BARRETT BUSINESS SERVICES INC Leases Disclosure
Note 7 - Leases
The Company primarily leases office buildings under operating leases which are included in Operating lease right-of-use (“ROU”) assets, Current operating lease liabilities, and Long-term operating lease liabilities on the consolidated balance sheets. The Company’s leases have remaining terms of 1 to 8 years.
Information related to the Company's total lease costs was as follows (in thousands):
|
Year Ended |
|
|||||
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Operating lease cost |
$ |
8,094 |
|
|
$ |
7,556 |
|
Variable lease cost |
|
1,343 |
|
|
|
1,314 |
|
Short-term lease cost |
|
417 |
|
|
|
662 |
|
Total lease cost |
$ |
9,854 |
|
|
$ |
9,532 |
|
Information related to the Company's ROU assets and related lease liabilities was as follows (in thousands):
|
Year Ended |
|
|
|||||
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
||
Cash paid for operating lease liabilities |
$ |
7,663 |
|
|
$ |
7,745 |
|
|
Right-of-use assets obtained in exchange for new operating lease obligations |
|
7,210 |
|
|
|
6,913 |
|
|
|
|
|
|
|
|
|
||
|
|
|
||||||
|
|
|
|
|
|
|
||
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|
||
Weighted-average remaining lease term |
4.2 years |
|
|
3.7 years |
|
|
||
Weighted-average discount rate |
5.4 |
|
% |
5.1 |
|
% |
||
The table below reconciles the undiscounted future minimum lease payments (displayed by year and in the aggregate) under noncancellable operating leases with terms of more than one year to the total operating lease liabilities recognized on the consolidated balance sheets as of December 31, 2025 (in thousands):
2026 |
$ |
7,999 |
|
2027 |
|
6,884 |
|
2028 |
|
5,252 |
|
2029 |
|
3,148 |
|
2030 |
|
2,011 |
|
Thereafter |
|
2,060 |
|
Total undiscounted future minimum lease payments |
|
27,354 |
|
Less: Difference between undiscounted lease payments and discounted operating lease liabilities |
|
2,901 |
|
Total operating lease liabilities |
$ |
24,453 |
|
Current operating lease liabilities |
$ |
6,969 |
|
Long-term operating lease liabilities |
|
17,484 |
|
Total operating lease liabilities |
$ |
24,453 |
|
The Company has no additional operating leases that have not commenced as of December 31, 2025.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 6, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 8, 2021 | |
| 2019 | Mar 3, 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.