ALLIENT INC Leases Disclosure
10. LEASES
The Company has operating leases for office space, manufacturing facilities and equipment, computer equipment and automobiles. Many leases include one or more options to renew, some of which include options to extend the leases for a long-term period, and some leases include options to terminate the leases within 30 days. In certain of the Company's lease agreements, the rental payments are adjusted periodically to reflect actual charges incurred for capital area maintenance, utilities, inflation and/or changes in other indexes.
The Company’s finance lease obligations relate to a manufacturing facility. As of December 31, 2025, finance lease assets of $7,037 are included in , net, finance lease obligations of $486 are included in , and $7,766 are included in on the consolidated balance sheet.
For the years ended December 31, 2025 and 2024, the components of operating lease expense were as follows (in thousands):
| December 31, | December 31, | ||||
2025 | 2024 | |||||
Fixed operating lease expense | $ | 7,111 | $ | 6,610 | ||
Variable operating lease expense | 766 | 735 | ||||
Short-term lease expense | 1,150 | 826 | ||||
$ | 9,027 | $ | 8,171 | |||
Supplemental cash flow information related to the Company’s operating and finance leases for the years ended December 31, 2025 and 2024 are as follows (in thousands):
December 31, | ||||||
2025 | 2024 | |||||
Cash paid for operating leases | | $ | 6,993 | | $ | 6,418 |
Cash paid for interest on finance lease obligations | | $ | 385 | | $ | 405 |
Assets acquired under operating leases | $ | 1,816 | $ | 6,011 | ||
Operating lease assets obtained in acquisitions | $ | — | $ | 378 | ||
The following table presents weighted average remaining lease term and discount rates related to the Company’s operating leases as of December 31, 2025 and 2024:
| December 31, |
| ||||||
2025 | 2024 | |||||||
Weighted average remaining lease term (in years) |
| 5.06 |
| 5.73 | ||||
Weighted average discount rate |
| 4.74 | % |
| 4.71 | % | ||
The following table presents the maturity of the Company’s operating and finance lease liabilities as of December 31, 2025 (in thousands):
| Operating Leases | Finance Leases | ||||
2026 | 6,203 | 848 | ||||
2027 | 5,439 | 867 | ||||
2028 | 4,085 | 886 | ||||
2029 | 2,739 | 906 | ||||
2030 | 2,178 | 927 | ||||
Thereafter |
| 3,662 |
| 6,051 | ||
Total undiscounted cash flows | $ | 24,306 | $ | 10,485 | ||
Less: present value discount | (2,552) | (2,233) | ||||
Total lease liabilities | $ | 21,754 | $ | 8,252 | ||
The Company leases certain facilities from companies for which a member of management is a part owner. In connection with such leases, the Company made payments to the lessor of $746 and $884 during the years ended December 31, 2025 and 2024, respectively. Future minimum lease payments under these leases as of December 31, 2025 are $5,083.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 5, 2025 | |
| 2023 | Mar 5, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 9, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 11, 2020 | |
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.