a result of the lease termination. This lease termination event does not significantly alter the Company’s operational capabilities or its financial position.
Depending on the nature of the lease, lease costs are classified within costs of sales or selling, general and administrative expense on the Company’s Consolidated Statements of Operations. The components of lease costs for the year ended December 31, 2025 and 2024 are as follows:
Year Ended December 31, | ||||||
(Thousands) | 2025 | | 2024 | |||
Operating lease cost | $ | 10,371 | $ | 10,797 | ||
Short-term lease cost | 1,305 | 1,075 | ||||
Total | $ | 11,676 | $ | 11,872 | ||
The following table presents information about the Company’s weighted average discount rate and remaining lease term as of December 31, 2025 and 2024:
| December 31, 2025 | | December 31, 2024 | |||
Weighted-average discount rate | 7.8% | 7.7% | ||||
Weighted-average remaining lease term | 11.4 years | 12.1 years | ||||
Supplemental cash flow information about the Company’s leases as of December 31, 2025 and 2024, respectively, is as follows:
Year Ended December 31, | ||||||
(Thousands) | | 2025 | | 2024 | ||
Cash paid related to operating lease liabilities | $ | 9,429 | $ | 9,670 | ||
Finance lease assets are recorded in property, plant and equipment, net with the corresponding lease liabilities included in accrued expenses and other current liabilities and long-term debt, net on the Consolidated Balance Sheets. There were no material finance leases as of December 31, 2025.
Future minimum lease payments under non-cancellable operating leases as of December 31, 2025 are as follows:
(Thousands) | | ||
2026 | $ | 9,262 | |
2027 | 9,010 | ||
2028 | 8,361 | ||
2029 | 8,377 | ||
2030 | 6,518 | ||
Thereafter | 55,858 | ||
Total future minimum lease payments | 97,386 | ||
Less: imputed interest | (34,332) | ||
Present value of minimum lease payments | $ | 63,054 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 21, 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.