Leases
The components of lease costs for the years ended December 31, 2025, 2024, and 2023 are as follows (dollars in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Operating leases costs | $ | 3,583 | | | $ | 3,937 | | | $ | 3,906 | |
| Short-term lease costs | 31 | | | 309 | | | 335 | |
| Total lease costs | $ | 3,614 | | | $ | 4,246 | | | $ | 4,241 | |
The following table includes supplemental information:
| | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | 2023 |
| Weighted-average remaining operating lease term (in years) | 10.6 | | 9.6 | | 9.5 |
| Weighted-average operating lease discount rate | 4.75% | | 4.59% | | 4.48% |
Cash paid related to operating lease liabilities was $3,876 for the year ended December 31, 2025.
The total operating lease liability arising from ROU assets was $27,303 for the year ended December 31, 2025.
Finance lease assets are recorded in “Property, plant, and equipment, net” with the corresponding finance lease liabilities on the consolidated balance sheets.
Minimum future maturities of operating lease liabilities as of December 31, 2025 were as follows (dollars in thousands): | | | | | |
| |
| 2026 | $ | 3,681 | |
| 2027 | 3,590 | |
| 2028 | 3,483 | |
| 2029 | 3,481 | |
| 2030 | 3,195 | |
| Thereafter | 17,559 | |
| Total lease payments | 34,989 | |
| Less imputed interest | (7,686) | |
| Total | $ | 27,303 | |
We have not entered into any operating leases that have not yet commenced as of December 31, 2025.
As discussed in Note 4, Property, Plant and Equipment, Net, the Company recognized a total impairment loss on right of use assets related to our BRCC Outposts during the fourth quarter of 2025 and 2024 of $1,633 and $2,600, respectively. This total loss on impairment of assets is presented within “Other operating expense, net” in the consolidated statements of operations.
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.