LEASES

3 Months Ended

Mar. 31, 2026

TIMBERLAND LEASES

Our timberland leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases.

NON-TIMBERLAND LEASES

In addition to timberland holdings, we lease certain equipment and office space. Significant leased properties include regional offices in Spokane, Washington; Atlanta, Georgia; and Lufkin, Texas.

BALANCE SHEET CLASSIFICATION

The following table presents supplemental balance sheet information related to lease assets and liabilities as of March 31, 2026 and December 31, 2025:


	Location on Balance Sheet	March 31, 2026	December 31, 2025
Assets
Operating lease assets	Operating lease right-of-use assets	$23,515	$16,286
Finance lease assets (a)	Machinery and equipment	12,647	—
Total lease assets		$36,162	$16,286

Liabilities
Current:
Operating lease liabilities	Other current liabilities	$5,571	$2,617
Finance lease liabilities	Other current liabilities	5,078	—
Long-term:
Operating lease liabilities	Other non-current liabilities	17,997	13,669
Finance lease liabilities	Other non-current liabilities	7,573	—
Total lease liabilities		$36,219	$16,286

(a)Finance lease assets are presented net of accumulated amortization of $0.8 million as of March 31, 2026.

LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION

The following table details our undiscounted lease obligations as of March 31, 2026 by type of lease and year of expiration:


	Operating Leases	Finance Leases
2026	$4,952	$4,194
2027	5,017	4,485
2028	3,942	2,834
2029	2,707	1,643
2030	2,341	452
Thereafter	10,184	10
Total undiscounted cash flows	$29,143	$13,618
Imputed interest	(5,575)	(967)
Total lease liabilities at March 31, 2026	$23,568	$12,651

The following table details components of our lease cost for the three months ended March 31, 2026 and 2025:


	Three Months Ended March 31,
Lease Cost Components		2026	2025
Operating lease cost		$756	$697
Finance lease cost:
Amortization of leased assets		841	—
Interest expense		109	—
Variable lease cost (a)		11	142
Total lease cost (b)		$1,717	$839

(a)The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index, or market rates.

(b)Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Related costs are recognized on a straight-line basis over the lease term. Short-term lease expense was not material for the three months ended March 31, 2026 and 2025.

The following table provides supplemental cash flow information related to leases for the three months ended March 31, 2026 and 2025:


	Three Months Ended March 31,
Supplemental Cash Flow Information Related to Leases	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$725		$607
Operating cash flows from finance leases	109		—
Investing cash flows from operating leases	61		126
Financing cash flows from finance leases	831		—
Total cash paid for amounts included in the measurement of lease liabilities	$1,726		$733

Lease liabilities arising from right-of-use assets assumed in the PotlatchDeltic merger:
Operating leases	7,733		—
Finance leases	13,446		—
Total lease liabilities arising from right-of-use assets assumed in the PotlatchDeltic merger	$21,179		—

Right-of-use assets obtained in exchange for new lease liabilities
Finance leases	$36		—

Weighted-average remaining lease term (years):
Operating leases	8		11
Finance leases	3		—
Weighted-average discount rate:
Operating leases	5	%	6	%
Finance leases	5	%	—

We apply the following practical expedients as allowed under ASC 842:


Practical Expedient						Description
Short-term leases						We do not record right-of-use assets or liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised).
Separation of lease and non-lease components						We elect not to separate non-lease components from associated lease components when (i) the components have the same timing and pattern of transfer and (ii) the combined component would be classified as an operating lease.