NOTE 8 — Leases
A summary of finance and operating lease right-of-use assets and lease liabilities as of December 31, 2025 and December 31, 2024 is as follows:
(in thousands)Balance Sheet ClassificationDecember 31, 2025December 31, 2024
Right-of-use assets
Finance leases$406,381 $374,623 
Operating leases448,958 315,256 
Lease right-of-use assets, net$855,339 $689,879 
Lease liabilities
Current lease liabilities
Finance leases$17,298 $13,256 
Operating leases19,168 13,979 
Current portion of lease liabilities36,466 27,235 
Non-current lease liabilities
Finance leases402,697 369,297 
Operating leases449,683 309,311 
Lease liabilities, net of current portion852,380 678,608 
Total lease liabilities $888,846 $705,843 
The components of lease costs, excluding short-term lease costs and sublease income (both immaterial for the periods presented), were as follows:
Statements of Operations Classification
Year Ended December 31,
(in thousands)202520242023
Finance lease costs
Amortization of right-of-use assetsCost of sales$27,467 $25,551 $21,290 
Amortization of right-of-use assets
Selling, general, and administrative
40 50 15 
Interest on lease liabilitiesInterest expense23,289 22,053 17,516 
Total finance lease costs
50,796 47,654 38,821 
Operating lease costs
Lease expenses
Cost of sales40,829 28,703 19,385 
Lease expenses
Selling, general, and administrative
2,835 1,646 55 
Total operating lease costs
43,664 30,349 19,440 
Variable lease costs
Cost of sales9,652 6,874 5,216 
Total lease costs$104,112 $84,877 $63,477 
Future minimum lease payments for finance and operating lease liabilities as of December 31, 2025 are as follows:
(in thousands)FinanceOperating
2026$41,575 $35,367 
202740,644 46,409 
202841,786 45,965 
202942,715 46,706 
203043,118 47,384 
Thereafter431,664 544,593 
Total$641,502 $766,424 
Less: imputed interest(221,507)(297,573)
Present value of minimum lease payments419,995 468,851 
Less: current portion(17,298)(19,168)
Lease liabilities, net of current portion$402,697 $449,683 
A summary of lease terms and discount rates for finance and operating leases is as follows:
 December 31, 2025December 31, 2024
Weighted-average remaining lease term (years)
Finance leases14.515.3
Operating leases15.515.5
 
Weighted-average discount rate (percentages)
Finance leases6.0%6.0%
Operating leases6.3%5.9%
Supplemental cash flow information related to leases is as follows for the periods presented:
Year Ended December 31,
(in thousands)202520242023
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from finance leases$23,289 $22,053 $17,516 
Operating cash flows from operating leases1
25,316 22,127 17,167 
Financing cash flows from finance leases16,105 10,541 12,432 
Right-of-use assets obtained in exchange for lease obligations
Finance leases53,547 15,838 144,588 
Operating leases148,332 130,059 40,253 
_______________
1 For the year ended December 31, 2025, the amount presented is net of a $5.4 million tenant improvement allowance received from the landlord related to our Arizona headquarters office lease.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 13, 2025
2023Feb 23, 2024
2022Feb 27, 2023
2021Mar 11, 2022

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.