LEASES

12 Months Ended

Dec. 31, 2025

LEASES

LEASES

9. LEASES

Description of Operating Leases: The Company has different types of operating leases, the specific terms and conditions of which vary from lease to lease. Certain operating lease agreements include terms such as: (i) renewal and early termination options; (ii) early buy-out and purchase options; and (iii) rent escalation clauses. The lease agreements also include provisions for the maintenance of the leased asset and payment of lease related costs. The Company reviews the specific terms and conditions of each lease and, as appropriate, notifies the lessor of any intent to exercise any option in accordance with the terms of the lease. In the normal course of business, the Company expects to be able to renew or replace most of its operating leases with other similar leases as they expire. The Company’s leases do not contain any residual value guarantees.

The Company did not have any finance leases during the years ended December 31, 2025 and 2024. Certain of the Company’s lease agreements include rental payments that may be adjusted in the future based on economic conditions and others include rental payments adjusted periodically for inflation. Variable lease expense is disclosed for the adjusted portion of such payments.

The lease type by underlying asset class and maximum terms of the Company’s operating leases are as follows:

Lease Type:	Term
Real estate and terminal leases	50 years
Vessel and barge charter leases	4 years
Operations equipment and other leases	14 years

Incremental Borrowing Rate: As most of the Company’s operating leases do not provide an implicit rate of interest associated with the lease, the Company uses an estimated incremental borrowing rate based on information available at the date of adoption and subsequent lease commencement dates in calculating the present value of its operating lease liabilities. The incremental borrowing rate is determined using the U.S. Treasury rate adjusted to account for the Company’s credit rating and the collateralized nature of operating leases.

Components of Lease Cost: Components of lease cost recorded in the Company’s Consolidated Statement of Income and Comprehensive Income consists of the following for the years ended December 31, 2025, 2024 and 2023:

	Years Ended
	December 31,
(In millions)	2025		2024		2023
Operating lease cost	$	147.9	$	143.4	$	151.0
Short-term lease cost		6.8		10.4		7.7
Variable lease cost		0.3		0.6		0.6
Total		155.0		154.4		159.3
Sublease income		(6.9)		(1.1)		(8.6)
Total lease cost, net	$	148.1	$	153.3	$	150.7

Other Lease Information: Other information related to the Company’s operating leases consists of the following for the years ended December 31, 2025, 2024 and 2023:

	Years Ended
	December 31,
(In millions)	2025		2024		2023
Cash paid for amounts included in operating lease liabilities	$	148.2	$	148.7	$	154.3
Right-of-use assets obtained in the exchange for new operating lease liabilities	$	145.4	$	205.8	$	40.0

	As of December 31,
	2025		2024		2023
Weighted average remaining operating lease term		5.3 years		5.3 years		4.8 years
Weighted average incremental borrowing rate		4.6%		4.3%		3.1%

Future minimum lease payments of operating lease liabilities that have non-cancelable lease terms in excess of one year consist of the following at December 31, 2025:

	As of
Year (in millions)	December 31, 2025
2026	$	139.5
2027		106.2
2028		55.8
2029		33.4
2030		22.8
Thereafter		73.2
Total lease payments		430.9
Less: Interest		(55.6)
Present value of operating lease liabilities		375.3
Less: Short-term portion		(128.5)
Long-term operating lease liabilities	$	246.8