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| LEASES | NOTE 7—LEASES The Company has various finance leases for mining equipment, which generally include 3-5 year terms and expire through 2030. In addition, we have two operating leases for office space with initial terms of approximately and six years that run through 2027 and 2030, respectively, including the office space in Charleston, WV that commenced in the first quarter of 2024 resulting in the recognition of an additional right-of-use asset and lease liability of $1.0 million. Amortization of right-of-use assets associated with finance leases was $7.8 million, $10.4 million, and $8.5 million in 2025, 2024, and 2023, respectively, as discussed in Note 3. Interest expense recognized for financing lease liabilities was $1.5 million, $0.9 million, and $0.6 million in 2025, 2024, and 2023, respectively. Operating lease expense was $0.4 million, $0.4 million, and $0.2 million in 2025, 2024, and 2023, respectively. Right-of-use assets and lease liabilities are determined as the present value of the lease payments, discounted using either the implicit interest rate in the lease or, more commonly, our estimated incremental borrowing rate based on similar terms, payments and the economic environment where the leased asset is located. Below is a summary of our leases:
Minimum lease payments for our lease obligations are as follows:
Coal Leases and Associated Royalty Commitments—Leases of mineral reserves and related land leases are exempt from the lease accounting requirements addressed above. Refer to Note 9 for information regarding coal leases and associated royalty commitments. |
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