Leases (Tables)

6 Months Ended

Jun. 28, 2025

The components of lease cost for finance leases and operating leases for the

twenty-six

weeks ended June 28, 2025 were (in thousands):


Finance leases:
Amortization of right-of-use assets	$	9,131
Interest on lease liability		2,306

Total finance lease cost		11,437
Operating leases:
Lease cost		1,986
Variable lease cost		—
Sublease income		(2,928	)

Total net operating lease income		(942	)

Total net lease cost	$	10,495

Components of Lease Cost for Finance Leases and Operating Leases

A summary of the lease classification on the Company’s consolidated balance sheet as of June 28, 2025 is as follows (in thousands):

Assets:

Classification on our Consolidated Balance Sheet

The following table reconciles the undiscounted cash flows for the finance and operating leases to the finance and operating lease liabilities recorded on the balance sheet at June 28, 2025 (in thousands):


	Finance Leases		Operating Leases
2025 Remainder	$	18,282	$	253
2026		30,028		299
2027		19,217		265
2028		15,309		95
2029		10,920		—
Thereafter		—		—

Total future minimum lease payments		93,756		912
Less amount representing interest (1.6% to 6.4%)		8,332		61

Present value of minimum lease payments	$	85,424	$	851

Current maturities of long-term debt		30,747
Long-term debt, excluding current maturities		54,677
Other current liabilities				392
Deferred income taxes and other noncurrent liabilities				459

Undiscounted Cash Flows for the Finance and Operating Leases

The weighted average remaining lease term and the weighted average discount rate for finance and operating leases as of June 28, 2025 were:


	Finance Leases			Operating Leases
Weighted average remaining lease term (years)		3.4			2.5
Weighted average discount rate		5.0	%		5.5	%

Operating lease
right-of-use
assets

Other assets

Finance lease assets

Operating property, less accumulated depreciation and amortization

Total lease assets

LANDSTAR SYSTEM INC 10-Q