Leases
The components of lease cost recognized within the Company's Consolidated Statement of Operations were as follows:
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| | | | Year Ended December 31, |
| (in thousands) | | Consolidated Statement of Operations Classification | | 2025 | | 2024 | | 2023 |
| Lease cost: | | | | | | | | |
| Operating lease cost | | Cost of sales and merchandising revenues | | $ | 20,632 | | | $ | 17,760 | | | $ | 16,123 | |
| Operating lease cost | | Operating, administrative and general expenses | | 20,362 | | | 14,490 | | | 13,203 | |
| Finance lease cost | | | | | | | | |
| Amortization of right-of-use assets | | Cost of sales and merchandising revenues | | 590 | | | 80 | | | 120 | |
| Amortization of right-of-use assets | | Operating, administrative and general expenses | | 1,526 | | | 1,133 | | | 1,045 | |
| Interest expense on lease liabilities | | Interest expense, net | | 366 | | | 346 | | | 332 | |
| Short-term lease cost | | Cost of sales and merchandising revenues | | 2,798 | | | 2,194 | | | 2,160 | |
| Short-term lease cost | | Operating, administrative and general expenses | | 330 | | | 46 | | | 144 | |
| Variable lease cost | | Cost of sales and merchandising revenues | | — | | | — | | | 500 | |
| Variable lease cost | | Operating, administrative and general expenses | | 734 | | | 468 | | | 225 | |
| Total lease cost | | | | $ | 47,338 | | | $ | 36,517 | | | $ | 33,852 | |
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| (in thousands) | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | |
| Operating cash flows from operating leases | $ | 41,255 | | | $ | 33,094 | | | $ | 30,467 | |
| | | | | |
| Financing cash flows from finance leases | 1,953 | | | 1,185 | | | 1,270 | |
| Right-of-use assets obtained in exchange for lease obligations: | | | | | |
| Operating leases | 31,159 | | | 72,196 | | | 48,569 | |
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The following table summarizes the amounts recognized in the Company's Consolidated Balance Sheets related to leases:
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| | | | December 31, |
| (in thousands) | | Consolidated Balance Sheet Classification | | 2025 | | 2024 |
| Assets | | | | | | |
| Operating lease assets | | Right of use assets, net | | $ | 108,792 | | | $ | 104,630 | |
| Finance lease assets | | Property, plant and equipment, net | | 21,259 | | | 23,119 | |
| Total leased assets | | | | $ | 130,051 | | | $ | 127,749 | |
| | | | | | |
| Liabilities | | | | | | |
| Current operating leases | | Accrued expenses and other current liabilities | | $ | 27,081 | | | $ | 25,773 | |
| Non-current operating leases | | Long-term lease liabilities | | 71,545 | | | 65,312 | |
| Total operating lease liabilities | | | | 98,626 | | | 91,085 | |
| | | | | | |
| Current finance leases | | Current maturities of long-term debt | | 2,037 | | | 1,884 | |
| Non-current finance leases | | Long-term debt, less current maturities | | 7,559 | | | 9,616 | |
| Total finance lease liabilities | | | | 9,596 | | | 11,500 | |
| Total lease liabilities | | | | $ | 108,222 | | | $ | 102,585 | |
| | | | | | | | | | | |
| As of December 31, |
| Weighted-Average Remaining Lease Term | 2025 | | 2024 |
| Operating leases | 8.5 years | | 10.9 years |
| Finance leases | 5.9 years | | 6.6 years |
| | | | | | | | | | | |
| As of December 31, |
| Weighted-Average Discount Rate | 2025 | | 2024 |
| Operating leases | 5.0 | % | | 5.0 | % |
| Finance leases | 4.2 | % | | 4.2 | % |
The following table outlines maturities of the Company's lease liabilities as of December 31, 2025:
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| (in thousands) | Operating Leases | | Finance Leases | | |
| 2026 | $ | 32,254 | | | $ | 2,414 | | | |
| 2027 | 23,602 | | | 2,229 | | | |
| 2028 | 14,126 | | | 2,075 | | | |
| 2029 | 7,816 | | | 2,394 | | | |
| 2030 | 5,576 | | | 690 | | | |
| Thereafter | 61,543 | | | 1,289 | | | |
| Total lease payments | 144,917 | | | 11,091 | | | |
| Less: interest | 46,291 | | | 1,495 | | | |
| Total | $ | 98,626 | | | $ | 9,596 | | | |
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.