LeasesLease Costs
The components of lease expense were as follows:
| | | | | | | | | | | | | | | | | | | |
| Year Ended December 31 | | |
| 2025 | | 2024 | | 2023 | | |
| (thousands) | | |
| Operating lease cost | $ | 14,530 | | | $ | 13,690 | | | $ | 13,227 | | | |
| Finance lease cost | | | | | | | |
| Amortization of right-of-use assets | 1,774 | | | 2,480 | | | 2,470 | | | |
| Interest on lease liabilities | 1,702 | | | 2,147 | | | 2,229 | | | |
| Variable lease cost | 5,628 | | | 5,800 | | | 5,429 | | | |
| Short-term lease cost | 7,014 | | | 5,784 | | | 6,149 | | | |
| Sublease income | (234) | | | (153) | | | (330) | | | |
| Total lease cost | $ | 30,414 | | | $ | 29,748 | | | $ | 29,174 | | | |
Other Information
Supplemental cash flow information related to leases was as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31 |
| 2025 | | 2024 | | 2023 |
| (thousands) |
| Cash paid for amounts included in the measurement of lease liabilities | | | | | |
| Operating cash flows from operating leases | $ | 14,229 | | | $ | 13,125 | | | $ | 13,472 | |
| Operating cash flows from finance leases | 1,699 | | | 2,128 | | | 2,226 | |
| Financing cash flows from finance leases | 1,441 | | | 1,955 | | | 1,831 | |
| Right-of-use assets obtained in exchange for lease obligations | | | | | |
| Operating leases | 17,435 | | | 5,356 | | | 18,147 | |
| Finance leases | — | | | 803 | | | — | |
Other information related to leases was as follows:
| | | | | | | | | | | | | | | |
| |
| December 31, 2025 | | December 31, 2024 | | | | |
| | | | | | | |
| Weighted-average remaining lease term (years) | | | | | | | |
| Operating leases | 7 | | 7 | | | | |
| Finance leases | 12 | | 13 | | | | |
| Weighted-average discount rate | | | | | | | |
| Operating leases | 5.9 | % | | 5.9 | % | | | | |
| Finance leases | 8.6 | % | | 7.5 | % | | | | |
As of December 31, 2025, our minimum lease payment requirements for noncancelable operating and finance leases are as follows:
| | | | | | | | | | | | | | |
| | Operating Leases | | Finance Leases |
| | (thousands) |
| 2026 | | $ | 13,454 | | | $ | 2,417 | |
| 2027 | | 12,827 | | | 2,462 | |
| 2028 | | 10,186 | | | 2,293 | |
| 2029 | | 9,212 | | | 2,252 | |
| 2030 | | 7,208 | | | 2,019 | |
| Thereafter | | 20,859 | | | 15,068 | |
| Total future minimum lease payments | | 73,746 | | | 26,511 | |
| Less: interest | | (13,648) | | | (9,804) | |
| Total lease obligations | | 60,098 | | | 16,707 | |
| Less: current obligations | | (10,320) | | | (1,076) | |
| Long-term lease obligations | | $ | 49,778 | | | $ | 15,631 | |
As of December 31, 2025, the undiscounted future lease payments for an additional lease that has not yet commenced are approximately $26 million. This lease is expected to commence in 2026 with a lease term of 16 years.
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.